[davelj]

Well, the “better” markets are the last to fall. And they generally don’t fall as hard. So, we’ll see.

On a slightly different topic, I believe you mentioned in a different thread that you were seeing foreclosures that would cash flow. I haven’t seen this, although I am now seeing properties – mainly in south San Diego – in which the rent would cover the mortgage (and HOAs) with conventional financing (20% down). In fact, there are more than a few of these now. But this is relatively recent, as in within the last two months.

But I still haven’t seen anything anywhere that would cash flow after taking into account maintenance, vacancies, etc. But at least rents that cover the mortgage is a step in the right direction.

Have you seen specific properties where the rent would cover the mortgage AND all operating expenses (including vacancies), which generally eat up 25%-35% of rents?

[davelj]

Well, the “better” markets are the last to fall. And they generally don’t fall as hard. So, we’ll see.

On a slightly different topic, I believe you mentioned in a different thread that you were seeing foreclosures that would cash flow. I haven’t seen this, although I am now seeing properties – mainly in south San Diego – in which the rent would cover the mortgage (and HOAs) with conventional financing (20% down). In fact, there are more than a few of these now. But this is relatively recent, as in within the last two months.

But I still haven’t seen anything anywhere that would cash flow after taking into account maintenance, vacancies, etc. But at least rents that cover the mortgage is a step in the right direction.

Have you seen specific properties where the rent would cover the mortgage AND all operating expenses (including vacancies), which generally eat up 25%-35% of rents?

[davelj]

Well, the “better” markets are the last to fall. And they generally don’t fall as hard. So, we’ll see.

On a slightly different topic, I believe you mentioned in a different thread that you were seeing foreclosures that would cash flow. I haven’t seen this, although I am now seeing properties – mainly in south San Diego – in which the rent would cover the mortgage (and HOAs) with conventional financing (20% down). In fact, there are more than a few of these now. But this is relatively recent, as in within the last two months.

But I still haven’t seen anything anywhere that would cash flow after taking into account maintenance, vacancies, etc. But at least rents that cover the mortgage is a step in the right direction.

Have you seen specific properties where the rent would cover the mortgage AND all operating expenses (including vacancies), which generally eat up 25%-35% of rents?

[davelj]

Well, the “better” markets are the last to fall. And they generally don’t fall as hard. So, we’ll see.

On a slightly different topic, I believe you mentioned in a different thread that you were seeing foreclosures that would cash flow. I haven’t seen this, although I am now seeing properties – mainly in south San Diego – in which the rent would cover the mortgage (and HOAs) with conventional financing (20% down). In fact, there are more than a few of these now. But this is relatively recent, as in within the last two months.

But I still haven’t seen anything anywhere that would cash flow after taking into account maintenance, vacancies, etc. But at least rents that cover the mortgage is a step in the right direction.

Have you seen specific properties where the rent would cover the mortgage AND all operating expenses (including vacancies), which generally eat up 25%-35% of rents?

[davelj]

For a mainstream news organization that was a pretty good piece. And it’s nice that they actually bothered to talk to an erudite credit expert – Jim Grant. To me, that was the most interesting part of the story. It said, “We’re actually serious about covering this issue.” Doesn’t happen too often, unfortunately.

[davelj]

For a mainstream news organization that was a pretty good piece. And it’s nice that they actually bothered to talk to an erudite credit expert – Jim Grant. To me, that was the most interesting part of the story. It said, “We’re actually serious about covering this issue.” Doesn’t happen too often, unfortunately.

[davelj]

For a mainstream news organization that was a pretty good piece. And it’s nice that they actually bothered to talk to an erudite credit expert – Jim Grant. To me, that was the most interesting part of the story. It said, “We’re actually serious about covering this issue.” Doesn’t happen too often, unfortunately.

[davelj]

For a mainstream news organization that was a pretty good piece. And it’s nice that they actually bothered to talk to an erudite credit expert – Jim Grant. To me, that was the most interesting part of the story. It said, “We’re actually serious about covering this issue.” Doesn’t happen too often, unfortunately.

[davelj]

For a mainstream news organization that was a pretty good piece. And it’s nice that they actually bothered to talk to an erudite credit expert – Jim Grant. To me, that was the most interesting part of the story. It said, “We’re actually serious about covering this issue.” Doesn’t happen too often, unfortunately.

[davelj]

Two issues:

(1) TANSTAAFL: There ain’t no such thing as a free lunch. Raising the conforming limit will have unintended consequences in the securitization market that will render the maneuver largely, albeit perhaps not completely, impotent.

(2) This is NOT about helping people, folks. This is about the APPEARANCE of TRYING to help people. Big difference. It’s all politics.

[davelj]

Two issues:

(1) TANSTAAFL: There ain’t no such thing as a free lunch. Raising the conforming limit will have unintended consequences in the securitization market that will render the maneuver largely, albeit perhaps not completely, impotent.

(2) This is NOT about helping people, folks. This is about the APPEARANCE of TRYING to help people. Big difference. It’s all politics.

[davelj]

Two issues:

(1) TANSTAAFL: There ain’t no such thing as a free lunch. Raising the conforming limit will have unintended consequences in the securitization market that will render the maneuver largely, albeit perhaps not completely, impotent.

(2) This is NOT about helping people, folks. This is about the APPEARANCE of TRYING to help people. Big difference. It’s all politics.

[davelj]

Two issues:

(1) TANSTAAFL: There ain’t no such thing as a free lunch. Raising the conforming limit will have unintended consequences in the securitization market that will render the maneuver largely, albeit perhaps not completely, impotent.

(2) This is NOT about helping people, folks. This is about the APPEARANCE of TRYING to help people. Big difference. It’s all politics.

[davelj]

Two issues:

(1) TANSTAAFL: There ain’t no such thing as a free lunch. Raising the conforming limit will have unintended consequences in the securitization market that will render the maneuver largely, albeit perhaps not completely, impotent.

(2) This is NOT about helping people, folks. This is about the APPEARANCE of TRYING to help people. Big difference. It’s all politics.

[davelj]

It’s not just the DIRECTION of change that matters, it’s the relative RATE of change. The dollar has been crushed over the last two years. For example, it’s declined by about 20% versus the Euro since the beginning of 2006. Therefore, about 10 percentage points per year of “sales increases” in Europe reported by US multinationals were due to the exchange rate differential as opposed to actual volume increases over the last two years. So, yes, real demand increases will HELP to offset any negative currency issues, but they won’t offset the currency issues altogether. Without the help of a depreciating dollar, by definition results will increase at a decreasing rate (that is, positive first derivative, negative second derivative). And if there is a global recession then even volume increases could come into question.

[Author]

Posts