ParkLoft is a mid rise "loft" style project near Petco Park.
This unit has a fairly large loss but what is really interesting is that it is listed below the developer sale price from four years ago - way back in 2003!
Type: Listed on MLS(#076042541)
List Price: $487,000
(Range priced $475,000 to $499,000)
Cost: $523,900
Loss@6% Sales Expenses: $66,120
Loss%: 12.62%
Purchase Date: 06/27/2003
Holding Period: 50 months and counting...
Bedrooms: 0
Bathrooms: 1.5
Square Feet: 1380
Purchase Details: view
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7 comments:
wow. That is amazing.
Heafty hoa fees over 700.00 a month!!!
Yeah. and that's just for a rec room. something tells me more than half the place isn't paying hoa, so everyone else's goes up because of it.
The real value of this place is high 200's.
How many of you know that accrual accounting allows banks to book as income the interest on neg-am loans that has been deferred and not paid and will likely never be paid?
You watch. In the next three quarters, there will be restated financials issued by several large banks in which the restated earnings will be so far off what was previously stated, that all hell will break loose.
The next nine months will be historical. I'm an accountant at a very large bank and know this to be the case. Sell everything and head for the hills, and I don't mean San Elijo Hills ; )
Anon,
I'm aware of that accounting trick. One question though, if they booked it as revenue in a past accounting period and now the loan goes bad wouldn't that pretty much be the same type of loss as the loss on the loan amount? In fact what they probably did was book the increase in loan amount as revenue but it also impacted the balance sheet.
Any way that you account for this the fact that the market is down substantially does not indicate good things for the banking sector.
Bitchin. I want to have the privilege of paying seven hundy a month to live by the ballpark.
Mr. Brightside:
"One question though, if they booked it as revenue in a past accounting period and now the loan goes bad wouldn't that pretty much be the same type of loss as the loss on the loan amount?"
I don't think so. With normal loans you just write off the principal you lost, but it doesn't generally require you to restate past financials because on a traditional loan, you as the bank were actually getting the interest income. When you count interest income you never received (e.g., neg-am loan), then take a loss on the principal too, you then have to restate your past financials to adjust for income you recognized as getting, but didn't, plus write off the principal loss you are now taking in addition to that.
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