O/T good info on real estate

[Ironmanpits]

http://patrick.net/housing/crash.html

Thanks Dante

 

[Tyrone]

Well, in my area rent went up and the housing price went down so the only logical option is to buy and buy as much as possible....The main issue is the loan officer but I'm in great standing along with my girl.

 

[Ironmanpits]

Yes..it depends on where you live... I'm in so. cal. as well and Im buying a second (bigger) home and will immediately generate positive cash flow on my current home once rented out. I know property will continue to drop in value but we have outgrown this house long ago. As far as an investment property purchase at the moment I say wait and see.

 

[Pekkerwood]

Real estate is extremely local. In my area although prices are declining slightly, they never had the big runup that they did in other areas so they don't have as far to fall. Also we have a net positive gain of people moving to our area, with our job market distributed over many industries, without one dominant. The bottom line is you need to look at all these broad macro factors but much more important are the micro factors. That particular house, on that particular street, in that particular neighborhood.

I am finding in some suburban neighborhoods I can buy some houses for the price of stacking the materials on the lots. That is a good buy. Depending. In some areas you would not want the houses if they were donated to you. They actually have a negative value because of tax liability, code enforcement liability and general liability.

We are also able to buy some developed lots for the cost of development or below. That is like getting free land, and no one gives away free land except a bank with a regulator peering over their shoulder saying "get this non performing crap off your books".

All in all is a great time to buy in many areas but you still have to do your homework and due diligence. If you buy 35% equity going in do you really care if your market drops another 5%? Also no other investment enables you to leverage quite to the extent real esate does. The cash on cash returns can be incredible.

I do a lot of this and will be happy to help anyway I can.

Pekkerwood

 

[Ironmanpits]

Pekkerwood is wise! I feel for anyone losing their home and I scoff at any broker who sold a bad loan to someone who had no business buying a home. Having said that it is getting better by the month to dramatically increase your wealth over the next few years... if you have cash and credit you are in a good spot and time is on your side. If your selling, time is the enemy and you need to sell before your neighbor does. I am looking at an estate built in 2006 which sold for $910,000. Today its price was reduced once again and it is listed for $499,000. These are interesing times we are in. Remember that during the great depression the richest people in this country increased their wealth by as much as 4X due to having the money to scoop up investments for pennies on the dollar.

 

[Ironmanpits]

Hey Pekkerwood!!

Do you ever bother with short sales or do you prefer bank owned properties?

 

[King Leesus]

I just secured a loan today before it gets worse. I'm excited about my new home though!

 

[Dahouse]

Do you ever bother with short sales or do you prefer bank owned properties?

I don't post much but if you guys ever have any questions hit me up. I'm a Realtor...

Don't be afraid of short sales, although they can be a bit more difficult than an REO, (bank owned).

A couple things you should look for:

1) Is there a first and second mortgage on the home.
2) What bank ownes the mortgage(s). If the first and second is owned by the same bank it can streamline the process.
3) If the home is listed with a Realtor, does the Realtor have good communication with the bank.

Again, they can be a little harder but can be worth it.

There's good info in this thread, Real Estate is very area specific...

 

[Ironmanpits]

That's one hell of a tattoo

 

[youngmuscle]

yes now is the time to buy...the media will catch up in 6 months and tell you then, ... they are always way behind on this..right now its at the bottom and its going to start moving up very soon.. all across the board agents are getting multiple offers and buyers are coming in non stop

 

[Ironmanpits]

Whats the deal with the banks not legally being able to own too much real estate (ie: forclosures, repo's etc.)? Is it unlawful or does it just put them in the red on thier books?

 

[Ironmanpits]

It wont go up in the areas that experienced a hyperinflation, the prices need to get closer to the income levels of the people of those areas... and prices will also not go up due to supply and demand...the supply is too great and the demographic of buyers is far reduced due to the current loan qualification criteria. Unemployment is rising and loans are much harder to get and you'll actually have to put your own money down.... nobody seems to have any cash these days. My opinion is the worst is yet to come in my area at least (so. cal.)

 

[Armageddon]

It's so bad in my area that some developers came in and pretty much are wiping out 1/3 of a city and putting in a PGA course on the lake, 2 yatcht clubs, and developing some area for residential living and base price is around $250,00. Some say that is cheap but this is probably one of the worst hit areas in the country. My county has the highest unemployment in the state and Michigan has the highest unemployment in the country! housing here is just second to New Orleans and there only ahead because of a Natural disaster. They want to bring in new "green" environment friendly businesses but of governor just changed the tax law trying to help and it's already buring many companies and causing them to close up shop. I can't believe what she did, what a dumb Biotch. every property I've looked at I've hesitated on for some reason and it got swooped out from underneith my nose. My fault so there is no one to blame, other than my girl LOL She's hesitant and always trying to drag more people into it than necessary (i.e. her family) I guess I'll figure it out one day.

 

[Dahouse]

Whats the deal with the banks not legally being able to own too much real estate (ie: forclosures, repo's etc.)? Is it unlawful or does it just put them in the red on thier books?

I've never heard about any legal consonsequences of banks owning too much real estate, they want the foreclosed homes off their books.

Also, don't be afraid to ask banks to credit back for closing costs and repairs, (items that need immediate attention, usually considered section 1 items in inspection reports). It may be different in other areas, but that is what I am seeing in Northern Cali.

For those of you looking for loans, look into the FHA loans. Its a great product, (at least out here in California, but I am sure other areas as well). You have to have decent credit, and the home has to be owner occupied, but you really don't have to come in with much money down. However, if you do this, make sure you are comfortable with the mortgage payment, and look at your home as a place to live as well as an investment.

From what I have been seeing, investors looking for properties really need to put down 20-25% these days.

 

[pesty4077]

I don't post much but if you guys ever have any questions hit me up. I'm a Realtor...

Don't be afraid of short sales, although they can be a bit more difficult than an REO, (bank owned).

A couple things you should look for:

1) Is there a first and second mortgage on the home.
2) What bank ownes the mortgage(s). If the first and second is owned by the same bank it can streamline the process.
3) If the home is listed with a Realtor, does the Realtor have good communication with the bank.

Again, they can be a little harder but can be worth it.

There's good info in this thread, Real Estate is very area specific...

Personally I would stay clear of short sells, they could take months and the bank, up to your funding of loan can change their minds(and they do) They do not have to accept your offer. Foreclosures are a good buy now, make sure you have inspections done on property, such as home, termite, roof. I would advise you also to buy a home warranty.

 

[jawbreakerkid]

Whats the deal with the banks not legally being able to own too much real estate (ie: forclosures, repo's etc.)? Is it unlawful or does it just put them in the red on thier books?

If the banks tend to carry too many properties on their books the regulators get on their asses. The need to continually move these properties. You'll notice they get aggressive towards the end of the fiscal year to get them off their books.

 

[Ironmanpits]

Good info guys .... much appreciated!