[no_such_reality]

The goal is to save money until an additional 20 percent down payment can be made to purchase another leveraged cash flowing property.

In my previous example, a $100,000 down payment would be required on a $500K home. The mortgage would be based on a $400,000 loan.

At 10% earned interest compounded monthly, the IO loan investing the difference in payments takes 172 months (just over 14 years) to make the down payment.

The principle payment obtains 40% equity in 158 months, 13.16 years.

As long as housing isn’t depreciating, fixed principle payment will compile the necessary down payment faster.

[no_such_reality]

It’s the five stages of death/grief/change

1. Denial – The initial stage.: “It can’t be happening.”
2. Anger .: “How dare you do this to me?!” (either referring to God, the bank, or in our case, ‘evil bloggers’)
3. Bargaining .: “Just let me sell the house at breakeven.”
4. Depression .: “God please don’t take the house away”
5. Acceptance

I believe we should be celebrating. We’re heading into Stage 2…

[no_such_reality]

It’s on all the bearish housing blogs. I think they’ve realized that psychology is the only thing that was holding the market together.

It’s going to get worse and much uglier. Get ready to be blame for their misfortunes.

[no_such_reality]

The advice in the book is quite sensible, IMO.

They always lose me at ‘cheap’ interest only loans.

Spot checking bankrate: the four ‘cheapest’ no points I/Os are 30 years at 5.936%-6.058%. Shorter time frame is worse.

30 year fixed is 5.529%-5.550%.

The I/O payment on $400K loan would be $1978.67 – $2019.33
The fixed payment is $2278 – $2283. However the interest portion maxes at $1833.

So in exchange for parking a $430+ of your money in your equity, you pay an extra $150 in interest and invest $300?

Somehow I don’t think 5%, 10% or even 15% interest is going to make up my extra interest expense.

[no_such_reality]

Any thoughts from the group on the best way to obtain this information?

Look at the property tax rolls to determine purchase price.

Then check the Grantor/Grantee index for the owners name on subsequent liens.

[no_such_reality]

Reminds me of another listing that remarked on the “grate views from the backyard.”

But that one was for a luxury condo downtown designed exclusively for the needs of the well established acrophobic.

[no_such_reality]

Fact: the average supporters knowledge of the subject is equivalent to a media bombardment reporting what things supposedly said in a 10 second TV synopsis of a 200 page scientific report.

[no_such_reality]

The only thing I really want to know is where the actual price of the properties “bought” under this scam actually end up.

50% or more below their fraud buy price seems reasonable given,

1. the last sale was fraudlent and potentially envolved 10-20% cash back or a known ability to future fraud it for 10-20% cash on a refi.
2. the only reason the home sold at all was it was involved in the scam.
3. some neighborhood ‘blocks’ have as many as five homes involved in the scam. Literally, one scam price inflates the next scam price.

If you look to Murrieta, the condos in Ladera Ranch, parts of San Marcos and potentially 4S ranch the story is the same, fraudulent sales setting the comp price for more fraudulent sales.

So if fair market value is approaching 50% or so, what’s the REO going to go for if they have to clear several hundred out in a few cities?

[no_such_reality]

(e.g., pay $20 for each $100,000 borrowed, if you “don’t care about paying off your property”, etc.)

I heard that one too the other day, it was also good for ten years.

I don’t seem to recall the need to have pretty good equity to do it too. Anybody catch the source so we can see if it’s a neg-AM loan and what the equity reset point is?

[no_such_reality]

projects that job levels will grow by 20.7 percent in the county from 2005 through 2015, compared with 17.3 percent in California and 13.4 percent in the nation.

Sounds good, but translate it to annual rates and:

SD – 1.899%
California – 1.58%
Nation – 1.27%

Easily disrupted as he points out later.

[no_such_reality]

I am out of work and San Diego is VERY expensive right now.

Doesn’t that answer the question for you?

Go and rent for a year, see if you like it. The SoCal IT job market is going to stay tough. There’s lots of hiring, but a boatload of IT workers scratching after every position.

[no_such_reality]

Woa there hombre. Let me see if I understand what you are saying….You are saying that you want me to believe a science FICTION writer over peer reviewed science

Crichton does an excellent job of footnoting his references, all of which are valid scientific resources.

Glaciers are melting, yes, how much detailed information do we have? little actually. California has several hundreds glaciers. How many do we have a decent ice flow data on? Virtually none.

[no_such_reality]

A home in San Diego that runs 800k only costs 150-200k in South Carolina!!!!

Have you been there? Does your family fit well with the community?

For the job, $30K is a lot, housing is different, but the rest isn’t.

Lastly, if you wanted to leave you $110K IT job in for another in SD, you can, how many choices do you have where the BMW plant is at?

[no_such_reality]

I remember appraising existing 1980s apartment properties in the north county areas back in the mid-1990s at $40,000/unit inclusive of the land and improvements.

IMHO, land value only exists for SFRS on lots that can be rebuilt to suit. When a developer burdens a land with Condo or Townhome complex, multiple owners and HOA, all the “land value” is absorbed into the structures.

Individual land value is essentially worthless because you can’t do anything unless buy all the properties and the property location premium is already reflected in the unit pricing.

A good example is the Florida trailer park, as an all or nothing deal, it was worth ~$1,000,000 per lot. However, without that deal, the lot and trailer on it probably weren’t worth a fraction.

Of course, I’m biased, I’ve lived in poorly managed condos and townhomes.

[no_such_reality]

Good homes sell in all markets little lady. If you’re priced right, it’ll sell.

Everybody is chattering about the strength and rebound of the market.

Well, bullpucky, Data Quick confirm my suspicions today.

Slowest January since 1998

Since 1996/1997 was bottom last cycle, I’d say that makes January mighty slow.

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