Forum Replies Created
-
AuthorPosts
-
April 9, 2012 at 3:23 PM in reply to: Where is the inventory, where is the inventory, where is the inventory… #741314
SD Realtor
ParticipantTotally agree with you.
ParticipantMy biggest concern is that certain regimes may target the tax benefits of rental property owners in the not to far future. The hungrier the political party in power is for tax revenues, the more fearful I become. It will not surprise me a bit if in the next 4 years many of these benefits get hammered.
ParticipantI suspect that the low rates will last at least through the election. Regardless of who gets elected, and I would definitely put my money on the current regime, rates should start to rise. Price inflation on food and other essentials has happened for awhile now. I think we need at least 100-200 bps before we see some effects.
Also lets not forget the steps that are being taken to keep distressed homeowners in their homes. I suspect this is not as negligible as we think.
ParticipantYour calculations are correct. In two cases I have cash buyers. They are very frugal though and they seem to think they can get undermarket pricing. It is not happening right now for them. A 1700 sf plan in Airoso just went pending recently for a list price at close to 500k.. that surprised me. I am sure that they will not get list but still.
ParticipantNo on Mira Mesa but I cannot share the submarket. I don’t think the person would be happy if I did and they read the post. In fact they did mention that it may be useful for me to post about this awhile back when it first happened.
Although yeah sdr I would agree with you about MM. I think a high shiester ratio there.
**********************
Here is another one sdr… I may have posted about this one already so I apologize in advance if I did.
After trustee sale our group went into hard money lending. There was borrower who we lent money to who was a flipper. The loan went well with him. When he concluded the flip I called his agent to introduce myself and to let him know to call me if he ever had clients who needed a loan. Well a few months back he called me. Had a flipper who needed a loan. Well it turns out he was also the listing agent for the home the flipper was buying. So he was double ending the deal. It was a short sale that was on the market for all of a few hours. The list price was well under market conditions as well. So the guy was double ending it, he was not getting the bank the highest offer, and there is no doubt he was probably part of the group doing the flip. Needless to say we passed on the loan.
So it is stuff like that does indeed happen and it sucks for everyone when it does happen. Again, sorry if I had posted about it already.
ParticipantHi Flu –
The assessor does not blindly change the tax rate. In fact in all of the trustee sale purchases we made, never once was the property assessed at the lower price we got it for at auction. The assessor will use the market assessment and you the owner are tasked with trying to justify a lower assessment if you can find comps to back it up.
ParticipantI agree with sdr. Nothing at all suspicious about these. I guess it is alot easier to cry wolf then do some research and find out the real facts.
Additionally bulk sales that are occurring are through institutions and not individual owners. Come on now… really?
ParticipantYou may want to consider spending some money on getting a hygenist or a mold inspector into the home to take spore samples. Pet odors are one thing but if there is something else then you will want to know exactly what it is. Having that report will also give you documentation that will become a material fact for the property. For a few hundred bucks it is worth it.
Also if they are only pet odors then that is great. The best way to get rid of them is new carpet and pad.
ParticipantI think nationally we will see pricing pressure as the lenders have settled the robo signing suits and can now pick up the foreclosure pace. However I do not think we will see much of an effect on San Diego.
FLU I think you will do fine with your rental. Upgrading the primary however, well I don’t think that will come for cheap. CV is smokin this spring.
April 5, 2012 at 10:21 AM in reply to: OT: Property Tax/ Mello Ruse…Ain’t make no difference #741157ParticipantYou must be a 1%r. Damn rich person.
Participantknowbuddy I think I found a good one. http://www.iraservices.com
ParticipantSounds like you want opinions that you like.
Participantknowbuddy the example you originally posted about is common with many investment clubs. They have them pretty much all over the country in many cities. Understand that it is difficult, and I think impossible to have a self directed IRA and finance a purchase of a property. If you know of a lender that will finance a property that is held by a self directed IRA shoot me that lenders name! What you can do though it buy the property for cash using the IRA. Of course the property including all of the income it generates along with all of the bills must be paid by the IRA.
I have been looking into that as well and have checked out several organizations that provide self directed IRA’s but man they nickel and dime you to death on fees….
***********
The example you posed above is common for private clubs, investment groups etc that purchase complexes for groups of investors. The pools usually have a minimum of 50k, it all varies. There are two types of investment strategies for these types, value and rehab. The value play is usually done on complexes where rents are below market. The play is that with a minimal rehab, maybe a few thousand per door, you can get rents up and improve vacancy level. Thus you will see a nice yield on your investment. The rehab is more of what you were describing, maybe 5 figures per door, then over the next few years you improve vacancy and stabilize the property. the improved rents will get you a different cap rate and you should be able to flip the property at a significant gain.
Each individual investment is generally run by a lead investor. That lead will get a percentage of income and equity on the flip. These amounts vary by 10-20%. The investors split the rest. Commercial financing is obtained with a 10 year note. Finding assumable notes is possible as well…. The lead also sets the entire project up including how it is run. It is all set forth to the investors prior to them investing.
************************************
I have looked into a few of these clubs, especially in the midwest. The cash flow to investors is alot better then on the west coast but have not done anything yet. Honestly this is pretty bubble like. The apartment sector has been heating up and the refinance issue troubles me down the road. (Many of these projects intend to cash out equity within a short period of time to return equity back to the investors) Prepayment on commercial 10 year notes is an entirely different beast and the investments never quite spell out those costs when they show you their fantastic returns you can get.
************************************
It is all fairly enticing however we have held off and are sticking with what we know which are single family stuff, 4 plexes and under. That way we can commercially finance them. We are also still looking at using ira money for a property but have not yet done so.
ParticipantObviously you are a wealthy, fox news watching, war mongering, homophobic, tea bagger party, racist. Shut up and get with the program because there were no other alternatives. Damn 1%er…
-
AuthorPosts
