Posted by Equity Hunter on March 23, 2006 at 17:20:40:
At least we agree on one thing. Short sales are for suckers.
I’m guilty again… - Posted by Equity Hunter
Posted by Equity Hunter on March 19, 2006 at 20:18:03:
Of posting a new thread before answering all the other responses to my posts that “weren’t” deleted. Yeah, most of the ones debunking the so called “experts” were. It’s interesting how “none” of them have stepped up offering “any” deals they have recently done. That’s why I can’t get real excited about giving my two cents worth any more and I guess the powers that be love that.
So what? I think it’s so much more important to get the truth out there. And you know what? We have so many bigger problems as a country and re being a “laggard” which will only be affected “after” the fact, I think someone should have the gumption to bring up these issues. Because ‘no one’ else seems to want to. I guess because there is no money in it.
Jobs going overseas, dependence on “foreign” oil, foreigners owning our debt. Can you see how vulnerable we are? Why would anyone in their right mind want to be liable for re debt now a days? I’ve said it before and I will repeat, buy sub 2 with equity and little or no money invested. Anything else at this time is way too risky.
The re market could crash overnight. An attack on the Saudi oil fields cutting production 50%. A bidding war with China who holds most of our debt for the remaining oil. What do you think that is going to do to our interest rates if they sell our debt? When our interest rates go up, what does that do to re prices? And if we don’t get the oil the resulting recession will kill re prices. Either way we lose. Anyone that says that is not possible these days is a fool or just selling a bill of goods.
The old days are gone. This brave new world is frought with risk because the powers in control have not stepped up to the plate and done much about it. We only have ourselves to blame. No one is immune in this country. When the s… hits the fan we all lose. So don’t be in a position to lose that much. We’ll survive, but they’ll be alot of losers. Don’t be one of them.
Re: I’m guilty again… - Posted by DoubleJ
Posted by DoubleJ on March 21, 2006 at 11:05:24:
You are right that there are plenty of potential economic disasters that could send major ripples through real estate markets.
I think what a lot of people have tried to say to you here is that people will always need a place to live. People will always either rent or buy a home.
That will never change, unless everyone suddenly becomes homeless. And if that happens it wont matter what business you are in, either way you are screwed.
I’ll Give You Details - Posted by Jimmy
Posted by Jimmy on March 20, 2006 at 07:13:43:
I’m no expert. just an investor. plenty of opportunity in my market. here are some brief descriptions of deals in the past 12 months. no BS.
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bought 4-plex for 23K. bank repo. in poor condition. lavished 45K into it over 6 months. appraised at 125K in December. rented out at $1500 a month. will probably keep it.
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bought partially rehabbed duplex in November for 25K. put another 12K in it to finish. rented up at $800. just sold it for 60K.
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I have 5 more I can describe in the past few months. and i am closing a 20 property deal right now, the numbers from which would curl your hairs.
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Obvious, from my examples, I am adding my own equity. Fair enough. But, in the past year, I have also bought some clusters of properties, and immediately peeled off 1 or 2 of them for immediate profit.
The Point: As I have preached before, all real estate is local. There are thousands of RE markets in the US, and they NEVER move the same way at the same time. The particular places where I do business are not inflated, and purchase prices are still very much in line with underlying rents. If you field of vision is limited to Northern California or certain parts of Florida, then you are not seeing the whole enchilada.
Chicken Little Syndrome - Posted by Joe C. (AR)
Posted by Joe C. (AR) on March 19, 2006 at 23:41:06:
I bought my first investment property in 1968, and many others since. During that time there have been wars, recessions, stock market downturns, national and natural disasters, and 14% plus RE mortgages. Booms and busts. I’m still a small timer, by most measures, but one thing I know for a fact is that no matter what the situation, there is always money to be made with REI. Strategies may have to change but there is always a game because there is always someone who’s motivated to sell and always someone who’s motivated to find shelter. Find a way to satisfy the motivations and you’re golden. My most profitable deals have always been in bad times when other’s options were limited.
I will say that now (or even before now) is a time for strategy assessment and risk analysis for REI’s.
If your strategy is sound, you’re ahead of at least 50% of the population. Those folks will need to live someplace if the sky falls and we’ll fill that need.
Having said that, I can only hope some of your scenarios come to pass. My feeling is that most of the dire predictions will go the way of the Y2K scare for most. Highly leveraged investors, in over inflated markets, will take a hit because the strategy is flawed, but smart prepared investors will cash in even there.
My point is that if you don’t know enough about RE investing or don’t have the confidence to see you through, your approach may have some validity. For everyone else, I say party on.
Just my .02
Joe C. (AR)
again… - Posted by Nike
Posted by Nike on March 19, 2006 at 22:24:51:
I had figured you were just a bore and a popinjay but this appears to be your Capt. Queeg moment–you’re becoming unhinged. Get some help.
Re: I’m guilty again… - Posted by Charles Parrish
Posted by Charles Parrish on March 19, 2006 at 22:24:43:
Thank you for your positive comment, I hope we all do survive.
Are you are real estate investor?
Charlie
Re: I’m guilty again… - Posted by Rich
Posted by Rich on March 21, 2006 at 15:42:43:
The problem with this is that the world never was as stable as the laundry list of today’s problems seems to imply. Risk is what it takes to make gains. So what if China holds a ton of our debt. Somebody has to and at the interest rates being paid, it isn’t going to be me.
Re: I’ll Give You Details - Posted by RE King
Posted by RE King on March 23, 2006 at 24:27:59:
Jimmy-
Not trying to dog you here, but here are some observations to back up EH:
The one post that refuted the “no short sale claim” that EH made, actually proved the point: The guy worked his butt off for less than 10k a deal (sometimes $3k? I’d rather kill myself!) and who knows how many he didn’t get with all that work.
In my market and many around it, properties sell for 20-30k when repo’d and could be appraised after 50k fixup for 80-150k. But if you tried to actually sell it for cash or a legitimate financing offer you’d be looking at half that.
And cash flow always looks great until you really add up your expenses; ALL your expenses.
As Ron LeGrand says, “Ask me how I know that”.
I hope you’re bucking the trend.
RE King
I was talkin short sales - Posted by Equity Hunter
Posted by Equity Hunter on March 21, 2006 at 21:05:07:
Let’s not get off the subject here. If you want to post a success story create a new thread.
Just knowing where to look. - Posted by lukeNC
Posted by lukeNC on March 21, 2006 at 08:44:21:
recently took over a $300 fixed mortgage payment on a townhome here in Charlotte, NC from a sole heir up in NJ. I’m renting it out for $900/month until I take it through probate. I gave the heir $500 for it. There was no equity but a fixed %5.00 30 year note on a very nice small townhome I knew I could easily rent for alot more.
Bought a $45k mechanic’s lien with priority over a $220k mortgage. Original creditor had no money to hire an attorney. Bought it on option for $1k upfront. Turned it over to my attorney to start foreclosure or settlement. We’ve agreed to settle for $37k and I’ll split what’s collected (after attorney fees) 60% to the original creditor and 40% to me. I should clear $10k.
My bread and butter right now is the judgment recovery biz, I’m having a field day with this and traveling all over the state buying up collectable judgments for pennies on the dollar. And collecting on pretty much all of them, getting lots and lots of little $75-$100 checks coming in every week. As well as some lump sum payoffs.
Its not the glamorous biz of huge money RE deals all the time, everybody is looking for those. For me, it’s just lots and lots of little deals that over the past couple of years have added up substantially.
Re: I’ll Give You Details - Posted by Elizabeth NJ
Posted by Elizabeth NJ on March 20, 2006 at 18:18:43:
Jimmy,
I love your line “All real estate is local”.
This is absolutely true and will remain so.
I have said it many times: You can find a great deal within a 2 mile radius of your own home.
BTW, nice post – congrats on your deals.
Re: Chicken Little Syndrome - Posted by Equity Hunter
Posted by Equity Hunter on March 20, 2006 at 19:17:09:
When you got into it gas sold for .25 cents a gallon. We made things in this country. Only one person was needed to work to support the household.Mtgs were assumable and property was cheap compared to todays prices. We are not in that situation anymore.
The big money investors have recently left re, they are now investing in safe liquidity. That’s for a reason. The world is too unstable for them to park it even in the stock market. There is too much risk for them.
We are on a long term downward spiral. We have no leadership. The politicians are just trying to cover their a-- and get reelected not lead.
The fact you’ve been doing this for 40 yrs and are still a small player. Thanks for the truth.
Re: Chicken Little Syndrome - Posted by RE King
Posted by RE King on March 23, 2006 at 24:13:23:
Eq Hunter-
I enjoy reading your posts, but it amazes me you can succeed with this type of attitude. Your thoughts create the future ahead of you; you’re poisoning yourself.
I’m not criticizing but honestly trying to help here. Go with the tide not against it. Why drag yourself down with all the negativity? You’re not going to stop macroeconomic trends so why torture yourself. Why complain that all the menial work in this country is being exported? Let 'em have it, we’ll handle the skilled jobs.
Anyway, I know this won’t convert you. If it makes you feel better, I wonder how the hell someone could be a small fry in real estate after 40 years too. Maybe he was being modest.
Also, short sales are for suckers.
RE King