Predatory lending moves from subprime to high end

Mar 8th, 2011  
by IrvineRenter  in Library News

Astute Observations

Astute Observation by Geotpf
2011-03-08 08:32 AM

Don’t forget the $1,124 monthly HOA fee.

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Astute Observation by Planet Reality
2011-03-08 08:56 AM

Properties like this should never have been built in Irvine or anywhere in Orange County.  High end urban living in Irvine was a losing proposition from day 1.

They may have been successful had they targeted the high end rental market and toned down the luxuries, size, etc

IR good balanced reporting today, so rare these days

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Astute Observation by SanJoseRenter
2011-03-08 06:39 PM

From the listing:

Association Fees Include:
Building and Grounds, Cable TV, Clubhouse, Concierge, Earthquake Insurance, Gas, Insurance Paid, Maintenance Paid, Trash Paid, Water and Sewer Paid

Can anybody price what those are worth compared to the HoA of $1,124/month? Anybody seen the clubhouse?

Might be a good post for IR: status of HoAs, and where the money goes.

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Astute Observation by winstongator
2011-03-08 10:41 AM

Can McGonigle go to a different bank to refinance?  If there is a whole lot of equity left in the deal, then there should be a little to give the new bank.  Plus, it could be structured as a short-term loan.

Doesn’t this type of action with a developer mean you won’t get a lot of new business from them?  Not that banks are really looking for new property development to put money into, but I wouldn’t want to bank with them if I were a business…if the story is true as McGonigle is telling it.

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Astute Observation by tenmagnet
2011-03-08 11:16 AM

It’s not predatory lending.
The bank is doing the right thing to protect its balance sheet by imposing stricter loan to value requirements.
McMonigle’s cash and assets have deteriorated otherwise he’d have no problem getting bridge debt.

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Astute Observation by Billy D
2011-03-08 01:00 PM

I worked in McMonigle’s orbit for a while… and am familiar with many of his deals.

I doubt he is having money issues.  He has been one of the top 5 producing brokers in the country for over 10 years (often being the top), and has an above average turnover rate on homes… all of this while his cheapest house starts at $1mm. 

He is an interesting guy because he has become a go to deal maker in OC for buyers that tend to be recession proof… not a bad deal if you can get it.

What I find most surprising is that his office is worth $9mm… It isn’t that big.  I guess Fashion Island real estate commands a premium.

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Astute Observation by BD
2011-03-08 07:26 PM

If he has so much money and so many options why wouldn’t he just get his bridge financing somewhere else??  Why risk all of this clearly negative publicity?? 

My guess is that his troubles are real… he probably leveraged himself and his companies up so dramatically that he is facing the very same problems other commercial and residential RE owners have… can’t roll the debt on my stuff b/c it has lost 30-50% value, and he doesn’t have the money to pay the current bills…

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Astute Observation by Billy D
2011-03-08 08:10 PM

Maybe… call me naive but I guess I still get surprised (even though I know better) when someone pulling down coin (like he still does to this day) is stupid enough to go “all in” on a deal or is really careless with their millions.  Though it happens all the time (Donald Trump).

Maybe he just refuses to get rolled by the bank.

My guess is he will be just fine.

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Astute Observation by Vincenzo
2011-03-08 02:47 PM

Another OC poseur who has lived on borrowed money and now owes to everybody.
He even printed his own Magazine M

He probably speaks neither Arabic nor Russian. How will he sell his cheap looking villa?

Here is a private villa of a small Russian oligarch. It looks more Italian and more expensive:
http://englishrussia.com/index.php/2009/10/07/russian-barocco/

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Astute Observation by Pez Dispenser
2011-03-08 03:00 PM

Sounds like strategic default on the part of McMonigle. 

Everyone else is doing it (just like the councilman in Huntington) so why not jump on that wagon and renegotiate a better rate?

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Astute Observation by Feral
2011-03-08 03:13 PM

I bet if McMonigle had unloaded before the RE market collapsed, he would have happily posed for various magazine covers, standing in front of a luxury vehicle with a smug smile, lauded as the “Trump of OC”, “OC’s Top Gun” or some nonsense.  Sorry, cuts both ways.

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Astute Observation by AZDavidPhx
2011-03-08 03:51 PM

Viking Appliances:

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Astute Observation by Walter
2011-03-09 09:54 AM

Kills em and cooks em.

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