April 11, 2011

malty million$$$ home in a lather

Thanks very much to Burbed reader Tracy for this bubbly find in Saratoga!  Just the pick-me-up for Spring Bounce.  Cheers!

20615 Leonard Rd, Saratoga CA 95070
$1,798,000

image

BEDS: 4
BATHS: 2.5
SQ. FT.: 2,142
$/SQ. FT.: $839
LOT SIZE: 0.74 Acres
PROPERTY TYPE: Detached Single Family
STYLE: Ranch, Traditional
STORIES: 1
VIEW: Green Belt, Mountains
YEAR BUILT: 1952
COMMUNITY: Saratoga
COUNTY: Santa Clara
MLS#: 81112417
SOURCE: MLSListings
STATUS: Active
ON REDFIN: 18 days

location. location. location. Area of malty million$$$ home (homes up to $4,700,000 sold in the street). Huge and beautiful 3/4 of acre(32200 square feet 161 by 200) land close to down town and schools and shopping. make your appointment. beautifully situated on top of very quiet street. Home was remodel 20 years ago and still needs some work. Fix it now or simply move to it and fix it lather.

imageDefinitely location, location, location if they’re selling malty million$$$ home in the street.  Sound’s like every day is St. Patrick’s day with this view of the Green Belt, wow, you think they have any red pixels left in that camera?  And on-street sales, definitely a big brew party.  make your appointment.

imageYou have a choice: fix it now or simply move to it and fix it lather.  Just make sure you got the fridge plugged in so you can pre-chill your mug.

Judging from the tile in this kitchen I think a remodel 20 years ago means they got a close-out on this stuff.  This design screams 1988.  And 8s are lucky!

What I really like about this listing is how the agent is barely literate, but tries to pull a fast one on us.

image

As you can see from the map, the house is fifth on the right from a major arterial that was once a state highway.  But how about this for deceptive? 

(homes up to $4,700,000 sold in the street)

Wow, there’s a $4.7M sale on that street (excuse me, sold in the street)?  Could it be… the ginormous parcel where the road curves a bit?  Ya think?  Maybe the house isn’t worth sparge and the value is in the land?  If you want a malty million dollar house, hop to it and buy both neighbors’ places, scrape ‘em, profit!  You’ll be at lager-heads with the remaining neighbors, but don’t let it ale you.

Comments (41) -- Posted by: madhaus @ 5:14 am

41 Responses to “malty million$$$ home in a lather”

  1. SEA Says:

    Malty million housing–the cause of, and solution to, all problems.

  2. nomadic Says:

    On the market for 20 days and the sellers haven’t made the realtard fix the copy yet? Maybe they ain’t too bright…

    Oh, never mind.
    Seller is Licensed Real Estate Agent

    And he bought it four years ago for $1.75M. D’oh!

  3. nomadic Says:

    The highest Zestimate on the street is $2.96M for the place at the end of the street on a lot 65% larger; the house is 3x larger and was built in 2007. It was purchased for something like $3.3M.

  4. madhaus Says:

    Now we know the cause of real estate bubbles: malty millions!

  5. SEA Says:

    #2- I wondered what was going on with that price of $1,798,000–too low for recovery of the original $1,750,000, yet quite close. Once the commission is cut in half, the net is very near the original purchase price.

    That said, I had to go look into the tasty road kill–malty millions in the street–$4.7M. I did not check every place. I stared with the nice big lot with the tennis court (20680 Leonard Rd).

    When did 20680 Leonard Rd sell for $4,717,000? May 11, 2001. Yup, that’s right, approximately 10 years ago. How tasty. Oh, what about some listing history:

    2008 October: Listed $4,450,000
    2008 November: Price change $4,250,000
    2009 October: Listing removed ($4,250,000).
    Current Zestimate: $2,794,000

    Source: Zillow

    Losing malty millions after 10 years? That’s not the RBA way.

    Getting back to our featured 20615 Leonard Rd, take a look at the taxes paid:

    2006: $1,436
    2007: $1,436
    2008: $19,840
    2009: $17,290
    2010: $17,290

    From $1,436 a year to $1,436 per month.

  6. ES Says:

    This will sell for this price. You know what ruins me? The fact that this person is going to make a $50K commission off of this. Do that 3x a year and you’re making more money than me, an attorney with $100K in student loans, and you can’t even fucking spell. I bet this person has a high school diploma from Kandahar High in southern Afghanistan.

  7. sfbubblebuyer Says:

    #6: The seller is the agent, so no commission, just trying to get out from under a crippling debt burden now that their income has been decimated. I’m sure they held on as long as they could.

  8. The Gilroy Alex Says:

    Sigh. They’re willing to try anything these days, aren’t they? Getting to us by appealing to one of the joys of most of our childhoods, Archie Comics! Of course, Archie lived in a quintessential American suburb, and started out working in a malt shop. By now of course he’d own the thing and the strip mall it’s in (the area the house is in has a TON of strip malls, I’ve ridden Sunnyvale-Saratoga road lots of times on a bicycle) and by now his father, a barber, would be retired and living his later, lather? life in sweet suburbia.

    In all fairness (which has no place in real estate) this area is greener and nicer than the aerial photo would seem to indicate. This isn’t Santa Clara or San Jose. And there’s a church shaped like a flying saucer in the area too – for when we’re all Raptured to Jetsonville.

  9. ES Says:

    #7, thanks… I needed that. I was getting really angry for a minute there.

  10. SEA Says:

    #9- You’re also missing the second split.

  11. nomadic Says:

    No commission earned, but he’ll have to pay the buyer’s agent $50k, ending up with #5’s break even.

    ES, I’d still be fuming that this ‘tard was able get a loan to buy a place for $1.75M in the first place.

  12. anon Says:

    1 million + loans were common place during the 00s. They were given out to people like this for two reasons: 1) so wall street had another loan to repackage and sell and 2) so as to create indentured servants out of the people who borrowed the money. Being on the borrowing side of such a loan is not an enviable position. It is a position that typically broke pretenders find themselves in and it most frequently ruins them in the end.

    Put another way: I wouldn’t be fuming; I’d be laughing. This person has, in all likelihood, been chasing his tail for the past 5 years and is about to be squeezed for every dime he has. That’s funny.

    “Do that 3x a year and you’re making more money than me, an attorney with $100K in student loans, and you can’t even fucking spell.”

    >>You don’t actually believe that an education entitles one to make money, do you?

  13. SEA Says:

    It’s not the education that entitles one to make money, but rather the spending of money that entitles one to make money. You know the basic attitude:

    Borrow $1.75M for a home–you should expect to sell it for $3.5M within 10 years.

    Borrow $100k for education–you should expect positive cash flow on that for the rest of your life.

    In fact, both point out the value of the discount rate:

    If the underlying investment pays greater than the cost of capital, you’re in good shape.
    If the underlying investment pays less than the cost of capital, you’re screwed.

    The pesky fundamentals of finance always mess things up.

    Why is it that the financial cost of education becomes so important once the loans are due?

  14. nomadic Says:

    #12, are you also laughing that your tax dollars bailed out the banks and indirectly go into the pockets of the bankers via their outsized bonuses? Nothing like rewarding the architects of the financial collapse while making everyone else pay.

    I took ES’ comments about education to mean that he or she invested heavily in it, while this illiterate person can earn more without any such investment. We’ve had similar discussions on here in the past. Furthermore, spending on a college degree did assure better earnings than someone with only a high school diploma until the last decade or so. Unfortunately those days are over as well, and opportunities in this country are shrinking.

  15. PerfectBanker Says:

    Looks like the flipper is in trouble. Too bad those good days did not last forever.

    Mrs Estahbanati had a huge ambition. After all she is a partner in construction company. She can buy a 2000 sqft fixer upper for $1.75M, then expand it to 4000 stft (remember, she has a construction company) and sell it for $3M. At least that’s what her partner Zabihollah Golshan did at 20521 Leonard Rd. Easy money!
    Only one problem. The timing was bad. It was too late in 2007.

  16. SEA Says:

    That’s not a diploma; that’s your student loan bill…

  17. PerfectBanker Says:

    BTW, it turned out both the partners made money in 20521 Leonard Rd property. Bought it in 2003 for $906K in 2003. Sold in 2007 for $2.625M.
    They just tried to replicate the same profit in 20615 Leonard Rd.

  18. Petsmart banker Says:

    > […] this illiterate person can earn more without any such investment.

    You say that like a real estate license is free and easy to get.

  19. sfbubblebuyer Says:

    I love reading about failed flippers.

    Greedy S.O.B.s, the whole lot.

  20. madbaunker Says:

    Sigh, now I supposed you want me to add the “flip” tag to this place too.

  21. corntrollio Says:

    There are lots of malty million dollar houses being sold in San Francisco. The guys at the corner drink Olde English, Colt 45, Mickey’s, King Cobra, etc. I didn’t think those malty guys were ending up in Saratoga. This house is 40 oz. to freedom!

  22. corntrollio Says:

    Btw, what happened to Pralay?

  23. DreamT Says:

    #22 – He accepted to meet Real Ace Tater at Star Box, and that’s the last we ever heard of him. Frankly, we’re worried. Maybe it’s time to unearth these library bricks and find if anything was hidden underneath.

  24. nomadic Says:

    I heard he has achieved perfection.

  25. PerfectBanker Says:

    Last time I saw Pralay going to Malt-Y-Meal party in a malty-million dollar house. I never saw him coming back.

  26. The Gilroy Alex Says:

    Out where I am, the garage sales are great. There are some real castles that were bought by people who, frankly, were probably all chipping in paying the liar loan by landscaping, doing construction, cookin’ at da taquira, etc. There’s an atmosphere of unreality…. they can’t believe they’re losing the place but then they can’t believe they were allowed to get it in the first place a few years ago.

  27. tuno Says:

    So, Gilroy Alex, are you going to rent a storage bin for ultra cheap, and then store the great garage sale (and dumpster dived) gleanings of these former millionaires? so that in 20 years when the economy recovers, you can sell them for a lot more? this is a generational opportunity which no-one has the cash to take advantage of. Rich folks’ toys, on sale. buy them now for the cost of the back taxes (so to speak), and make your grandkids rich. hang onto lead crystal while everyone else is focused on lead bullets.

    well, we’re not there yet, but the time is coming

  28. SEA Says:

    #26- Browsing the homes recently listed in Gilroy almost brings tears to my eyes.

    148 HENNESSEY Way:
    Apr 04, 2011 Listed (Active) $252,000 — MLSListings #81114567
    Dec 03, 2009 Sold (Public Records)
    This home was foreclosed. $530,000 — Public Records
    Sep 28, 2005 Sold (Public Records) $600,000 — Public Records

    Sold at $600k in 2005, and currently listed at $252k after being foreclosed at $530k?

    2530 COUNTRY Dr is almost burbed quality:

    Short sale asking price is $799k, but the last sale is Mar 10, 2005 for $480k. The level of debt would probably scare me: “THREE YEAR OLD HOME THAT IS TRULY SOMETHING SPECIAL * CRAFTSMAN-STYLE ATTENTION TO DETAILS * EXQUISITE HOME WITH VIEW OF MOUNTAINS * ONE OF THE BEST HOMES IN THE COUNTRY ESTATE AREA *”

    1224 SYCAMORE Ct sold in 1996 (15 years ago) for $235k, but it’s listed as a short sale at $385k (pending WITH release). Short after 15 years of ownership? Talk about renters!

    And how about a malty short sale:

    Mar 26, 2011 Listed (Active) $619,000 — MLSListings #81113144
    Jan 31, 2006 Sold (Public Records) $1,149,000 24.9%/yr Public Records

    In 5 years it’s gone down over $500k? I guess it’s no surprise that’s a short sale. This math is too hard–may I just call it 100% instant equity?

  29. anon Says:

    and to think people are just beginning to feel the pinch…

  30. Real Estater Says:

    Most impressive rental ever:

    http://sfbay.craigslist.org/sby/apa/2320042529.html

    “3BR, 1.5 BATH, 1350 SF, 2 Car Garage, 2 Swimming POOL, Red Wood Forest, One of Best High School in Silicon Valley.
    The Lynbrook high school is competitive to Palo Alto Gun High School and Mont Vista High School in Cupertino.
    But the house price are much much lower than Palo Alto and West Cupertino.

    High School students from here will go to IVY League University, Harvard, Stanford, Cal Tech, any famous University
    you can think of.”

    When people try so hard to compare themselves to Palo Alto, what does it mean? It can only mean one thing: There is no substitute.

  31. anon Says:

    Great find, RE. That ad is just dripping with audacity.

    When people try so hard to compare themselves to Palo Alto, what does it mean? It can only mean one thing: There is no substitute.

    Back to basic logic for you. You cannot claim something is good because something else is inferior. Palo Alto sucks and you deserve it.

  32. SEA Says:

    I suspect that #30 drives a Toyota.

  33. nomadic Says:

    You guys are a tough crowd. RE shows us comedy gold (albeit with his usual trolling comments) and you give him a hard time? That listing is too funny.

  34. PerfectBanker Says:

    It’s another great find by RE. Surely Burbed-worthy. And he posted in the right thread too. The landlord’s proficiency in English is as good as Azam Estahbanati’s English. No wonder these people are too quick to mention about PA Gunn and Cupertino “Mont” Vista. What is IVY (with all caps) League? Something like NFL League or NBA League?
    This rental has “built-in” forest trails inside. :) That’s so amazing! No picture, but I am sure it is “malty million $$$ home”.

    The last part is priceless. He starts with his imaginary “overwhelming response” and then he ends with more realistic “final rent amount can be flexible and depend on the applicant demands”.

    Due to overwhelming response. We have set the following time table:

    The monthly lease will have a $2600 (base rent) + $300 (Home Owner Association Fee) , total $2900/monthly
    for all interested applicants to consider, if you are comfortable with this monthly rent, ( The final rent amount
    can be flexible and depend on the applicant demands seen during April 15-May 15)

  35. madhaus Says:

    #34, it’s comparible to “Gun” high school. I think they meant Menlo-Atherton.

    Whoever wrote this copy does not understand how compound words work. Holy crap box:

    It is located in quiet area of West San Jose ( no high way noise and extremely quiet for Kids, Children, Working family
    and Senior Citizens. It has build-in Red Wood Forest Trails ( about 1 mile) around the town House Park.

    The copy really is as good as the malty lather house.

    The house is within walking distance to all 3 schools nearby ( within 10 min)
    Parents do not have drive them to school. You can walking to Shopping Plaza,
    Post office, dinning, etc. In the morning or after dinner, there is red-wood tree
    lined street that you can take walk for jogging, relaxing and imagine you
    live inside a natural park and smell the Red Wood Forest and surrounded
    by squirrels and Birds Singing.

    Randomly capitalized words, too. And what’s dinning? Doesn’t that mean making noise? They said it was quiet for extremely quiet for Kids, Children, Working family and Senior Citizens! Guess it is not quiet if you walk to the dinning.

    Holy crap box. I just looked at the map, I know this place, I know people who live in this complex. It’s right behind the Safeway shopping center at Bollinger and Miller. Hyde Middle is across the street, fortunately your kids would go to higher-ranked Miller.

  36. SEA Says:

    “final rent amount can be flexible and depend on the applicant demands”.

    Of course it’s reasonable to point out that over-bidding is expected!

  37. nomadic Says:

    #35, there are lots of “Gun” high schools back in the D (Detroit). Or Oakland.

  38. SEA Says:

    I do wonder, however, what #30 was doing in the rental section. Note that there was less than 20 minutes between the CL time stamp and the burbed time stamp.

    In any event, let’s consider the proposed move-in day:

    “6. Take Deposit by May 28.
    7. We move out by June 17.
    8. Tenant moves in by June 20.”

    6. Take deposit? That’s not the verb I want to read if I’m renting a place. I’d rather read make or place deposit by May 28, and since the deposit is made before the place is empty, I’d want it to be fairly small. In any event, maybe I’m being a bit sensitive to the word choice/timing? I simply don’t do business with people who use verbiage that sounds the alarm bells of trouble. My guess is that while he is living in the place, the landlord would want a large deposit and a month’s worth of rent a month before possession.

    7. I’d want a fairly large penalty if the LANDLORD does not move out. That’s something he has total control over. The rent is approximately $100 per day, so I’d want a penalty of at least $250 per day that the place is not ready. Starting with June 17 at noon.

    8. While the 72 hours between when the landlord moves out and tenant moves in smells of financial desperation, hopefully everything will be alright. But really, what is so important as to when the landlord moves out? My guess: He wants you to know that you cannot have it a day earlier or later–you must be willing and able to move in on a specific day. Are the air horns warning you to stay away from this?

    The bigger issue, however, is the time between today and when the tenant must take possession. Let’s see… He’s planning over two months out, but the tenant must accept possession within a 72 hour window? Run away!

    All of this, however, is subject to a big problem: What do you do if the landlord is bankrupt? Sure you might try and get a judgment, but try and collect from someone who is underwater and doesn’t have an extra dime to pay the new price of a cup of coffee out of the vending machine.

  39. SEA Says:

    Oh, and as #34 correctly points out: There is such a long line of applicants that it takes over two months of sorting out to try and find a good one.

    I remember the days when I’d put an employment ad on CL hoping to get a few replies. I put one up a couple months ago on a Friday. There were literally hundreds of replies by Monday morning, and many were from highly qualified candidates. I’ve not made the mistake of posting on Friday again! I do remember the days when looking for a good employee might take two months of searching…

  40. madhaus Says:

    Not only that, I found a place for sale in that complex, and Zillow has a rent Zestimate of (are you ready) $2050!

    http://www.zillow.com/homedetails/Regency-Park-Townhome-San-Jose-CA-95129/2130622338_zpid/

    Oh yeah, except this is a 3/2. Then again, I can’t figure out what the address is, and the map at the bottom of the page points over to some crapbox that backs onto Lawrence.

    Here’s a 3/1.5 that sold recently. Wow same broken compound word usage in the listing copy (Red Wood etc). Sold last month for $702,900; fees $295. Rent of $2900 means rent ratio of 20.

    http://www.redfin.com/CA/San-Jose/6158-Regency-Oaks-Dr-95129/home/1036094

  41. SEA Says:

    I’m a bit surprised that 6158 Regency Oaks Dr sold so quickly, with a very small amount of so-called ‘over bidding.’ Someone must have really wanted that unit. Of course there is at least one person around here that would suggest there are 70,000 other similar, able and willing buyers (please forgive me if I have the wrong number of thousands, but it was in that general vicinity). If I were a seller, I’d be hoping to find one of those.

    That said, the rent ratio of 20 is nice for the renter, but I’d have to be very desperate before I’d deal with this guy.


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