Forum Replies Created
-
AuthorPosts
-
La Jolla Renter
Participant1. Rent
2. Have yet to buy primary residence although own some nice investment property that cashflows and I am not planning to sell.
3. N/A
4. My bubble conclusion was based off of fundamentals and always being a contrarian to the average Joe(s). When I purchased a car in 2003 with cash and the salesman said I should take the 2.9% financing and invest in a couple of new construction flippers, I sensed the nasdaq in 2000 all over again. When a friend, 47, with no retirement savings, sold his home in 2003 to buy 4 more to paint carpet and flip, I sensed a bubble. (He is now under water and has lost the 200k in equity he would have had by staying put.) I could go on and on but you get the point.
5. N/A
6. N/A
7. I plan to buy a $2M (peak bubble price) home in La Jolla for about 1.3M in about a year. I am the epitome of the “Millionaire Next Door Type” who just happens to rent. If the La Jolla bubble never pops, I may rent until I can pay mostly cash for a house. I actually like renting, it’s nice to only go to home depot about once a year. I do have to put up with a lot of sh!t from my buddies who enjoy mocking the renter.August 22, 2006 at 7:36 AM in reply to: Looking for honest suggestions and strategies for selling a condo in this tough market #32624ParticipantDo you have some equity? Are you upside down?
I assume there are a lot of condos up for sale in your building. I also assume that many have been on the market for some time. The bottom line… You have to have the best deal and a better agent then the rest of the listings in your building and surrounding buildings. If a 100% identical condo just sold in your building in the last 30 days, you probably need to be 5% to 10% below that number if you want an offer immediately.
ParticipantI heard a rumor that Jim McElroy and Philip Paulson have st joseph statues buried in the front yards of their homes from previous owners.
ParticipantSomething must be wrong with dataquick numbers;)
If La Jolla real-estate is “no brainer” and can never go down, then how can SFR be down YOY for July?
La Jolla 92037 22 $1,515,000 -33.4%
This will shock some of my neighbors.
ParticipantThis is becoming very common, the norm for 2005 purchases.
I have a sfr fixer/flipper friend that is crying on 4 properties right now. One was purchased in 2005, is rented out, and is 1,800 per month negative. He put 30% down on a 650k purchase price and put 30k into the property. He has it listed for a net loss of about 20k if it sells at the bottom of his asking range. If he sells it for what he paid for it, he will loose about 70k.
I can’t believe how many “investors” are/were willing to put 30% or more down on a 650k sfr property and be more than a couple hundred dollars negative each month. It does not pencil out.
Mr. Smith,
Welcome to the Bubble!
August 13, 2006 at 11:18 PM in reply to: Will Petrodollars and FCBs Stall the Real Estate Bust? #31862ParticipantSounds a bit like the late 80’s when foreign investors, specifically Japanese, were in a US buying frenzies.
I remember reading the “hot” book of the 80’s… bankruptcy 1995.
ParticipantGood point, this is going to be a BIG problem in the near future.
Renters should probably be more concerned with landlords putting the house/condo on the market for sale rather than getting foreclosed on.
I can speak from experience!!! Know your rights as a renter!!! The owner can sell their property at any time, but as a renter, you have rights to “peaceful enjoyment of the property”. The gray area during the sale… lock box? open house? caravans? etc. Most standard leases, including the one used by the California Realtors Association protect the rights of the landlord, not the renter.
If you are signing a lease, ask your landlord if they have intentions of selling during your lease. If they say no, put it in writing on your lease with addendums like: no lock box, no open house, no caravans and the key addendum… no showings without and accepted written offer. You can also specify a rent reduction if they put the house on the market. If they refuse these requests, then be leery.
August 8, 2006 at 6:57 AM in reply to: U-T: “Caught in the Middle” – making ends meet on $50K/year #31210ParticipantIt is sad to read several posters claim they choose to be single to afford san diego.
There are people coming to this country (even san diego) everyday with a couple of kids and a few hundred dollars in their pockets. They live with with another family and work their butts off until they can get their own apartment. They can’t afford cable or to take the kids to the mall and buy them ipods, $80 jeans, or $4 coffee drinks, so they sit at home after school around the kitchen table and study.
Their kids will get a college degree, get a good job, get married, stay married and buy a great house in foreclosure from some single guy that makes 150k a year but can’t seem to make ends meet.
ParticipantI have invested in 1st and 2nd trust deeds for years. The standard deal was 4 points and 12%. I wouldn’t even consider a deal unless it was 75% LTV in an appreciating market. The deal this guy is looking for, at 84% LTV… good luck.
Maybe there is a hard money guy that will take the four points and pawn the 12% off to some sucker that thinks he/she is getting a great return on their money… that is until the deal goes sour.
This is the sign of the times.
ParticipantMaybe this new Licensee should take out a few 100% financing loans and pick up a few condos during this natural pull back buying opportunity.
After all… they need to walk the talk.
Don’t worry about the negative cash flow… rents are going up and the appreciation will more than make up the difference.
🙂
ParticipantHow about this one:
6 months into my 1 year lease… Aug 05, I was informed by my landlord that he was wanted to put the property up for sale. He purchase oct 04 for 1.3 million. I offered 1.4 no agent. (my rent was 3,400)
He went with and agent and listed it for 1.75M… finally sold for 1.43M 8 months later.
I figure with repairs, improvements, a $2 to $3k month negative, opportunity loss on $600k down payment, taxes, prepayment penalty, realestate commission of 5%… he lost $10k to $30k on his “La Jolla purchase in Oct 04 Sell March 06” investment.
I thought you could not lose in La Jolla realestate.
No hard feelings Mr. Landlord… thanks for rejecting my offer!!!
ParticipantYou know when the bubble is popping when you stop hearing:
La Jolla is bubble proof…
La Jolla real-estate is a no brainer…
etc. etc. etc.
A year ago, I couldn’t get 10 minutes into my day without hearing the above at the local gym, car wash, or starbucks. I haven’t heard these phrases for months.
Not even a peep from my “johnny come lately jr. donald trump condo flipping” neighbors at “one of the most sought after communities in San Diego’s thriving real estate market.”
July 4, 2006 at 10:04 AM in reply to: New Study Pinpoints Top Places Where Real-Estate Prices May Fall #27737Participant -
AuthorPosts
