South Padre Island Real Estate - Alice Donahue

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South Padre Sales for 2009 went out with a bang

South Padre Island sales statistics for 2009 point to a solid recovery in beach home and condo re-sales.

Look at the sales charts for 2009 below, they show that condominiums are the favorite product on the Island and that the median price increased to its highest level on record. Time on market was less, meaning they sold faster, and every month in 2009 sales exceeded the month from 2008. The sales volume trend line from 2004 indicates our market is back on the path to solid steady growth.

Our only week spot was new homes and land/lot sales, where more cautious consumers wanted to avoid the additional risks and uncertainty associated with most of the new products. With few exceptions we see this behavior all along the Texas coast. Especially at risk were new development projects that involved bank financing and/or remote owners, where we saw slow sales, foreclosures and buyer lawsuits stall or kill these projects and demand dropped sharply.

The exceptions were what we call "home grown" or "family owned & operated" new projects, where there was no external financing pressure and the owners live in the project and/or are actively involved with sales and development. This combined with remarkable new community designs & features with the higher quality and value you would expect with the high level of involvement - pride of ownership that active owner-developers bring to the table. The most notable example of these new home developments are The Shores on South Padre and Cinnamon Shore on Port Aransas.

Our market also showed the strong Mexico influence, with Mexican buyers and developers contributing heavily to our sales and inventory. The confidence buyers have in the well-funded and committed developers from Mexico is astonishing. The newly announced Kirana highrise and the new Los Corales highrise in The Shores are both selling well and nearly sold-out; while, the newly completed Sapphire highrise continues to struggle with buyer cancellations / lawsuits, slower sales and now several lawsuits pending with the local Island Realtors.

Take a look at these charts and judge for yourself,
we'd like to hear your comments about the remarkable year the South Padre sales results indicate.

See more sales analysis at AliceDonahue.com/Sales

Now for the real bang part of the article - see our year-end / year beginning fireworks

Comments

joe urbanek @ Thursday, January 07, 2010 2:31 PM

Alice, first... thanks for a great web site. I did happen to look at the stats at the end of December and was happy to see a nice recovery back to 2007 unit sales levels. I wuold think that part of the increase was due to the Sapphire finishing and units being closed. Still, sales are up and overall that's a good thing.

Census Bureau @ Friday, January 08, 2010 1:46 AM

Texas gained more people than any other state between July 1, 2008, and July 1, 2009 (478,000), followed by California (381,000), North Carolina (134,000), Georgia (131,000) and Florida (114,000), according to the latest U.S. Census Bureau estimates.

paranoid flipper @ Tuesday, January 12, 2010 4:05 AM

What will happen to the already deeply distressed resale market, with more than 400 island condos currently on the market, after those developers figure out how to steer the island's agents into selling a thousand new condos? Property values and rental rates could fall further, but that would be good for overall tourism. Most condo rental gigs already fall short of paying the owner's bills, and lower rental rates would make the deals even better for seasonal tourists.

Don't concern yourself too much with this unlikely scenario though, as I have some serious doubts whether this island is capable of attracting a thousand new condo buyers anytime soon, given that only a couple hundred condos sold during all of last year. I forecast island property values to stabilize at these relatively low levels for several years to come, as developers further saturate the weak market, offsetting any future positive effects from a slowly improving national economy.

Gino @ Thursday, January 14, 2010 3:28 AM

Wanna know why some people like to buy property on South Padre? It's because they're from the west coast, where prices are much higher and they have EARTHQUAKES:

http://www.averillpark.net/datacenter/hazards/zone-map.jpg

Wanna know why so many people from the East Coast like South Padre property? It's because they're looking for warm water, with the lowest risk of hurricanes:

http://www.averillpark.net/datacenter/hazards/hurricane.gif

While South Padre is definitely not a perfect retreat from the hazards of mother nature, there isn't a safer sub-tropical coastal area in the entire USA:

http://www.averillpark.net/datacenter/hazards/hazards_anime.gif

What's a little peace of mind worth to ya? Well, the fact is that compared to other coastal areas in the USA, it won't cost you much to buy that beachfront condo you've been dreaming of.

Nuff said.

Gayle Hood @ Friday, January 22, 2010 6:55 AM

I never realized that South Padre had less natural disasters than than other areas but you are right. Great comment.

Carlye @ Monday, January 25, 2010 7:41 PM

Statistics are fun to play with. They can tell completely different stories, depending on how you look at them. Here are some more island statistics, detailing the past year:

http://www.texasgulfcoastonline.com/Sales.aspx

Over the past year it looks like SPI monthly unit sales numbers are generally in an "up" trend. That's encouraging. However, when you look at the average sales price, you'll notice that ASPs peaked in Feb '09 at roughly $450K, then ran downhill the rest of the year, ending in December '09 at only $200K. Ouch!

That's a good chart for a deceptive real estate agent to show somebody who is thinking of selling their property, but anybody with any knowledge of island real estate knows that the only properties on this island that suffered that much of a loss are the relatively few of those that were severely damaged by hurricane Dolly. Smart agents also know that the entire market was almost entirely dead a year ago, so year-over-year sales unit comparisons look pretty good.

The amount of total property devaluation on the island during the past couple years is open to debate, but overall I seriously doubt if the average property owner has lost more than 20%. That's kind of amazing when you compare it to other resort areas like Las Vegas or Florida, which have lost much more. Really though, given the low SPI sales volume, it's hard to gauge exactly what island property is worth these days. Property is only worth what you can sell it for. With a two year inventory of available properties on MLS, even Zillow is having serious trouble estimating island property values. And how many more properties would be on the market if sales were running at a respectable level? It's reasonable to assume there is a lot of overhang out there, just waiting for better market opportunities. Any such overhang is going to seriously delay the overall market returning to normal anytime soon.

What I find really interesting is that the average sales price has fallen very far, yet the developers behind new and upcoming projects are aiming for the high end luxury market. It seems like actual ASPs are going one way, and the developers are headed in the other direction! What is going on here???

Even more difficult to explain is that those high end pre-construction projects like Kirana have actually been selling relatively well, (or so we have been told?), so these Mexican developers seem to know what they are doing. Could it be that future buyers are anticipating a big turnaround in the market before the projects are complete, and they're buying virtual call options with their deposit dollars? That possible explanation can't be ignored. Maybe the flippers (which have been on the sidelines for so long) are starting to return to the island, hoping to sell for a profit before these new projects are even complete? Many small deposist on pre-construction projects are probably nothing more than hedged bets, IMHO. Like the runaway Florida market a few years ago? I'm sure the market WILL eventually rise from the ashes, but the only question is WHEN?

Or, maybe affluent buyers are sinking money into the island because it is a relatively good shelter from the world's economic problems. Let's face it, if you've lost 50% of your money in the stock market, island property that only lost 20% during the same period may look like a much more solid investment than rolling your dice with hedge fund managers like Bernie Madoff. The stock market did have a nice run during much of last year, and it could be that some investors are taking profits and investing those profits into more "solid" investments, like island real estate.

Or maybe those expensive Sapphire units that closed last year helped push up average sales prices last winter and spring, badly distorting the charts, and now are creating a bad "hangover" for overall ASPs. It could be that ASPs are just now returning to more sustainable levels, in the $200K area. Perhaps the $200K price range is the REAL sweet spot in the market.....

To me it looks like investors may be tip-toeing back into the island property market, for no reason other than the market has been down for so long that they believe it can only go up from here.

To me that is dangerous thinking. I would rather see prices rise a couple percentage points to confirm any uptrend, and miss the first boat, than to jump into a stagnant market, waiting for the eventual recovery. With a full mortgage payment, taxes, insurance, HOA fees, maintenance, etc., I figure you lose about 1% of a property's value each month just by holding it. You can gain some of that back by renting, but it is rare for rental fees to pay all of the bills. And many high end projects don't allow short term renters. In other words, the only way an individual investor can make money on this island is to enter the market when prices are rising faster than the cost of the upkeep. Clearly we're not in that type of market now, so I'm currently out.

One fact that seems clear is that there aren't currently enough island sales to well support anywhere near the number of agents on this wonderful little island. That deeply saddens me, and I pray every night for each one of you for a quick return to a more normal market. What has happened to you is not your fault. I am however a realist, and if I were an island realtor, I might seriously consider what Warren Buffet once said:

"Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks."

Gayle Hood @ Monday, January 25, 2010 9:16 PM

You are right that some of the Realtors won't survive but the way I see it is that this may be a buyer's market or this may be a down market but it is a market. You have to constantly change with the times in this business. Nothing proves that more than the Internet.

Peperoini @ Tuesday, January 26, 2010 1:10 PM

2010 could be a better year for island agents.

Nationwide, NAR is now projecting that home sales will increase 13.6 percent this year and home prices will increase about 3.6 percent. If NAR has been a little too optimistic in the past to be believable, then consider that Fannie Mae now projects a 10.6 percent increase in the number of home sales this year, but a slight decrease in home prices. Not a good environment for investors, but a noticeably better environment for agents.

As more retirees up north are able to sell their existing homes, the market for retirement homes in the SPI area can only increase. Demand for vacation condos will eventually follow, but it will take more time for working class buyers to become more confident with their personal finances.

It kind of makes you wonder if the next growth spurt will be more concentrated in Laguna Vista where "real retirement homes" exist, instead of on the island, where there is a higher percentage of tourist condos.

Poll Taker @ Thursday, January 28, 2010 10:34 PM

Here is an interesting mini-quiz for you to take. The island economy is going to come back, we all know that, it is only a question of when. So now ask yourself, what class of island property do you think will come back first, and why?

A. Empty inner island lots
B. Beachfront lots on the north end with no utilities
C. Bayfront condos
D. Inner island homes
E. Inner island condos and fourplexes
F. Normal two bedroom beachfront condos
G. Three bedroom luxury beachfront condos
H. Commercial property
I. Undeveloped land near the new bridge, where ever that project lands
J. Future site for South Padre's first Casino
K. Future site for observation tower to view "clothing optional" beach

Gayle Hood @ Friday, January 29, 2010 6:27 AM

Normal two and three bedroom beachfront condos will come back first and they are already increasing in sales. The majority of our clients start out looking for something directly on the beach. They settle for the interior ones because of the price. It is amazing how inexpensive the interior condos are priced these days. A lot of bang for the buck. We do have clients that start out looking for bayfront or single family or golf course, etc. etc. but the percentage is less. Although there have been sales of undeveloped properties up north this past year, the buyers are still holding off on those. It has great potential to be an awesome investment because of some motivated sellers up there. So, I have a question for you, Mr. Poll Taker and anyone else that wants to answer. What do you think of future casino development?

Poll Taker @ Friday, January 29, 2010 11:07 PM

What you're seeing in the way of buyer habits doesn't surprise me. With less money out there, buyers are going to be looking a little more for value. Nationwide, the average new house in 2008 was 2520 square feet, but in 2009 that number shrunk to 2480. That's not much, but it is a noticeable shift in buyer preference. Builders are noticing that buyers want "smaller but better", and are less interested in extra features previously thought to enhance resale value. (i.e., perhaps future buyers will trade the extra amenities and maintenance fees at Saida for less expensive Florence condos that don't have the 24 hour security, tennis courts, bar, and hamburger huts? "Just give me a basic condo on the beach", you might hear from more future buyers?)

What do I personally think about Casino gambling? Wow, that's a controversial topic! I sort of like the "sleepy village" type of atmosphere we now enjoy, and am naturally resistant to big fast change. If you're looking for a little spice in your life, then you'll get your share of it during Spring Break, a short but fun annual ritual.

My own personal feeling is that adding a Casino would further evolve the island into a pure tourist destination, instead of a better place for permanent residents. What we need around here are the type of amenities required for year-round living, such as condos with closets big enough to hold the wife's clothes, and a nearby 24 hour hospital. It's really weird to see the island empty out during the middle of August, when the beach is at it's very best. Then watch the the CVB go into "full speed mode", like trying to get artists to build sand castles to fill hotel beds. Very inefficent way to manage a city.

Really, what we need is the kind of services that would keep the winter Texans from returning home. The Walmart was a big wonderful step in that direction, something every realtor can rightfully brag about, but we need much more of those types of bigger city amenities. Add a small hospital to Port Isabel, like Aransas Pass has already had for decades, and the local year-round population would quickly MULTIPLY.

So what would a big Casino bring us, aside from more tax dollars? It would help the hotels and restaurants, that's for sure. We might even see a shift towards more expensive hotels and restaurants, which could help property values. All of that would however shift the atmosphere of the town away from the wonderful family/affordable type of environment we all now enjoy.

When times are bad, local governments often look for extra revenues from "sinful" activities - gambling, liberal liquor laws, adult entertainment, etc. Kind of like weeds sprouting up in your drought plagued garden, if you ask me. And then along comes new undesireable pests and rodents. The next thing you know they'll be asking us to approve bonds to build a jail to house all the new drunks we attracted to the island.

Whether or not you want gambling on the island probably boils down to your pesonal values. If you're a property owner and money is your #1 priority, then adding gambling to the island will probably make you some more money. (Some of the extra tax money might also help rebuild the beach, the most critical feature of the island which seems to be slowly eroding away.) If however you enjoy the current family fun type of atmosphere on the island, then it could very well slip away if they decided to replace some place like Gravity Park with a big indoor casino. Places like Las Vegas are fun to visit, but I wouldn't want to live there.

Did you ever go to Louisiana a few years back and check out the riverboat gambling scene in Lake Charles ? To me that looked like a half-hearted attempt to experiment with gambling. They only allowed gambling on boats, which kind of evolved into permanently moored boats with adjoining hotels and eateries. Very popular with the retired folks. I guess the town figured that if they later decided to eliminate gambling it would be a simple matter to set the gambling boats permenently adrift? That sort of happened naturally when hurricane Rita hit back in 2005, and it was an economic disaster far worse than what happened after Dolly hit SPI. You see, once you invite gambling to the island, it would be fairly hard to get rid of it at a later date if you decided it brought more problems than it solved.

To me, I prefer the idea of doing whatever it takes to attract some cruise ships. We've already got a deep water channel that was recently proven deep enough to handle an aircraft carrier, so building a dock to handle decent sized cruise ships shouldn't be much of a problem. That would also bring lots of fresh blood to the island, as future property owners usually start out as tourists. I would sure vote for the bonds necessary to build a big cruise ship dock, but opening up a bunch of casinos as a short term fix to the island's fiscal problems kind of scares me.

Another thing this island desperately needs is viable "car-less" transportation to big cities like San Antonio, Houston, Austin, and Dallas. Increased air service to the Brownsville and Harlingen airports helps, but Brownsville airport is 22 miles away, Harlingen is 40 miles away, and neither of those options help your average middle class tourist who can't afford to fly. What might help is a close-in major airport, where tourists could get to the island for no more than $20 in cab fare. I might vote for bonds to expand the local county airport, if given the opportunity. Lobbying for high speed rail service to the major northern Texas cities might also help, given that passenger rail service doesn't come any further south than San Antonio.

Did you ever ride a bus to Harlingen or Brownsville from a northern Texas city? After you try it the first time, you'll never want to do it again. It is the most disgusting service I have ever seen, vastly inferior to the clean, reliable, and convenient service across Mexico. Surely we can find a way to improve the Texas bus service, even if it is just to the border to pick up Mexican tourists, as what we have now SUCKS.

From a pure investment standpoint, I like the idea of buying undeveloped island property. You still get the property appreciation potential without the condo maintenance fees. It does however require a longer investment horizon, which seems to be in short supply these days. I don't see how condo values can start rising again without investors taking a more serious look at the island's inventory of undeveloped land.

OK, I babbled enough. (But you seemed to be asking for it!)

Gayle Hood @ Saturday, January 30, 2010 7:07 AM

Your comments were good. However, the only industry that South Padre has is tourism so, staying a "sleepy village" doesn't support the financial needs of South Padre Island.

Your cruise ship dock idea is an excellent one. The Navigation District says that channel needs dredging but if they can build a cruise dock, they can dredge.

There are also large tracts of land up north that accommodate an amusement park like Disney that would bring in lots of families. And, if they ever do a casino, up north would be my choice away from the populated area of the island.

Up north seems to be the direction to grow except for the cruise dock. But, that is going to require a new bridge. Isn't it time we heard from those consultants again?

We welcome your comments. Thanks.

Poll Taker @ Sunday, January 31, 2010 5:57 PM

If the island is going to recover anytime soon, it will be because the local government takes bold action on some new projects - like the cruise ship dock idea. If they're waiting for the economy to heal itself, we'll all go broke waiting for that to happen.

Sad as it seems, bank lending is decreasing, not increasing. Banks are still losing money on their consumer and mortgage loans, though their loss reserves for such purposes are thankfully decreasing. Mortgage rates by historical standards are obviously way too low, the result of aggressive government action that will not last forever. The Special Inspector General for TARP just warned us this weekend that another housing bubble is brewing - can you believe a statement like that coming from Washington??? Home buyer tax credit programs have been just a temporary shock absorber. Also consider that the mortgage securities buyback program wraps up by March 31st. In other words, the government stimulus program is winding down, and that's bad for the extremely fragile real estate market. Many economists are predicting another round of foreclosures on the horizon, with housing prices to fall further.

The island is especially vulnerable to all of this, given that many properties on the island are purchased with people's "fun money", of which there isn't much left these days. An increasing number of people are more concerned with paying down debt than buying vacation property, as evidenced by average household debt being repaid at an accelerating rate.

I don't think all of this is necessarily bad for island real estate agents, as the "churn" at the bottom of the market, whenever that may actually be, will probably generate a few more commissions. It could however be bad for existing property owners, who are still at risk of further declining property values.

I'm open minded to building a gambling mecca NORTH of the new bridge, where it will do less damage to the existing town. (Hurry up and annex it fast!) I don't however think we're going to see a Monte Carlo on the north side anytime soon. As you already indicated, the town needs extra money NOW, and investment dollars are in extremely short supply. That suggests there will be intense pressure on government officials to start allowing in-town gambling, ASAP. (Like a row of simple one arm bandits in the back of bars and restaurants?)

As far as the "Disneyland on South Padre" idea goes, I don't see anything like that being conceived for years to come. It was just last year that Six Flags, with their TWENTY theme parks, declared bankruptcy. (And they STILL haven't exited bankruptcy) I think the nation's theme parks would have to show some serious profits for an extended period of time before any big investors decide it would be profitable to build any new theme parks.

I am however a realist. Perhaps the best short term solution to the island's fiscal problems is to get bonds for a cruise ship dock moving forward with a special election ASAP, even if all the project details haven't been finalized, and survive the interim period with some temporary legal gambling revenue. Perhaps even develop some kind of temporary boat-based gambling/evening cruises. Give out-of-town visitors a better reason to go out of their way to visit the island, especially in the off season.

I think there are some realistic ways we can improve the island's economy, but it's going to take some bold new ideas, leadership, and inspiration.

Chart Guy @ Tuesday, February 16, 2010 5:04 PM

Here is an amazing chart regarding South Padre home sales over the past few years:

http://pics4.city-data.com/ctrends/ctr21683.png

Looks like a roller coaster!

Larry Mark Polsky,Esq. @ Saturday, February 20, 2010 2:37 PM

Hey guys...as a Sauth Padre Landowner I am amused at Alice's 2009 "BANG" sales article...The facts are tha in 2009 approximately 150 Sapphire Condo units closed(you can check with the Cameron County Clerk to verify this)...each unit averaged $600,000... The Sapphire presold 75% of its units in 2006 and 2007...has geneartated 80%of all sales for 2009.....this is why the sales data for January and February 2010 is so far behind 2009...and the market in South Padre won't hit bottom till the end of this year...when the last of the Foreclosures on the Isalnd are finalized.......

Island Watcher @ Saturday, February 20, 2010 8:25 PM

Hey Larry, why so negative? Yes, the market is soft, and those Sapphire closures did impact the statistics, but my own opinion is that you're taking things WAY out of context.

I honestly don't see how foreclosures can drag the market down for the rest of the year. Pull up the foreclosure link below. I just looked it up and found 17 island foreclosures out of a total inventory of 607 island properties on MLS. Do the math, and you'll see that's less than 3% - hardly enough for foreclosures to impact the overall market much.

You want to know why the foreclosure rate is so low on this island? Affluent people tend to buy South Padre vacation property with extra money, and the kind of people who buy here don't live from paycheck to paycheck, or on the edge of bankruptcy/foreclosure. That is why we mostly escaped the real estate disasters in places like Florida and Las Vegas.

Also, how do you figure that the actual closing of 150 new condos priced at an average of $600K reflects negatively on the overall south padre market, as you seem to be suggesting? To me those numbers clearly show the island is going upscale! I don't know about you, but I like having wealthy new neighbors.

http://realestate.yahoo.com/search/Texas/South_Padre_Island/foreclosures

Larry Mark Polsky,Esq. @ Sunday, February 21, 2010 12:23 AM

Island Watcher...my point is that the real 2009 sellers on South Padre (not the 2006-2007 Sapphire buyers who closed in 2009)..are still trying to find a buyer in 2010...Let's make the analysis of the South Padre 2010 market simple...go to the Sapphire sales office...get a copy of their present price sheet......then ask for their price sheet for february 2009...compare the prices of the remaining units...to see how far they dropped in 12 months...then add the amount of units still for sale(there are 230 units in ths Sapphire)..when the remaining units for sale are 23 or less(10%)and when the prices on these remaining units are in line with 2009 prices...I will AGREE with you and Alice that the South Padre Market has "RECOVERED"...and so far as foreclosures are concerned....you won't know how many foreclosures occur in 2010..until January..2011(UNLESS YOU USE THE SAME CRYSTAL BALL I HAVE!)....finally..add up the total sales in South Padre for 2009..and deduct $90,000,000 for Sapphire closings..and THEN...and ONLY THEN will you know HOW BAD THE 2009 Sales figures are for the Island...PLEASE ADDRESS THESE SPECIFIC POINTS..after you have gone to the Sapphire sales office...and added up the Alice Donahue sales figures......so we can have an intelligent..not emotional dialogue!

Market Watcher @ Sunday, February 21, 2010 1:28 AM

We should keep in mind that the Sapphire units that were counted as sales, did indeed close, even though any buyer could have backed out if they wanted to.

Why? because the sapphire contracts did not contain all the required documents. And about half the buyers did back out and those sales did not close. If they would have, the sales from the sapphire would have been twice what we see.

The Sapphire's current problems have more to do with the loss of those sales combined with poor management, a shady owner & bad marketing.

We have many products on the Island selling even better than during the peak, such as the beachfront condos, because they have little risk, and fantastic views to Texas' most desirable beachfront and climate. (and today's buyers are more cautious.)

The new high-rises being built and planned to be built by Mexican Nationals are doing very well; as re most beachfront condo re-sales.

The products that are on the foreclosure block are mostly located in the less coveted interior.

The products that are doing the worst are the new home projects which have more uncertainties.

I would say South Padre's proven beachfront products are a great value. The statewide and national demand for sales, rentals and ROI potential is second to none in the country.

Thus South Padre is a tale of two cities.

During times like we have now, we should look at location, product type and ROI on re-sales; and the financial health and management of new developments, to make an accurate assessment of a property's value.

Island Watcher @ Sunday, February 21, 2010 12:09 PM

Hey Larry - It's just my opinion, but I still think you're being too pessimistic. I forgot to mention something else I saw a couple weeks ago, related to what you're talking about. If you dig into the recent price changes data base, you'll find that Sapphire has actually started to RAISE their prices. I'm not kidding, look it up for yourself. It wasn't much of a price increase, a few thousand bucks, but any price increase whatsoever is really an eye catcher to anybody in the island's real estate game. Call this Sapphire developer insane if you want, but I doubt if he would be raising prices if he didn't think there was a serious chance he could get it.

As the market improves, we'll all start to notice the ratio of price change increases to decreases improve, inventory will fall, and asking prices will rise. The fact that we're starting to see a few price increases COULD be the first sign that the market is slowly starting to turn around - but only time will tell.

Economics is a fuzzy business at best. Years ago back in college I had a famous economics professor who preached that while the science of engineering often aims for many digits of numerical precision, Economists are doing good just to predict which way the economy is headed - much less with any significant level of precision!

The way I see it there is nothing wrong with Alice and her economics guru doing their best to characterize the island market with the vast mountain of statistics they have available, and presenting their findings in a positive light. It's also notable that when they present their results and supporting data, they do it in a public forum, and invite comments from all of us.

G. Falkland @ Monday, February 22, 2010 11:32 AM

Want to attract investors? Cite about 12 properties that actually sold this year for more money than they were listed for last year.

alice Donahue @ Monday, February 22, 2010 4:02 PM

Right now don't have a shortage of investors, but thanks for sharing. 76481, 76636, 76712, 77078, 75637, 75412, 75368, 74339, 75214, 75215. These all sold for more than they were listed for. FYI (Those are MLS numbers)

G. Falkland @ Monday, February 22, 2010 10:41 PM

If island prices are really rising - tell all the news outlets, and let's get the party started!

http://www.youtube.com/watch?v=i7HM5KKIh0E

http://www.trulia.com/real_estate/South_Padre_Island-Texas/market-trends/

M Stuart @ Tuesday, February 23, 2010 12:51 AM

Trulia does not have access to the actual sales data, they only have a portion of listing price history.

Notice they say average listing price on their charts, so they have a ridiculous opinion to offer about the price history on the Island.

Texas is a non-disclosure state, so the public records information on sales is inaccurate.

Notice how Zillow price estimates are often wrong by a few hundred thousand dollars. For example, we sold one of our homes for nearly $600k that the Zillow estimate had at $350k.

Both Trulia and Zillow are very unreliable source of sales price history and estimates for Texas.

The good news is that we do have the actual sales data for the entire MLS sales to report here, so you can see the real picture of the market.

G. Falkland @ Tuesday, February 23, 2010 11:09 AM

Sorry for the Trulia link. That study looks computer generated and seriously flawed. I need a palm reader with a bulletproof case proving the SPI market has finally turned around.

http://farm2.static.flickr.com/1220/542345701_d387bc1e15.jpg

Larry Mark Polsky,Esq. @ Tuesday, February 23, 2010 2:44 PM

Alice...we all know you are a person with ALL THE TRUE FACTS AND FIGURES AT YOUR FINGERTIPS...please answer this query HOW MUCH IN TOTAL DOLLAR SALES WAS GENERTATED In SOUTH PADRE IN 2009...AND HOW MUCH IN SAPPHIRE CLOSINGS WAS GENERATED IN 2009?...if you won't answer my query directly..then I say...your comments about how "GOOD" 2009 was...ARE NOT ACCURATE!

Island Watcher @ Tuesday, February 23, 2010 11:08 PM

Hey Larry,

The facts support Alice's market analysis:

According to MLS, total island volume for 2009 was $125M, compared to just $62M in 2008. Given those numbers I would probably use a more aggressive term than "bang" to describe sales in 2009. With a virtual doubling in sales growth year-over-year, it wouldn't be a stretch to call it "explosive sales growth".

I fail to see the purpose of figuring out what island sales would look like without Sapphire, because Sapphire is very much a part of the island. If you want to further characterize the potential for various types of island properties, Alice's essays have been consistent in their conclusions that beachfront condos are better than interior, new is better than old, and land/lot sales are dead last.

alice Donahue @ Thursday, February 25, 2010 12:50 AM

Polsky, you are really getting on my nerves and you are starting that CAPITALS thing again. News Flash for you - this is my BLOG and I am the QUEEN. If you don't like my data and what we have to say - go away. I don't have to justify anything to you. And I don't have a law degree, but I can spell.

Gayle Hood @ Thursday, February 25, 2010 9:41 AM

Good grief, Polsky. LIGHTEN UP. The Realtors on this island are working 4 times as hard for 1/4th the money in some cases. We don't need people to be so negative. We are upbeat because it is hard to sell anything being negative so we avoid negative people if we can.

M Stuart @ Thursday, February 25, 2010 10:41 AM

I think everyone should be able to speak their mind.

Larry, why are you interested in the Sapphire's contribution to the Island sales stats?

Since that beautiful engineering marvel was a big part of new sales last year, one should expect it had a big impact on sales.

The Sapphire is also the first major project on the Island with a "remote" owner / developer and remote sales team. And "coincidentally" the first project on the Island with many lawsuits.

Lawsuits with some of the buyers who wanted out of their contracts, which they effectively won, because of errors in paperwork and performance, by the owner's team.

Lawsuits by the owner against various members of his team for the errors they made which allowed the buyers out of their contracts.

And now, lawsuits by the owner against many of the local Realtors to try and recover the initial commission he paid them for those buyers who canceled.

Are you questions pertaining to those lawsuits?

Yet despite the lawsuits, I think the project is moving forward, will eventually sell-out, will become a huge success and a big part of the Island's appeal.

Why? just look at it for what it is. It is one of the greatest projects on any coast in the country.

Larry Mark Polsky,Esq. @ Thursday, February 25, 2010 4:56 PM

The Sapphire is beautiful...to that I agree..Let's all hope tha 2010's sales "TRUMP"(no pun intended)2009's....

Island Watcher @ Thursday, February 25, 2010 8:26 PM

Hello QUEEN Alice -

I have a marketing idea for you. Air fares have gone up this year, as airlines have cut back capacity. Unfortunately that means fewer out of town spring breakers this year. BUT, it also means that those spring breakers that do come this year are from more affluent families. You need to take advantage of that! What you need is a plan to get the parents of those college kids to look at island property.

Here's an easy idea. Set up a small booth/table at a local night spot. Just bring a laptop computer, camera, and photo quality printer. Take 8 x 10 pictures of anybody who will give you $4. One dollar goes to the bar owner, another dollar to whoever takes the picture, and the other two dollars to cover your photo/computer expenses.

Then make sure the students get a "special" protective folder for their picture, so they can get it back home safe & sound. Of course the folder will have printed on it all kinds of information about Alice Donahue Real Estate. The folder will also conveniently display some of your best listings, and some general information about why it is a good time to buy island real estate. As an added bonus, you can put some extra flyers in the folder, and to make the flyers worth keeping, you conveniently add some coupons from local businesses.

Eventually the students will get home, and show the pictures to their parents. And the parents will hear from their kids what a great place SPI is, learn more about the local real estate market, and maybe even tempted to use the coupons. Play your cards right with those other coupon advertisers, and this whole advertising venture could be zero cost for you.

(A dirty trick would be to pay one of those Hawaiian Tropic bikini babes to pose with the young men - pictures they'll surely keep forever. Just make sure Alice's name is in the backdrop, so they know who to buy property from after they graduate from college and get rich.)

Don't underestimate the ability of those college students to get your phone ringing. Many of them understandably misbehave while they are here, but at the same time most of them are very intelligent, studying for a bright professional future. Some of them may even be even majoring in marketing, tourism, or even real estate!

alice Donahue @ Friday, February 26, 2010 8:45 AM

Thanks, Island Watcher! We are always open to great marketing ideas and we were Spring Breakers once and we have invested here too right?

LARRY MARK POLSKY,ESQ @ Monday, March 01, 2010 11:20 PM

The sales for January and February 2010 are 50% less then 2008 and 2009...So...I guess you guys are quite correct.... the Sapphire closings in 2009 are indicative of a "rebound" in South Padre Real Estate..and the market has finally come back...with willing buyers just waiting to close deals in 2010!..I feel WARM...FUZZY and SECURE...and I now realize that the 150...2009... Sapphire closings(from 2005 and 2006 Buyers)...which genearted $90,000,000 of the total of $125,00,000 in 2009 South Padre sales...bodes well for 2010....WHAT DRUGS ARE YOU GUYS ON...I NEED SOME!....

LARRY MARK POLSKY,ESQ. @ Monday, March 01, 2010 11:26 PM

P.S...... "ECONOMICS 101"....if 1 out of 20 car manufactures posted a record profit for 2009...and the other 19 posted the worst sales figures in the last 5 years...does that mean 2009 was a "BANGUP YEAR" for auto makers?

Island Watcher @ Tuesday, March 02, 2010 3:31 PM

Hey Larry,

Just my opinion, but you're really looking at this all wrong. I suppose you could try to compile the huge mountain of available public statistics and legitimately come to any conclusion you want. Consider however that realtors on the ground have valuable experience and access to critical information which isn't common knowledge. All of that "hidden info" can significantly change the way you view the market, if you were just aware of it.

Yes, realtors naturally tend to look at the market through rose colored glasses, but there is nothing wrong with an optimistic attitude. Write them off as hopelessly biased, and you're throwing away the most valuable tool available for getting your best deal in this unique island market.

(Here is another personal observation for you: Forget about dealing with those tempting cute and young agents that just earned their real estate licenses. The truth is that the older and uglier your agent is, the smarter they are, and the better they can get you the best deal.)

Consider that even in rough economic times like this, there is always some kind of new construction in progress. The sheer quantity of new developments on this island will probably shock most independent observers:

http://www.alicedonahue.com/NewConstruction.aspx

Now tell me the truth, how many other communities across the USA display that level of growth? Also, wouldn't you agree that new construction of high dollar beachfront condos is a good thing, even if the actual sales won't be reflected in the MLS sales data base until those new condos actually close? Focusing too much on the monthly MLS sales data simply doesn't do a good job of characterizing what new projects are in the pipeline, or the bright future the island has.

If you have trouble looking at the current situation like that, just add up all those deposits that have been placed on a single new major development, like the Karina project. (That is 3, 4, and 5 bedroom luxury beachfront condos). Last I heard it was supposed to be finished by the end of next year, but I'm sure Queen Alice can give you an update, if you're interested. Just because those new buyer deposits don't show up on MLS, that doesn't mean they don't exist.

I'll be the first to admit that the island is small, and the sales data is choppy as new developments come on line. This island is however still growing and moving upscale, that much is clear.

Island Watcher @ Wednesday, March 03, 2010 10:02 AM

Alice, I've got another marketing idea for you. This one is much easier.

It seems to me that it would be in your best interest to "go beyond the numbers" in your quest to sell the island. You need to highlight some of the stuff that shows this island has a bright future.

For example, you've got a perfect opportunity right now with that huge pipe running down the middle of the beach. Go out and take some pictures and/or video of the actual beach rebuilding process, and post it on your website. That'll help make potential buyers feel better about investing in beachfront property, knowing that there are serious ongoing efforts to maintain the beach.

Mike Stuart @ Wednesday, March 03, 2010 10:04 AM

Great idea,
I took some showing the installation process from 9th floor of the Isla Grand and will post them in a few hours.

alice Donahue @ Wednesday, March 03, 2010 4:08 PM

Do I have to be old and ugly to be smart? I guess my tiara will have to come off!

Island Watcher @ Thursday, March 04, 2010 8:26 AM

Sorry, bad comment on my part. I actually realized that as I was writing it, but I felt so strongly about it from personal past experience that I posted it anyway.

HOWEVER, for the record, we already know that Alice and all all her gals defy the norm in many respects! They are ALL extremely smart AND absolutely gorgeous! Oh how I dream of working in an office with babes like that. Mike is a lucky guy, always remind him of that.

I'm sure one of the best part of working in the real estate business is getting to know so many interesting people, with such diverse backgrounds and very different personalities. At times I'm sure it's aggravating, but at times I'm also sure it must be fun. If you want to spice up your web site a little, it would be great to hear the best "real estate sales tale" from each of your agents. I bet everybody has has a funny story to tell, and we would love to hear it. That would also demonstrate to new clients just how experienced all of you are!

Best of luck to all of you!

Gayle Hood @ Thursday, March 04, 2010 9:25 AM

Thank you for the compliments, "Island Watcher." We all try hard to look professional and always appreciate it when someone notices. I will give some thought to the "Best Real Estate Sales Deal" and get clearance from that client to share it with you. That would be fun to hear.

You are right. Our jobs are really interesting because people are so different and everyone has a story. Most are unique in their own way. Resort property buyers and sellers are a different clientele. They generally have more disposable income and are more adventurous. Another reason why our foreclosures are a small percentage of our inventory compared to other areas. But, yes, they make our job interesting. I love it!

Story Teller @ Friday, March 05, 2010 10:12 PM

OK, my funny real estate story:

I needed to sell a house in a city which I was not very familiar with. (nowhere near South Padre) I looked online, found a local agent, and sent her a request to contact me. The next day I got a call from a competent and friendly sounding woman named "Mary", and a followup letter with her personal photo business card. From her picture she looked to be "30ish", and very attractive. She sounded like she knew the local market, so we agreed to get together a few days later at the property to have a serious pre-sales chat.

Between the time I received the introduction letter and the time we actually met at the property, I had Mary's business card and letter laying out on my desk. My wife saw it, and I think she was actually jealous that I was going to be doing business with such a beautiful woman. But, she knows I deal with a lot of people, and I've always been faithful, so she didn't raise a stink about it.

When Mary and I actually did meet in person for the first time, I couldn't believe what I saw! This woman was pushing 50, at least 250 lbs, with more craters on her face than there are on the surface of the moon. At first that got me real scared, and I wondered if she was going to even fit through the front door. While we were talking I couldn't help but wonder in what other ways she could be so deceptive, so I really asked a lot of extra questions. She did however get me to sign the listing contract that same day, but I went home that night feeling very uneasy.

Much to my surprise the entire sale went exceptionally smooth. Mary found a buyer relatively quickly, I got a decent price for it, and the closing looked like it would go so smoothly that I told Mary she didn't even need to attend. Really, it was that easy.

The only thing I can figure is that Mary must have some incredible Photoshop skills to make that smiling picture on her business card look so good.

True Story.

Larry Mark Polsky,Esq. @ Sunday, March 28, 2010 12:33 PM

My optomistic friends....what do the sales statistics for 2010 point to? I am "trembling with anticiapation" to hear you "twist"
the 2010 figures into another "big bang" theory!

Gayle Hood @ Sunday, March 28, 2010 4:26 PM

OK, so here is one of my funny real estate stories:

Our broker, Alice, asks our opinions when hiring other agents sometimes. We all work closely together and think we have a great group of agents. When interviewing another agent one day, the agent being interviewed said “I have to be honest with you. I heard rumors that Alice only hires ‘young slutty women.’ ” Well, that really cracked me up because I am in my 60s with lots of gray hair! And, one of our other agents, Judy, is my age with a similar amount gray hair. Now, this is the best part.... when I told everyone in our office what this agent want-a-be said, Judy cooed, “wooo, thank you!”

OK, everybody. I challenge you to give us your funny real estate story. I have more but I don’t want to be one of very few sharing stories.

Island Watcher @ Monday, March 29, 2010 4:38 PM

Hey Larry,

Always a pleasure to talk to you!

Looking for some optimism, eh? Well, there is lots of it out there, if you just look beneath the surface. The most encouraging thing I've seen lately is that there is a significant drug war taking place in Monterrey and the border cities, yet the island's real estate inventory has remained relatively steady. No kidding, check it out on MLS for yourself. When you consider that half the island is Mexican owned, it's amazing that the market is holding together so well.

Furthermore, for well over a year the island's available property inventory has consistently hovered in the area of 600, despite every bad situation imaginable: a horrible world economy, red tide, Hurricane Dolly, oil slicks, gas close to $3/gallon, etc. - but that critical inventory level has hardly budged! How many other towns in the USA haven't seen huge increases in inventory over the past year? This island is truly unique.

I've got a theory to explain this. From what I can see this beautiful island is mostly just a big piggy bank for rich folks. A lot of people, especially those involved in politics and wacky tobacky distribution enterprises south of the border, buy property here to stash their hard earned cash.

SPI has a lot of rich property owners, from the north and south, that's for sure. The vast majority of property owners have bought their expensive beachfront condos with no intention of living in them or even renting them out. All they want is an annual vacation visit or two. These kinds of people have no motivation to sell their prized properties, even during serious economic downturns like this. That fact alone translates into serious limits on the available inventory of property for sale.

Yes, there are certainly some less well off property owners that have been recently forced to sell due to the current economic situation - and that has had a noticeable impact on prices. However, what I see now is that as time goes by the "weaker" property owners are being slowly purged from the island. That's a painful process, but it will also undoubtedly leave the island with a greater percentage of rich die-hard property owners that never have to sell.

Want more inspiration to buy island property? Just take a look at a current satellite map of the island. Unless you plan to build in the swamp north of the convention center, most of the good beachfront property has already been sold. After this market works through the current challenges, beachfront condo prices are going to SOAR again!

Scared about the beach erosion? I'm not. Believe it or not that latest beach restoration effort this past spring cost only $6 million. With well over a billion dollars worth of property on the island(or is it closer to $2 billion?), a $6 million annual expense to rebuild the beach is chump change.

As a final note, I overheard that Alice and her crew of young gorgeous gals are going to be putting together a serious island advertising promotion soon, something like this:

http://www.voyager360.com/activerain/hot-postcard2.jpg

(Rumor is that Gayle is going to be doing that hot bathtub pose...)

Gayle Hood @ Monday, March 29, 2010 7:06 PM

I agree with Island Watcher except for the part about our new advertising campaign. However, I don't care who you are, THAT is funny!

Larry Mark Polsky,Esq. @ Tuesday, March 30, 2010 2:02 AM

Island watcher..I agree that smart Mexicans look at the proximity of South Padre to take their ill gotten "drug war" profits to invest in....It just means that soon South Padre will be looking at a strong elemnt of organized crime families living here..ala LAS VEGAS...and in so far as that "swamp" north of the Convention center Tracts 1-14(350 feet wide each) have water and sewage and will have electricity by 12-31-10....that means that there will be 98 fifty foot wide oceanfront lots for sale soon..along with another potential 1000 building lots...all on a pristine... totally undeveloped...driveable beach...1 mile from the city limits..I just happen to own 155 feet by 300 feet on the ocean on tract 7 that I purchased a year ago for $500,000...and I also am the first person in the history of Cameron County to have a building permit issued(for my 6 lot development) for the Northtract area.....what do you think that will do to the price of oceanfront and all other building lots in the town?.... ...You figure it out!

Larry Mark Polsky,Esq. @ Tuesday, March 30, 2010 2:08 AM

P.S... Island Watcher..you never addressed the "50% drop in sales" for South Padre for the First Quater in 2010(compared to 2009.."THE BIG BANG YEAR!)?and the rise of Bank Foreclosures on the Island(as opposed to 2009).......... DOES THE CAT HAVE YOUR TONGUE?...or are you concentrating on those gorgeous sales ladies?

Island Watcher @ Tuesday, March 30, 2010 8:48 AM

Larry,

No, the island isn't going to be taken over by gangsters anytime soon. Money from south of the border has been stashed into south padre real estate for decades, and we have a beautiful and tranquil island to show for it. The current war in Mexico would have to get a WHOLE lot bigger before I worried any serious drug cartel problems migrating to the island. So for now, sleep well.

With regards to "less than stellar" sales lately, I thought I already answered that one. The war in Mexico has temporarily distracted some of our friends from Monterrey, no doubt about that. Nobody can say for sure when that situation will subside, but I don't see how it can last forever because it doesn't make financial sense for the cartels to spend so much money fighting with each other. They're in business to make money, and the fighting seriously hurts their profits. I predict that soon both the Mexican government and cartels will both realize that it's in everybody's best interest to just call a truce, and things will get back to normal.

Total sales are down a bit from last year mostly due to the closing of those Sapphire units, but the situation isn't so bad. Consider that during this February, a total of 18 island condos sold, compared to just 7 more during the same period last year when Sapphire units were closing. Also note that 16 condos sold two years ago during the period of February 2008, so things are slowly getting better. We're also blessed that the island is still accommodating new developments, especially in light of the huge world economic downturn.

With regards to "the swamp", I 'm almost sorry I used that term. I had no idea you owned property out there. I didn't invent the term "swamp", but rather it's what the vagabonds that camp there call it. Some of them even affectionately refer to themselves as "swamp things", or "swamp people". I guess the marsh smell can get pretty bad at times, depending on the direction of the breeze and time of the year.

You're an interesting guy Larry. On one hand you severely criticize many positive thing that are mentioned here. On the other hand you behave like an optimist, moving to be the first guy to buy property in new developments, presumably so you can beat everybody else to the big pot of gold.

My advice to you would be to find a good realtor, somebody with a good business attitude who will be 100% honest with you and ask questions like: "hey Larry, why do you want to buy empty lots across the street from a smelly bug infested swamp, with no electricity, where squatters camp? " (Maybe those nude hippy beach girls out there stirred up your imagination and motivated you to buy? Perhaps you were dreaming about them showing up on your doorstep asking to use your shower to wash off that saltwater residue?)

Seriously Larry, a good realtor can do a lot more for you than collect commissions. Believe it or not, some of these guys actually know how to make investors money, and love to work with serious investors like yourself. You may have noticed that many of these realtors constantly have a cell phones in their ears, giving them unique knowledge of many unadvertised specials that you can only dream of. Don't prejudge a realtor as somebody who picks up a one time commission, and then never talks to you again. On the contrary, the better they get to know you personally the better they're going to be able to find you the kind of deals you're looking for. An honest realtor will value your continued business, and steer you away from making mistakes. (And, if you want a smart AND good looking agent, Alice has the babes!)

Good luck with your future investments Larry.

Larry Mark Polsky,Esq. @ Tuesday, March 30, 2010 6:06 PM

Island watcher..how many of the 18 condos that sold this year were at the Sapphire... when you check with the county clerk you won't like the answer....I have the best realtor on the Island representing my interests in my "northtract adventure"..HERB HOUSTON!...and you never commented on what 1,000 potential building lots (98 Oceanfront) situated on tracts 1-14 will do to the prices of comparable lots on the Island...when they become avialable in 2011! P.S. I am in the midst of a "death grip" confrontation with the GLO over whether the "200 foot setback" rule overides their determination of the "line of vegetatioin".....A bunch of northtract landowners should make the County Judge and County commisioners AWARE OF WHAT THEY FEEL THE LAW REQUIRES...it will impact millions of dollars of land values!

Island Watcher @ Tuesday, March 30, 2010 10:52 PM

Larry,

You sound like more of a maverick than I previously would have guessed. I suspect there are a lot of real estate agents that would LOVE to have you work through those North Tract issues, so they can finally start selling lots without all the problems. I am however much more conservative than you, and wouldn't currently touch those North Tracts with a ten foot pole. I can't compete with your first hand knowledge of the problems you've already run into out there, but from my 36,000 foot perspective, here is what I would be concerned about:

1. The swamp smell and endless bugs. How can you drain/fill all the nearby swamps? There must be a million environmental considerations to prevent you from doing that.

2. Setbacks. Even if you win your legal case, do you REALLY want to risk building so close to the water? Look at what happened south of the Galveston seawall. Some of those beach houses that seemed nicely placed back from the water a couple decades ago are now IN the water at high tide, due to natural beach erosion.

3. I haven't heard of any beach rebuilding efforts that far north on the island. On the contrary, I think I heard stories they regularly steal sand from that area to refresh the hotel beaches further south!

4. Those low lying north tracts remind me too much of Port Bolivar, which was almost totally destroyed by Ike. At the nearby SHORES they are advertising "break away walls", to minimize storm damage. No THANKS, I think I'll stick to the rock solid concrete high rises closer to the bridge, and focus on flipping condos 10 floors above the worst flood with a nice view.

5. Those setback lines that you are so preoccupied with killing are actually there for a good reason - there simply ain't enough room to build on the east side of the highway! (On a related topic, I always thought it was nuts that they let developers build condos on the east side of Gulf Blvd. In my opinion the east side of Gulf Blvd should be all beach, with a huge dune protection system for the island, like in Port Aransas)

6. I would be REAL hesitant to build out there until I saw them starting to build that new bridge. It's just too isolated, and feels creepy living on a dead end road, miles from most of the island's attractions. I am sure there are many people in the world that would appreciate the peace and quiet, but I bet the majority of folks come to the island for the amenities. Think Resale.

7. Have you ever investigated at what level of storm surge would flood that part of the highway and cause you to be trapped? One of the arguments in favor of that new bridge is to give everybody an extra escape route, but right now that plan is still on the drawing board, and is probably years away.

8. Suppose they do eventually get around to building that new bridge. That would really generate a lot of traffic in your back yard, right? And you were forced to build very close to it, right? Not an ideal situation.

9. So they told you the electric service would be in place by the end of the year, eh? Do you believe them? Can you sue somebody if they don't deliver? It seems like nothing ever happens on schedule around here. (did you ever check to see if your cell phone works that far north? just curious.)

10. Being outside the city limits, what is the availability of emergency services out there? Seriously, if somebody was breaking into your house and you called 911, how long would it take to get a cop out there, and where would they be coming from?

11. Even if you eventually get electric service, how reliable will it be? You would be at the VERY end of the island's fragile electric grid. Let's face it, that island grid has some reliability problems. Even during good months that salt water air tends to to blow a lot of above ground transformers, or at the very least crackle and sputter constantly. After a decent sized storm, how long to you think it would take to restore electric service that far north on the island? Again, there are probably willing buyers out there who would appreciate this level of isolation from the rest of civilization, but it's definitely not the place for your average tourist.

One more comment. If Herb is helping you out with all this, that's great, cause he has been through this kind of stuff before and knows the system. But do you think our ex-mayor would really feel comfortable telling you that you're making a mistake if deep down he really believed it? Or is he more focused on your money, and just following your orders to collect a pay check? Let's face it, money can buy loyalty. Maybe you ought to have more than a few beers with old Herb sometime, and learn what he REALLY thinks about your "North Tract Adventure". A more civilized way to get him to talk is to take him for a full round of golf, then head off to the clubhouse for a few beers. (It's hard for men to keep secrets on the golf course.)

Good luck with your ambitious plans. I sure wish I had a beachfront house in which young naked hippy chicks were constantly banging on the door, wanting to use my shower. I might even be inclined to keep some extra whiskey around the house for special visitors like that....

http://www.topfatlosstrainer.com/wp-content/uploads/2009/10/31/lean-and-tone-body-avoid-mistakes/Old-Man-Drinking-Whiskey-and-Smoking.jpg

Larry Mark Polsky,Esq. @ Wednesday, March 31, 2010 1:23 AM

Island watcher..first..I never have touched alcohol..Herb only followed my real estate investment strategy instructions..there is presently $500,000 escrowed for electricity by Angela Edwards...... I have owned 5 oceanfront properties in Daytona Beach...bug spray....a good air freshener....a diesel generator...a CB radio....a security wall...a good first aid kit.. my watchdog("ACHILLES" THE BLOODHOUND)and strategically placed hay bales answer all your concerns..As consrvative as you are..."grind"on these facts..the cheapest buildable oceanfront lot in Cameron county costs $795,000/...I purchased my 155 by 300 foot parcel for $500,000 and have about $50,000 in the permitting process..and will spend another $200,000 to clear and Beautify my 6 lots...(3 directly on the ocean..and 3 in back of those 3 that but up to the park road......The Franke's have sold and are selling 2nd tier lots on "their beach" for $350,000 each..and oceanfront lots on their beach" for $750,000 each(the same dimensions as my 6 lots...125 by 55)..My question to you is..IS THE BEACH AND BAY that border the FRANKE's Development..different from my beach and my bay.... 1 mile north of the Franke's...have the Franke's lost money on thier development?and how attractive will it be to live on a pristine beach with the closest neighbor being 1 mile away? ... .CHEW ON THAT!

Island Watcher @ Wednesday, March 31, 2010 6:38 PM

Larry,

If my understanding is correct you've got a 300 foot deep lot, sandwiched between the Gulf and and a highway. You've also got a 200 foot setback restriction from the gulf, and presumably some kind of significant easement along the highway. That doesn't leave much room for a house, even if you can get the GLO to cut you some slack. I've got an architectural idea for you that just might work, and you don't have to pay me a nickel for this in depth research:

http://www.apartmenttherapy.com/la/slinks/narrowest-home-in-los-angeles-034828

Seriously Larry, I think you'll be much happier with the outcome of your projects if you ask some real estate professionals for their honest advice before spending any big money. Deciding for yourself what needs to be done, and then ordering people to complete the tasks is usually a recipe for disaster. If your beach house ideas had any merit I think somebody else would have attempted it long ago. Your #1 problem is that highway is just too close to the water to build a house. Just my opinion.

P.S. your joke about the first aid kit was funny. You're a determined guy, that's for sure! Despite all my pessimism, I really do wish you success. Somebody has to eventually figure out how to develop those north tracts. However, aside from rebuilding the highway over the swamp, I don't see how you're going to have enough room to safely build a beach house.

Larry Mark Polsky,Esq. @ Wednesday, March 31, 2010 9:13 PM

My Friend...have you ever looked at houses on the beach in Galveston ...that is exactly how I intend to build my 6 houses....even better have you ever seen beachfront houses in Daytona Beach?..The template has been "cast in stone"...and I'll bet you dinner at Louie's seafood buffet I double my money in 24 months! I would appreciate your "going on the record" as to whether all your
"concerns" also apply to Franke's developmnent!

Island Watcher @ Thursday, April 01, 2010 1:07 PM

Hey Larry,

I don't see how you can compare your "mini development". with The Shores. They're quite a bit closer to town than your gig, a whole lot bigger, gated community, they own both sides of the highway, master planned community, future retail space, city police patrolled, landscaped, marketing muscle, marina, financing, etc., etc. And what gives you the idea that The Shores has been a smashing success? At the rate they're going, it will be another decade before they finish building out that project. In the meantime they burn through lots of cash.....

Yes, I know a thing or two about Galveston. I used to spend quite a bit of time there in my distant youth. A number of the beachfront homes that were standing tall back then are now gone, due to the beach erosion. Of course that impacts my thinking, as well as the GLO's decision making process.

HOWEVER, if your time perspective is much shorter, like about two years from start to finish, then it really changes your whole investment/development equation. To me it sounds like you're banking on getting the GLO to cut you about 50 feet of extra slack so you can start building beachfront homes ASAP. Then you rent a diesel generator for the builders until the power lines are finally installed. Following successful construction you put the new homes up for sale, and pray that the swamp breeze is going in the other direction when you're showing the homes to prospective buyers, right?

Heck, who am I to say that such a plan won't work. It very well could. You've obviously got some MAJOR obstacles ahead of you, and you'll probably need an exceptionally strong real estate market so sell such odd houses for the price you're anticipating - but hey - with some luck it's possible. (Maybe you could increase the odds of a sale by hiring some naked hippy girls to play volleyball on your beachfront when you've got a showing scheduled. That's an advantage you could have over The Shores!)

http://z.about.com/d/orlando/1/0/G/P/paradise03.jpg

Oh, and by the way, if you're curious what's happening up in Galveston regarding setbacks:

http://www.khou.com/news/Galveston-rejects-strict-limits-on-beach-front-building-87588467.html

One more question. How much of your beach was lost to Dolly? They're hinting at an active tropical season this year. Maybe it would be best to get started building ASAP, after you get all your permits. On the other hand maybe it would be best to wait until that situation in Mexico is resolved, when the drug lords stop killing each other and get back into the island property market.

Good Luck with whatever you decide to do.

Larry Mark Polsky,Esq. @ Thursday, April 01, 2010 8:44 PM

YOU AR VERY SMART...and extemel;y well informed...But you don't know my investmant strategy...so I will explain it to you...I will have $750,000 in my 6 lots at by July 1st...and they will be cleared and ready to sell and build on at that ime(Ianticipate electricity by 12-31-10)...I will keep all 3 first row lots and build 3 oceanfront 3 3500 sqquare foot story homes(the ground floor garage I count as the first story...but not in the 3500 square feet...I will live in one and rent out the other 2..for a minimum of $1500 per week..up to $5,000 per week in the season...
The 3 houses will each have a pool nd hottub(for the "NAKED HIPPY CHICKS)fireplace..fully tiled... and be fully furnished with top of the line electronics...)I will commute to my 4,000 square foor 2 level Law office and Boxing Gym next to Kelly's Irish pub(I have trained about 50 Pros in my life)...I will "owner finance" the 3 "second tier" lots...for $350,000 each...$50,000 down..and I will hold paper for a 20 year fixed mortgage at 7%(10% prepaymernt or Assumption penalty)....PLEASE CRITIQUE MY PLAN..as I hav just sold my Law office in Brenham... and anticipate selling my 22 acre Ranch in Brenham byt 12-31-10..and should be a South Padre resident in January 2010!...P.S. EVERYTHING I own is debt FREE!

Island Watcher @ Thursday, April 01, 2010 11:45 PM

Hey Larrycito, (How's your Spanish?)

I was thinking about that little problem you have with the GLO. Instead of fighting with them, maybe you could allow them to save face by just getting them to clarify the rules a little bit. The need for a setbback is kind of vague, especially if you're talking about a linear distance from the water, shifting sand dunes, etc. Maybe you could get GLO to clarify the rules with an additional option regarding a minimum building height above the water line. In other words, maybe they would be willing to rewrite the setback rule to say something like: "a minimum setback of 200 feet is required, OR if the base floor of the house is at least 30 feet above the high tide level, the setback can be reduced to 150 feet."

Think about it. In your cramped space it only makes sense to build your home on stilts, like they do in south Galveston. So a 30 foot minimum elevation above sea level shouldn't be a problem. That will also give you some serious protection against major storms, which you already need if you're going to be there for 20 years. (And don't skimp on the foundation, like they did with Ocean Towers. Dig those piers twice as deep as the code calls for.)

3500 square feet seems a bit large to me, especially for a lot that size, but you probably want to ask some realtors about that, given that they know what buyers are looking for. Perhaps you should be looking to combine lots, to create a small condo complex. The majority of property owners don't live here, and prefer to pay somebody else to take care of the required maintenance. Building condos also allows you to save money on the shared amenities. (i.e., pool, hot tub, parking, etc.)

Renting island property is a tough proposition. It's extremely rare to find a place that rents well enough to pay all the bills, at least if you're carrying a sizable note. I don't remember the details, but I think one of the island rental agencies I was working with years ago picked up a 40% fee for their services. (She has since gone out of business.) I also wonder if any island rental firm would accept an isolated property that far north, but who knows.

Consider the type of buyer you would likely be selling to. I think I heard somewhere that the average property owner on this island doesn't rent out their property, and seldom spends more than six weeks out of the year here. Again, I'm not a realtor, so I don't know what the latest statistics are. But you need to understand the typical buyer.

I have heard that there is a big difference between rental agencies, and one of them beats all the others hands down. (You'll have to buy me that seafood buffet @ Louies if you want that magic name, which I really shouldn't say on a public web site like this, because I need to keep a good relationship with all the agents. Or just ask any realtor, because they all know what firm I am talking about.)

Another thing to consider is that there are considerably more rental units available than there are renters. That is forcing owners to offer "special deals", presumably in exchange for more rentals. In other words, if you're insisting that your rental agent only charge full price, you may not get too many rentals because that same agent is getting special pricing from other desperate owners. Really though, there are a lot of variables here, and a lot will depend on the specific class of property you are offering. Before you build anything, call around to the rental agencies and ask what type of property rents best. They may laugh in your face if you tell them you want $5K/week for a beach house on the other side of the swamp. One more thing to ask is how much income you could likely receive each year. Don't be shocked if they tell you to expect about 1/3 of what you were banking on. I think most owners that rent on this island do so because they have to, not because it is a profitable business. (Somebody else is sure to disagree with me.)

Your owner finance idea is unique. That might appeal to a buyer with less than stellar credit, if that's what your fishing for. On the other hand somebody with less than stellar credit probably isn't looking for expensive property like that.

7% for a 20 year note seems high, even for a jumbo on a tourist island. I think the 30 year fixed is currently going for somewhere in the low 5's, but talk to a mortgage broker. My opinion is that at the rate Obama is printing money, 7% might be competitive by the time your project is ready to market. You'll just have to stay flexible, and stay on top of the market as it evolves.

If you're going to sell, how long do you think it will take? There is currently about a two year inventory of properties for sale on the island. You are however talking about selling a unique type of property, so talk to some experienced agents to see how the current market is likely to affect your potential sale. I'm not sure, but unless you get lucky it might take you considerably longer than average to find a buyer interested in such a remote home. (The arrival of the new bridge could change that situation, but I'm guessing that is still years away.) Another alternative to selling fast is to give the realtor a bonus if they sell fast.

You seem to take pride in living debt free. That is no way to make money in the real estate business. Instead consider forming a corporation to avoid personal liability, and leverage all your investments. After you close on a deal, stick the money into another fresh deal, and turn it as fast as you can. That's how you make money. If you put all your heart, soul, and money into your property, your perspective will get all fouled up, and you'll make bad decisions, based on emotion instead of logic. Keep focused on the money, and always seek the opinions of others who know more than you do. You also gotta be real nice to everyone you deal with, because everybody in the real estate business on this little island knows everybody else, and you're going to need them some day. Don't start any fights outside of that gym of yours.

P.S. Here is the best fight I have ever seen:

http://video.google.com/videoplay?docid=-3714056735984928976#

Larry Mark Polsky,Esq. @ Friday, April 02, 2010 1:16 AM

It's amazing..buy every bit of your advice is CONTRARY to how I do business and to my personality...I am a "fighter"...will never compromise with the GLO(who are trying to screw me by not enforcing the 200 foot setback(they are trying to say a measurureable line of vegetation exists on my lots)..have always been anti-establishment......live by the "GOLDEN RULE"..and "EYE FOR AN EYE" credos(I multiply my responses times "ten" to the act I am reacting to).....will create my own website to rent my 3 houses(which are built 15 feet...on stilts.. above my heavy duty foundations...with the lots built up 15 feet above sea level... will charge 25% less then any other oceanfront homes for rent.....look forward to the Buyers of my 3 lots defaulting....so
I can foerelose..and resell them again.....SO THE FIRST $64,000 question is WHY(with ZERO IN THE BANK AT AGE 25...and NO INHERITENCES..and no WIFE MONIES!)) IS MY NET WORTH ...TODAY... $3,500,000 at age 62(WITH NO DEBT!)WHY IS MY NET LAW OFFICE INCOME THE LAST 5 YEARS(IN TEXAS) AN AVERAGE OF $250,000 per year(I am a sole practitioner who NEVER HAS ADVERTISED..it's all "WORD OF MOUTH REFERRALS"...... the second $64,000 question is..."HOW DID I EVER MAKE OVER $2,000,000(NET!) in MY REAL ESTATE DEALINGS with such a screwed up philosopy and personality?...THE FINAL $64,000 QUESTION IS WHY HAVE I MADE SO MANY BLUNDERS IN MY "NORTH TRACT ADVENTURE"...with no disrespect intended...I ask....with ALL YOUR INVESTMENT AND MARKETING KNOWLEDGE..and your "PLEASANT,CONGENIAL PERSONALITY"....is your NET WORTH EQUAL TO MINE?(I am including my 4 divorces in these computations..without them my net worth would probably be $7,000,000 !)(You and I are contemporaries)....In the words of "THE BARD"...."MONEY TALKS..AND BULLS**T WALKS"

Island Watcher @ Friday, April 02, 2010 6:02 PM

So Larry, you want my honest appraisal of your life accomplishments to date? Well, I will award you an "A+" for financial accomplishments, and a "D-" for your many failures with women. Maybe you'll have better luck with those naked hippy chicks that hang around your new property. Moving to South Padre could be the smartest decision you ever made!

So how do I access my own accomplishments? I look at life differently than you do, Larry. The way I see it the guy with the most babes wins the game. Fortunately there are LOTS of young hot babes crawling around this island, just looking for rich guys. Here is a picture somebody took of me the other day, so you can grade one of my "personal accomplishments" for yourself:

http://n2.nabble.com/file/n2850292/How-to-Spot-a-Rich-Man-1180.jpg

Seriously Larry, I am MOST curious about your plan: "look forward to the Buyers of my 3 lots defaulting....so I can foerelose..and resell them again..."

I've heard of predatory lenders taking advantage of illegal immigrants and other people down on their luck, but these types of people don't generally buy island property. Still you seem to be convinced you can find some suckers. So how exactly do you plan to finance your property with the expectation that the buyer will eventually default, and you'll earn some big money foreclosing on them? That's a trick I've never seen before. Are you going to put something in that sales/loan contract that stipulates immediate foreclosure if the buyer is 20 microseconds behind in a payment, or in any way disturbs your peace and tranquility? Really Larry, I'm having a tough time figuring out how you could purposely set up a foreclosure trap for potential buyers. As you have already given this matter a great deal of thought, maybe you could enlighten me a little?

Thanks in advance for your consideration. I'm sure I'll be able to repay the favor some day. Or maybe you would accept the pick of my harem as compensation for your invaluable mentoring...

http://debian.fmi.uni-sofia.bg/~cdunchev/HAREM.jpg

Larry Mark Polsky,Esq. @ Friday, April 02, 2010 9:02 PM

my friend...you again miss the point..and overlook my description of myself...I am not FINANCING my venture....I am paying cash to build my 3 houses.I have no mortgages to pay!..and I am not luring any "type" of buyers in...whoever puts up $50,000 cash is fine with me..I will give them a 30 day grace period for late payments ..with a $100 per day penalty.......and on the 31st day...I will file foreclosure proceedings...my mortgage will read that in the event of a foreclosure I myself get paid $500 an hour plus costs to file it and litigate it.....and it will read that in the event of my filing suit... the buyer owes me a $250 per day penalty from the date suit is filed.....until they either bring the back payments up to date...or pay off the loan(remember I am putting in a 10% assumption or prepayment penalty)..THERE ARE A SLEW OF BUYERS WHO WILL LOVE TO BUY MY 3 LOTS WITH THESE TERMS......WITH ONLY $50,000 DOWN..NO POINTS.... NO APPLICATION TO FILL OUT....and NO CREDIT REPORT.all they have to do is put $50,000 down..and pay ALL colsing costs.....THEY WILL PROBABLY BE LOOKING TO "FLIP"..and those type of investors are just "WHAT THE DOCTOR ORDERED"....The reason I really look foreward to a buyer defaulting should now be obvious to you... I will make a minimum of $10,000 if they bring the back payments immediately up to date. OR...$30,000 plus attorney fees,costs, and the $250 per day penalty(plus $3,000 for the first thirty days) if they pay it off....OR ..$30,000..plus attorney fees,costs and the $250 per day penalty(plus $3,000 for the first 30 days) if they get another person to assume the mortgage...NOW YOU KNOW WHY MY LITIGATION SERVICES ARE SO SOUGHT AFTER! ..I adhere to the "SCORCHED EARTH POLICY"...and have thrived on it for 62 years!

Larry Mark Polsky,Esq. @ Saturday, April 03, 2010 11:27 AM

P.S....and if they can't bring the back payments up to date...and can't find someone to assume the mortgage...I keep their $50,000 deposit. levy and execute against their personal property(I will have them sign as Husband and wife...individually..even if a corporation is buying my lot) for my $25,000 in attorney fees and costs.....and sell it to the next buyer!...P.P.S..Why are March's sales figures less then February's...is that part of your "big bang" theory?

Island Watcher @ Saturday, April 03, 2010 12:20 PM

OK Larry, now you've really got me intrigued. I'm definitely not a lawyer, but isn't that what they call "Servicing Agent Abuse"? I mean, let's face it, no large respectable lender could ever get away with lending practices like that for any length of time, because a public defender would step in and shut them down. But, I don't have much trouble believing that a slick lawyer could get away with this kind of stuff on a small scale. No doubt about it. And no little flipper is likely to have the resources to fight you in court - they would probably just lick their wounds and walk away.

Have you been doing this kind of thing for a while? Your confidence level is very high. Let me guess - most of your clients in Brenham are predatory lenders that you write contracts for, and now you want a piece of the action for yourself? (Just a wild guess on my part, but it would also explain why you don't have an advertising budget for your services.)

I have seen some fairly abusive predatory lending practices in the past that were very profitable. However the stuff I've seen is usually along the lines of high interest lending to people with little or no credit - just within legal limits. But what you're doing is something very different, rather unique. You seem to be absolutely convinced that that some overly greedy, small time "flippers" are definitely going to fall into your carefully laid trap.

If I really stretch my imagination I can envision a small time flipper buying a lot next to a swamp, and ignoring many of the contract terms if he really believed the property value was headed north in the foreseeable future. I can also understand the lure of owner financing in such troubled times, especially with no points, no application, and no credit check - just a juicy down payment. An offer like that could be real tempting to an inexperienced flipper, no doubt about it. Have you run into a lot of dumb flippers like that before? It sounds to me like something in your past makes you believe there are a lot of these types of chumps out there, just waiting to fall into your trap. True?

http://i.dailymail.co.uk/i/pix/2009/11/19/article-1229254-03FE61F80000044D-831_634x307.jpg

Larry Mark Polsky,Esq. @ Saturday, April 03, 2010 8:31 PM

yuo are aHoot!...I have NEVER worked for any lending institution(I HATE THEM!)...I only do criminal and civil litigation...Have always been a sole practitioner...Have NEVER advertised..AND HAVE NEVER SOLD A PROPERTY WHERE I HAVE HELD A MORTGAGE!.being "THE BANK OF POLSKY" will be a first for me in South Padre!.....The trick with me is to carefully read my WORDS..I SAID "IF THEY DEFAULT"....NOT..."WHEN THEY DEFAULT"..My buyers may very well just build homes on the 3 lots I will sell..but if they prepay or sell to someone els...they are looking at that 10% penalty........How can a smart guy likyuobe so WRONG!

Island Watcher @ Saturday, April 03, 2010 11:27 PM

Gee Larry, sorry if I misunderstood you. For a while there I was imagining that you were getting ready to put a clause in those loan contracts to specify that borrowers can only send their monthly payments to you via registered mail, and their checks must be certified. Forgive me again, I gotta learn to stop chugging so much beer before noon.

http://www.youtube.com/watch?v=OGcybZgljfE

With regards to my "Big Bang Theory": Actually Larry, the data (that is still coming in) for March is quite interesting. If you just look at the total number of sales, for just island property, sales has been steadily increasing since January. No kidding, just check it out for yourself - March has an 85% rise in the number of island sales compared to January. Facts like that should be quite useful in your own advertising campaign.

Alice @ Sunday, April 04, 2010 11:28 AM

Larry - I agree with you on one thing, Herb Houston is a great Realtor but he would probably advise you not to say all that stupid stuff on the world wide web because no one in their right mind would purchase anything from you or hire you to be their lawyer. And... please get that web site soon so you can get off of mine!

Larry Mark Polsky,Esq. @ Sunday, April 04, 2010 12:13 PM

My friend..again you miscalculate.....When you get to know me...you will learn I am SO SUCCESSFUL...because I am "transparent"..do not lie.. am totally "open"..and "repetitively honest!...WHAT YOU SEE AND HEAR FROM ME..."IS WHAT YOU GET"..no artifice..no camouflage..no subterfuge!(ask anyone who has met me... knows me..or has done business with me)..So..when I publically "lay Naked"..my mortgage terms...or my legal or marketing strategies...this is exactly how I treat my clients.opposing counsel..prosecutors...judges.....or "potential buyers"..In fact ANY potential Buyer who wants to buy my lots..will be told..AT LEAST 3 Times by me about ..the prepayment penalty..the assumption fee...the late fees..the attorney fees and costs clause.and about the fact that their property one day may be part of the "public domain".....AND EXPERIENCE HAS TAUGHT ME THAT WHEN A PERSON'S FOCUS IS ON MONEY OR PLEASURE....THEY DISREGARD ALL "RED FLAGS"...AND "DIVE RIGHT IN"(YOU UNDERSTAND THIS METAPHOR..DON'T YOU "HAREM BOY"...Finally just spell out the SPECIFIC 2010 "sales statistics"..that supprt "THE BIG BANG!"

Larry Mark Polsky,Esq. @ Sunday, April 04, 2010 12:21 PM

P.S..Are you trying to say you don't want any negative "contributors" on your web page...or just me?.Alice.."does the cat have your tongue"..or do you also feel my investment in my beachfront lot in the "SWAMP"...in tract 7..IS FOOLISH...a waste of money..and their will be no buyers?

Michael Stuart @ Sunday, April 04, 2010 1:38 PM

There will be buyers, "lots" of them, as we already have a huge pent-up demand for South Padre Island - the coastal resort jewel of Texas which happens to be the country's strongest state.

[It's only a matter of when.]

From our MLS stats and from Google statistics, both sales and interest levels are down this year compared to prior years.

Talking to the agents, they are saying this year we have a big drop in interest from our Mexican customers, who are apparently concerned with making the drive from Monterrey to South Padre.

We can also see this drop of interest from Google search trend analysis; in addition to, our own analysis tracking.

So this year we have both the drop in USA buyers from the recession and now Mexican buyers from the border drug war.

On top of that, we also have a large number of bank owned properties not on the market yet, (over 100).

Thus we anticipate 2010 will be one of the worst years on record for South Padre, but there will be a lot of deals on Bank owned properties.

If anyone is interested in bank owned properties, let us know, as we are talking with several financial institutions to help them move that inventory.

The recession, the bank owned inventory and the Mexican border problems will all go away one day (soon?) - and South Padre will experience a boom from the pent-up demand.

The wise will be ready for that day.

Island Watcher @ Sunday, April 04, 2010 6:35 PM

Michael, sounds like you need a pep talk. So here goes....

Yes, the situation in Mexico sucks. Really sucks. But with every disaster is opportunity. I'm sure you've heard by now that there are a lot of Mexicans trying to relocate in the USA. So this is an opportunity for you. What you need is a stiff marketing campaign aimed at the large cities in Tampaulipas. Here is just a sample of some of the facts you can advertise:

- You can get a nice inland 2 bedroom condo for well under $200K
- Many units are available for immediate move-in
- Most units are already furnished
- Great schools for the kids, with bilingual programs - and the majority of school costs are already included in the property taxes. (No private tuition expenses, like in Mexico)
- The island is peaceful, tranquil, and there is nobody shooting machine guns or heaving grenades. A damn fine place for kids!
- Recreational opportunities abound
- Great food for every taste
- Lots of Mexican companionship - you won't feel alone here

Really Michael, if you could figure out how to get Mexicans resettled onto the island in two weeks or less, I bet you could get rid of a lot of those inner island condos that are traditionally so hard to sell. One good place you could start advertising would be the Reynosa paper, a city which seems to be having more than its fair share of violence:

http://www.eluniversal.com.mx/edicion_impresa.html

Don't forget also that a lot of those Mexicans have cash $$$$ to spend, so see if you can leverage that with the sellers. South Padre is mostly a tourist island, but you also know from first hand experience that it can be a wonderful place to live. Let's face it, if you're a Mexican, ANY PLACE north of the border is a good place to live!

Here is something else I wish you would consider doing:. Please amend your web site to put a "deal of the week" on the front page. Foreclosure, desperate seller, or whatever. This new feature will lure bottom fishers, and increase web site traffic. The trick is to get potential buyers to add the bookmark to their web browser, and visit frequently. Drive Traffic. Get people thinking about island real estate on a more regular basis.

Take care, and good luck.

Larry Mark Polsky,Esq. @ Sunday, April 04, 2010 11:41 PM

Michael.."kudos " for your honesty"!...Do you agree with "Island Watcher" that my 6 beachfront lots in Tract 7 are in a "SWAMP"...and a "FOOLISH INVESTMENT?" I am sincerely interested in your crititiqing my investent(155 by 300 feei in tract 7..which was owned by David Lohse....it cost me $500,000.1 year ago.....with $250,000 more to obtain building permits and to clear and beautify it.....butting up to the park road)..P.S. Can you Email me a list of "Bank" properties...either condos on the beach...or houses or apartment houses near the beach....THOSE DO INTEREST ME..ANY ANY SMART INVESTOR...WHO REALIZES THAT SOUTH PADRE" IS A "HIDDEN GEM"...with money to be made to a "Gutsy" investor...and a GREAT AND HEALTHY LIFESTYLE" for anyone who is thinking of relocating..and picking up a not to remain too long...BARGAIN!

Island Watcher @ Monday, April 05, 2010 10:05 PM

Hey Larry, maybe you would get a response if you offered to sign a buyer's broker agreement BEFORE asking for that foreclosure list.

http://www.youtube.com/watch?v=8hEm6LiU3rw

Beeg @ Sunday, April 18, 2010 3:47 AM

The only Esquire I have any use for is a shoe polish.

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