[Raybyrnes]

patientlywaiting

“I think that a 50% nominal drop is very likely.”

I think you need a refresher on statistics. If you think a 50% drop is likely, what then would be unlikely drop, 75% or 80%. A 50% drop is statisticly an unlikely event. Not an impossible event but highly unlikely. It would fall as an oulyer in any sort of standard deviation curve.

Mount Soledad is collapsing and it is not seeing this type of drop so I think your numbers are off.

[Raybyrnes]

Surveyor

I understand your formula but you have not included any expenses for managing the property, upkeep, insurance, etc. These costs far exceed the 10th of 1% management fee that one could pay for an ETF. Additionlly if one wants to participate in Leverage you could buy options or buy on margin. The bottom line is that if you are looking to optimize real estate you better be willing to get your hands dirty.

Property mangement companies don’t exist because they save owners money. They exist because owners get tired of doing everything themselves.

[Raybyrnes]

Surveyor

I understand your formula but you have not included any expenses for managing the property, upkeep, insurance, etc. These costs far exceed the 10th of 1% management fee that one could pay for an ETF. Additionlly if one wants to participate in Leverage you could buy options or buy on margin. The bottom line is that if you are looking to optimize real estate you better be willing to get your hands dirty.

Property mangement companies don’t exist because they save owners money. They exist because owners get tired of doing everything themselves.

[Raybyrnes]

$S Ranch

16406 Calloway Dr San Diego CA 92127
09/28/2005 750000
Listed 635000
Loss 115000

Better Property than others listed

[Raybyrnes]

When people start finding free money there I start looking for froud. There no such thing as a free meal. Anyone promising that your can mail a letter with their 20 cent stamp I suggest you run and hide. JMTC

[Raybyrnes]

Pretty certain that is for convetional loan <417000.

[Raybyrnes]

I don’t know why you would be looking at mortage bonds. If you are buying on a variable rate I would look at the index it is tied too. IE the LIBOR (London Interbank Overnight Rate)COFI (cost of Funds) COSI (cost of savings index) or whatever other type of financial index.

If it is a fixed rate and you ahve amonth to close I would gather up my financial information, do a query on Bankrate.com and shop around for a conventional fixed rate product. Think you are focusing on irrelevant information.

[Raybyrnes]

The benefit of closing later in the month might be that billing is done on a full cander month basis so from a payment standpoint closing on the last day of the month might mean the fist payment is for 32 days owed as opposed to if you closed early in the month where you recieve your first statement for 60 days. So from a casflow standpoint this can be closing later can reduce the 1st months payment shock.

The downside to closing later in the month is that everyone is pushing to close, so from a lenders standpoint time and resources are scarce and I would venture to say that there is more errors made when people are trying to push things through. For this reason doing things in the middle of a month gives you access to more resources and also provides a litttle bit more leaway if there is incomplete documents or a signerature is missed along the way. Less stress for all. If you are aware of the 1st payment being a little higher to account for the middle of the month and have budgeted accordingly it is a meaningless detail

[Raybyrnes]

Believe the Heights were developed by Hammer. Thought that these were very nice. While visiting Drew Brees was going through the properties. I believe that his brother is on the investment side.

[Raybyrnes]

“Well for the folks who did the obvious play and shorted homebuilders and subprime lenders instead of the broad market, this has been a VERY, VERY gleeful year.”

Would have been a tough couple of days if you were in short positions on Homebuilders. Standard pacific up over 10% in a day.

[Raybyrnes]

Wamu had a pretty decent deal going back that offered 7 and 10 month CD’s that provided an add on feature that was paying 5.45%. you put in 5000 or 10 K and you have the opportunity of adding up to the amount you put in. Minimum amount was 1K.

They also had an online offer for 5.5% on 6 month CD’s so their was a good opportunity of setting up a short term fixed income ladder.

Needed to be new money.

As a heads up to those fixed income people. If you have large amount to invest (100K+) you may want to simply speak with a branch manager. They have some discretion with the rates with respect to CD’s. One of the benefits of stopping by the bank and getting to know a manager. Relationships still count.

[Raybyrnes]

If I am generous with rent and figure you can get $1800 a month on a two bedroom 2 bath. Figure 100% financed at 6%. Calcualte HOA at 250 a month. Break even on this with tax deductions is not much more 300K. To really make this worth an investors time the 2 by 2 would ahve to be down around 250K.

[Raybyrnes]

9% Apy on 7 month Certificate. Only catch is that it is limitied to $2000. So you are going to have to open up multiple accounts. USE offered a similiar promotion going back about 1 year ago paying 7% apy, 2K limit. I opened up accounts for myself, my wife and my son.

They use these teasers to open up accounts. Can become a littel bit of a pain at tax time when you are getting statements from 10 different instituions.

[Raybyrnes]

I have a totally different take on Seahaus. I regret not jumping on these when they were first being built. My father was out here and I could have probably gone in on the town homes to the back of seahaus for around 650 to 700. Interest rates on 30 year fixed at the time were around 5%.

I am fairly confident that I not only would be in a comfortable equity possiton today but that I could have easly rode out any downturn. I could see traffic being a Problem but that area is great for Ocean lovers.

[Raybyrnes]

raptorduck

Any reason why Coronado is not on you list. I can appreciate that you don’t get a lot of land but you do get a lot of the other things you had spoken about ie. Arxchetectural detail, landscaping, good schools, great views etc.

[Author]

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