- This topic has 6 replies, 7 voices, and was last updated 17 years, 9 months ago by no_such_reality.
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January 7, 2007 at 9:18 AM #8176January 7, 2007 at 9:53 AM #42882BugsParticipant
It’s the people whose situations were marginal to begin with that will set the market trends. Nobody worries about the RE millionaires because they have enough breathing room to suffer the loss (booked or not) without going under and making it worse. But when a marginal owner has basically no recourse they are compelled to suffer their loss at the worst possible terms.
January 7, 2007 at 10:05 AM #42886PerryChaseParticipantI’m always amazed at how our society is tolerant of get-rich-quick schemes. If it’s too good to be true, it most likely is.
So many people got into the house-flipping schemes that it ain’t gonna be pretty when the music stops.
January 7, 2007 at 10:50 AM #42891bubParticipantReal estate burden, not boon, to couple
http://www.signonsandiego.com/news/business/20070107-9999-mz1b7stevens.html
January 8, 2007 at 11:44 AM #42947poorgradstudentParticipant“The Lebodas bought the home in 2005 with the intention of starting a second home-care business, but it’s being used as personal storage space. It’s also the most expensive property of the bunch, costing them $3,159 a month.”
Wow, that’s an expensive storage space!
The good news for them is even if they take a 10-20% loss of the stated price on the properties, at least they can cover the mortgages. That’s assuming they can find a buyer.
January 8, 2007 at 12:05 PM #42949CarlsbadlivingParticipantI like that the certified planner would normally have charged $3500 for her recommendations. Sounds like a good business to be in.
January 8, 2007 at 2:14 PM #42967no_such_realityParticipantSomeone isn’t telling the whole story and I suspect the fin advisor didn’t look closely enough to see the obvious BS.
The primaryhome has 1st, 2nd, and Heloc. $915K on $875K value (probably wishful value thinking)
The 1st and 2nd add to $816K. We’ll get back to this.
The Pinkdawn investment is a $400K with loan of $298K. It’s most expensive at $3159. That math doesn’t add up unless the loan is at 10%. That’s provided you assume taxes are in the $3159 and HOA fees of $300. Without taxes and HOA fess, it requires a rate of around 12.5%
The primary house is worse, that first and second at less than $3159? Means the primary and likely 2nd are both teaser or option ARMed. Combined, they are under a 2% interest rate not including taxes.
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