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CA renter
Participant[quote=harvey][quote=CA renter]
You seem to be missing the point, pri. These speculators are always trying to get in front of the market, going up and down. They are, more often than not, the cause of booms, bubbles, and busts. Totally unproductive, and very damaging.[/quote]You’re right.
Speculators are a secret club that controls the price of everything.
The actually have a secret lair with a big dial that they turn to raise and lower prices.
All they have to do is turn the dial and prices change.
Most turns of the dial are accompanied by an evil laugh.[/quote]
You’re naive if you think that speculators don’t control markets. And some of that does involve conspiring with and against other speculators. That is a fact.
Participant[quote=FlyerInHi]The Revel casino in Atlantic City cost $2.4 billion to build. It was auctioned off for about $95 million (bidder is suing to have the price lowered).
New Jersey’s pension system has $300 million in it.
Chris Christie gave the casino $260 in tax rebates. Plus there was another loan for $40 million.
Total from the state at least $600 million.
That said, the value of a property is what buyers are willing and able to pay at any point in time. Peak valuation has no bearing on present value.[/quote]
Crazy stuff!
January 9, 2015 at 12:37 AM in reply to: In escrow – Overreacting to inspection/disclosure/water issues? #781766Participant[quote=ljinvestor]If it was recently rebuilt from the studs they should have permits on file with city which you can check on.[/quote]
Excellent point, ljinvestor.
January 8, 2015 at 5:15 AM in reply to: In escrow – Overreacting to inspection/disclosure/water issues? #781716ParticipantDefinitely a stressful situation, especially for a first-time buyer. I think it’s reasonable to ask for an extension of the contingency period if you need extra time to get these additional inspections. I would also seek the advice of your realtor regarding the items that were not disclosed, especially the water damage.
Let the seller know that you want paperwork for the roof and any other big-ticket items that were done to this house — including plumbing and electrical work. If the guy is a licensed plumber, have him draw up the paperwork describing the work that was done, the quality/type of copper or piping that was used, any warranty information, etc.
Always know that you can walk away, and don’t be afraid to do so if you feel that people are hiding too many things from you. IMO, that’s not a good sign, but it’s not necessarily worth blowing up this deal if everything is really okay.
Maybe ask Parra what your next step should be??? Your realtor really should be helping you more. Make him/her step up to the plate; you need to demand proper representation.
Best of luck!
Participant[quote=harvey][quote=CA renter]
All that, and speculation — for both the rise and fall (viva capitalism!).That article was written by economic simpletons, for economic simpletons.
The price drop correlates with a selloff! How insightful![/quote]
You seem to be missing the point, pri. These speculators are always trying to get in front of the market, going up and down. They are, more often than not, the cause of booms, bubbles, and busts. Totally unproductive, and very damaging.
Participant[quote=exsdgal][quote=CA renter]
Yes, bundled junk…being sold for 10-20 cents on the dollar. Extremely profitable, and totally unavailable to those who were not well-connected.[/quote]Are you saying a million dollar property was purchased for 100K? If your numbers are not anectodal I am curious to see a transaction recording. Afaik the bundles were geographically dispersed throughout the US, and to undertake such a purchase one needs a reliable infrastructure/people to minimize financial loss from the transaction. Since the moment a bundle is purchased buyer is responsible for all the mundane expenses like taxes, insurance, maintenance, payroll, office space, etc. I can not imagine a regular Joe capable of handling such a purchase. As a consumer, if I had funds I am happy to find one off deals 30-50% off through online reo auction sites. If you were looking into such large volume bundle purchases, kudos to you. I can understand your frustration about needing connections…. after all in this connected world even to land an interesting job, one needs insider information considering most of the jobs are never advertised.[/quote]
“For example, a pool of bulk properties is put together based on certain criteria such as general geographical location, or other factors such as price range, that the GSE’s might use to put together each pool. In many cases, a pool is likely to be composed of a combination of single family homes located in both the inner city and suburban areas. So, investors will take this into account when considering what price to pay for the entire pool. In your previous article you mentioned investors paying around 20 cents on the dollar. I’d say that might be the best possible price, and would not be surprised if the actual bid price is more like 10 cents on the dollar, to compensate for losses on the ones that will not be renovated.”
Bulk Sales Of REO Properties From The Investors Perspective (part 1)
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This was talked about quite a bit when these bulk REO deals were being bandied about. I knew some people who had very deep pockets (and were fairly well-connected, but not connected enough), and they were locked out of these deals. There was a lot of rotten stuff going on during that time.
Participant[quote=FlyerInHi]
That’s exactly it. Those “luxury rentals” and “apartment homes” do it because it keeps the brand image up and help justify what they charge new tenants.
Most of them keep the deposit for cleaning, repairs, and carpet replacement. They will not refund.
In a “hot” rental area like west Mira Mesa, if the tenants leave, I would take the opportunity to spruce up the place a little and charge the next tenant more. That keeps the tenant quality up over the years.[/quote]
I’ve taken a landlord to court over this…and won. They’d better damn well return the deposit if the renter left the unit in the same shape (minus basic wear and tear) as when they rented it. If not, they are breaking the law.
Personally, I’ve never heard of an apartment complex keeping the deposit for no reason. That would be incredibly stupid on their part.
Participant[quote=AN][quote=livinincali][quote=AN]You can do that, but you’re increasing the risk of your renter moving. You have to decide for yourself whether paying for vacancy, cleaning, maintenance is less than the extra rent you get. Sometime it is, sometime, it isn’t. You might think 1-2% hike is far from unreasonable, but it doesn’t matter if it reasonable or not. It’s all about if that’s enough to make your tenant move or not.[/quote]
1 month of vacancy is 8.3% of the total annual rent. It takes 2.8 years before you break even on a 3% increase in rent if increasing the rent results in the tenant moving out. Obviously it all depends on how inconvenient it is for the tenant to move and if they might already have plans of moving. Some people will just pay the extra $25-50 month, some will look at at other options and still decide to stay. Some will just move because they don’t like the principal or were just looking for an excuse to move anyways.[/quote]Yep, you’re just increasing your risk of having vacancy by raising rent. How much risk, only you can guess depending on your relationship with your tenant. But it’s definitely an increase compare to not raising rent.[/quote]
Agree with AN, livingincali, and deadzone.
Are your tenants doing basic maintenance and repairs? That counts for something, too. Chances are, if they aren’t calling you, they’re doing it themselves.
Most importantly, you know that you like these tenants. You don’t know what you’ll get if they move out.
Participant[quote=spdrun]The 8.3% vacancy risk assumes that it stays vacant for a month and that the likelihood of the tenant moving out is 100%. Neither of which are likely if the current rent is below market.
Give adequate notice of the rent hike, and you’ll know what the tenant plans to do well in advance, so you can start advertising the place before s/he leaves.[/quote]
Don’t forget about other costs of turnover like paint, extra cleaning, maintenance & repair issues, etc.
Participant[quote=spdrun]A slowdown abroad came.
The Saudis are dumping oil in the market (possibly at our behest to hurt the Russians, Persians, and IS??, possibly for economic reasons of their own).
This isn’t a healthy sign.
If we were smart and had some balls, we’d slap a 100% surtax on gasoline tomorrow and put the money in an alternative energy trust fund. Electrify and heavily automate all major freight rail lines. Get those long distance trucks off the road. Invest in medium-speed passenger rail. Invest in alternatives and nuclear energy to beef up the power grid. No more coal and natural gas power plants should be built. Encourage adoption of electric and H2 cars to create an economy of scale there. Rebuilt infrastructure.
We’ve been through a few energy crises, and we’ve always kicked the can down the road when prices fell. Now’s the time to do something vs going back to buying mastodon SUVs and commuting 60 miles each way.
Cheap oil should be viewed as an opportunity to prepare for the next rise in prices and prepare to end the use of oil for energy permanently, not a permanent thing.[/quote]
All that, and speculation — for both the rise and fall (viva capitalism!).
Participant[quote=spdrun]Also, a lot of the bulk sales were bundled junk. Things like houses in partially completed developments in lizardia, or bundles of a few hundred houses in unknown condition, questionable titles, etc.[/quote]
Yes, bundled junk…being sold for 10-20 cents on the dollar. Extremely profitable, and totally unavailable to those who were not well-connected.
ParticipantThe worst part is that the Atlanta politicians who’ve lured MB with at least $50 million in incentives will claim that they are “creating jobs.”
And we continue to spiral down…
ParticipantPeople need to understand what’s being done behind closed doors.
Please watch…
ParticipantYes, many REOs have been made available to Jane and Joe Sixpack, but most of the best deals were reserved for institutional investors with connections. This was a regular complaint heard from other investors — many with deep pockets — during the RE collapse.
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