I’m renting from someone who quit his job so he could wheel-and-deal full time in the LA RE market as an agent and a loan officer. The place I’m in is heavily leveraged (an 80/20 no-down deal that was re-fi’d to get funds for other purchases) and my rent is only about 60% of the monthly PITI expense. He’s got four other properites like this and he bought a new construction SFR for about $1M last year. I know all this becasue his wife is a little too loose with her tounge when it comes to their dealings…I think that she thinks that she’s showing how smart he is.
Last year my rent checks cleared about 14 days after they were sent. Since May my rent checks have been clearing 1 or 2 days after they were sent…hmmmm.
But I’m not worried. He’s still making money hand over fist selling homes and doing re-fi’s, right?
I got out of the LA market and sold in summer 2003 when I saw that things were going crazy and I made 100K on the SFR I bought in 1997. Hindsight’s 20/20 but any profit’s better than no profit and I thought that things wouldn’t climb much higher back then.
