Jackson Jambalaya

"Landrum apparently sold shares in the Livingston Township project. SEC Filing"

This is funny! Real estate tanks then shares of the development are offered to the public. Can you say sheep going to slaughter?

There are lessons to be learned every day. Thought, I thought everyone learned "don't trust David Landrum" quite some time ago.

Not too long ago Cherry was helping David market this development and Chestnut Hills

Yeah, funny thing is, she is still on the flyer on slade's website. Nice job if her claim is true, they went to the county and didn't tell her what they were doing even though she was selling the lots for them.

Landrum's daughter is listed as an agent for Deddens on Deddens's website.

oh the tangled webs...
I inherited a home in Pearl a few years ago. It looks better and better, every time I read something like this.

Did some checking around. Deddens hasn't sold for that bunch in a year. If I were her, I'd send them a letter asking them to take me off the website but that is just me. Far as I know, that is Landrum's daughter working for her and I doubt some young girl her age had much to do with anything. Found out she was part time anyway.

So if I do my math right, Madison MS is really only worth half what they claim b/c of the propensity to double
book assets on the balance sheet?!?!? ENRON/Worldcom in the making, the Evans brothers first, now we see residential example with board support! One has to wonder how much of this has gone on during the Salad Years of Madison's growth.....?

Huh? Developer apparently asked for a replat without notifying the landowner.

Think about it why try to replat w/o notice? Seems pretty sly to me unless mrs. Dresden not being open (ie had notice). I would only do this to get more bank support on existing financing by subdividing... Sound familiar? Also my further leap is how many underlying financial deals on real estate in Madison (I heard the BK proceedings you posted - why are they afraid of prime real estate hitting the market) are out there just like this one with developers holding tremendous amount of land assets that, on the books, are extremely inflated based on similar practices of securing increased financing b/c requirements to completing
project require ever more amounts of financing? House of
cards...

Sorry on an iPhone in the mountains of AL and not easy to
post while car bumps incessantly!

Longleaf Subdivision has not been platted or re-platted. NO PLAT HAS BEEN FILED!

It was only a preliminary plat that was changed. I don't suspect anyone thought, or even considered, that Landrum would modify his preliminary plat without the consent and approval of his partners. Cherry Deddens has been the #1 Landrum "Cheerleader" and advocate for years!

So, it is simply amazing and a true sign of the times to see the extent that a person will go when under financial stress and strain...

GREED IS POWERFUL!!! I'm not sure anything is more powerful than GREED! No wonder the Mannsdale - Livingston Heritage Preservation District has been watching Landrum and his Livingston Township development like a hawk! Be sure to see related post: "REAL ESTATE RAMBLINGS!"

Hang on... it ain't over yet!

Has anyone added up all of the debt Landrum owes on the property at Chestnut, Livingston, Longleaf, Noah's Mill? Sounds like some kind of shell game...

Poor Ms deedum and the attempt to bring forth an issue after those last two comment demonstrates their own greed and inability to be "in the know."

I think what happened is more than a few people wanted to be big-dog developers and build high-profile subdivisions. Nice large prices for the lots, fancy homes, exclusivity, you know, the kind that plays well in certain circles. Some went nuts with the high-end developments, forgetting only so many people can put 20% down and afford 3000 a month house notes for 30 years.

Look at Landrum and some of these guys over in Lost Wabbit, part-time builders or not much experience. Everyone makes fun of Harkins but the thing Harkins has done over the years is build his homes to fit within the FHA loan amounts. Smart because there will always be a market for $180,000 and under homes.

EGO + GREED = 2X

(2X)EGO X GREED = BIG MESS FOR INVESTORS AND BANKS

WONDER IF ALL THESE BANKS ARE LOOKING AT ACCURATE FINANCIAL STATEMENTS OR EVEN THE SAME FINANCIAL STATEMENTS?

ARE THE LENDING STANDARD DIFFERENT FOR CERTAIN PEOPLE.

PLEASE LET ME KNOW HOW TO GET ON THE SPECIAL PEOPLE/CANDIDATE LIST>>>

Not sure it really matters but Landrums daughter was looking to move from the area around October or so last year. So I assume she isn't still selling for Cherry.
Not that this does anything to the price of eggs in China.

Reasons for the housing crises vary from state to state and from different areas within each state. Sub-prime was probably not as much of an issue in Orange Beach, Alabama for example, and there’s not much of a condo over building problem in the Jackson, MS metro area.

One of the contributing factors to the problems in Mississippi is it’s redneck legislature. I could be wrong but think one would find that the Home Builder’s Association believes and lobbies for licensing requirements for constructing, what is for many of the end user customers, if not most, the largest investment they will make in their lifetime; their home.

Somebody correct this if not exactly accurate, but in order to get a real estate sales license in Mississippi, one must have the equivalent of 9 semester hours (including post licensing), become licensed, and attend continuing education every two years thereafter. In order to become a Broker, 15 semester hours. All of this just to SELL houses.

However, since Mississippi’s legislator is littered with redneck hillbilly’s, who might for example have a fireman son in law, who builds a house or two on the side when not drawing his fire department check, and GOD forbid that this side job entrepreneur might have to study some and actually get a license, anybody who can fog a mirror can pull a building permit to construct a home.

So, Mississippians not only have to worry about structural and other problems which could be drastically reduced with some education and licensing, they have bankers, pharmacists, pharmaceutical reps and everybody else who can find a way to get paid by their employer while being home builders on the side, helping over supply the housing market.

Welcome to Mississippi.

Yup.

Actually it wasn't subprime that was used in Orange Beach but alternative prime financing. The hot product for a while several years ago was the Interest Only loan, especially the one month interest only back in 03 and 04. ABN AMRO, GMAC, and the rest of them offered them for the most part. Then the lenders came up with limited review for condos, which relaxed the appraisal requirements. there were several lender tricks going on down there.

Not all of the MS legislature is not as dumb as you describe in the comment above. After a tourism incentive bill was amended in a Senate committee to include tax incentives Landrum's Livingston Project, the leadership learned of the THREE liens and the measure died. We understand he is also seeking financial support for the project from the Mississippi Development Authority and some sort of earmark from our Congressional Delegation. Let's all pray they don't fall for his BS, and become prey.

Looks to me like Landrum has screwed over the wrong people.

When you try to run with the “Big Dogs”, they expect you to pay to stay in the race. If you don’t pay, they don’t let you play!

Speaking of races, if Landrum had developed Chestnut Hill/Livingston when he had the chance and not spent all of his money and time on running for Congress, he wouldn’t be in the money crunch that he is in right now.

This is what happens when people who have no business getting into Real Estate think they can just smile and look cute and everything will be alright and things will get done. It actually takes hard work and know how to build developments and it looks like Landrum is short on both.

well landrum snookered the BOS with the rezoning of Chestnut Hill and that is a shame! Check ot the recent minutes whre they did not listen to the residents opposition and rezoned to the detiment of the Historic value of he site!

link?

No final plat or deed has been filed subdividing Mrs. Deddens property. Check the Chancery Clerk's office if you disagree. You will see that I am right. Nothing has been subdivided.

What was approved was a preliminary plat. That is nothing more than a concept plan that must be approved before construction plans can be designed. If Mrs. Deddens owns some of the property, and it appears that she does, then Mr. Landrum will have to satisfy her before he moves forward. Otherwise he cannot construct or subdivide (file a final plat).

Somebody is making a mountain out of a molehill on this.

Now if Mr. Landrum is violating some sort of prior agreement or contract with Mrs. Deddens, then that is a different issue. However, approval of a preliminary plat is not subdividing property.

Yep. No big deal at this point. A preliminary plat is like kingfish drawing up a meal plan and posting it on this site showing that he would add hamburgers to the menu at the Madison Chick Fil-A. He can draw up the new meal plan all he wants, but he can't implement it until he actually owns that particular restaurant or gets the owner's permission. Otherwise the menu is worthless. It is a concept.

A preliminary plat is a concept approved before construction plans are drawn, permits are gotten, construction is commenced and a final plat is filed. No big deal (at this point anyway).

I think I did say preliminary.

Kingfish, you did say preliminary. However, many people reading this blog don't know the difference between a preliminary plat and a final plat. A preliminary plat is meaningless when it comes to the selling, buying, partitioning, subdividing, or any titling of property. It is a concept sketch. Therefore by submitting a preliminary plat, he has not subdivided anything. He is just showing a plan for how he would like to eventually subdivide it (in this case after he works things out with Mrs. Deddens).

A final plat is different. It shows the partitioning of property and has an owner's certificate. Lots can then be conveyed with the deed description referencing the lot on the record final plat.

I think to keep on point, the issue, is why replat? I say its to obtain more funding, further delaying the inevitable.

Problem is Deddens bought a lot with a loan. The replat takes away some land from her, I imagine Community Trust and Ms. Deddens have something to say about that. Also you will now have these small lots and cookie cutter homes.

Another point on some of his other developments: Northside Sun story said the lots would go up to half a million dollars. For the lot. Anyone see a problem? Story

I am assuming he is replatting for better marketability (just my assumption). He will have to appease Mrs. Deddens and her lender before he does any replatting. However, a preliminary plat is not replatting. He will have to deal with Mrs. Deddens and her lender before it is over with. There is absolutely no way around it. None.

Yup. This goes back to the question of how many people can afford expensive homes in Jackson area. Some of the haters make fun of the downtown development but the rents and notes go for less than 1500 a month in most cases. Will always be a large segment of the population that can afford that. That is why I think those projects and future ones will work even now, because they are still affordable. However, not many can afford 2000 and up a month as some of these developers are finding out.

Welcome to MS attempt to mimic the Wall Street debacle AKA Pyramid Scam. The fact is, the land is worth very little except in Jackson Metro, and, Jackson Metro is not SoCal, nor is it FL, so their attempts to inflate land values through creative financing and "keeping up with the Madi-Joneses" will wind up falling like....a....house....of....cards. I've been a homeowner in several markets like this in major metro areas and frankly, MS is due for a MAJOR correction via Madison. Just giving you my line of sight on the "writing on the wall."

Anony 7:05, Madison's market has been correcting for years now and for developers, its not getting better anytime soon (due to far too much supply). So, if you’re talking about a MAJOR correction in land prices, well, that’s already happened and happening, especially with commercial. However, a MAJOR correction via Madison in the housing market, similar to what has occurred in the City of Jackson, is highly unlikely. Two main reasons are sub-prime was not as rampant in Madison/Rankin as in Jackson; and Jackson’s crime is Madison/Rankin’s best advertisement.

Agreed on all points, however, I see don't see a bottom yet on Madison RE, rather, I see a leading indicator of times to come.

It looks like Ms Deddens is trying to use this to force Landrum into overpaying her for the lot. Looks like she is playing both ends against the middle. You might want to look at the fingers pointing back at her as she points the finger of accusation at Landrum.

It appears that Landrum and Slade are trying to make smaller, less expensive lots so that more people can move to this area of Madison County. Who are his detractors trying to keep out?

I think the point of concern is that these questionable developers are selling 'concepts' and LOTS at a high price with HIGH expectations for the neighborhood; first by showing exaggerated preliminary plats, then changing them, reducing lot sizes, square foot requirements and then getting official plats approved. Sounds shady...just like all of the layers of loans on these properties...just go look at the list of loans listed in the Real Estate Ramblings posting.

One has to wonder how the property owners in lovely custom build homes on large lots surrounding Longleaf and these other questionable developments feel about all of this... and how small $100.00 per square foot homes on postage stamp lots will affect their property values.

Some of the haters make fun of the downtown development but the rents and notes go for less than 1500 a month in most cases.

What is being sold downtown Kingfish for < $1500 monthly?

There is no major correction going no in this are nor will there be. The houses that were priced under $200 or so are pretty much staying there. I don't consider a 3-5% change in price anything but a fluctuation. The more expensive homes have come down a bit but thats not enough to be considered a market correction as in other states.

What I think happened is several developers overbuilt on the high-end side and forgot only so many people even in good times can afford $400,000 homes. I think even without a recession some of these implosions would have taken place.

I also fail to see what Ms. Deddens did wrong. She purchased a lot based on the representations made to her and borrowed a large sum of money. Then they tried to change things on her without her knowledge and that included taking away part of the land she owned. She has every right to cry foul.

stay tuned - landrum's latest activities will probably result in him gettin' his head rolled.....i believe he has flown too high this time!

Kingfish, what is being sold downtown for < $1500 monthly?

hey, anonymous 3/18-12:06 PM...don't tease us...what else do you know...inquiring minds want to know...

Find the notes yet Kingfish? Why is it so hard to back up your claim?

The Bottom line is Slade and Landrum didn’t know what they were doing or how to develop and market Longleaf. Slade left Landrum holding the bag and now Landrum he is trying to come up with a new plan to try and get this off his hands. His ineptitude and ignorance in the Real Estate business is showing and I doubt very seriously that he even knew that he would have to have the approval of all of the landowners in Longleaf to re-plat the subdivision. I bet he was actually shocked to find out that he was not following the proper procedures. If ignorance is bliss, this guy must be happy as hell!

I know people in the King Edward living there for less than $1,500 a month.

Who have a mortgage? The KE is selling units? You used the word "notes".

I wrote rents and notes.

Here are your words, again:

This goes back to the question of how many people can afford expensive homes in Jackson area. Some of the haters make fun of the downtown development but the rents and notes go for less than 1500 a month in most cases.

So where are the notes downtown? Which units downtown are being sold?

The City View is selling units.

Have you been there? City View is next to empty. How many have they sold? 1? 2? 3? It isn't downtown. Not a big market for small 800-1000 sq ft condos north of $200k. There's a reason why they don't advertise prices.

I have never been inside the City View and I have no idea how many units they have sold. I was only making the observation that to my knowledge, they are selling units rather than renting them.

Looks like Kingfish is using rental housing to make a point about purchase housing affordability and, oddly, to take a shot at people who question the civic ROI on the redevelopment effort downtown. Its an apples-to-oranges comparison.

Yes, I am to some degree. Here's the point: there are projects going up downtown and also in the burbs. Seems that the ones getting in serious trouble are the ones that require people to carry large notes. Seriously, there are only so many people who can afford $2,500 a month notes. The ones downtown, and although some is rental it is still new housing construction, haven't had the same problems as one, they are not overbuilt as the notes and rents are more affordable. Landrum was selling lots starting at $200,000. That is the lot, not the house itself. That is my point. Now ihe and other builders are scrambling

The ones downtown, and although some is rental it is still new housing construction, haven't had the same problems as one, they are not overbuilt as the notes and rents are more affordable.

Where are the notes downtown Kingfish? You haven't named one building downtown that isn't rentals.

update to this?

Landrum just snookered the Board again on Chestnut Hills. Yesterday (3/10/17) Planning and Zoning approved his petition to replat with no public hearing. It now heads back to the Board.