Major loss in Bay Ho ~25%!!!!

[GoUSC]

40 footer. Everything looked good from 40 feet away but up close the quality/condition was not very good. The broker was a good guy though. He basically told me to wait and that many better deals will be available in a year or so. The seller is underwater, can’t make their payments, and are going to loose the house (it was on an ARM that adjusted and they can no longer afford the payments). Of course that didn’t stop them from having a 28+ foot fishing boat in the driveway that looked practically new. People never cease to amaze me.

Oh and what’s with people using their garages as disorganized storage units???? I HATE THAT.

Anyway, I will keep looking around.

[Ash Housewares]

Thanks for the info radelow. Interesting and informative thread.

[Ash Housewares]

Thanks for the info radelow. Interesting and informative thread.

[housingfreefall]

Thought? A rent analysis of this particular area ranges from 1750-1850 making the average $1873. Based on a 6% cap rate which is low the value of this property is $380K. Since they gave a value range of 500K-562K they are looking to lock a potential sucker in at 528ish.
Instead of meeting with the agent, call title companies ask them to run a property report on this property ~public information isn’t America great! Of course mention you will use them if the deal goes through ~makes the report free!
Now this is the info you will use for your offer~ the report will tell you any liens on the property 1st 2nds and property taxes allowing you to know exactly what the banks are owed on this particular property~ Then call the agent back and go in to the property and evaluate cost for fixing it up.
Based on the amount owed on the property, minus the work the property needs. Using comps for the area, the amount owed, minus the work needed= price.
Side note on shorts ~be prepared for a long process especially if you plan on low balling.
Low balling is an over used term similar to “I love you” and you will begin to see it even more loosely used as this thing unravels. Truth is a ‘low ball” is a mathematical process and when used correctly and in the right environment it can land us a deal.

[housingfreefall]

Thought? A rent analysis of this particular area ranges from 1750-1850 making the average $1873. Based on a 6% cap rate which is low the value of this property is $380K. Since they gave a value range of 500K-562K they are looking to lock a potential sucker in at 528ish.
Instead of meeting with the agent, call title companies ask them to run a property report on this property ~public information isn’t America great! Of course mention you will use them if the deal goes through ~makes the report free!
Now this is the info you will use for your offer~ the report will tell you any liens on the property 1st 2nds and property taxes allowing you to know exactly what the banks are owed on this particular property~ Then call the agent back and go in to the property and evaluate cost for fixing it up.
Based on the amount owed on the property, minus the work the property needs. Using comps for the area, the amount owed, minus the work needed= price.
Side note on shorts ~be prepared for a long process especially if you plan on low balling.
Low balling is an over used term similar to “I love you” and you will begin to see it even more loosely used as this thing unravels. Truth is a ‘low ball” is a mathematical process and when used correctly and in the right environment it can land us a deal.

[GoUSC]

$500,000 represents a 20% short sale for the lenders. You are not going to get them to agree to anything less than that. No way no how. And the house isn’t worth $500k to me regardless so I wouldn’t bother. The broker did say they have an offer at the low end (aka $500k) being review by the bank right now.

[GoUSC]

$500,000 represents a 20% short sale for the lenders. You are not going to get them to agree to anything less than that. No way no how. And the house isn’t worth $500k to me regardless so I wouldn’t bother. The broker did say they have an offer at the low end (aka $500k) being review by the bank right now.

[sdcellar]

I knew you’d come back with that radelow and you’re exactly right.

I mentioned this in another thread. The idea of getting post-bubble prices today is mostly a fantasy.

[sdcellar]

I knew you’d come back with that radelow and you’re exactly right.

I mentioned this in another thread. The idea of getting post-bubble prices today is mostly a fantasy.

[GoUSC]

As I have decided to just sit on the sidelines now, pulling out of house hunting 100%, I am spending much more time looking at specific sales and purchases in the markets I want to live (Bay Ho, Bay Park, Point Loma, Mission Hills, North Park, etc.). It is absolutely mind boggling the amount of 95% and 100% financed properties. And what is really surprising it that it is not just condos and cheaper first time properties. I have seem numerous $1 mil plus homes with 100% financing. I saw one property in Mission Hills sell for $1.4 mil with 100% financing. That is a $9000/month mortgage payment on top of property taxes etc.

Just more people living at redline.

[GoUSC]

As I have decided to just sit on the sidelines now, pulling out of house hunting 100%, I am spending much more time looking at specific sales and purchases in the markets I want to live (Bay Ho, Bay Park, Point Loma, Mission Hills, North Park, etc.). It is absolutely mind boggling the amount of 95% and 100% financed properties. And what is really surprising it that it is not just condos and cheaper first time properties. I have seem numerous $1 mil plus homes with 100% financing. I saw one property in Mission Hills sell for $1.4 mil with 100% financing. That is a $9000/month mortgage payment on top of property taxes etc.

Just more people living at redline.

[Author]

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