Wednesday, January 03, 2007 9:43:51 PM
WARNING...LOTS OF DD, SOME POSTERS NEED NOT APPLY 
Just researching our latest property acquisition. Hopefully some of the more negative posters here don't use this as an example of "lack of transparency" by the company. We've heard it. Please get over it. I don't like it either but at least I think this recent Townhome/Marina purchase seems to be a good one.
Generic Info on the Madisonville, LA Housing Market
http://realestate.yahoo.com/Louisiana/Madisonville
Madisonville, LA Real Estate Market Snapshot: updated Wednesday, December 27, 2006
Listing Type Number Median Price
Homes for Sale (MLS) 128 $329,000
New Homes 2 $359,900
Real Estate Classifieds 195 $322,800
Info on Local Comps…
183 White Heron Drive, Madisonville, LA 70447 $169,900
Listing provided courtesy of Keller Williams,Red Stick Part
Beds: 2 | Bath: 2 /1 | Sq Ft: 1,653
Price Per Square Foot: $103
Active Date: Nov 17, 2006
Property Information: Great New Construction- Townhome Community
65 Rue De Sud No, Madisonville, LA 70447 $268,350
Listing provided courtesy of Intervest Of La., Inc.
Beds: 4 | Bath: 4 | Sq Ft: 1,789
Price Per Square Foot: $150
Active Date: Nov 08, 2006
Property Information: This Townhome Is In Mint Condition! New Wiring And Plumbing. Ceramic Tile
127 E. Hwy 22 Hy N 4, Madisonville, LA 70447 $399,000
Listing provided courtesy of Keller Williams Realty Service
Beds: 2 | Bath: 2 /2 | Sq Ft: n/a
Price Per Square Foot: n/a
Active Date: Oct 26, 2006
Property Information: Located in Tchefuncte Townhomes
127 E. Hwy 22 Hy W15, Madisonville, LA 70447 $339,000
Listing provided courtesy of Keller Williams Realty Service
Beds: 2 | Bath: 3 /2.5 | Sq Ft: 1626
Price Per Square Foot: $208
Active Date: Oct 26, 2006
Property Information: Located in Tchefuncte Townhomes, completely remodeled in with covered 32 LF private boat slip.
http://www.lacdb.com/jsp/listings/listing_overview.jsp?listingID=894557
Those last 2 comps are in the Townhome complex that PBLS bought, and the website listing on the second one even provides pictures. Overall, comps seem to point to close proximity to the Tchefuncte River making for higher than average Real Estate as some of the historic cottages there go for excess of $1 million. Also, overall there is literally TONS of new construction and amenitized master planned communities going into that area, which is a great sign for an emerging or re-emerging real estate market. Most new construction is between $300K and $800K with cost per square foot averaging $175 after removing historic/waterfront properties.
Info on Harbour Townhomes, Rental stand point from 2002-2004…
“I rented from Tchefuncte Harbour Townhomes for roughly 1.5 years, and really enjoyed my stay. My 2 BR/2 BA town home came with a boat slip, dock, and access to the river. Fishing from the dock was always very good. The town homes are somewhat old, but seem to be in good condition for the most part. It's also a gated community, so the added security is a plus. Other pluses are the existence of a whirlpool tub, and a swimming pool on the premises. Also, at the end of my lease, I was allowed to continue on a month-to-month basis for an extra charge. A 30-day notice to vacate was required.”
It seems that THT was primarily a townhouse apartment complex that up until Katrina got great reviews from the renters there though it was a bit older. Then the property was heavily damaged by Katrina and the HOA drug its feet on making repairs. The best I can tell is that the property probably became sub-par to live in and became devalued, and so was probably bought by PBLS for a potential condo conversion. IMO it is a wise purchase given Madisonville, LA current Real Estate market conditions. I can’t be certain if the purchased all 81 units, but if they did, they paid approx. $135,000 a unit. If they spend an average of $100,000 a unit in remodeling the property, gate, marina etc, they could potentially increase the overall value of the property and sell units for an average net sales price of $350,000 per unit at today’s prices. That would be an approx. $115,000 potential pre-tax profit per unit or $9.3 million total pre-tax profit. Of course since PBLS owns Heaslip, 3-D and TCB, they could probably do the remodel at cost, or 50% less than full retail. If it was my project, I would probably do just a cosmetic remodel of $10,000 to $20,000 per unit, do a quick flip to maximize ROI, and free my cash up for another purchase. That's how the big boys do condo conversions, unless you are an ego-flake like Trump.
I will call a local realtor as soon as I can to verify as much of this as I can. As I am a Go-Zone investor (which is something you guys should all check out- largest real estate tax break in our country's history), I can use that angle to get more specific questions answered.
Ren
Just researching our latest property acquisition. Hopefully some of the more negative posters here don't use this as an example of "lack of transparency" by the company. We've heard it. Please get over it. I don't like it either but at least I think this recent Townhome/Marina purchase seems to be a good one.
Generic Info on the Madisonville, LA Housing Market
http://realestate.yahoo.com/Louisiana/Madisonville
Madisonville, LA Real Estate Market Snapshot: updated Wednesday, December 27, 2006
Listing Type Number Median Price
Homes for Sale (MLS) 128 $329,000
New Homes 2 $359,900
Real Estate Classifieds 195 $322,800
Info on Local Comps…
183 White Heron Drive, Madisonville, LA 70447 $169,900
Listing provided courtesy of Keller Williams,Red Stick Part
Beds: 2 | Bath: 2 /1 | Sq Ft: 1,653
Price Per Square Foot: $103
Active Date: Nov 17, 2006
Property Information: Great New Construction- Townhome Community
65 Rue De Sud No, Madisonville, LA 70447 $268,350
Listing provided courtesy of Intervest Of La., Inc.
Beds: 4 | Bath: 4 | Sq Ft: 1,789
Price Per Square Foot: $150
Active Date: Nov 08, 2006
Property Information: This Townhome Is In Mint Condition! New Wiring And Plumbing. Ceramic Tile
127 E. Hwy 22 Hy N 4, Madisonville, LA 70447 $399,000
Listing provided courtesy of Keller Williams Realty Service
Beds: 2 | Bath: 2 /2 | Sq Ft: n/a
Price Per Square Foot: n/a
Active Date: Oct 26, 2006
Property Information: Located in Tchefuncte Townhomes
127 E. Hwy 22 Hy W15, Madisonville, LA 70447 $339,000
Listing provided courtesy of Keller Williams Realty Service
Beds: 2 | Bath: 3 /2.5 | Sq Ft: 1626
Price Per Square Foot: $208
Active Date: Oct 26, 2006
Property Information: Located in Tchefuncte Townhomes, completely remodeled in with covered 32 LF private boat slip.
http://www.lacdb.com/jsp/listings/listing_overview.jsp?listingID=894557
Those last 2 comps are in the Townhome complex that PBLS bought, and the website listing on the second one even provides pictures. Overall, comps seem to point to close proximity to the Tchefuncte River making for higher than average Real Estate as some of the historic cottages there go for excess of $1 million. Also, overall there is literally TONS of new construction and amenitized master planned communities going into that area, which is a great sign for an emerging or re-emerging real estate market. Most new construction is between $300K and $800K with cost per square foot averaging $175 after removing historic/waterfront properties.
Info on Harbour Townhomes, Rental stand point from 2002-2004…
“I rented from Tchefuncte Harbour Townhomes for roughly 1.5 years, and really enjoyed my stay. My 2 BR/2 BA town home came with a boat slip, dock, and access to the river. Fishing from the dock was always very good. The town homes are somewhat old, but seem to be in good condition for the most part. It's also a gated community, so the added security is a plus. Other pluses are the existence of a whirlpool tub, and a swimming pool on the premises. Also, at the end of my lease, I was allowed to continue on a month-to-month basis for an extra charge. A 30-day notice to vacate was required.”
It seems that THT was primarily a townhouse apartment complex that up until Katrina got great reviews from the renters there though it was a bit older. Then the property was heavily damaged by Katrina and the HOA drug its feet on making repairs. The best I can tell is that the property probably became sub-par to live in and became devalued, and so was probably bought by PBLS for a potential condo conversion. IMO it is a wise purchase given Madisonville, LA current Real Estate market conditions. I can’t be certain if the purchased all 81 units, but if they did, they paid approx. $135,000 a unit. If they spend an average of $100,000 a unit in remodeling the property, gate, marina etc, they could potentially increase the overall value of the property and sell units for an average net sales price of $350,000 per unit at today’s prices. That would be an approx. $115,000 potential pre-tax profit per unit or $9.3 million total pre-tax profit. Of course since PBLS owns Heaslip, 3-D and TCB, they could probably do the remodel at cost, or 50% less than full retail. If it was my project, I would probably do just a cosmetic remodel of $10,000 to $20,000 per unit, do a quick flip to maximize ROI, and free my cash up for another purchase. That's how the big boys do condo conversions, unless you are an ego-flake like Trump.
I will call a local realtor as soon as I can to verify as much of this as I can. As I am a Go-Zone investor (which is something you guys should all check out- largest real estate tax break in our country's history), I can use that angle to get more specific questions answered.
Ren
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
www.younglife.org
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