Massive Homes

  • metta

    Posts: 39112

    Dec 15, 2015 6:16 AM GMT
    A Mansion, a Shell Company and Resentment in Bel Air

    In the booming high-end market of Los Angeles, where
    hidden ownership is common, one house stands out.

    "Shell companies were used in three-quarters of purchases of over $5 million in Los Angeles over the last three years, a higher rate even than the roughly 55 percent in New York, according to a New York Times analysis of data from PropertyShark. What is more, in Los Angeles, where so many of the new palaces are spec houses — luxury magnets for global wealth — not only are the buyers shielded by shell companies, but the developers are, too."

    http://www.nytimes.com/2015/12/15/us/shell-company-bel-air-mansion.html



    I will pass on these as well. ;)
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    Dec 15, 2015 6:24 AM GMT
    metta saidA Mansion, a Shell Company and Resentment in Bel Air

    In the booming high-end market of Los Angeles, where
    hidden ownership is common, one house stands out.

    "Shell companies were used in three-quarters of purchases of over $5 million in Los Angeles over the last three years, a higher rate even than the roughly 55 percent in New York, according to a New York Times analysis of data from PropertyShark. What is more, in Los Angeles, where so many of the new palaces are spec houses — luxury magnets for global wealth — not only are the buyers shielded by shell companies, but the developers are, too."

    http://www.nytimes.com/2015/12/15/us/shell-company-bel-air-mansion.html



    I will pass on these as well. ;)


    Yep, and 100% of commercial investment properties. I've never done it without transferring it to a LLC. Sometimes into a family, living(inter-vivos) trust first and then into the single entity LLC. If they buy several properties then a separate LLC for each.

    Also, remember that the county auditor and recorder sites are public record and many of these people don't want to found so easily
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    Dec 15, 2015 6:36 AM GMT
    I hadn't clicked your link before commenting, but yeah, this one is notorious for abusing just about everything in the book. He's very well known in LA, and impossible to negotiate with.

    They gotta to find a way to kick this moron out of the United States.

    He's a poster child of why so many of us don't like these folks or doing business with them. One way or another, you'll get fucked. They delight in doing it. I've never had a straight up legit deal with even one of them .... never, here or LA.
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    Dec 15, 2015 6:51 AM GMT
    "Good Faith and Fair Dealing"? Not a chance.

    Even in residential it would be the same shit. I'd know what would be coming the night before close ... that 10:00 pm call with them threatening to cancel if we didn't further reduce the price by some outrageous amount. So I'd have the seller sign escrow cancellation instructions prior and when that call came, I'd tell them "fine we're cancelling" and then they'd have signed cancellation instruction in their email in about 30 seconds. That's how I deal with these pieces of shit.

    Then of course they'd file a lis pendens to tie the property up without any pending action so then we'd be on it within a day with a 'slander on title' action. (yeah Bob, slander because it's written)
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    Dec 15, 2015 6:51 AM GMT
    MuchMoreThanMuscle saidIt's unbelievable that this clown Hadid is getting away with so many violations. I can't see why they can't be more aggressive at apprehending him and his construction team.

    Block off the road to and from this home that's in violation of so many property codes and have police ready to arrest anyone partaking in any of it.

    If something is going to be done things need to be taken to the next level.


    F-16s

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    Dec 15, 2015 6:55 AM GMT
    See, this is the kind of abuse where I fully agree with Donald Trump. He'll fuck em real good when they try to mess with him like this, and everyone knows it, so they tend not to try.

    I'm just a little guy so they would try to fuck with me, but I'm probably crazier than Trump so if a deal comes up with the same buyers' agent again, either they go away or not try it again. Fortunately, they go away.
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    Dec 15, 2015 7:18 AM GMT
    And another thing ... if you're the seller, get your own inspection done before even listing it and fix what you can and disclose the rest in great detail on the TDS. Make sure you get every little detail so they can't bend you over later (like the day before closing) for an accidental misrepresentation.

    Do every bit of due diligence yourself before you list. And for god's sake, if you're in escrow for a replacement property, keep your mouth shut. Don't let them know you're pregnant in another deal. If it's a competitive market, a sellers' market, they'll get the property tied up and everyone else off of it and then they'll start fucking with you.

    Think I'm being harsh? Get in the business and let me know after a few years and a few deals.
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    Dec 15, 2015 2:02 PM GMT
    I read this article with great interest and I found that it raises a lot of issues, many of them flowing from the legal protections and liability shield accorded by corporate entities, in this case limited liability companies. I am not familiar with what's happening in LA in terms of lawsuits seeking to hold members and managers of LLCs personally liable for the LLC's malfeasance in the real estate space, but my sense is that certain corporate veil-piercing principles can be applied in the LLC context. There's nothing wrong with building/owning super mega mansions, but that should carry with it accountability and responsibility to the communities in which they are located.