Richard Crenian Blogs
Condo Projects-The New Reality
March 10, 2009
If you punch in Google News and go to a search of “The Donald” you will find that it has been bad for a year in condos.
I am not picking on him but just saying that he whole game plan is to sell off his name (that is smart) take all the credit (smart) and when the you know what hits the fan, he claims ignorance.
One thing he does is he promotes endlessly, claims to know all, and when the market is good he is the hero. What when it goes bad?
The Baja project that he sold the license fees for his name , investors have lost 32 million, his Chicago project he stands to lose 70 million or more, and his daughter who works for him is promoting Panama.
Panama, home of the overbuilding, empty suites that many unknown foreign speaking “out of towners” came to buy real estate with suitcases of cash.
I am not picking on him. Just saying that when the residential real estate market is going well, promoters make the money, and when the market falls, promoters fail.
Look at Howard my partner. Slow and steady, safe and secure are his mottos. He believes there aren’t get rich quick schemes without huge risk and if you invest slow but sure, with cash flow appreciating real estate, you would be ok and getting a nice return on your money.
The promoters promote. Howard invests slowly but surely and is steadfast that cash is King and cash flow lasts longer. Don’t try and sell him what’s “too go to be true!”
He doesn’t believe you. Phone him but don’t tell him he’s smart, you knows that, just bug him about his golf game. 403-630-4544. Donald, are you listening………?
Ps Below are some links and articles about the Donald you might find interesting.
“New York entrepreneur Donald J. Trump's planned 526-suit Trump Ocean Resort Baja - 30 minutes south of Downtown San Diego - is nothing but a deep hole in the ground today.
The condo-hotel project in North Baja, Mexico, could not obtain financing from a German bank to start construction.
Investors who had rushed to plunk down 30 percent deposits on suites priced from $300,000 to $3 million, are out their money.
Trump Entertainment Resorts Inc., through a Mexican entity, PB Impulsores, informed investors there were no funds to refund deposits totaling $32.2 million.
Trump Entertainment Resorts maintains a clause in the buyers' contracts gave the developer a right to spend their deposits.
Several lawsuits have already been filed in Los Angeles Superior Court.
Trump Baja condos went on sale in October 2006. S&P Destination Properties sold 188 units for a total $122 million on the first day of the sale. “
And from the Chicago Tribune…..
“Trump and Deutsche filed suits against each other in November. Trump first sued Deutsche and other lenders in New York State Supreme Court in Queens, seeking to excuse a repayment of more than $330 million due Nov. 7 and extend the $640 million construction loan for an unspecified amount of time. In the suit, Trump claimed that the global economic crisis was a "once-in-a-lifetime credit tsunami" affecting his ability to sell units at the Tower and repay the loan. He also sought $3 billion in damages.
Deutsche then filed its lawsuit in New York State Supreme Court in Manhattan, claiming Trump personally owed the bank $40 million after defaulting on the loan.
Several issues need to be resolved. Among them is Trump's assertion that the minimum selling prices of the units, set in 2005 during the market's zenith, are no longer realistic and Deutsche needs to agree to lower them. Some of the building's earliest buyers are marketing units for resale at prices substantially below the prices at which Trump can sell units.
Also to be negotiated is a maturity date on the $640 million construction loan and a price by which Trump could fulfill his desire to buy unsold hotel condo units in that portion of the project. In November, Trump offered $96.6 million for those units but he acknowledged Tuesday the market has changed dramatically since his initial offer last fall.”
Lastly from the
“Ivanka Trump, daughter of US real estate mogul Donald Trump and executive vice president of development and acquisitions for the Trump Organization, has good things to say about Panama. The 70-story Panama City Trump Ocean Club is scheduled to open in 2010 with a combination of condominiums, a hotel, restaurants, retail stores and a casino, and Miss Trump was promoting the project and the country in a recent interview with Latin Business Chronicle.
“I have projects all over the world [and] have a unique sense of the global real estate climate and submarkets,” she said in a recent interview. “With great conviction, Panama is one of the strongest, if not the strongest real estate market. Our biggest problem is not having enough inventory.”
Panama is a popular property destination for international investors for a number of reasons, and has been named by several leading publications and sources as a hotspot for 2009. It is predicted to be one of the better performing Latin American real estate markets in what is seen as a difficult year ahead. Panama offers tax incentives for developers and buyers, and Miss Trump notes that the government is very supportive of developers: “I’m impressed by their forward thinking in bringing in new potential investors,” she said.”
Comment from me……….not wanting to be cynical but. “Yeah, right! I am sure the new breed will line up ten people deep…….”