[sdduuuude]

So, a guy with the name “San Diego REO Agent” wants to hear from people facing foreclosure.

Sounds like someone trying to drum up business to me. I’d be surprised if there really is a show.

[sdduuuude]

So, a guy with the name “San Diego REO Agent” wants to hear from people facing foreclosure.

Sounds like someone trying to drum up business to me. I’d be surprised if there really is a show.

[sdduuuude]

An important consideration is – how much tax will you pay when you sell it? If that is a tax-free sale, it sways the decision towards selling. If you have to pay %25 capital gain tax on the whole thing, that sways it towards keeping it.

$1100/month forever is a pretty friggin’ good windfall.

I think I would consider taking out a small HELOC on the property to fix it up and pay the property tax, then send all of the rent to pay off the HELOC, and write-off the interest. You’d have it paid off in two or three years, then would be getting $1100/mo in (pre-tax) income.

D

[sdduuuude]

An important consideration is – how much tax will you pay when you sell it? If that is a tax-free sale, it sways the decision towards selling. If you have to pay %25 capital gain tax on the whole thing, that sways it towards keeping it.

$1100/month forever is a pretty friggin’ good windfall.

I think I would consider taking out a small HELOC on the property to fix it up and pay the property tax, then send all of the rent to pay off the HELOC, and write-off the interest. You’d have it paid off in two or three years, then would be getting $1100/mo in (pre-tax) income.

D

[sdduuuude]

An important consideration is – how much tax will you pay when you sell it? If that is a tax-free sale, it sways the decision towards selling. If you have to pay %25 capital gain tax on the whole thing, that sways it towards keeping it.

$1100/month forever is a pretty friggin’ good windfall.

I think I would consider taking out a small HELOC on the property to fix it up and pay the property tax, then send all of the rent to pay off the HELOC, and write-off the interest. You’d have it paid off in two or three years, then would be getting $1100/mo in (pre-tax) income.

D

[sdduuuude]

His logic is almost right, but wrong enough to be dangerous.
It isnt the number of sellers who don’t have to sell that matters. It is the number of sellers who do have to sell.

i.e. Look at the supply, not the lack of supply.
You never hear anyone say “how many widgets are not in production”

Secondly, it is the supply relative to the number of buyers, not the supply relative to the number of houses.

See here for data and details:

Sales and Foreclosures

[sdduuuude]

His logic is almost right, but wrong enough to be dangerous.
It isnt the number of sellers who don’t have to sell that matters. It is the number of sellers who do have to sell.

i.e. Look at the supply, not the lack of supply.
You never hear anyone say “how many widgets are not in production”

Secondly, it is the supply relative to the number of buyers, not the supply relative to the number of houses.

See here for data and details:

Sales and Foreclosures

[sdduuuude]

His logic is almost right, but wrong enough to be dangerous.
It isnt the number of sellers who don’t have to sell that matters. It is the number of sellers who do have to sell.

i.e. Look at the supply, not the lack of supply.
You never hear anyone say “how many widgets are not in production”

Secondly, it is the supply relative to the number of buyers, not the supply relative to the number of houses.

See here for data and details:

Sales and Foreclosures

[sdduuuude]

A decent question rb_engineer.

Rich addressed this a long time ago – maybe someone else has the link bookmarked.

Basically, if you believe that the ratio of home prices to wages is too high and has to come down to historical levels, then one of two things (or some of both) must happen: home prices drop or wages increase.

So, if home prices don’t collapse, they will have to remain flat until about 2020 to give wages time to catch up to a reasonable level.

For those who do feel the home price/wages ratio is a little high, but don’t look behind the median graph chart and examine rates, sales/inventory ratio, credit markets, the reliance of employment on the housing market, and other factors that hint at what is to come, this is one of many possible scenarios.

For those who do loook at such forward-looking factors, flat pricing until 2020 isn’t all that likely. Pricing will likely give.

[sdduuuude]

A decent question rb_engineer.

Rich addressed this a long time ago – maybe someone else has the link bookmarked.

Basically, if you believe that the ratio of home prices to wages is too high and has to come down to historical levels, then one of two things (or some of both) must happen: home prices drop or wages increase.

So, if home prices don’t collapse, they will have to remain flat until about 2020 to give wages time to catch up to a reasonable level.

For those who do feel the home price/wages ratio is a little high, but don’t look behind the median graph chart and examine rates, sales/inventory ratio, credit markets, the reliance of employment on the housing market, and other factors that hint at what is to come, this is one of many possible scenarios.

For those who do loook at such forward-looking factors, flat pricing until 2020 isn’t all that likely. Pricing will likely give.

[sdduuuude]

A decent question rb_engineer.

Rich addressed this a long time ago – maybe someone else has the link bookmarked.

Basically, if you believe that the ratio of home prices to wages is too high and has to come down to historical levels, then one of two things (or some of both) must happen: home prices drop or wages increase.

So, if home prices don’t collapse, they will have to remain flat until about 2020 to give wages time to catch up to a reasonable level.

For those who do feel the home price/wages ratio is a little high, but don’t look behind the median graph chart and examine rates, sales/inventory ratio, credit markets, the reliance of employment on the housing market, and other factors that hint at what is to come, this is one of many possible scenarios.

For those who do loook at such forward-looking factors, flat pricing until 2020 isn’t all that likely. Pricing will likely give.

[sdduuuude]

I love this thread, but is there any chance you could try to find the pictures on other real estate web pages that don’t require a login ?

[sdduuuude]

I love this thread, but is there any chance you could try to find the pictures on other real estate web pages that don’t require a login ?

[sdduuuude]

eye-pod. I see it the same way.

Basically the buyers have a 2-year option to buy at today’s prices, can walk away if the market crashes, are getting reduced rent and have paid nothing for that option.

In fact, it sounds like they can sell their old house AND walk away if the market crashes.

At least make it such that if the buyers do sell their house, they have to buy the new house at the agreed upon price.

The only thing good about this is the “small-town, everyone knows each other” situation. I think that helps, but I think I’d rather just cut the price and sell it for real.

[sdduuuude]

eye-pod. I see it the same way.

Basically the buyers have a 2-year option to buy at today’s prices, can walk away if the market crashes, are getting reduced rent and have paid nothing for that option.

In fact, it sounds like they can sell their old house AND walk away if the market crashes.

At least make it such that if the buyers do sell their house, they have to buy the new house at the agreed upon price.

The only thing good about this is the “small-town, everyone knows each other” situation. I think that helps, but I think I’d rather just cut the price and sell it for real.

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