TIC now a rental: 2831-33 Webster St #4

2831-33 Webster St #4 is a TIC in a 6 unit building on a prime Pac Heights/Cow Hollow block.

This 3 bedroom 1 bath sold for $820,000 in 2007 - arguably the San Francisco market peak. Prior to that the entire building sold in 2004 for $2,370,000. That buyer did great because they sold 4 of the 6 units for $2,449,000.

Unfortunately unit #4's more recent 2007 buyer didn't do so well. Starting a year ago they tried selling at $895,000, and withdrawn and listed 2 more times with the last failed attempt to sell at $799,000. Now on Craigslist asking $4,000 and from what I know of the rental market, that may be $500 over priced.

Then again, it's got Golden Gate Bridge views and a deck... and just a 1/2 block from Union Street it just might attract a $4,000 renter. On the other hand the NYTimes Rent vs Buy calculator says it's better to buy at $800,000 vs. $4,000 in rent. So the problem here is it's a TIC, and TIC's are definitely not selling well vs. Condos in San Francisco right now.

SOMA Grand - only 3 condos remain

1160 Mission, aka SOMA Grand, update:

This is the opening line from a SOMA Grand email I got over the weekend
"With just three homes remaining, your opportunity to purchase in San Francisco’s best valued high-rise is almost gone!"

So wait a second!?!?!?!? Do you mean to tell me there will never be a re-sale of a SOMA Grand condo???

Duh, of course there will. So to anyone who cares to listen, wait until the "new car smell" is gone and buy a "used" condo for 10% less. Or who knows, maybe 20% or 30% less depending on the market and the deal the original owner got or didn't get.

An Attorney want to tackle this one?

Creating a spread between what appears to be a "straw" buyer and the eventual "real" buyer on a Short Sale - can this possibly be legal?

We thought this was a behind the scenes scenario we were hearing about... but the 12th comment down on this post on ActiveRain is from someone admitting their entire company is based on this sly maneuver.

These two comments are quite telling:
"We prefer that you give us a call as soon as you get the listing and not communicate with the bank(s) first. For us to be affective at what we do, we need your full cooperation."

In other words, don't YOU tell the bank what we're doing, we've got some way of telling them that gets this through. Legal or not, I don't know. I do know it would be illegal if the HUD doesn't clearly spell out how the double closing works and that the bank isn't getting as much money if they were to sell direct to the end user.

"We also let the listing agent keep the listing and re-list the property for us to resale to someone looking for a good deal on a short sale through our negotiation process."

Cool, for me to participate in what might be illegal behavior I'm enticed with two commissions. I think that's why Willy Loman liked to rob banks with more money in them. Better pay for that crime... that doesn't pay.

New listing: 1BR Marina Condo

Marina District Condo across from both Fort Mason and Moscone Rec Park. Click below or visit www.3501Laguna.com.

Open Sunday 2-4pm

Photo Phriday

Streetcar and Ferry Building, originally uploaded by bstorage.

3020 Laguna now for-rent AND to be demolished

Only in San Francisco - 3020 Laguna St, a recently sold Single Family Home in Cow Hollow has a Craigslist ad that says "The House Will Be Demolished In A Year To 18 Months. When Owner Has His New Construction Permits."

Further the ad says "Antiquated Pre-1900 Construction 1-3 Bedroom House 1 1/2 Blocks From Union Street. The House Is Not Glamourous Or Contemporary In Any Way."

Yeah, no kidding. Check out my video walk through from 3 months ago.



Hey, but they're only asking $3,200 per month. More than a little over priced in my opinion.

Photo Phriday

San Francisco from Conzelman Road, originally uploaded by bstorage.

San Francisco from Conzelman Road

Deal of the week: 210 Mallorca St, San Francisco

We've gotten a little depressing lately with tons of foreclosure and short sale news. Well, how about a really well priced property that looks like a deal to us?
210 Mallorca St in San Francisco's Marina District is this week's Deal of the Week.


Asking $1,495,000 for a 2-unit building with an illegal 3rd unit on the garage/garden level. The lower unit is currently rented for $2,600 per month, and if you wanted it for an investment the upper unit should easily rent for $3,000 and the illegal unit for $1,200 or so.

As a flip, you could sell the two units as TIC's and with 2 owner occupiers the building would bypass the lottery and have the ability to convert to condos in about 2 years. Valuing the property this way is where the "deal" comes in. An upper flat in a 2-unit building in the Marina that is approximately 1,400 SqFt could sell for $900,000. The lower flat should easily get $800,000.

Values are subjective, and the issues with this building is that each unit needs upgrading, and the garage is a 2-car tandem garage. There was one recent comparable property at $1,470,000 which would seem to indicate 210 Mallorca is priced right. But that was a probate sale that required Court confirmation, and appeared (to our non-professional eyes) to be more of a fixer than 210 appears to be.

If interested in seeing 210 Mallorca contact your agent, or if you don't have an agent we'd love to show it to you.

3 tips for delaying foreclosure

Need more time to get that Short Sale to go through? Or to come up with the money to get current on your loan? 3 tips for delaying foreclosure video:


The "Ask for the note" strategy is being billed by some as a way to prove the lender doesn't even own your home. As always, if it sounds too good to be true, it is. If you wonder out loud "why isn't everyone doing this" it's probably because it isn't true and doesn't work.

Also, "remind the bank" that they lose 30% more in a foreclosure vs. a Short sale is dumb. This is one EVERYONE does ALL OF THE TIME. If you say it too, they'll probably hold the phone 3 feet from their ear and not bother to listen to what you really need to talk about.

Finally, these are delaying tactics. They won't stop foreclosure.

One tip from us.... print out your credit reports and scores NOW when your credit is still good. You'll be able to prove to future landlords, employers and others that you were a good credit risk until you got caught up in a bad investment. www.AnnualCreditReport.com is the government's site. Don't use the ones advertised on TV unless you want to be sold a bill of goods and spammed relentlessly.

Another Watermark Penthouse REO

The sky is falling - or sky high "Penthouse" condo prices at 501 Beale St, San Francisco's "Watermark".

Time to grab my video camera for another Watermark Penthouse walk thru. 501 Beale St has yet another REO (banked owned foreclosure) Penthouse - this time #PH-1E, and this time asking $1,224,000. As you may recall #PH-1B was "only" asking $893,475 a little over a month ago. That just closed Escrow for about that price.

The trouble with these "penthouses" is they aren't even the top floor. #2E and #2B are above #1E and #1B. Notice just on the video's first frame the upper balcony (probably #PH-2E's) - your neighbor in the "real" penthouse sits on top of you. Despite that, according to tax records #PH-1E sold for $1,523,000 in 2007.

On the other hand, #PH-1E is clearly superior to #PH-1B because it is a corner unit and it's about 350 SqFt larger - at least according to tax records. But I'm still not buying the $1.224M price. A 30% drop from 2007 would be a $1,066,000 price today, and that's much more like it.

Beacon REO: 250 King St #810

250 King St #810, The Beacon, a banked own "REO" San Francisco condo with a past due offer date. What happened?

Per the San Francisco MLS "All offers due 2/25/10 @ 5pm". Yet the condo is still "Active" on the MLS a week later. I noticed it because even for The Beacon it looks like a "deal".

In 2006 it sold for $675,000 - this for a 1 bed, 1 bath with 822 SqFt. I called that "north end of town pricing" and told my clients when I could not make sense of values. But now? At $408,900 I would have at least expected someone to put in a low bid. So either we have "offer deadline-itis" where everyone stays away because they don't want to compete for fear of over-paying or simply wasting time. Or we have an out of town Listing Agent without direct access to the MLS who can't or won't get the status changed a week after accepting an offer.

But if you're in the market for a 1 Bedroom near AT&T Park, let me know and we'll give them an offer appropriate for a failed offer deadline.

1310 Fillmore St #802 - delayed Foreclosure?

1310 Fillmore St #802 had a scheduled Foreclosure Auction date of February 20th.

That date has come and gone and yet it is still on the San Francisco MLS listed as a Short Sale. Currently asking $665,000 per tax records it has a loan of $762,468. And per the San Francisco property tax payment site the "Net Taxable Value" of 1310 Fillmore #802 is $993,953. That's a drop of 33% in just over 2 years.

Pacific Heights Foreclosure Auction: 224 Presidio Ave

224 Presidio Avenue in Pacific Heights had a scheduled for Foreclosure Auction date of February 19th.

Unlike yesterday's story about 3157 Baker, 224 Presidio is not on the San Francisco MLS, so presumably it sold at Auction. The rest of the story is otherwise very similar. There was a mortgage a year in '04, '05 and '06. It's impossible to tell from tax records, but it looks like a $2.25 million first loan from 2005 and a $250,000 2nd from 2006. The judgement amount was $2.4 million.

Like 3157 Baker it went onto the market at well over $1,000 per SqFt right around the time the financial crisis became national news. Pulled 3 weeks later they re-listed it in January '09 at the same $3,995,000 price but then reduced by $345,000 3 months later, and withdrawn 4 months after that in August '09... and the default date was one month later.

Like 3157 Baker it appears 224 Presidio either has no yard, or a very small one. And while it's Presidio Ave location is a lot quieter than Richarson Ave, it's not exactly the most sought after Pacific Heights location. And like 3157 Baker I'd put the fair market value closer to it's default amount than it's attempted 2008 sale price.

The bottom line.... another "District 7" luxury San Francisco foreclosure.

Marina District Foreclosure Auction: 3157 Baker St

3157 Baker Street in San Francisco's Marina District had a scheduled for Foreclosure Auction on February 18th. Obviously that didn't happen because it is currently listed For-Sale on the San Francisco MLS.

Built in 2007 it had a recorded mortgage of $2,283,000 on April 23, 2007. Tax records show a default date of July 13th 2009.

It was listed for-sale in September 2008 for $5 million. That was probably an unrealistic number even before the financial crisis became national news later that month. It expired that December, and was just re-listed 3 weeks ago by what appears to be the owner of the property. This time at $3,695,000.

The home is 4,000 SqFt, but has no yard. It's also on Richardson - otherwise known as highway 101 - a very loud location nearly 24/7 but especially during rush hour.

In District 7 - Pacific Heights, Cow Hollow, Presidio Heights and the Marina - 5 single family homes have sold since the beginning of the year between $2 million and $5 million. 5 are in contract, and 15 are for-sale. That's a reasonable 6 months of inventory, but over $1,000 per SqFt seems severely over priced. I can't see a family spending over $3 million for a home with no yard and on a street you'd rather not have them crossing very often. And interestingly enough "Former residence to celebrity chef, CEOs, professional athletes". But how many wealthy, single or no-kid pro athletes are there - I hear Tim Lincecum lives in the Marina, but I doubt he wants to spend some of his $23 million on a 4,000 SqFt house on a busy street.

With a loan under $2.3 million, I'd try to get closer to the $2.6 million that 2312 Gough St is asking and walk away with at least a little cash - otherwise I think foreclosure will steal 100% of the equity.