FLU strikes out again in CarmelV.

[spdrun]

(1) People who sold property abroad
(2) People moving in from areas where property went up in the last 10-20 years, held its value (NYC or DC), and is more expensive than in SD.
(3) People who took good advantage of the Bernankesized stock market and didn’t get burned.
(4) People who are successful in business or other things. CA is an attractive place to live or have a second home.

This still doesn’t help the average American schmuck.

[The-Shoveler]

[quote=spdrun]

As has been said, if you think the Obama recovery sucked, just wait until the Obama crash hits.

An artificially inflated stock market does not a “recovery” make — the recovery never happened for the average American schmuck. Not while labor force participation rates are at 63-and-change per cent, pretty much record lows for the last 10 years.

Yeah, a lot of institutional buyers and wealthy people have money and are taking advantage of the relative cheapness of real estate, but what’s new?[/quote]

The Japanese are officially setting Stock and real-estate targets, (Oh yea Stock market is not manipulated we all know it’s a free and open market LOL)

What we all know but choose not to admit.
We all know the Gov. (especially local Gov.’s) are directly affected by Stock and real-estate prices.
Their pensions are at stake for crying out loud!!!
I don’t think they will allow a significant downturn for a while yet, they can’t afford it.

JMHO

[Coronita]

[quote=spdrun](1) People who sold property abroad
(2) People moving in from areas where property held its value (NYC or DC)
(3) People who took good advantage of the Bernankesized stock market and didn’t get burned.

This still doesn’t help the average American schmuck.[/quote]

Well, maybe we should consider then beyond the average american…And consider more economic issues. If there is healthy demand and if the USD continues to weaken, is the demand for good U.S. RE really going to go down…

And if someone buys a home out right, as was discussed and argued by others on another thread, what real risk do they end up having if there is an economic downturn….

I almost had a feeling that I was the only one that wrote a standard offer with a loan…..

It was definitely an eye-opener for me…It’s as if here in the U.S. we’ve been asleep, and others have caught up…In just a few years…

[spdrun]

Iff — the USD has actually gone up WRT most currencies in the last 6-12 months, despite Zimbabwe Ben-Shalom’s worst efforts to damage it. Buying a home outright is still risky — if it drops in price, you’ve lost money that could otherwise have been spent making other money.

As far as a standard offer vs cash, so the broker would like you to believe.

[spdrun]

I don’t think they will allow a significant downturn for a while yet, they can’t afford it.

Unless you think that the last downturn was “allowed’ to happen, I don’t think that cyclic things like that are within the control of government — they sometimes just happen.

[SD Realtor]

FLU the amount of cash on the sidelines is orthogonal to the overall state of the economy. When we were crashing in 07 and 08 the amount of cash was staggering and today it is just as much if not more.

I think that as long as housing offers any decent return, and possible even no return at all, you will continue to see this sort of pressure. Then you throw in the ridiculously low interest rates and you qualify another big batch of buyers who normally could not come close to affording the payment. Mix in others who feel that housing is an excellent inflation hedge because we all know that someday we will be screwed to the wall because of our federal spending habits and you simply have a demand that will stay strong at many different price levels. I seriously doubt institutions are buying million dollar homes in CV however it does not surprise me in the least that you have seen a few cash offers at 7 figures.

Where the hell else will they get a return on the cash?

Personally I think people are idiots for investing cash in homes when the lending industry is giving away money but what the hell do I know and does it even matter?

Finally, we all have now seen that there will not be and will never be a tsunami of homes no matter how f-cked things become. The govt has shown they will let you live in a home for free and lenders will be bailed out. The precedence has been set right? (yet another reason to not offer cash)..

Never be surprised how much cash people have dude. It don’t matter what they look like, or what profession they are in. San Diego, the bay area, beautiful climates beat the hell out of anywhere in the country. That is why they all buy here. No matter how much they all brag about why they love other spots in the country.

[Coronita]

[quote=spdrun]Iff — the USD has actually gone up WRT most currencies in the last 6-12 months, despite Zimbabwe Ben-Shalom’s worst efforts to damage it. Buying a home outright is still risky — if it drops in price, you’ve lost money that could otherwise have been spent making other money.

As far as a standard offer vs cash, so the broker would like you to believe.[/quote]

Seriously, if someone can walk in and buy 3 $1million house (1 each for their two college kids) and 1 as a vacation house, I’m seriously not discounting what the selling agent says…If this was a matter of B.S., I would have received a counter offer with a proposal…Absolutely no counter offer…I can only think of when this happens…Multiple offers, favorable terms, at or above asking…..

[The-Shoveler]

Yes I think it was at least anticipated, and yes they knew what was going to happen,

(you can’t ask me what I am going to do with the money and you can’t prosecute me) I think those were the words used when this whole thing started to unravel.

[spdrun]

Personally I think people are idiots for investing cash in homes when the lending industry is giving away money but what the hell do I know and does it even matter?

You’re ass-u-me-ing that the money truly is cash, not pulled out of another property that was bought for cash, then re-fi’ed.

[Coronita]

[quote=SD Realtor]FLU the amount of cash on the sidelines is orthogonal to the overall state of the economy. When we were crashing in 07 and 08 the amount of cash was staggering and today it is just as much if not more.

I think that as long as housing offers any decent return, and possible even no return at all, you will continue to see this sort of pressure. Then you throw in the ridiculously low interest rates and you qualify another big batch of buyers who normally could not come close to affording the payment. Mix in others who feel that housing is an excellent inflation hedge because we all know that someday we will be screwed to the wall because of our federal spending habits and you simply have a demand that will stay strong at many different price levels. I seriously doubt institutions are buying million dollar homes in CV however it does not surprise me in the least that you have seen a few cash offers at 7 figures.

Where the hell else will they get a return on the cash?

Personally I think people are idiots for investing cash in homes when the lending industry is giving away money but what the hell do I know and does it even matter?

Finally, we all have now seen that there will not be and will never be a tsunami of homes no matter how f-cked things become. The govt has shown they will let you live in a home for free and lenders will be bailed out. The precedence has been set right? (yet another reason to not offer cash)..

Never be surprised how much cash people have dude. It don’t matter what they look like, or what profession they are in. San Diego, the bay area, beautiful climates beat the hell out of anywhere in the country. That is why they all buy here. No matter how much they all brag about why they love other spots in the country.[/quote]

I think this is where I really throw the white flag down and say…I’m wasting my time, until I figure out a way to earn more….Can’t beat them, join them….No more rental property searches in MM…. No primary home upgrades in CarmelV… I’m finished (for now)…

[spdrun]

Why not look at condos in the $150-400k range as rentals? You’re not living in them, so as long as they can cash-flow well, you don’t need to be picky.

[Coronita]

[quote=spdrun]Why not look at condos in the $150-400k range as rentals? You’re not living in them, so as long as they can cash-flow well, you don’t need to be picky.[/quote]

(1) Want to keep it local
(2) Want to keep it in an area that has decent tenants so I don’t get shot, killed, etc
(3) Cashflow ok.

Not much these days locally… We all know that.

[spdrun]

I’ve put at least five offers in the $100k range in over the past few months. One has been accepted for sure and is working its way through the SS process. Cap will be 7.5% minimum, and it’s a safe though slightly boring area. You have to be ready to jump and ask for paperwork as soon as the things come on the market, though.

[Coronita]

[quote=spdrun]I’ve put at least five offers in the $100k range in over the past few months. One has been accepted for sure and is working its way through the SS process. Cap will be 7.5% minimum, and it’s a safe though slightly boring area.[/quote]

In SD? If so, where?

[SD Realtor]

FLU I am not sure that I would give up. Getting a return is hard. What you are trying to do is simply repetitive and super frustrating. You just have to keep at it, you know the drill. Try to hit the listing agent directly, and all that crap… Also try to filter out the noise from others and their multiple success stories. That stuff gets old. You may want to also start to consider out of state investments. If you have relatives or friends anywhere then leverage them. You get the place, and kick them some coin for some prop management help every now and then. Other ideas are out there dude. Partner up with some other old school piggs, pool up cash and go to trustee sales… stuff like that man.

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