[pluto]

On the business loan you are are offering a guarantee in the event the loan defaults, then the lender will go after you. Its similar to VA insured loans. The VA is never on the loan the VA told the lender that the VA could be sued for the loan if the borrower defaults.

As for double dipping it’s not really. If you take a business loan and put any of the money in your pocket without a dividend or disbursement you’re stealing from the company. Also, if you default on your business loan your personal property will be up for grabs, i.e. force a sale for your equity. If you default on your personal loan the business assets are safe as long as no one can pass the corporate veil.

The “get rich scheme” here is to use leverage to control an appreciating asset. That only works when the asset appreciates. More like using your credit to speculate.

[pluto]

Seems like they want it to work as a timeshare. If you ask me, who ever owns that place probably needs cash soon.

[pluto]

Great to know your ok Rich!

If, the people cant pay now and want/need forbearance what means they can pay when forbearance ends? There will be pressure to sell the home. I think it’s likely that will increase inventory, and favor buyers after the forbearance “dust” settles. Then motivated home owners will start flinging comp bombs.

I think the financial pause is just that a pause. Home prices are where they at because there are fewer homes for sale, and some people have to move. Home prices can only be supported by the buyer pool.

San Diego’s buyer pool is affluent and usually financially educated. When they tour a home and see a model match for 30k less, they first ask what’s wrong with the other home? When the answer is nothing, it becomes a will of motivation then a line on where a short sale will be.

[pluto]

[quote=svelte]taking a quick look, the mortgage delinquency rate nationwide is not as bad as I expected to see:

http://www.mortgagenewsdaily.com/12212020_black_knight_first_look.asp

[/quote]

The statistic isn’t as high because it excludes those in forbearance, i.e. people also not paying their mortgage.

Also, on a side note is Rich ok? Haven’t seen anything posted in the forum for a while.

[pluto]

In all seriousness, you should understand what your defense needs are. That is what is the furthest distance you have to defend? What are the points of entry., etc. If youre in an apartment a simple handgun maybe all you need. If you have a large backyard you may need a rifle. But it doesnt make sense to to have a tool that you dont know how to use. You may use it improperly under stress of the moment. It’s not as simple as having a gun, you still have to get to it and be accurate. If you are not familiar with guns, pepper spray or a knife; My best advice is to focus on preventing the opportunity to enter than what you would do once they come in. Put effort into delaying them entering because you cant prevent a determined intruder. Time is not on the intruders time.

[pluto]

It’s not, it’s being called housing bubble 2.0. Housing never fully corrected. It’s the debt bubble that re-inflated the housing bubble along with other assets that people use leverage for.

[pluto]

Its interesting to know what will happen. If we do print away, I dont know how we can avoid hyper inflation.

I do think that San Diego will be in a short term pinch. I see a lot of people moving out of SD. Tourism is the second largest industry locally. I dont see that rebounding fast enough to support rentals. I do see about half of the 12k Airbnb coming online for long term. Either way rents and the mortgage rates will pressure home prices to come inline with one another.

Rent wont be paid by most of the people. I think the May 31st will give people just enough time to move.

[pluto]

West coast beginning to crack. Combine that with Redfin and zillow saying demand has softened.

https://www.seattletimes.com/business/real-estate/seattle-home-prices-drop-by-70000-in-three-months-as-market-cooldown-continues/

[pluto]

It is not a restriction on property rights you can still do STVRs. It is not a tax increase it’s a use tax. Don’t want to pay it give a 6 month lease, go month to month. It will have an impact on tourism just not a significant impact. People did not say the would not attend comic con because the hotel prices were 15 dollars cheaper. How can it hurt the real estate market and construction market? The real estate market is in high demand and continues. If the homes do hit all at once, it really is built up inventory and the market is correcting. Construction is booming. Just not in SFH.

Again what incentive does council have to vote it down because one extremely minority segment of the city has to change the length of its contract? I just don’t see what arguments other than people wont have Airbnb in the city or side money for an investor.

[pluto]

I would not tempt him that much to raise rents. Considering that he is charging 2K and could get 2.5K. At 2.5 the renter could afford an average home here and no longer become a renter. At those prices its difficult to raise quickly because the renter that could afford the rent can also afford to buy or rent somewhere else. Its best to check and compare amenities and services first with other places and raise accordingly for those. On the other hand finding good tenants may be worth giving a slight discount. Its good advice to have in the lease that the should expect rent to rise annually but is limited by something and to give a good lead time on when the rent will be raised 3-6 months seems good enough for most.

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