June 22, 2009

Calling All Contractors That Still Have Cash...

324 Day

From the listing for 324 Day over in Noe Valley:

Contractor special! Construction stopped during renovation and was foreclosed. Seller/lender anxious to sell, very motivated. Bring your best offer, don't worry about the listing price. Seller/lender will finance with reasonable down payment.

No recorded previous sales price that we can find, but tax records would suggest a purchase at a little under around a million in September 2007.

∙ Listing: 324 Day Street (3/1.5) - $760,000 [ERA Golden Gate Properties Via Pacific Union]

First Published: June 22, 2009 1:00 PM

Comments from "Plugged In" Readers

The supplemental tax bill (bill #704595) implies that this place changed hands in 2007 for $1,053,000. (Previous assessed value for tax purposes was $48,935.)

Propertyshark shows only one mortgage for $700,000, but no record of the foreclosure from what I can see. (Data is often incomplete I've found.)

Congrats to the 2007 seller for finding someone to overpay for this!

Posted by: LMRiM at June 22, 2009 1:19 PM

I'm sorry, Mr. Planning Commissioner, but the week after I bought it, some "homeless people" moved in and started a fire. Guess I'll need to rebuild.

While they were there, they burned down the POS next door on the right, too. Kind of hard to sell something for very much money with that catastrophe sitting next to it.

Posted by: tipster at June 22, 2009 1:20 PM

Listing for 3/1.5 seems to include the permitted new bedroom, office and bathroom (maybe-I couldn't access the full permits), but the 848 sqft does not seem to reflect the addition. Anyone have any additional info on the size/layout post remodel?

I don't think I'd "worry about the listing price" on this one either unless I was the "seller/lender"

Posted by: SFSnob at June 22, 2009 1:24 PM

A million clams for a 850 sq ft tear down. And people wonder why the whole country is on the express line to Hell.

Posted by: Jeffrey W. Baker at June 22, 2009 1:28 PM

"A million clams" isn't worth anything really. IMO, that's what the govt says when it loans out cash at near 0%. $1M invested in my Cal AMT-Free Muni fund will net you a whopping $150/month (0.018% annual interest).

PS: Yes, I know that "AMT-free" doesn't matter much when the rate is this low :-).

Posted by: Jeff at June 22, 2009 2:11 PM

That's pretty neat... I'd need $100M in the Cal AMT-Free Muni fund just to equal my current salary.

In that sense, I'm "worth" $100M!

Woohoo!

Posted by: Jimmy (No Longer Bitter) at June 22, 2009 2:32 PM

I have been expecting to see a lot more of this. Bought for $1M in 2007/08 was half built (or just got permits) and then sold at a loss. There should be more to come based on how many tear downs/fixers went for that price.

I think this place would have sold for $1.75M if was finished and sold in 2008, but now that market is one of the worst, and this place will only be worth $1.35M. If the cost of the work is $400K and the carry/close is $150K, then break even is $800K purchase. Let's say "I don't worry about the asking price" and offer $600K, then it seems like a decent project. But, since basically nothing in Noe sells under $700K I don't think it will happen.

Posted by: sparky-b at June 22, 2009 4:17 PM

I've seen the owner's name on bunch of properties in that condition, aggressively over paying to all of them. He also was involved in a house in Cole Valley that was featured here a year ago.

As Sparky said here many times, you can't really make it work till prices head back to $600k-$700k levels per lot.

4322 25th street is '05 vintage deal at $800K that took forever to go through the permitting process with a $2.6M possible exit.

If you only plan to add a little square footage w/o going to a 3 story mega home forget making money at these levels.

Posted by: someone at June 22, 2009 4:49 PM

For spec I would pay about 300k to 350k tops. Otherwise let the lender move in.

Posted by: jimmythekidsf at June 22, 2009 5:11 PM

I have ten bucks cash.

Posted by: BobbyD at June 22, 2009 5:14 PM

I bid 11 dollars. (Sorry BobbyD)

Posted by: El Payo at June 22, 2009 6:14 PM

^^^^

Is everyone seeing this? Multiple bids on a property in an hour! The market is WHITE HOT!!!

Posted by: Legacy Dude at June 22, 2009 6:22 PM

50 quatloos!

Posted by: Buy High, Sell Low at June 22, 2009 8:02 PM

based on his portfolio of disasters, my bet is Mr Muhawieh becomes a local poster child for young, dumb cocky r.e. investors that bought at the top.

Posted by: resp at June 23, 2009 6:31 AM

^^^^^^ Looks like he found a few takers for his other properties; curious to see if they close and at what price.

1130 Cole St (Contigent)

352 Diamond (Contigent)

Posted by: unearthly at June 23, 2009 10:38 AM

resp- then what will the lenders that enabled him to do this be remembered as?

Posted by: anon at June 23, 2009 10:46 AM

Interesting how sparky-plan-B said multiple times that he was looking for good projects but that numbers for gut-outs didn't really add up. Now we have the answer.

I'll bet the previously assessed value or $48,935.

Posted by: San FronziScheme at June 23, 2009 10:46 AM

unearthly:

we looked at 1130 cole, and if I recall correctly, this one was interesting because they started doing all this work (taking off the roof etc) that was not part of the permit, and were shut down by the neighbors...

so we stayed away.

Posted by: Geo at June 23, 2009 4:33 PM

Geo,

See page 6.

Posted by: unearthly at June 23, 2009 4:46 PM

What are y'all waiting for? MLS says "bring your best offer, don't worry about listing price".

i say 51 simoleons.

Posted by: whatever at June 23, 2009 5:34 PM

The foreclosure price on June 8 was $770,926.

Posted by: EBGuy at June 30, 2009 12:39 PM

I guess there are two ways to a financial meltdown: cooking the books and not having any books at all.

Apparently, Maher Muhawieh did both.

Posted by: Financial Analyst at July 16, 2009 9:27 PM

he's going to jail - any defenders above have to admit they were fleeced:

"Mission district Madoff charged with $25 million scheme
By: Brent Begin
Examiner Staff Writer
09/17/10 3:02 PM PDT

An avalanche of charges came down Friday morning on a 31-year-old San Francisco real estate investor indicted in a $25 million ponzi scheme that victimized more than 80 people in the Mission district and the Haight."

http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/09/17/state/n154425D39.DTL

http://www.sfexaminer.com/local/blogs/law-disorder/Mission-district-Madoff-charged-with-25-million-scheme-103169739.html

background: http://missionlocal.org/2009/05/on-valencia-a-story-of-real-estates-boom-and-bust/

Posted by: defenseless at September 18, 2010 11:06 AM

Here is the indictment. The US Attorney does not mess around. If they get the grand jury to indict you for something like this, you're going to prison (unless he skips bond and flees the country).

http://www.justice.gov/usao/can/press/press_documents/Muhawieh%20Indictment.pdf

Posted by: A.T. at September 18, 2010 3:05 PM

"Mission Madoff" Promises He Will Not Flee Before His Trial Ends

http://www.sfgate.com/cgi-bin/blogs/inthemission/detail?entry_id=72930

Posted by: alazyman at September 22, 2010 3:29 PM

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