Re: Buy “puts” on real estate clubs - Posted by Sean
Posted by Sean on April 05, 2006 at 09:53:39:
As you may know I live and operate in Pittsburgh, PA… and I have a saying about it… by the time a FAD hits Pittsburgh, the fads pretty much over…
Well it hit Pittsburgh in the last year or so, and true to form, the end was pretty much in sight.
The RE group I joined 4 years ago, had 350ish members, today its near 800… last year or so meetings have had 75 newbie guests per meeting checking it out… investors from other areas have started to buy here seeing our low acquisition costs… unfortunately most don’t remotely understand there is a REASON… Just last month someone called bragging about how they got this killer deal on EBAY… guy was from Cali, bought a house here for 20k that needed work… and honestly believe he had a deal… and he was going to sell it for 80k… well I don’t have any clue where he got his comps, but in that neighborhood 20k-30k is a move in condition house retail… of course that’s assuming you could even find a retail buyer as most everything there is owned by either investors who specialize in sec8 rentals or by owner occupants who have owned the houses for 40 or 50 years.
I know its hard for folks from high dollar and rapidly appreciating markets like that to understand, but yes, even a big 3000 square ft 5 or 6 bedroom 80 year old victorian with all original woodwork in move in condition can only be worth 20 or 30k retail, but its true.
Hell, I’m debating putting everything I got on EBAY and selling it to someone from NYC or CALI and then just pocketing my cash for a year or two and buy up all the foreclosures that are coming… predictions are something like 16% increase here for the coming year and we had record foreclosures the last 2 years.