Overvalued Real Estate - Is Latisha James Playing With Fire in Trump matter?

[Robert W]

Latisha James, NY Attorney General is engaged in a highly publicized fraud trial against Donald Trump. My own views on Trump are strictly neutral. I feel that Mar a Lago (sp) is not the only overvalued real estate in the country. My guess is that almost all high-end property is way overvalued.

The only way these properties change hands is in highly complex, highly leveraged transaction. Only a lunatic or eccentric would pay real money for most commercial or high-end resort properties such as Mar a Lago.

If Latisha James wins, it would expose the fact that most real estate is highly leveraged and their titular "owners" have little or no equity. If the values dropped to fair salable values, the properties would instantly have huge negative equity and face foreclosure. There would be no cash market for most of these properties. If Latisha James wins, could she trigger a depression by winning?

First of all, she is a crummy two bit lawyer. At least I credit her for being a lawyer.
I spent many years as an appraiser. There is another poster who was also a long term appraiser. And we both agree on some facts. First do not have lawyers appraise property. Second the tax assessment is a guess. Appraisals are also estimates of value but we also include a lot of research in our appaisals and we disclose any potential flaws in our appraisals. Lawyer James and the Judge did none of this this. They hate Trump and of course therein lies their fatal flaw. They are not out for justice, they want to simply hate Trump.

She can't crash the market. And prices are dictated by the market.

 

[Robert W]

You still miss the point where Trump as the president signs off on it. Trump owns the company. The company does not exist without an owner who is responsible. The employee is not getting the loan.
The owner or owners are responsible. Common sense. Employees may be held responsible by the owner but for a loan it is the owner who signs the agreement for the company. He alone is responsible.

It really an easy concept to understand.

Banks never accept on the owners word a thing he says. Apparently we have posters who think the banking industry is very very stupid. They have more to lose than you do. And they do not make decisions based on faith. Don't you get why none of the lenders ever challenged him? Because they independently verified his claims. This court case will not be a winner for James and she is pissing off taxpayer funds because she is a racist nutcase.

 

[Robert W]

How does the government gets it money?

It controls the printing presses and orders money.

 

[Woodznutz]

How does the government gets it money?

It prints it.

 

[Robert W]

No "crime" at all, everyone got paid on time and in full....Nothing burger.

But yeah, most "famous" personalities properties are overvalued if it's thought that their owner's name has the "juice" for it to bring more than market value.

Over the years how many Hollywood star's estates went on the market priced to the moon yet sold for much less after sitting for a spell?

Remember the famous singer MC Hammer. Well he got money so fast he expected not to ever have it slow down. I lived in the city known as Fremont, CA and it was there he built a mansion. I believe his cost to build was about 23 million dollars. When he went broke and was forced back into a more typical working class life, the house was on the market. I believe it sold for around 7 million dollars. So was his cost to build a rip off? Well no. It gave him the luxury he wanted at the time. It gave him a home on a mountain with a very good view. He got a bowling alley in the home. He had the best of everything in it.

NOTICE: The article says he bought a finished home. Hammer paid for a lot and had it custom constructed to his specifications. Keep in mind he got rich overnight and was only 26 when he had it built. Some of the article is factually not correct. But not now I will not edit it more.

This write up includes an aerial photo of the home plus inside photos of it. An amazing home for sure.

M.C. Hammer's House (Former) in Fremont, CA (Google Maps)

M.C. Hammer's House (Former) (Google Maps). This was the mansion that rapper M.C. Hammer owned in the early 90s when he blew his $70 Million fortune. He bought this Fremont mansion for $12 Million and spent another $30 Million on renovations which included gold plated front gates emblazoned with...

virtualglobetrotting.com

This is a video of the home and also conflicts with the earlier report I gave. They claim there was a mansion there that he bought. That is not true. It was part of a larger lot purchased by a contractor I knew at the time.
Anyway this view shows it furnished at the time. The video omits that it sat in an area of other expensive homes.


Now, why did the Assessor value it at 9.4 million dollars? Was the assessor committing fraud and should have gone to prison?

 

[Kilroy2]

It prints it.

nice dodge but wrong answer. People pay their tax's

 

[Leo123]

yet you are repeating a delusion. Trump is on trial and nothing you say can make it not so. He will be found guilty and you can scream deep state, weaponization of the government, no victims, etc

It still does not change anything. Multiple cases and he will not win in a single one.

You support a corrupt AG and a corrupt Biden regime. Trump committed no crimes.

 

[Leo123]

nice dodge but wrong answer. People pay their tax's

People avoid taxation it’s not illegal.

 

[Leo123]

You still miss the point where Trump as the president signs off on it. Trump owns the company. The company does not exist without an owner who is responsible. The employee is not getting the loan.
The owner or owners are responsible. Common sense. Employees may be held responsible by the owner but for a loan it is the owner who signs the agreement for the company. He alone is responsible.

It really an easy concept to understand.

The owner does not approve their own loan.

 

[Kilroy2]

The owner does not approve their own loan.

Really is that breaking news.

someone has to sign for the loan in the organization
The articles of the corporation or LLC (or resolution they provide to the bank) will state how many must sign and may specify who may sign
Well he did turn it over to his sons when he became president. So he might have delegated it to his sons. But the loans were probably pre Trump presidency.

Link for all those trump supporters who cannot get enough of the man, the myth, the (still to be determined)

The Trump Organization - Wikipedia

en.wikipedia.org

 

[Robert W]

yet you are repeating a delusion. Trump is on trial and nothing you say can make it not so. He will be found guilty and you can scream deep state, weaponization of the government, no victims, etc

It still does not change anything. Multiple cases and he will not win in a single one.

Every case presumes Trump is innocent. It will be up to the prosecutor, the crooked one, to persuade a jury he is guilty. And fat chance she can prove that.

 

[Robert W]

You still miss the point where Trump as the president signs off on it. Trump owns the company. The company does not exist without an owner who is responsible. The employee is not getting the loan.
The owner or owners are responsible. Common sense. Employees may be held responsible by the owner but for a loan it is the owner who signs the agreement for the company. He alone is responsible.

It really an easy concept to understand.

It is. Trust me on this. If you ever become a banking expert, you will recall those words and probably laugh at your own remarks.

How hard is it to appraise a one of a kind property? Well even using comparables, it is very very difficult. But for you to trust the assessor makes no sense at all.

 

[Leo123]

Really is that breaking news.

someone has to sign for the loan in the organization
The articles of the corporation or LLC (or resolution they provide to the bank) will state how many must sign and may specify who may sign
Well he did turn it over to his sons when he became president. So he might have delegated it to his sons. But the loans were probably pre Trump presidency.

Link for all those trump supporters who cannot get enough of the man, the myth, the (still to be determined)

The Trump Organization - Wikipedia

en.wikipedia.org

The bank underwriter approves the loan, not the borrower or the borrower’s assignee. In this case Trump’s team advised the bank to get their own valuation and not to depend on their’s. Trump committed no crimes. Fani is either stupid or committing outright malicious prosecution.

 

[Kilroy2]

It is. Trust me on this. If you ever become a banking expert, you will recall those words and probably laugh at your own remarks.

How hard is it to appraise a one of a kind property? Well even using comparables, it is very very difficult. But for you to trust the assessor makes no sense at all.

It may be difficult but where is the line between between realistic differences and total exaggeration. There are two sides of the story and they would have to meet somewhere in the middle that is fair to both sides.

Does ones ego play a part in this?

A modest man would be cautions and fair

An ego eccentric will go wild

 

[Kilroy2]

The bank underwriter approves the loan, not the borrower or the borrower’s assignee. In this case Trump’s team advised the bank to get their own valuation and not to depend on their’s. Trump committed no crimes. Fani is either stupid or committing outright malicious prosecution.

Trump and Deutsche bank which is based in Germany. have had a long history so yes there is some familiarity and trust between them. They have made money and Trump gets the loan.

recently they say that they have cut ties with him

Deutsche Bank joins companies cutting ties with Donald Trump

Bank had propped up Trump Organization for years despite being sued by president but acted after Capitol attack

www.theguardian.com

 

[Leo123]

It may be difficult but where is the line between between realistic differences and total exaggeration. There are two sides of the story and they would have to meet somewhere in the middle that is fair to both sides.

Does ones ego play a part in this?

A modest man would be cautions and fair

An ego eccentric will go wild

The bank underwriters make that decision which is not solely based on RE equity.

 

[Robert W]

It may be difficult but where is the line between between realistic differences and total exaggeration. There are two sides of the story and they would have to meet somewhere in the middle that is fair to both sides.

Does ones ego play a part in this?

A modest man would be cautions and fair

An ego eccentric will go wild

As a former appraiser, I will explain it to you like this. A bank never would use only one appraisal. They would want several appraisals by top notch appraisers. Would you as the banker rely only on the word of the owner?

I have at various times in my appraisers career been tasked by various lenders to examine a value given by a particular appraiser and they ask me for my view on the appraisal.

I recall a case of the appraiser who signed his appraisals with the title of PhD. While he was in fact licensed, the title meant nothing to me. I examined the subject and the comparables and came up with the verdict his appraisal was high. Believe me, a mans job was on the line so for me to not agree with him was not fun. I knew of appraisers who did poor work,. And his was also poor work. So I told the lender the honest value and backed it up so they accepted my value and tossed his.

 

[Robert W]

The bank underwriters make that decision which is not solely based on RE equity.

That is accurate.

 

[Robert W]

Trump and Deutsche bank which is based in Germany. have had a long history so yes there is some familiarity and trust between them. They have made money and Trump gets the loan.

recently they say that they have cut ties with him

Deutsche Bank joins companies cutting ties with Donald Trump

Bank had propped up Trump Organization for years despite being sued by president but acted after Capitol attack

www.theguardian.com

There are sloppy assessors, sloppy appraisers, sloppy borrowers and also sloppy news sources. The Guardian is one of the sloppy news sources.

A sloppy AG is prosecuting/persecuting Trump. Trump has experts on his side. Guess who will lose?

 

[Leo123]

As a former appraiser, I will explain it to you like this. A bank never would use only one appraisal. They would want several appraisals by top notch appraisers. Would you as the banker rely only on the word of the owner?

I have at various times in my appraisers career been tasked by various lenders to examine a value given by a particular appraiser and they ask me for my view on the appraisal.

I recall a case of the appraiser who signed his appraisals with the title of PhD. While he was in fact licensed, the title meant nothing to me. I examined the subject and the comparables and came up with the verdict his appraisal was high. Believe me, a mans job was on the line so for me to not agree with him was not fun. I knew of appraisers who did poor work,. And his was also poor work. So I told the lender the honest value and backed it up so they accepted my value and tossed his.

Yep, I was certified for 25+ years and can totally relate to that. Some of appraisals I reviewed were pretty bad.