Yes, I understand what you’re saying, but I think his experience was that the “first-time buyer” is a much bigger market than the number of buyers that would be in the “move-up” catagory. For obvious reasons. And most first-time buyers come in at the low-end. He’s buying and selling an average of 10 SFR’s a month for the last 6 months. This model needs volume. He claims he’s going into escrow within 15 days of listing. Paying 25% of the first morgage from the lender. Strictly a low-end strategy. Lower buy-in and with greater volume in this market.
I have two big concerns about this.
1) Selling homes for way over what the comps may be.i.e…would appraisers go for this? Do appraisers use auction/REO sales as comps for a retail loan appraisal?
2)As unemployment takes off, these buyers may dry up real fast.
As for govt intervention. Who knows. They’ve never been all that good at helping j6pak. I doubt that will change too much. If history is any indicator.
