North park flips… relatistic prices?

[sdrealtor]

But you had your chance so you could have bought it. An investor buyer wouldnt surprise me. The bank might have taken a lower all cash offer instead of a financed and even FHA offer. Isnt that what you are proposing to use?

A 6800 sq ft lot might be splitable and building two homes on it could be the highest and best use of the property. Of course its not the end of the story until the story ends.

[CA renter]

[quote=SD Realtor]JP that is what I think has bugged me and does bug me about the entire thread and premise.

Before I forget, 2012 Galveston is pending in Baypark and BAC did a cheapo kitchen and part of the home and left the rest of it. The home went to trsutee sale for 450k in December and none of us touched it at auction. BAC went in and did some work and it is now pending at 596k.

Okay so back to my other thoughts which are the anger you guys have at flippers is kind of a microcosm of the anger in the country today. It is an anger of this guy has what I want so he should not be allowed to do what he wants so I can get what I want. That scares me.

Here is an inherently crappy crappy system, totally propped up by govt and taxpayer money working hand in hand with Wall St. We all agree on that correct? Constraining inventory, holding back properties, renegotiating mortgages to people who never should have been allowed to buy in the first place and who even TODAY cannot afford the home they live in, and basically punishing the rest of us correct? I mean we all do see eye to eye on that and I think we all know and believe this is the REAL cause of why none of us can buy a home at a decent price.

Now you have a small group of people who go out, and whether they buy through trustee sale or on the market, they take the risk and buy a home to flip. They put their money on the line, their time, and they do it. They pay HEFTY taxes on the profit, they are at risk bigtime, and yes they take the homes. They are playing within the system, and they are indeed taking advantage of the market conditions.

Yet the rage directed at them compared to the institutionalized almost criminal system to me seems…. out of whack. I guess I keep coming back to the same thing where you and CAR CAN BUY AT TRUSTEE SALES. Why don’t you? Jim Klinge has a system where he is helping buyers to do this. You guys put so much time and energy into looking for a home, yet have you exhausted all the resources? It seems to me no you have not. You certainly have the energy to point out the details of various properties, even you yourself spend plenty of time tracking them.

Lets not forget alot of these same flippers are exposed and will be in trouble when the market turns. Just a matter of time. Regardless of whether it is a trustee flipper or a resale flipper they will be the first to be exposed and they will be the first to get hammered and have to lower the price. Times are good for them now but nothing is permanent.

So coming full circle I fully understand your and CARs anger at the market conditions.

Yes JP if you want me to admit that the flippers who probably represent less then 5% of total sales in the county are 100% responsible for providing price support. If that is what you honestly believe then fine you can believe it.[/quote]

SDR,

Please understand that the vast majority of my anger is directed at the govt and the lenders (who, I believe, are following orders from the govt). It’s just that *given the market that is made by the govt,* the flippers are indeed making it worse.

I would LOVE to buy at the courthouse steps, but do not have the time to go down there every day and HOPE that they are going to go through with the trustee sale. I can’t do that because I have other obligations during the day. Flippers can waste their time because they (the big ones) are dedicated solely to buying and flipping these homes. They know the auctioneer(s), they have the connections with the title companies, have the team set up, etc., and they are much stronger competitors than the single buyer who wants to buy a primary residence.

Again, it would be nice to go to the courthouse steps and only have to compete with other organic buyers, especially if we all had to pay cash — our OWN cash, not investors’ cash. It would be great if banks would actually foreclose and sell the properties that are supposed to be sold at the courthouse steps. Unfortunately, neither is possible in this market.

I’ve talked to Jim Klinge a number of times about buying at the courthouse steps, but most of the properties are not making it to sale, as you know. We have cash, we have market knowledge, but we cannot spend every day down there in a futile attempt to get the one house we might want — and which will most likely not make it to sale, or will be bid up by the flippers.

Please don’t get defensive about this, and do NOT take this personally, SDR. None of my anger is directed at you, and I sincerely hope you know that. I totally understand why you’ve pursued flips, and have been tempted to myself, for the very reasons you’re doing it. It’s almost as if the govt is giving us no choice but to play the game. I don’t hate the player, I hate the game.

[CA renter]

[quote=SD Realtor]JP that is what I think has bugged me and does bug me about the entire thread and premise.

Before I forget, 2012 Galveston is pending in Baypark and BAC did a cheapo kitchen and part of the home and left the rest of it. The home went to trsutee sale for 450k in December and none of us touched it at auction. BAC went in and did some work and it is now pending at 596k.

Okay so back to my other thoughts which are the anger you guys have at flippers is kind of a microcosm of the anger in the country today. It is an anger of this guy has what I want so he should not be allowed to do what he wants so I can get what I want. That scares me.

Here is an inherently crappy crappy system, totally propped up by govt and taxpayer money working hand in hand with Wall St. We all agree on that correct? Constraining inventory, holding back properties, renegotiating mortgages to people who never should have been allowed to buy in the first place and who even TODAY cannot afford the home they live in, and basically punishing the rest of us correct? I mean we all do see eye to eye on that and I think we all know and believe this is the REAL cause of why none of us can buy a home at a decent price.

Now you have a small group of people who go out, and whether they buy through trustee sale or on the market, they take the risk and buy a home to flip. They put their money on the line, their time, and they do it. They pay HEFTY taxes on the profit, they are at risk bigtime, and yes they take the homes. They are playing within the system, and they are indeed taking advantage of the market conditions.

Yet the rage directed at them compared to the institutionalized almost criminal system to me seems…. out of whack. I guess I keep coming back to the same thing where you and CAR CAN BUY AT TRUSTEE SALES. Why don’t you? Jim Klinge has a system where he is helping buyers to do this. You guys put so much time and energy into looking for a home, yet have you exhausted all the resources? It seems to me no you have not. You certainly have the energy to point out the details of various properties, even you yourself spend plenty of time tracking them.

Lets not forget alot of these same flippers are exposed and will be in trouble when the market turns. Just a matter of time. Regardless of whether it is a trustee flipper or a resale flipper they will be the first to be exposed and they will be the first to get hammered and have to lower the price. Times are good for them now but nothing is permanent.

So coming full circle I fully understand your and CARs anger at the market conditions.

Yes JP if you want me to admit that the flippers who probably represent less then 5% of total sales in the county are 100% responsible for providing price support. If that is what you honestly believe then fine you can believe it.[/quote]

SDR,

Please understand that the vast majority of my anger is directed at the govt and the lenders (who, I believe, are following orders from the govt). It’s just that *given the market that is made by the govt,* the flippers are indeed making it worse.

I would LOVE to buy at the courthouse steps, but do not have the time to go down there every day and HOPE that they are going to go through with the trustee sale. I can’t do that because I have other obligations during the day. Flippers can waste their time because they (the big ones) are dedicated solely to buying and flipping these homes. They know the auctioneer(s), they have the connections with the title companies, have the team set up, etc., and they are much stronger competitors than the single buyer who wants to buy a primary residence.

Again, it would be nice to go to the courthouse steps and only have to compete with other organic buyers, especially if we all had to pay cash — our OWN cash, not investors’ cash. It would be great if banks would actually foreclose and sell the properties that are supposed to be sold at the courthouse steps. Unfortunately, neither is possible in this market.

I’ve talked to Jim Klinge a number of times about buying at the courthouse steps, but most of the properties are not making it to sale, as you know. We have cash, we have market knowledge, but we cannot spend every day down there in a futile attempt to get the one house we might want — and which will most likely not make it to sale, or will be bid up by the flippers.

Please don’t get defensive about this, and do NOT take this personally, SDR. None of my anger is directed at you, and I sincerely hope you know that. I totally understand why you’ve pursued flips, and have been tempted to myself, for the very reasons you’re doing it. It’s almost as if the govt is giving us no choice but to play the game. I don’t hate the player, I hate the game.

[CA renter]

[quote=SD Realtor]JP that is what I think has bugged me and does bug me about the entire thread and premise.

Before I forget, 2012 Galveston is pending in Baypark and BAC did a cheapo kitchen and part of the home and left the rest of it. The home went to trsutee sale for 450k in December and none of us touched it at auction. BAC went in and did some work and it is now pending at 596k.

Okay so back to my other thoughts which are the anger you guys have at flippers is kind of a microcosm of the anger in the country today. It is an anger of this guy has what I want so he should not be allowed to do what he wants so I can get what I want. That scares me.

Here is an inherently crappy crappy system, totally propped up by govt and taxpayer money working hand in hand with Wall St. We all agree on that correct? Constraining inventory, holding back properties, renegotiating mortgages to people who never should have been allowed to buy in the first place and who even TODAY cannot afford the home they live in, and basically punishing the rest of us correct? I mean we all do see eye to eye on that and I think we all know and believe this is the REAL cause of why none of us can buy a home at a decent price.

Now you have a small group of people who go out, and whether they buy through trustee sale or on the market, they take the risk and buy a home to flip. They put their money on the line, their time, and they do it. They pay HEFTY taxes on the profit, they are at risk bigtime, and yes they take the homes. They are playing within the system, and they are indeed taking advantage of the market conditions.

Yet the rage directed at them compared to the institutionalized almost criminal system to me seems…. out of whack. I guess I keep coming back to the same thing where you and CAR CAN BUY AT TRUSTEE SALES. Why don’t you? Jim Klinge has a system where he is helping buyers to do this. You guys put so much time and energy into looking for a home, yet have you exhausted all the resources? It seems to me no you have not. You certainly have the energy to point out the details of various properties, even you yourself spend plenty of time tracking them.

Lets not forget alot of these same flippers are exposed and will be in trouble when the market turns. Just a matter of time. Regardless of whether it is a trustee flipper or a resale flipper they will be the first to be exposed and they will be the first to get hammered and have to lower the price. Times are good for them now but nothing is permanent.

So coming full circle I fully understand your and CARs anger at the market conditions.

Yes JP if you want me to admit that the flippers who probably represent less then 5% of total sales in the county are 100% responsible for providing price support. If that is what you honestly believe then fine you can believe it.[/quote]

SDR,

Please understand that the vast majority of my anger is directed at the govt and the lenders (who, I believe, are following orders from the govt). It’s just that *given the market that is made by the govt,* the flippers are indeed making it worse.

I would LOVE to buy at the courthouse steps, but do not have the time to go down there every day and HOPE that they are going to go through with the trustee sale. I can’t do that because I have other obligations during the day. Flippers can waste their time because they (the big ones) are dedicated solely to buying and flipping these homes. They know the auctioneer(s), they have the connections with the title companies, have the team set up, etc., and they are much stronger competitors than the single buyer who wants to buy a primary residence.

Again, it would be nice to go to the courthouse steps and only have to compete with other organic buyers, especially if we all had to pay cash — our OWN cash, not investors’ cash. It would be great if banks would actually foreclose and sell the properties that are supposed to be sold at the courthouse steps. Unfortunately, neither is possible in this market.

I’ve talked to Jim Klinge a number of times about buying at the courthouse steps, but most of the properties are not making it to sale, as you know. We have cash, we have market knowledge, but we cannot spend every day down there in a futile attempt to get the one house we might want — and which will most likely not make it to sale, or will be bid up by the flippers.

Please don’t get defensive about this, and do NOT take this personally, SDR. None of my anger is directed at you, and I sincerely hope you know that. I totally understand why you’ve pursued flips, and have been tempted to myself, for the very reasons you’re doing it. It’s almost as if the govt is giving us no choice but to play the game. I don’t hate the player, I hate the game.

[CA renter]

[quote=SD Realtor]JP that is what I think has bugged me and does bug me about the entire thread and premise.

Before I forget, 2012 Galveston is pending in Baypark and BAC did a cheapo kitchen and part of the home and left the rest of it. The home went to trsutee sale for 450k in December and none of us touched it at auction. BAC went in and did some work and it is now pending at 596k.

Okay so back to my other thoughts which are the anger you guys have at flippers is kind of a microcosm of the anger in the country today. It is an anger of this guy has what I want so he should not be allowed to do what he wants so I can get what I want. That scares me.

Here is an inherently crappy crappy system, totally propped up by govt and taxpayer money working hand in hand with Wall St. We all agree on that correct? Constraining inventory, holding back properties, renegotiating mortgages to people who never should have been allowed to buy in the first place and who even TODAY cannot afford the home they live in, and basically punishing the rest of us correct? I mean we all do see eye to eye on that and I think we all know and believe this is the REAL cause of why none of us can buy a home at a decent price.

Now you have a small group of people who go out, and whether they buy through trustee sale or on the market, they take the risk and buy a home to flip. They put their money on the line, their time, and they do it. They pay HEFTY taxes on the profit, they are at risk bigtime, and yes they take the homes. They are playing within the system, and they are indeed taking advantage of the market conditions.

Yet the rage directed at them compared to the institutionalized almost criminal system to me seems…. out of whack. I guess I keep coming back to the same thing where you and CAR CAN BUY AT TRUSTEE SALES. Why don’t you? Jim Klinge has a system where he is helping buyers to do this. You guys put so much time and energy into looking for a home, yet have you exhausted all the resources? It seems to me no you have not. You certainly have the energy to point out the details of various properties, even you yourself spend plenty of time tracking them.

Lets not forget alot of these same flippers are exposed and will be in trouble when the market turns. Just a matter of time. Regardless of whether it is a trustee flipper or a resale flipper they will be the first to be exposed and they will be the first to get hammered and have to lower the price. Times are good for them now but nothing is permanent.

So coming full circle I fully understand your and CARs anger at the market conditions.

Yes JP if you want me to admit that the flippers who probably represent less then 5% of total sales in the county are 100% responsible for providing price support. If that is what you honestly believe then fine you can believe it.[/quote]

SDR,

Please understand that the vast majority of my anger is directed at the govt and the lenders (who, I believe, are following orders from the govt). It’s just that *given the market that is made by the govt,* the flippers are indeed making it worse.

I would LOVE to buy at the courthouse steps, but do not have the time to go down there every day and HOPE that they are going to go through with the trustee sale. I can’t do that because I have other obligations during the day. Flippers can waste their time because they (the big ones) are dedicated solely to buying and flipping these homes. They know the auctioneer(s), they have the connections with the title companies, have the team set up, etc., and they are much stronger competitors than the single buyer who wants to buy a primary residence.

Again, it would be nice to go to the courthouse steps and only have to compete with other organic buyers, especially if we all had to pay cash — our OWN cash, not investors’ cash. It would be great if banks would actually foreclose and sell the properties that are supposed to be sold at the courthouse steps. Unfortunately, neither is possible in this market.

I’ve talked to Jim Klinge a number of times about buying at the courthouse steps, but most of the properties are not making it to sale, as you know. We have cash, we have market knowledge, but we cannot spend every day down there in a futile attempt to get the one house we might want — and which will most likely not make it to sale, or will be bid up by the flippers.

Please don’t get defensive about this, and do NOT take this personally, SDR. None of my anger is directed at you, and I sincerely hope you know that. I totally understand why you’ve pursued flips, and have been tempted to myself, for the very reasons you’re doing it. It’s almost as if the govt is giving us no choice but to play the game. I don’t hate the player, I hate the game.

[CA renter]

[quote=SD Realtor]JP that is what I think has bugged me and does bug me about the entire thread and premise.

Before I forget, 2012 Galveston is pending in Baypark and BAC did a cheapo kitchen and part of the home and left the rest of it. The home went to trsutee sale for 450k in December and none of us touched it at auction. BAC went in and did some work and it is now pending at 596k.

Okay so back to my other thoughts which are the anger you guys have at flippers is kind of a microcosm of the anger in the country today. It is an anger of this guy has what I want so he should not be allowed to do what he wants so I can get what I want. That scares me.

Here is an inherently crappy crappy system, totally propped up by govt and taxpayer money working hand in hand with Wall St. We all agree on that correct? Constraining inventory, holding back properties, renegotiating mortgages to people who never should have been allowed to buy in the first place and who even TODAY cannot afford the home they live in, and basically punishing the rest of us correct? I mean we all do see eye to eye on that and I think we all know and believe this is the REAL cause of why none of us can buy a home at a decent price.

Now you have a small group of people who go out, and whether they buy through trustee sale or on the market, they take the risk and buy a home to flip. They put their money on the line, their time, and they do it. They pay HEFTY taxes on the profit, they are at risk bigtime, and yes they take the homes. They are playing within the system, and they are indeed taking advantage of the market conditions.

Yet the rage directed at them compared to the institutionalized almost criminal system to me seems…. out of whack. I guess I keep coming back to the same thing where you and CAR CAN BUY AT TRUSTEE SALES. Why don’t you? Jim Klinge has a system where he is helping buyers to do this. You guys put so much time and energy into looking for a home, yet have you exhausted all the resources? It seems to me no you have not. You certainly have the energy to point out the details of various properties, even you yourself spend plenty of time tracking them.

Lets not forget alot of these same flippers are exposed and will be in trouble when the market turns. Just a matter of time. Regardless of whether it is a trustee flipper or a resale flipper they will be the first to be exposed and they will be the first to get hammered and have to lower the price. Times are good for them now but nothing is permanent.

So coming full circle I fully understand your and CARs anger at the market conditions.

Yes JP if you want me to admit that the flippers who probably represent less then 5% of total sales in the county are 100% responsible for providing price support. If that is what you honestly believe then fine you can believe it.[/quote]

SDR,

Please understand that the vast majority of my anger is directed at the govt and the lenders (who, I believe, are following orders from the govt). It’s just that *given the market that is made by the govt,* the flippers are indeed making it worse.

I would LOVE to buy at the courthouse steps, but do not have the time to go down there every day and HOPE that they are going to go through with the trustee sale. I can’t do that because I have other obligations during the day. Flippers can waste their time because they (the big ones) are dedicated solely to buying and flipping these homes. They know the auctioneer(s), they have the connections with the title companies, have the team set up, etc., and they are much stronger competitors than the single buyer who wants to buy a primary residence.

Again, it would be nice to go to the courthouse steps and only have to compete with other organic buyers, especially if we all had to pay cash — our OWN cash, not investors’ cash. It would be great if banks would actually foreclose and sell the properties that are supposed to be sold at the courthouse steps. Unfortunately, neither is possible in this market.

I’ve talked to Jim Klinge a number of times about buying at the courthouse steps, but most of the properties are not making it to sale, as you know. We have cash, we have market knowledge, but we cannot spend every day down there in a futile attempt to get the one house we might want — and which will most likely not make it to sale, or will be bid up by the flippers.

Please don’t get defensive about this, and do NOT take this personally, SDR. None of my anger is directed at you, and I sincerely hope you know that. I totally understand why you’ve pursued flips, and have been tempted to myself, for the very reasons you’re doing it. It’s almost as if the govt is giving us no choice but to play the game. I don’t hate the player, I hate the game.

[CA renter]

[quote=pemeliza]” I’m referring to homes that are short sales, REOs, and regular sales that are close to tempting, but not low enough for buyers who intend to make their own improvements and live in the home for the duration.”

This is illuminating. CAR, it is likely that you would not have bought the house that I bought at the price I paid even though our intents are exactly the same. Me and DW basically bought the cheapest house on a great street that was original condition. We plan to do just as you suggest which is to make improvements (slowly over time!) and live in the home for the duration. I plan to be carried out in a pine box.

It occurred to me that you and I have a wildly different view of what a fair price is for a top notch location in San Diego. This got me to thinking that most buyers probably have a wildly different view of fair pricing in SD. I think all buyers myself included have a certain strike price. Right now your strike price is clearly much lower than the buyers that are currently buying right now but I don’t think those that are buying at today’s prices are necessarily less savvy. Maybe they just are not that good at timing the market so they just buy once they see something they like and can afford.

The best analogy I can come up with is the stock market. When it was in free-fall mode last year there are probably buyers that jumped in at DOW 10000 thinking wow what a deal. Then were buyers at 9000, 8000, 7000, etc. Each buyer had a price that they wanted in at. During the free-fall I got a call from a friend that thought the market was going to 3000. He never got in. Right now I would say the real estate market in SD is probably about like DOW 8000. I probably got in a little early and will probably have a 10-20% paper loss before this is all over. However, since we bought I have not seen a house come on the market that I would rather have than ours. Thus, I feel like our 2 year trek was successful even though we clearly did not time the bottom.

You and JP stuck it out and are poised to do even better then we did. Hang in there.[/quote]

Yes, you are probably right about our strike price vs. other buyers’ strike prices. If the govt would get out of the way, we could see what the REAL market would bear. That’s what is so frustrating: we KNOW the market is being manipulated, but nobody can tell when, if, or how it will ever end. I just refuse to buy in a market that is so heavily manipulated against buyers.

Thanks for your words of encouragement, pemeliza. Sometimes, I’m tempted to throw in the towel and jump in, but just can’t bring myself to do it. You’re lucky that your RE buying journey is over. It’s got to feel better being on your side of the fence than on ours.

Thanks for putting up with our venting! 😉

[CA renter]

[quote=pemeliza]” I’m referring to homes that are short sales, REOs, and regular sales that are close to tempting, but not low enough for buyers who intend to make their own improvements and live in the home for the duration.”

This is illuminating. CAR, it is likely that you would not have bought the house that I bought at the price I paid even though our intents are exactly the same. Me and DW basically bought the cheapest house on a great street that was original condition. We plan to do just as you suggest which is to make improvements (slowly over time!) and live in the home for the duration. I plan to be carried out in a pine box.

It occurred to me that you and I have a wildly different view of what a fair price is for a top notch location in San Diego. This got me to thinking that most buyers probably have a wildly different view of fair pricing in SD. I think all buyers myself included have a certain strike price. Right now your strike price is clearly much lower than the buyers that are currently buying right now but I don’t think those that are buying at today’s prices are necessarily less savvy. Maybe they just are not that good at timing the market so they just buy once they see something they like and can afford.

The best analogy I can come up with is the stock market. When it was in free-fall mode last year there are probably buyers that jumped in at DOW 10000 thinking wow what a deal. Then were buyers at 9000, 8000, 7000, etc. Each buyer had a price that they wanted in at. During the free-fall I got a call from a friend that thought the market was going to 3000. He never got in. Right now I would say the real estate market in SD is probably about like DOW 8000. I probably got in a little early and will probably have a 10-20% paper loss before this is all over. However, since we bought I have not seen a house come on the market that I would rather have than ours. Thus, I feel like our 2 year trek was successful even though we clearly did not time the bottom.

You and JP stuck it out and are poised to do even better then we did. Hang in there.[/quote]

Yes, you are probably right about our strike price vs. other buyers’ strike prices. If the govt would get out of the way, we could see what the REAL market would bear. That’s what is so frustrating: we KNOW the market is being manipulated, but nobody can tell when, if, or how it will ever end. I just refuse to buy in a market that is so heavily manipulated against buyers.

Thanks for your words of encouragement, pemeliza. Sometimes, I’m tempted to throw in the towel and jump in, but just can’t bring myself to do it. You’re lucky that your RE buying journey is over. It’s got to feel better being on your side of the fence than on ours.

Thanks for putting up with our venting! 😉

[CA renter]

[quote=pemeliza]” I’m referring to homes that are short sales, REOs, and regular sales that are close to tempting, but not low enough for buyers who intend to make their own improvements and live in the home for the duration.”

This is illuminating. CAR, it is likely that you would not have bought the house that I bought at the price I paid even though our intents are exactly the same. Me and DW basically bought the cheapest house on a great street that was original condition. We plan to do just as you suggest which is to make improvements (slowly over time!) and live in the home for the duration. I plan to be carried out in a pine box.

It occurred to me that you and I have a wildly different view of what a fair price is for a top notch location in San Diego. This got me to thinking that most buyers probably have a wildly different view of fair pricing in SD. I think all buyers myself included have a certain strike price. Right now your strike price is clearly much lower than the buyers that are currently buying right now but I don’t think those that are buying at today’s prices are necessarily less savvy. Maybe they just are not that good at timing the market so they just buy once they see something they like and can afford.

The best analogy I can come up with is the stock market. When it was in free-fall mode last year there are probably buyers that jumped in at DOW 10000 thinking wow what a deal. Then were buyers at 9000, 8000, 7000, etc. Each buyer had a price that they wanted in at. During the free-fall I got a call from a friend that thought the market was going to 3000. He never got in. Right now I would say the real estate market in SD is probably about like DOW 8000. I probably got in a little early and will probably have a 10-20% paper loss before this is all over. However, since we bought I have not seen a house come on the market that I would rather have than ours. Thus, I feel like our 2 year trek was successful even though we clearly did not time the bottom.

You and JP stuck it out and are poised to do even better then we did. Hang in there.[/quote]

Yes, you are probably right about our strike price vs. other buyers’ strike prices. If the govt would get out of the way, we could see what the REAL market would bear. That’s what is so frustrating: we KNOW the market is being manipulated, but nobody can tell when, if, or how it will ever end. I just refuse to buy in a market that is so heavily manipulated against buyers.

Thanks for your words of encouragement, pemeliza. Sometimes, I’m tempted to throw in the towel and jump in, but just can’t bring myself to do it. You’re lucky that your RE buying journey is over. It’s got to feel better being on your side of the fence than on ours.

Thanks for putting up with our venting! 😉

[CA renter]

[quote=pemeliza]” I’m referring to homes that are short sales, REOs, and regular sales that are close to tempting, but not low enough for buyers who intend to make their own improvements and live in the home for the duration.”

This is illuminating. CAR, it is likely that you would not have bought the house that I bought at the price I paid even though our intents are exactly the same. Me and DW basically bought the cheapest house on a great street that was original condition. We plan to do just as you suggest which is to make improvements (slowly over time!) and live in the home for the duration. I plan to be carried out in a pine box.

It occurred to me that you and I have a wildly different view of what a fair price is for a top notch location in San Diego. This got me to thinking that most buyers probably have a wildly different view of fair pricing in SD. I think all buyers myself included have a certain strike price. Right now your strike price is clearly much lower than the buyers that are currently buying right now but I don’t think those that are buying at today’s prices are necessarily less savvy. Maybe they just are not that good at timing the market so they just buy once they see something they like and can afford.

The best analogy I can come up with is the stock market. When it was in free-fall mode last year there are probably buyers that jumped in at DOW 10000 thinking wow what a deal. Then were buyers at 9000, 8000, 7000, etc. Each buyer had a price that they wanted in at. During the free-fall I got a call from a friend that thought the market was going to 3000. He never got in. Right now I would say the real estate market in SD is probably about like DOW 8000. I probably got in a little early and will probably have a 10-20% paper loss before this is all over. However, since we bought I have not seen a house come on the market that I would rather have than ours. Thus, I feel like our 2 year trek was successful even though we clearly did not time the bottom.

You and JP stuck it out and are poised to do even better then we did. Hang in there.[/quote]

Yes, you are probably right about our strike price vs. other buyers’ strike prices. If the govt would get out of the way, we could see what the REAL market would bear. That’s what is so frustrating: we KNOW the market is being manipulated, but nobody can tell when, if, or how it will ever end. I just refuse to buy in a market that is so heavily manipulated against buyers.

Thanks for your words of encouragement, pemeliza. Sometimes, I’m tempted to throw in the towel and jump in, but just can’t bring myself to do it. You’re lucky that your RE buying journey is over. It’s got to feel better being on your side of the fence than on ours.

Thanks for putting up with our venting! 😉

[CA renter]

[quote=pemeliza]” I’m referring to homes that are short sales, REOs, and regular sales that are close to tempting, but not low enough for buyers who intend to make their own improvements and live in the home for the duration.”

This is illuminating. CAR, it is likely that you would not have bought the house that I bought at the price I paid even though our intents are exactly the same. Me and DW basically bought the cheapest house on a great street that was original condition. We plan to do just as you suggest which is to make improvements (slowly over time!) and live in the home for the duration. I plan to be carried out in a pine box.

It occurred to me that you and I have a wildly different view of what a fair price is for a top notch location in San Diego. This got me to thinking that most buyers probably have a wildly different view of fair pricing in SD. I think all buyers myself included have a certain strike price. Right now your strike price is clearly much lower than the buyers that are currently buying right now but I don’t think those that are buying at today’s prices are necessarily less savvy. Maybe they just are not that good at timing the market so they just buy once they see something they like and can afford.

The best analogy I can come up with is the stock market. When it was in free-fall mode last year there are probably buyers that jumped in at DOW 10000 thinking wow what a deal. Then were buyers at 9000, 8000, 7000, etc. Each buyer had a price that they wanted in at. During the free-fall I got a call from a friend that thought the market was going to 3000. He never got in. Right now I would say the real estate market in SD is probably about like DOW 8000. I probably got in a little early and will probably have a 10-20% paper loss before this is all over. However, since we bought I have not seen a house come on the market that I would rather have than ours. Thus, I feel like our 2 year trek was successful even though we clearly did not time the bottom.

You and JP stuck it out and are poised to do even better then we did. Hang in there.[/quote]

Yes, you are probably right about our strike price vs. other buyers’ strike prices. If the govt would get out of the way, we could see what the REAL market would bear. That’s what is so frustrating: we KNOW the market is being manipulated, but nobody can tell when, if, or how it will ever end. I just refuse to buy in a market that is so heavily manipulated against buyers.

Thanks for your words of encouragement, pemeliza. Sometimes, I’m tempted to throw in the towel and jump in, but just can’t bring myself to do it. You’re lucky that your RE buying journey is over. It’s got to feel better being on your side of the fence than on ours.

Thanks for putting up with our venting! 😉

[SD Realtor]

CAR I understand completely. One thing though is that it really is a slippery slope. The direction that our country is heading is one that concerns me and I shudder when I think about incremental loss of freedom as regulation increases. It is a slippery slope. Okay so you totally outlaw flippers. What about investment for rentals? Right now some of the purchases (at least at trustee sale) may not be ripe for a flip but may represent some decent cash flow opportunity for a rental (especially in light of savings rates) right now. Do those get taken away as well?

Yes we agree 100% on the answer which is make things more STRICT for those who haven’t saved for a large downpayment.

However you run that idea up the flagpole in this environment and you will likely be called a racist in about 2 seconds.

So what do you do?

I agree with Pem you hang in there. You guys will get your places. It will take time. Also don’t think in the negative (hard for me to do because I always do that) and think about hiring someone to go to the auction for you. Look at what is available that day and by 9 am send them down with the cashiers checks. It is not as hard as you make it out to be and many of us have other jobs as well. Set your max price and let it go.

JP would you have bought Beryl for 450k? That is 32k more then the auction but you would have the home free and clear. Again, I know it is not easy to do but the mission is not as impossible as you guys make it out to be.

Also I think you are seeing a delayed effect. Many of the flips you have seen or are seeing are leftovers from the run we have had. I believe you will see those start to dry up as we move forward. Some of them will go sour as well. Hindsight is 20/20 and the bottom we had in 2008 is passed us by but will come again driven moreso by rates then anything else. Hopefully the rates will be high enough and our govt will be indebted enough that they cannot continue to subsidize housing but one never knows.

[SD Realtor]

CAR I understand completely. One thing though is that it really is a slippery slope. The direction that our country is heading is one that concerns me and I shudder when I think about incremental loss of freedom as regulation increases. It is a slippery slope. Okay so you totally outlaw flippers. What about investment for rentals? Right now some of the purchases (at least at trustee sale) may not be ripe for a flip but may represent some decent cash flow opportunity for a rental (especially in light of savings rates) right now. Do those get taken away as well?

Yes we agree 100% on the answer which is make things more STRICT for those who haven’t saved for a large downpayment.

However you run that idea up the flagpole in this environment and you will likely be called a racist in about 2 seconds.

So what do you do?

I agree with Pem you hang in there. You guys will get your places. It will take time. Also don’t think in the negative (hard for me to do because I always do that) and think about hiring someone to go to the auction for you. Look at what is available that day and by 9 am send them down with the cashiers checks. It is not as hard as you make it out to be and many of us have other jobs as well. Set your max price and let it go.

JP would you have bought Beryl for 450k? That is 32k more then the auction but you would have the home free and clear. Again, I know it is not easy to do but the mission is not as impossible as you guys make it out to be.

Also I think you are seeing a delayed effect. Many of the flips you have seen or are seeing are leftovers from the run we have had. I believe you will see those start to dry up as we move forward. Some of them will go sour as well. Hindsight is 20/20 and the bottom we had in 2008 is passed us by but will come again driven moreso by rates then anything else. Hopefully the rates will be high enough and our govt will be indebted enough that they cannot continue to subsidize housing but one never knows.

[SD Realtor]

CAR I understand completely. One thing though is that it really is a slippery slope. The direction that our country is heading is one that concerns me and I shudder when I think about incremental loss of freedom as regulation increases. It is a slippery slope. Okay so you totally outlaw flippers. What about investment for rentals? Right now some of the purchases (at least at trustee sale) may not be ripe for a flip but may represent some decent cash flow opportunity for a rental (especially in light of savings rates) right now. Do those get taken away as well?

Yes we agree 100% on the answer which is make things more STRICT for those who haven’t saved for a large downpayment.

However you run that idea up the flagpole in this environment and you will likely be called a racist in about 2 seconds.

So what do you do?

I agree with Pem you hang in there. You guys will get your places. It will take time. Also don’t think in the negative (hard for me to do because I always do that) and think about hiring someone to go to the auction for you. Look at what is available that day and by 9 am send them down with the cashiers checks. It is not as hard as you make it out to be and many of us have other jobs as well. Set your max price and let it go.

JP would you have bought Beryl for 450k? That is 32k more then the auction but you would have the home free and clear. Again, I know it is not easy to do but the mission is not as impossible as you guys make it out to be.

Also I think you are seeing a delayed effect. Many of the flips you have seen or are seeing are leftovers from the run we have had. I believe you will see those start to dry up as we move forward. Some of them will go sour as well. Hindsight is 20/20 and the bottom we had in 2008 is passed us by but will come again driven moreso by rates then anything else. Hopefully the rates will be high enough and our govt will be indebted enough that they cannot continue to subsidize housing but one never knows.

[SD Realtor]

CAR I understand completely. One thing though is that it really is a slippery slope. The direction that our country is heading is one that concerns me and I shudder when I think about incremental loss of freedom as regulation increases. It is a slippery slope. Okay so you totally outlaw flippers. What about investment for rentals? Right now some of the purchases (at least at trustee sale) may not be ripe for a flip but may represent some decent cash flow opportunity for a rental (especially in light of savings rates) right now. Do those get taken away as well?

Yes we agree 100% on the answer which is make things more STRICT for those who haven’t saved for a large downpayment.

However you run that idea up the flagpole in this environment and you will likely be called a racist in about 2 seconds.

So what do you do?

I agree with Pem you hang in there. You guys will get your places. It will take time. Also don’t think in the negative (hard for me to do because I always do that) and think about hiring someone to go to the auction for you. Look at what is available that day and by 9 am send them down with the cashiers checks. It is not as hard as you make it out to be and many of us have other jobs as well. Set your max price and let it go.

JP would you have bought Beryl for 450k? That is 32k more then the auction but you would have the home free and clear. Again, I know it is not easy to do but the mission is not as impossible as you guys make it out to be.

Also I think you are seeing a delayed effect. Many of the flips you have seen or are seeing are leftovers from the run we have had. I believe you will see those start to dry up as we move forward. Some of them will go sour as well. Hindsight is 20/20 and the bottom we had in 2008 is passed us by but will come again driven moreso by rates then anything else. Hopefully the rates will be high enough and our govt will be indebted enough that they cannot continue to subsidize housing but one never knows.

[Author]

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