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PerryChase
ParticipantHere’s an update to the original story. The whole affair had something to do with Real Estate, the extent of which has not yet been revealed.
http://www.ocregister.com/ocregister/homepage/abox/article_1679277.php
May 23, 2007 at 9:26 AM in reply to: DR Horton Slashes prices $100k in Murrieta, Menifee, Wildomar and more in … #54475Participant23109VC, I see nothing wrong with not having blinds/drapes. If I had a choice, I’d have a view house with no wall covering — perhaps some privacy screens for night time privacy.
May 23, 2007 at 9:26 AM in reply to: DR Horton Slashes prices $100k in Murrieta, Menifee, Wildomar and more in … #54488Participant23109VC, I see nothing wrong with not having blinds/drapes. If I had a choice, I’d have a view house with no wall covering — perhaps some privacy screens for night time privacy.
ParticipantI think this article illustrates several points.
1) The couple featured in the story were not the only investors doing this. There are plenty of solidly middle class folks in that boat. Expect to see must-sell properties from those investors hitting the market next year.
2) They have not even taken a loss on the investment properties yet. However, the holding costs are killing them. How long can investors ride out a bad market. Even this couple believe that things will get better and would be looking to invest more in real estate if it weren’t for these bad deals.
Most investors will not last in a protracted downturn. Their staying power will vanish and must-sell properties will hit the market.
3) Do you think that their daughter who is also a real estate agent is also in the same boat? After all, it’s the daughter who found those investment properties and they all thought they could make an easy $100k. What about other friends and relatives of this family? They are most likely real estate investors as well.
Yeah, this couple still have the equity in the vacation house to bail them out. But what about the investors who thought that the could be buying vacation homes from the profits of real estate?
4) These people are real estate agents so they can be considered “professionals.” Do you think that other agents throughout the country have invested in real estate as well? You betcha.
5) This couple have real money tied up in the investment houses so they’ll do their best to recoup it. But what about the investors who are 90% – 100% financed? They are likely to walk away from their real estate.
The subprime buyers are causing the foreclosures now but the investors will cause even more foreclosures later.
6) Greed causes otherwise reasonable folks to throw caution out the window. Unfortunately, when things go south, they don’t come back to reality but keep thinking positive for a come back later. I’m waiting ’til 2008/2009 to see where those type investors stand on their properties.
ParticipantI think this article illustrates several points.
1) The couple featured in the story were not the only investors doing this. There are plenty of solidly middle class folks in that boat. Expect to see must-sell properties from those investors hitting the market next year.
2) They have not even taken a loss on the investment properties yet. However, the holding costs are killing them. How long can investors ride out a bad market. Even this couple believe that things will get better and would be looking to invest more in real estate if it weren’t for these bad deals.
Most investors will not last in a protracted downturn. Their staying power will vanish and must-sell properties will hit the market.
3) Do you think that their daughter who is also a real estate agent is also in the same boat? After all, it’s the daughter who found those investment properties and they all thought they could make an easy $100k. What about other friends and relatives of this family? They are most likely real estate investors as well.
Yeah, this couple still have the equity in the vacation house to bail them out. But what about the investors who thought that the could be buying vacation homes from the profits of real estate?
4) These people are real estate agents so they can be considered “professionals.” Do you think that other agents throughout the country have invested in real estate as well? You betcha.
5) This couple have real money tied up in the investment houses so they’ll do their best to recoup it. But what about the investors who are 90% – 100% financed? They are likely to walk away from their real estate.
The subprime buyers are causing the foreclosures now but the investors will cause even more foreclosures later.
6) Greed causes otherwise reasonable folks to throw caution out the window. Unfortunately, when things go south, they don’t come back to reality but keep thinking positive for a come back later. I’m waiting ’til 2008/2009 to see where those type investors stand on their properties.
ParticipantMe too. I’d to hear about other markets, national or international. Are people incurring major losses in London?
A friend of mine “invested” in a Houston condo, on the advise of some co-workers. He said that he’s about $30/month cash flow positive after everything. Is it even worth the effort in terms of opportunity cost of down-payment, headache and aggravation, potential loss, travel expenses, etc…?
ParticipantMe too. I’d to hear about other markets, national or international. Are people incurring major losses in London?
A friend of mine “invested” in a Houston condo, on the advise of some co-workers. He said that he’s about $30/month cash flow positive after everything. Is it even worth the effort in terms of opportunity cost of down-payment, headache and aggravation, potential loss, travel expenses, etc…?
May 21, 2007 at 12:06 AM in reply to: 4S ranch Silhouette starts to sell model homes! will it stop selling future houses?? #54024ParticipantSome people I know bought a model home. To this day, they still have the glued down stuff — very tacky.
May 21, 2007 at 12:06 AM in reply to: 4S ranch Silhouette starts to sell model homes! will it stop selling future houses?? #54035ParticipantSome people I know bought a model home. To this day, they still have the glued down stuff — very tacky.
ParticipantThose investors clearly let greed get the best of them. Hard to believe that an insurance agent got conned. Insurance guys are supposed to know the risks vs. rewards trade offs.
ParticipantThose investors clearly let greed get the best of them. Hard to believe that an insurance agent got conned. Insurance guys are supposed to know the risks vs. rewards trade offs.
ParticipantThat’s another agent taking it in the shorts. Weren’t they supposed to be the expert on the market?
That house is a nice, good sized, one story house. It would easily sell in San Diego.
ParticipantThat’s another agent taking it in the shorts. Weren’t they supposed to be the expert on the market?
That house is a nice, good sized, one story house. It would easily sell in San Diego.
ParticipantI agree with JWM. We ain’t seen nothin’ yet!
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