With my sellers permission here are the final numbers on his downtown condo in Discovery.
Purchase price 600k in 8/30/04; 20k down financed the rest (580k balance)
Refinanced in April of 07. 602k balance.
Closed escrow today on his sale at 532k.
Credit back to buyer of 7k for closing costs.
Credit back to buyer of 2k to repaint.
TBD credit back to buyer to rerun surround sound wiring. (estimate is about $600)
Commission 1% to listing agent
Commission 3% to selling (buyers) agent
Other closing costs for escrow/title insurance etc about 3/4%.
After doing the math you can see where he washed ashore at. On the flip side he said he felt quite relieved. He is not sure that downtown properties will continue to depreciate but he said he simply couldn’t continue to risk holding the property.
Was it a bank short or did he come in with the 100k he lost? Was it a rental or his residence? If it was a rental and he had a 100k he could have covered a 1k loss per month for 8 years which would get him easily to the other side of the cycle. If he came in with a 100k to make it go away I wonder how many other speculators have that ability. When it falls another 100k we will declare him a genius and the queen will call him sir.
Was it a bank short or did he come in with the 100k he lost? Was it a rental or his residence? If it was a rental and he had a 100k he could have covered a 1k loss per month for 8 years which would get him easily to the other side of the cycle. If he came in with a 100k to make it go away I wonder how many other speculators have that ability. When it falls another 100k we will declare him a genius and the queen will call him sir.
He came in with the cash to close. It was a rental. No he was losing more then 1k a month. HOA alone was 600 bucks. Throw in his loan and property taxes. Additional HOA increases are not being accounted for either, nor are vacancies. I do understand your point and agree with the philosophy but there are some risks that I pointed out above. I assume you are playing a 3 year depreciation and then 5 to get back to his break even point. Could be…
Anyways he was a first time (and most likely last time) speculator who was told by friends and others that making money in real estate is trivial.
He came in with the cash to close. It was a rental. No he was losing more then 1k a month. HOA alone was 600 bucks. Throw in his loan and property taxes. Additional HOA increases are not being accounted for either, nor are vacancies. I do understand your point and agree with the philosophy but there are some risks that I pointed out above. I assume you are playing a 3 year depreciation and then 5 to get back to his break even point. Could be…
Anyways he was a first time (and most likely last time) speculator who was told by friends and others that making money in real estate is trivial.
Breeze he had already refinanced so he was on the hook. It was not original purchase money. Lindi good to see you back by the way. The buyer was someone who intends to occupy the home. He is from out of town and he is an attorney who works downtown. His agent was an attorney as well. Single guy, not married.
Breeze he had already refinanced so he was on the hook. It was not original purchase money. Lindi good to see you back by the way. The buyer was someone who intends to occupy the home. He is from out of town and he is an attorney who works downtown. His agent was an attorney as well. Single guy, not married.
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