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NotCranky
ParticipantVishon,
Good for you. A friend of mine always says,” it’s not the little decisions that count, it is the big ones”. That is a big one.
ParticipantSurveyor’s style is the “thinking man’s way” and probably what appeals to most Piggington’s. I haven’t heard mention of any blood, sweat and tear techniques…Improving the rental capacity/productivity of properties(which in theory also compliments any appreciation). Being that the cost of doing these things is rediculous and our region is still overpriced , San Diego is not currently a good candidate for this. However in time it will be. It is a much a fundamental as the rent vs buy and wage to price relationships. In the past people have done well with this style even when paying for all or most of the labor. I won’t guarantee this is going to happen again, because SD might defy the fundametals that existed pre-boom(I learned to add that from Rich,LOL).Anyone intending to do this surveyors, way or the blue collar way, in the market they live in really would do themselves a huge favor by getting a RE license.
A third and easiest way to become and investor for first time buyers is to time the market and buy much less than you can afford with an eye for it being a good rental property in the future, live in it until the numbers crunch and buy another. Your’s truly did this and so have a few of my friends. I really recommend this to young people who are not huge income earners or who don’t want to work forever, yet want a good start on a balanced portfolio. If you know , or want to learn rehab/construction work that is an added plus.
ParticipantGot me laughing pretty good!
ParticipantI have that number in mind from some experiences 10 years back when I bought my second house and used the cash flow from the first on my loan application, and conversation with lenders and investors since. I was told it included vacancies, maintenance,advertisement ect. Perhaps it was because I was a rookie. I have been throwing that number out here on Pigginton’s and nobody has corrected it. Maybe things are different now? I would like to know.
Participant“The ship is just too darn big to move that fast.”
Yeah that is because you are thinking ocean liner or aircraft carrier or something like that.I am thinking space ship. Didn’t it seem like it had rockets on it in 2003-2005? It has just entered the atmosphere parachutes aren’t working. Set the implodometer.Participantsdr the bellwether is in the pendings.Pretty broadly too.Now we need a “nerd” to seperate the seasonal adjustment component from the liquidity fallout factor. My view is that pendings have crashed well beyond the seasonal influence.I know it has been in the news , something like as many as 30% of escrows failed in the last month depending on the area.Clearly the rate of properties going to escrow has declined as well. You know I watch San Carlos, detached closely and the active pending was hovering around 60/30. All of the sudden it is in the area of 60/10. I also watch 92116 closely and although it wasn’t as strong as some neighbohoods it is really looking bad now. What do you think? I am thinking Chunks. The pendings in Jamul BTW, which have been really been low, actually went up 4 or 5. 100/10! This place is on fire!
ParticipantI was hoping surveyor woudld appear. I usually put in gross amounts of sweat equity so would not be crunching the numbers from a turnkey start.
Like him I am condo-phobic. However,my two cents…This property could be approximating a good start for an owner occupied situation.(I didn’t study it much). This is for beginning investor, not rich guys. The idea is get a good entry price and take the lower rate and put less down and save the rest for better opportunities if they come up, maybe a detached house, keeping in mind most lenders factor rental income at .75(rent).
Lots of single and young couples do this just to get their own places and work on future housing from there. Condos normally have a bad reputation for appreciation.The really easy money and apparently the stigma of being a non- owner drove prices up ,not value because generally speaking(outside of manhattan) the value is in the dirt which condos have little of. Back to the point, eventually they cash flow better and better and the principal as you know, gets paid down. You keep it or sell based on market factors and your personal criteria.
If you are looking to add to or start a portfolio of rental properties I agree this is not a good start.
So what is a good start? Properties out of this market and markets like it, for the most part. Maybe out of state. I am sure you can wait for a bettter opportunity in SD and keep learning and eventually do O.K. here.
Best wishes
Participant“BTW, the map makes it look real close to the 56, but it is not at all”
The map makes it look real close to Rancho Santa Fe too. My how Rancho Santa Fe has grown!
October 3, 2007 at 10:39 PM in reply to: Housing prices in free fall along Mount Soledad Road in La Jolla #86912ParticipantGood points BSR. I was thinking about that myself.
FLU
“Actually, I don’t think anyone that posts here regularly can’t really tell anyone else to get a life with a straight face…”I am glad to know you didn’t have a strait face on your mug when you came on here a few weekends ago(labor day) and told anyone posting to get a life. At least you could have invited me and tg to the damn BBQ! I almost hung myself because of what you said ;).
ParticipantIt is the honorable and healthy thing to do if the situation is otherwise impossible. Then just squat.
ParticipantMy wife has this strong desire to have me be a “kept man”. I don’t like the sound of that so we call me the “recipient of just rewards”. Actually we are not getting very far with it,even though I don’t demand what I am really worth. It is the thought that counts.
FLU you are getting too nice…could you please go back to slamming everyone’s fat, stupid kids and exchanging other such pleasantries.
Drunkle, thank goodness you have not left . When you go or SDR pays me to leave, whichever comes first, I am out of here.
October 3, 2007 at 5:21 PM in reply to: Housing prices in free fall along Mount Soledad Road in La Jolla #86873ParticipantBTW, there are a lot of La Jollans who consider Mt. Soledad to be a different neighborhood than La Jolla.
I would too, unofficially . The oceanside of Mt. Soledad is La Jolla.How could it not be? Now what is the other side? I ran that hill many times from Mission Bay Park and never felt like I was in La Jolla. I guess I thought of it as part of Pacific Beach Heights.
ParticipantIf a borrower is truly qualified than the education or lack there of is less of an issue. If the borrower “should” be educated,the point of establishing whether he or she is or is not RE Finance literate, is going to be the person qualifying them. That person and the underwriter should also decide if the customer is a idiot flipper or what have you. These parties do this to protect the lender and so that most loans survived to “season”. It was pretty bad for a loan to fail. Fixed teaser rates probably removed the fear of a loan not seasoning. Borrowers were no more educated when things worked. Originators acted more responsibly because they had to.
That said I don’t blame the originators too much. I do like to blame them because if they practiced the golden rule I don’t think they would have written so much garbage and told so many lies in the process. I know a few who quit or just did loans to good candidates. Most people, including most of us wouldn’t do that and if we did someone else would be put in to push the paper.
In my opinion the source to blame is the Pols/FED/Banks and Wall Street, NAR, BUILDERS…any institution big enough for their complicity to be substantive in maintaining the ridiculous bubble forming pattern. Clearly the public is in a child like state as compared to these parties. To me the parents are selfish,abusive and evasive, but what can we do about it? Nothing so we might as well linger in some nebulous blame game which includes the most ridiculous candidates. That’s our place. Now go “get and spend”.
Yes the FB’s & GF’s are uneducated, , maybe greedy regarding RE, but they did not cause this. As far as I am concerned, all they did is enroll in the school of hard knocks. It is going to be easier to blame them as the get breaks from the “Parents” but that is pedantic too. Obviously, all those parties are trying to help themselves and the borrowers are sometimes lucky beneficiaries.
October 3, 2007 at 3:32 PM in reply to: Better to Close On A Home Sale At The End of The Month? #86863ParticipantSo, the way I understand it, you are already in escrow. Close before they get someone to break your fingers. Other than that, you are at no disadvantage either way. Obviously there is some benefit to the builder, or the lender is pushing the builder to push you, if it is a preferred lender situation.
These are wild guesses except for the part about your fingers.
Best wishes -
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