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NotCranky
ParticipantHello Bugs,
I have appreciated you commentaries. I wonder how you feel about my idea of retiring in SoCal debt free, including primary residence, with a couple of middle class neighborhood rentals also free and clear, plus some small change from Social Security and a rainy day fund. I know on a dollars wise sense it works of course. I could raise my family frugally on that, using current numbers, but what about setting it as a 15-20 year plan. Do you see any potential pitfalls? I have a good jump on it by the way. Getting there is probably not the issue.
ThanksParticipant4plex owner
Downside to getting my license…I am a little embarassed at times to say I am a Realtor.I don’t even have a business card. I usually say I have a Real Estate License!There are some great people that practice Real Estate in more standard ways,so I mean no offense to any individuals. There have been years when I didn’t sell or buy anything yet I paid the dues & MLS.This has been covered many times over by better years though and especially by terrific deals I have gotten. I don’t pay commission when I sell that is a huge advantage.
As far as the sellers attitudes …well money talks bs walks. I use a one page letter of intent to make non-binding offers under specific terms. I send them out on as many as 10 different properties at a time, If you get a bite then you work with it. Any day of the year I can get 10%-%20 under market for my goals. The key is to stick to your parameters and keep emotions in perspective..Very often the best deal out there is at or near full price. Some people just list low. If the opportunity is there you jump on it because you have your finger on the pulse of the market all the time. I always want what the seller is selling plus opportunity that I see that other people are overlooking or don’t care about.Then I sacrifice and work like hell.Look I am small time but this stuff works and my main goal is to stay away from a real job. When I write an offer for myself I leave the commission in the deal and take it out as the negotiations are closer to final. It drops my taxable income and lowers the property tax base, barely.I am not going to mislead you I am small time but it works and as someone who started from scratch everything helps. Anyway I am a natural borne do it yourselfer. Hopefully I am getting my stride going into a better market for my style and skills.Also I pick up the occaisional buyer who for what ever reason connects with me. Because of the strength of the connection I have nearly a 100% client to sale ratio. I give rebates ,roughly on a sliding scale with purchase price. In turn they don’t expect me to do things I would rater not do like pre-screen million houses. I have basically refused to sell anything to anybody since spring 2004. I have three clients (buyer’s right now) and I am telling them time is on their side.I tell them to check into this site. One is looking for a business deal,rehab and rental and he will probably be first to go because he can get ahead of the curve whereas someone looking for a “dream home” is just stuck basically if they are also fiscally conservative.
Forgive me for writing more than you asked for. I just felt like being helpful to anyone reading who might be inclined to do as I have done, or something like it. Also if you already own a 4plex you will probably want to go for it and get your license. Maybe you could take property management along with licensing courses if you haven’t already?
Best wishes.ParticipantCashman,Thanks for responding…I overlooked the fact that you were not talking about San Diego. Nothing down here fits your description and time frame. Glad your doing O.K. though. Must be pretty good having your interest earnings cover twice your rent and then some.
Best wishes.Participantsdrealtor,
If your data were typical for the last four months the zip code we are discusing would have sold out…
I had it all explained but my computer logged off.
You can think about it if you want or ask me to explain and tell me if I am wrong. A tip… there are approximately 30 four day increments in the year so far. Your four days are miraculous. It looks to me like intentionally or unintentionally you have done a bit of cheerleading. I give you credit for articulating reality in the market most of the time though. I have been reading here for more than a year, probably closer to a year and a half.
The zip code shows a lot of bad signs…nothing like free houses for everyone tomorrow but it would put fear into my heart just like all the rest of them. Listings to pending is strong compared to last spring as you say. I would like to compare it to better times than that.This Part….. Lastly, these are very key days we are going through right now. If you are of the mind to move when school ends you put your house on the market in Mid May to early June so you wont have to move b4 school gets out even if it sells quickly. Right or wrong, Alot of people think this way…
Tells me you understand buyer motivation that’s all. I hope they have reserves if they are going to CV.Best wishes,
ParticipantPerry,
I passed the three hour test in 30 minutes after working on practice tests in a very minimal way. I had no previous experience with business or financial subjects.
You have at least the equivalent mental faculties as me.
In short…anybody can get the license except convicted Felons. Being successful in RE sales through the ups and downs is more about having a winning personality.Apparently fake boobs and shallow integrity doesn’t hurt either.
Your’s truly is a bit more on the genuine but difficult side,
no boobs at all.
Still,all and all, getting the license has been a good thing.ParticipantJust ran a quick report on CV ZIP (92130) for the last 4 days.
1 New Listing
2 Fell out of escrow
8 Went into escrow
3 closed escrowDoes that look like a weak market to anyone?
It looks pretty hott to moi!
What?
Four days and four bits of data? In GOD we trust all others bring OBJECTIVE data. Four awesomely beautiful days in spring in SOCAL? The Information is there to do a better job than that. Is inventory for sale or pending growing faster?(The ratios look pretty good now but not exceptiional (149/63). Median and Average sales price getting stronger or weaker? DOM decreased a bit in the last few months which way do you think that number will be going from here out?Sorry to pick a fight with you but people do give you a lot of credit here. They tolerate RE types and that’s pretty amazing for a site of this nature.
ParticipantI am an agent not a broker. If you really want to drive a hard bargain get your own license. Not that some agents won’t do it. But you can really work your parameters better for yourself if you have the time. It will be interesting to see if full time agents or brokers would knowingly split working with another agent. I would not. They might take the gamble in this slow market. Time is on your side as far as buying goes so you do have time to get a license if you have the inclination. It would cost you about $1500 including licensing and first year of dues. It cost me about $1000 a year to keep active. It would be about as difficult as taking a couple of Junior College elective classes. It was kind of fun. That is basically the way I got started. I found an independent broker who only takes 10% off of my commissions on properties for myself 20% for my clients. I have been to his office about 5 times in 8 years. We just use the phone, fax and computer to work together.
Good luckParticipantcashman..this is true?
“The home I sold continued to rise in value, and is currently worth about 600K more than when I sold.”
Was that a 2% increase, 50% increase or what?
If you had a house that went up 600k in a year and a half the starting point must have been so high that it is hard to imagine that 50k on rent matters. You must have also saved a few g’s on proprty tax eh? Were you free and clear or was your intererst portion of your mortgage close or exceeding what you paid in rent.
I seem to remember you sold for under a million. maybe you just sold too cheaply? Has the market increased wherever you lived by 60%-70% in 18 months?In any case I have looked for a guarantee for that “crystal ball” everyone keeps talking about and I can’t find it. Nor can I find that Rich had offered a guarantee to anyone. But he seems honest. What else could you ask. Sour grapes is sour grapes.I am not directing that at you just to the discussion on this thread in general. I think it’s better just to have real balls. Besides that it is only money people are worried about(including myself,too much)… Reminder.. we do still live in southern California…don’t you guys all surf and stuff like that…Cheer up everybody…These are the best of times.
Participant“I think we should have a thread on real estate scams perpetrated by participants.”
I am not about to tell you about the scams I have perpetrated Perry.
Kidding aside, what wasn’t a scam? Everday,everywhere mortgage brokers promising people that financing their way out of the ticking time bomb they were about to sign up for was a sure thing. I know people were really stupid about buying houses they couldn’t afford but the mortgage brokers did promise them away out. So they got on the gravy train that they had seen some of the earlier buyers get on. Train derailed. I guess they should have asked the mortgage guy to put it in writing.ParticipantFormer San Diegan wasn’t this one you?
03/29/2002: $300,000 Owner #3
as buyer
And Here?
10/25/2004: $725,000 Owner/flipper #1
as sellerParticipant“I want causalties, the more the better.”
It would be quicker if you took a baseball bat to them .I am only suggesting a little humor not real violence. I do wonder though …How many people have gotten ulcers over this effen bubble? Priced out and priced in alike.
Got Malox?ParticipantMan wouldn’t the neighbors hate me.
One good example for my plan is in Jamul and one good example is on MT. Helix. The Jamulians would probably be pretty vicious for a while….on MT.Helix I might get the nice response you speak of..lemonade and cookies everyday…depending on the makeup of the street.
Anyway I feel a little guilty now… I know this is not Angel’s Topic. He or she sure got some people riled up.ParticipantPerry,
I understand your point of view..For me,this is where you gave me a pefect example of where the current opportunities lie.”A buddy of mine is a builder in Florida. He’s telling me that it’s a massacre.” Developers are starting to walk away from projects.
I am looking at permitted projects that will sell CHEAP. I am small time so I won’t be buying any developements.
An idea I have that I might follow is to find a nice lot in a great neighborhood with big nice houses where someone has done all the grading, some infrastructure gotten permits and plans and now is walking. The project and land is cheap compared to putting it together from scratch.All the time wasted doing it was somebody elses.
I throw the plans for the 4500 sq. ft house and 4 car garage in the trash an build the smallest house in the best neighborhood. Man wouldn’t the neighbors hate me. It is a version of buying the worst house in the best neighborhood only the house is brand new.ParticipantPerry Chase If you are still checking this thread…excuse me for being nosey..But.
I have been reading this blog for more than a year.You make lots of comments like this…..Referring to timelines…
I have a long horizon (7 to 10 years from today before I buy anything) and I’m having fun watching the market…
You also talk about being willing to buy fixer’s. Do you intend to actually break a sweat or have someone else do the work? In any case I have seen guy’s who can spot opportunity and make sacrifices, myself to a degree included, get ahead of the curve a bit. I know its still practically out of the question now …but I have learned not to make a rigid plans with Real Estate. My worst mistake,for example, was to say “I won’t ever buy anything that would not rent positive.” you know where that got me. Don’t shoot yourself in the foot is what I am saying. You seem like a real smart guy. It helps me that I am a General Contractor, Draftsman, with a Real estate license,not paying third parties(or letting them waste my time)is a huge part of it for me.However, believe me I just picked those things up along the way as tools. I have a friend who has none of those things, a very balanced portfolio, (unlike yours truly) and he is almost always doing something right with real estate in small ways.With exception of his long term rentals and his family home he is on the sidelines now but he keeps the ideas flowing.
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