Thursday, January 31, 2008

Neverland Soon?


Fox says:
The world of Michael Jackson is in the usual chaos this week, as the pop singer faces foreclosure on his Neverland Ranch for $23 million secured by Fortress Investments.

This is 2700 acres in Santa Barbara. $8500/ac is what good ranch land goes for. Mikey's pad isn't a good ranch. As Wagga would say; "Good yeah, good place to lose a cow." On the plus side it has good water and good access and lots of durable improvements under the crap of zoo and amusement park. $23m is a deal in that context. I'm guessing it will be "rescued" by a friend so that the dirty public doesn't mess it up.

26 comments:

Northern Renter said...

Let me be the first to say that I never visited there as a young boy. Oh what the hell, murst too!

NR

Northern Renter said...

Let me be the first to say that I never visited there as a young boy. Oh what the hell, murst too!

NR

Northern Renter said...

Damn. sorry about twinning the post.

NR

Rob Dawg said...

One of my daughters has been there. She was treated nice enough but kinda felt like she was excess baggage. This when she was too young to understand the dynamics.

Things get weird. A hamburger involved cook and server and individual servers for each condiment. I'd cowboy up that nancy pants place and be turning a profit in 5 years.

Still, compare at what we've been looking at this week; 190 acres for $2m. 430ac for $10m and now 2700ac for $23m. SoCal ranchland is an interesting subtext to the bubble.

Funny Circus Bears said...

Update on my employee who was facing foreclosure when her teaser rate increased and she couldn't afford the payments: The lender, she didn't say who and I didn't ask, agreed to extend the teaser rate (with no neg. am.) for another 5 years. She can afford the current payment, which amount to barely over rent rates. Of course her home value is seriously under water.

Buzz Saw said...

Michael goes through money like $hit through a goose.

Akubi said...

Michael should have been foreclosed upon decades ago.

Ogg the Caveman said...

Loosing™ Neverland would be good for Jackson financially. It's a millstone around his neck. I seem to recall something about having judgments to pay, but still, a man ought to be able to get by on umpteen million dollars.

incessant_din said...

Good find, Rob. Someday soon I'll be the one saying that land is worth more than what is being asked. A friend in San Diego still looks at me funny when I tell him what land is worth. He's beginning to understand.

Ranch land is not prime subdivision land. Even subdivision land is hugely overpriced right now. McMansions created the illusion of value despite the reality of resources.

Keep up the good work.

Lou Minatti said...

One of my daughters has been there. She was treated nice enough but kinda felt like she was excess baggage.

I suspect that if your son had gone to Neverland the reaction would have been different. Sorry to be gross, Rob, but I think I am right.

Akubi said...

People in SoCal eat bugs and scorpions!

Lex said...

Does Fortress get the Beatles' publishing rights too?

Akubi said...

@Lex,
Exactly. The guy clearly has money.
In other weird SoCal news, I find the Sean Young vs. Julian Schnabel debate entertaining and so groovy 80's.

Bill said...

'nother ie article w/ a catchy title:

http://egan.blogs.nytimes.com/2008/01/30/the-pools-of-riverside-county/index.html?ex=1359522000&en=5195846ad6c0ef92&ei=5090&partner=rssuserland&emc=rss&pagewanted=all

Peripheral Visionary said...

incessant_din: "Good find, Rob. Someday soon I'll be the one saying that land is worth more than what is being asked. A friend in San Diego still looks at me funny when I tell him what land is worth. He's beginning to understand."

Land's current value is directly proportional to the amount of food that can be raised on it. Oh, there's still plenty of land being priced at residential values, but the number of greater fools who are willing to pay those prices in order to build empty houses that don't sell is rapidly decreasing.

What the markets don't understand is that we have the housing supply for the next few years, all else being equal. But all else is not equal, and current numbers underestimate supply, and builders are still building, and if households ever start consolidating (which I agree with Rob that they will), then we will have a housing supply for the next decade or more.

Whoever buys Neverland had better know how to raise cattle. It's just not in a good enough location to be an amusement park, which is really the only other use it could be put to.

Jean ValJean said...

Interesting perspective on the Great Bailout of 2008 (aka, the Bush Stimulus Package, coming soon to an Adult Toy store near you!):

"The government's resources are not infinite. If it gives out $150 billion today, it must collect an extra $150 billion in taxes tomorrow (unless the government cuts spending, which nobody seems interested in). That's a law of arithmetic. Where will that future $150 billion come from? From the same people who are being encouraged to spend their rebate checks today. That's why I said Monday that this whole thing is eerily similar to the sub-prime lending crisis that got us into this mess — people are being encouraged to spend beyond their means and forgetting that it's all got to be paid back someday."

http://www.latimes.com/news/opinion/la-op-dustup29jan29,0,5225730.story

Property Flopper said...

24601:

> it gives out $150 billion today, it must
> collect an extra $150 billion in taxes tomorrow

Worse, the gov't needs to collect MORE than the 150B. It's all on credit, that costs extra.

wagga said...

@PF

If it takes 30years to pay off, then, like a mortgage, just multiply by three.

Paying the invoice for the Iraqui war will need just 2 trillion-dollar bills.

Property Flopper said...

Wagga -

The two trillion is only half the story. The money allocated for the war is on top of the normal military budget. I do computer consulting and worked for Navy Logistics. Every department budget was getting squeezed and the savings routed off to the war.

Ships that were due for overhaul or replacement were often being kept on station while the money got sent elsewhere... equipment stockpiles depeleted, etc...

It will be years (and billions) after the war is over before the Navy returns to normal. I can't speak for the other branches, but I'd assume similar is happening there.

The Nat'l Guard is certainly hurting - their equipment is getting used up and not replaced - normally they get the surplus from the regular brances, but with the war going on, there isn't any surplus.

I figure a decade of augmented budgets after the war before equipment levels are back to where they were pre-war.

Sweet Cashback said...

If you can't even dump that waste on local governments who will accept that stuff?

Unbelievable that they would not have known back then what they invested their $14M in.....

Merrill to repay Springfield for losses

Rob Dawg said...

morning all
blogging from mammoth on the iPhone
killer powder even on the old guy slopes
Springfield MA yeah grew up nearby the local crime bosses took turns being mayor and or city attorney
We will see more of this as the losses end up in similar accounts like city retirement and cash holding
Prices in Mammoth are still insane and I mean it in the truest sense. Teardown 70s cabins $800k empty lots cost four times what luxury homes cost in 1996
the town is kinda sad
the old townies are now cargo cultists with they noses against the window looking in at the $80/plate shushi diners
me? I am staying with a friend in one of the aforementioned inexpensive luxury homes and feeling my age. Anyway Mammoth may have reached critical mass and could possibly escape much of the high end devastation to come in California.

Bill said...

proactively dealing w/ foreclosure:

http://articles.moneycentral.msn.com/Insurance/InsureYourHome/BrokeHomeownersTurnToArson.aspx?ref=patrick.net

wagga said...

Dawg:

Don't pull a Bono on us, please.

Lou Minatti said...

Don't pull a Bono on us, please.

I had to think about that for a few secs. What did U2's singer do?

Rob, stay away from those trees. No using your iPhone while on the slopes.

the old townies are now cargo cultists with they noses against the window looking in at the $80/plate shushi diners

The townies likely sold their properties to LA and Bay Area jackasses and will buy them back from the bank for pennies on the dollar once the foreclosure process starts.

Centipede said...

I'm Barack Obama and I endorse this message.
It can all be good.

Akubi said...

To-morrow, and to-morrow, and to-morrow,
Creeps in this petty pace from day to day,
To the last syllable of recorded time;
And all our yesterdays have lighted fools
The way to dusty death. Out, out, brief candle!
Life's but a walking shadow, a poor player,
That struts and frets his hour upon the stage,
And then is heard no more. It is a tale
Told by an idiot, full of sound and fury,
Signifying nothing.