Anyone else in Real Estate

[VNM PWRD]

Yo Jt Your In A Market that is irrelevant to the generl market. The homes you stage our for Super rich folks and they don't even take loans. They Pay cash and dictate the Market:rock:

Not true ..... 1 million and up

 

[Chuck B]

Whats your execution strategy with these homes. How you gonna sell retail when the market is so bad:dontknow:

I don't sell them for retail. I sell them for higher than I paid for them....big difference. Most of my buyers are other investors, flippers and those who think they can strike it rich in RE. I'll be selling these homes in CO for about $.65 on the dollar. Good deal for the buyer and good deal for me. These were REO's that came from a new home builder who bit off more than he can chew and filed bankruptcy. All the homes are new never lived in. 8 of them I have Cert of Occupancy. 4 need additional construction for completion. I should have the 8 turned within 90 days and the remaining homes completed, ready for occupancy and sold by Dec 1st.

 

[Black1]

Real Estate got SCREWED by the banks offering "Sub-Prime" mortgages. That is what is driving the market down... and causing all of the foreclosures.

It will come back......

Now is NOT the time to buy a home, however.... I'm going to give it about 2-3 months. THEN I will buy another home. The market will be good a "ripe" by then for some truly GREAT deals. :rock:

 

[QueLocura]

Man how the hell does one even get started in investing??
I need money money money...

 

[NBT]

I am curious about who else is in real estate. I hoping thing pick up soon because here in Ootah it has become very ssssssllllllllllllllllllllllllllllllooooooooooooowwwwwwwwww I am hoping things pick up before I have to take drastic measures like selling.

We were in real estate (flipping) until 3 years ago, when we anticipated a market slow down. Got out,and was holding for a future buyers market.... then shit hit the fan.... so much for that. Frickin did not expect the market to stop dead like it did.
Last forclosure estimate.....68,000 in our area...were getting killed in taxes and insurance.

 

[VIPER D.N.A]

I am curious about who else is in real estate. I hoping thing pick up soon because here in Ootah it has become very ssssssllllllllllllllllllllllllllllllooooooooooooowwwwwwwwww I am hoping things pick up before I have to take drastic measures like selling.

Not everywhere in UT. Im an escrow officer in Moab, UTah. not slow at all. it is a unique/tourist market though, but damn I'm so busy I can barely catch up on the forum!

 

[VIPER D.N.A]

Man how the hell does one even get started in investing??
I need money money money...

Find a rental condo in a nice location. Get it for the right price. Hopefully your rental income can pay or come close to your mortgage thus not costing you to much. In a resort town it works very well. (nightly rentals) In essence youre using other peoples money to pay off your mortgage. Then in a few years (at least 2 to avoid capital gains) Sell, you have equity and hopefully the property has appreciated. Ive done this on two condos and was very fortunate with them both. Of course property values almost doubled in the time I was doing it. a lot of it is knowing the market and of course being in the right place at the right timw (luck)

But I wouldnt listen to closely to me, The last two years I've been investing in my truck. well, we all know that same ol story.

 

[shade]

Find a rental condo in a nice location. Get it for the right price. Hopefully your rental income can pay or come close to your mortgage thus not costing you to much. In a resort town it works very well. (nightly rentals) In essence youre using other peoples money to pay off your mortgage. Then in a few years (at least 2 to avoid capital gains) Sell, you have equity and hopefully the property has appreciated. Ive done this on two condos and was very fortunate with them both. Of course property values almost doubled in the time I was doing it. a lot of it is knowing the market and of course being in the right place at the right timw (luck)

But I wouldnt listen to closely to me, The last two years I've been investing in my truck. well, we all know that same ol story.

Good advice. Just make sure you have the funds to cover in case something goes wrong with your renters or what not.

 

[Chuck B]

Find a rental condo in a nice location. Get it for the right price. Hopefully your rental income can pay or come close to your mortgage thus not costing you to much. In a resort town it works very well. (nightly rentals) In essence youre using other peoples money to pay off your mortgage. Then in a few years (at least 2 to avoid capital gains) Sell, you have equity and hopefully the property has appreciated. Ive done this on two condos and was very fortunate with them both. Of course property values almost doubled in the time I was doing it. a lot of it is knowing the market and of course being in the right place at the right timw (luck)

But I wouldnt listen to closely to me, The last two years I've been investing in my truck. well, we all know that same ol story.

If you hold onto it for more than 12 months it becomes a long term investment so capital gains are reduced. If you live in the dwelling for 2yrs of a 5yr time frame then you would be able to avoid any capital gains in profits in the amounts up to $250K for single and $500K for married. The 2yr or 24 months do not have to be consecutive. Meaning you could live in it for 6 months then rent it for 18 months, live in it for 12 months then rent it for 12 months etc etc till you meet the min requirements as detailed by IRS.

 

[cold]

I am interested in any experts take on what is happening in the mortgage market. Are these higher rates here to stay?

 

[Gaboon]

The feds have 2 choices. 1) reduce rates. 2) let this run its natural course. If they opt for #2 there are some very difficult time for all in the biz.

 

[Django]

I've stayed out of this because it's so close to home.....

But WTF.............

I have property in a number of places and various "better markets" in the US.

The problem, as I see it, is that the liberal media constantly wants to hammer home the idea that the economy is bad. Which impacts on the stock market and the stock market is more emotionally motivated than a pregnant female....

No offense meant.... Call Dr Laura for verification.....

There's nothing really wrong with todays interest rates.... Hell, when I bought my first house in the late 80's interest rates were double what they are now (in the 12% range)........

Considering that, there's no reason in hell why people shouldn't be clamoring to participate in today's housing market.... With an abundance of available inventory and interest rates at around 6-7%... Hell we'da been ecstatic to obtain such low interest....

It's really just a buncha bad press. You wait and mark my words: If a Democrat gets into the White House the media will change it's tune, stop the gloom and doom and tell everyone the state of the economy is wonderful.... They'll point out all the good aspects of the market I've outlined and give Hillary and all the rest'a the pinko liberals all the credit for it....

This shit is political...............

There is isn't a damn thing wrong with this market that some positive spin couldn't fix.........

Meanwhile the liberal controlled media has all my property values in a downward spiral.....

BTW.....I have a beautiful lot (Aspen groves etc) in the Timberlakes area of Heber City, Utah for sale if anyone's interested.... It's listed in the MLS. PM me for details.

D

 

[Wifey]

Im no expert but it seems that people don't earn enough to qualify for loans on the inflated priced homes these days. I belive lenders have much stricter lending guidelines to follow due to some recent changes in the lending law.

The rates don't seem like they are that out of line to me either. Some of it has to do with lower income families who purchased their grossly overinflated home(s) and borrowed such large loan amounts that they are not able to repay these loans on their current minimum wage incomes. Income, unfortunately, does not increase when the adjustable rate mortgage payments do.

There were a number of very creative loan types available in the last few years that were attractive to borrowers in the beginning of the loan and not so attractive when the loan terms began to change.

I know that theory mainly applies to lower income families, but I am pretty sure the average income levels across the nation would tend to be closer to the lower than higher level - I believe around the $50,000 range??

I also say this because in looking for a job over the last 10 months, I am apalled at the pay rates out there. I was fortunate over the last 28 years of my career to have made a decent amount of money in the business I was in. However, being real estate related, those jobs are not available right now, so I am in a situation of being under educated and over qualified for most any job I apply

I also know many successful home builders who don't have any inventory right now because they have no buyers for it. The larger home builders like KB Homes, etc. do have some activity, however. I remember KB homes filed for Chapter 11 (I believe) Bankruptcy some time back. Probably to reorganize the high loans they had out for construction?

Alot of people also refinanced their homes, took out equity and now find the home is not worth what they owe on it. They have to hang on to the home now until the values go up again. In the meantime many like myself have been displaced from their jobs and are faced with high payments and not enough equity to make it worthwile to sell the home and try to get into another home (especially when you have no income) it makes that factor of debt to income ratio really SUCK not to mention the loan to value ratio.

Anyway, just felt like putting in a couple cents worth, thanks for reading

 

[SinorSwim]

RE in Toronto just keeps going up. It is all the new Canadians (Indian, Asian, Middle Eastern) that feel it is a safe and secure environment. Residential RE has doubled in the 4 years. A decent house in Toronto is at least 600K and a nice house is well over 1M (4 bedroom, nice area, 50 year old house with some up dates).

RE is easy when the market is going up, its a no brainer. When the market goes down, only those with lots of equity will survive.

I own industrial rental property 10,000-30,000 sq. ft. as long as you have a good tenant, good lease and term, that pays the rent and taxes on time, its a great deal for the owner. L

Industrial property has tripled in the last 10 years. I have been at this since 1988-lost it all and started over-now 20 years later I have 90% equity in all properties.

I think the way to make money now is buy properties that are in a good area and need work, renovate and sell. Both residential and industrial.

Big opportunities in well used (ie contaminated) industrial property. Owners will practically give it away along with the liability. You need to find an area where EPA/City want the dirty properties rehabilitated.

I have bought nice industrial properties for .30 cents on the dollar-but I also have spent over 500K in legal fees and assumed alot of liability. Yes, I sleep very well at nite.

It looks really good on paper, better if it all burns down!

If you are considering RE make sure you can afford to carry the properties during bad times, which will always bite you in the ass. And make sure your tenants are not operating a grow operation. Beware of the tenants that offer you everything you want. That spells trouble!

 

[shade]

OK lets ask ourselves this question....

Is there a piece of property you wouldnt have bought 10 years ago knowing what you know now?

10 years ago conditions may have been good bad or indifferent relative to the time but fast forward 10 years and how much would that property be worth?