[SDHousehunter]

A mortgage broker is a waste of money.

Imagine if you are a business (bank) selling lemons (loans). You have employees (Loan officers) who prepare the lemons (loans). One day you decidedyou want more business (loans) so you advertise in the paper for salesmen (mortgage brokers) to sell your lemons (loans) in exchange for a fee (yield spread premium). That way it would be cheaper than hiring more employees (loan officers).

My advice, why not get off you rear and drive and talk to bankers. . . .if you save 1.5% on a $400,000 home annually. . .well do the math.

Would you pay an extra 1.5% on your car loan if I drove you to a car lot to introduce you to the salesman and I kept the 1.5%?

Now imagine if you made 3-5 percent of a neg-am loan of $400,000 or an adjustable ARM as a broker? Can you see why all these brokers blew their money on cars, whores and cocaine 🙂 Imagine if you did 6 deals a month on refis?

Enough said.

[SDHousehunter]

A mortgage broker is a waste of money.

Imagine if you are a business (bank) selling lemons (loans). You have employees (Loan officers) who prepare the lemons (loans). One day you decidedyou want more business (loans) so you advertise in the paper for salesmen (mortgage brokers) to sell your lemons (loans) in exchange for a fee (yield spread premium). That way it would be cheaper than hiring more employees (loan officers).

My advice, why not get off you rear and drive and talk to bankers. . . .if you save 1.5% on a $400,000 home annually. . .well do the math.

Would you pay an extra 1.5% on your car loan if I drove you to a car lot to introduce you to the salesman and I kept the 1.5%?

Now imagine if you made 3-5 percent of a neg-am loan of $400,000 or an adjustable ARM as a broker? Can you see why all these brokers blew their money on cars, whores and cocaine 🙂 Imagine if you did 6 deals a month on refis?

Enough said.

[SDHousehunter]

A mortgage broker is a waste of money.

Imagine if you are a business (bank) selling lemons (loans). You have employees (Loan officers) who prepare the lemons (loans). One day you decidedyou want more business (loans) so you advertise in the paper for salesmen (mortgage brokers) to sell your lemons (loans) in exchange for a fee (yield spread premium). That way it would be cheaper than hiring more employees (loan officers).

My advice, why not get off you rear and drive and talk to bankers. . . .if you save 1.5% on a $400,000 home annually. . .well do the math.

Would you pay an extra 1.5% on your car loan if I drove you to a car lot to introduce you to the salesman and I kept the 1.5%?

Now imagine if you made 3-5 percent of a neg-am loan of $400,000 or an adjustable ARM as a broker? Can you see why all these brokers blew their money on cars, whores and cocaine 🙂 Imagine if you did 6 deals a month on refis?

Enough said.

[SDHousehunter]

A mortgage broker is a waste of money.

Imagine if you are a business (bank) selling lemons (loans). You have employees (Loan officers) who prepare the lemons (loans). One day you decidedyou want more business (loans) so you advertise in the paper for salesmen (mortgage brokers) to sell your lemons (loans) in exchange for a fee (yield spread premium). That way it would be cheaper than hiring more employees (loan officers).

My advice, why not get off you rear and drive and talk to bankers. . . .if you save 1.5% on a $400,000 home annually. . .well do the math.

Would you pay an extra 1.5% on your car loan if I drove you to a car lot to introduce you to the salesman and I kept the 1.5%?

Now imagine if you made 3-5 percent of a neg-am loan of $400,000 or an adjustable ARM as a broker? Can you see why all these brokers blew their money on cars, whores and cocaine 🙂 Imagine if you did 6 deals a month on refis?

Enough said.

[SDHousehunter]

A mortgage broker is a waste of money.

Imagine if you are a business (bank) selling lemons (loans). You have employees (Loan officers) who prepare the lemons (loans). One day you decidedyou want more business (loans) so you advertise in the paper for salesmen (mortgage brokers) to sell your lemons (loans) in exchange for a fee (yield spread premium). That way it would be cheaper than hiring more employees (loan officers).

My advice, why not get off you rear and drive and talk to bankers. . . .if you save 1.5% on a $400,000 home annually. . .well do the math.

Would you pay an extra 1.5% on your car loan if I drove you to a car lot to introduce you to the salesman and I kept the 1.5%?

Now imagine if you made 3-5 percent of a neg-am loan of $400,000 or an adjustable ARM as a broker? Can you see why all these brokers blew their money on cars, whores and cocaine 🙂 Imagine if you did 6 deals a month on refis?

Enough said.

[SDHousehunter]

Here is my two cents for free.

The Oil Cartel is going long. . . . tech bubble profits packed into real estate, real estate profits packed into oil and commodities . . . when its done and Gold is at $2K inflation adjusted and Oil is at $200 a barrel then everything will go back into banking, real estate and tech renewing the cycle.

Interesting that banks do well in periods of recession as interest rates are raised.

Nothing beats the capital gains exemption on real estate so for the little guy. . .hold tight on gold and cash and jump in when it hits bottom.

Anything else is out of your league.

[SDHousehunter]

Here is my two cents for free.

The Oil Cartel is going long. . . . tech bubble profits packed into real estate, real estate profits packed into oil and commodities . . . when its done and Gold is at $2K inflation adjusted and Oil is at $200 a barrel then everything will go back into banking, real estate and tech renewing the cycle.

Interesting that banks do well in periods of recession as interest rates are raised.

Nothing beats the capital gains exemption on real estate so for the little guy. . .hold tight on gold and cash and jump in when it hits bottom.

Anything else is out of your league.

[SDHousehunter]

Here is my two cents for free.

The Oil Cartel is going long. . . . tech bubble profits packed into real estate, real estate profits packed into oil and commodities . . . when its done and Gold is at $2K inflation adjusted and Oil is at $200 a barrel then everything will go back into banking, real estate and tech renewing the cycle.

Interesting that banks do well in periods of recession as interest rates are raised.

Nothing beats the capital gains exemption on real estate so for the little guy. . .hold tight on gold and cash and jump in when it hits bottom.

Anything else is out of your league.

[SDHousehunter]

Here is my two cents for free.

The Oil Cartel is going long. . . . tech bubble profits packed into real estate, real estate profits packed into oil and commodities . . . when its done and Gold is at $2K inflation adjusted and Oil is at $200 a barrel then everything will go back into banking, real estate and tech renewing the cycle.

Interesting that banks do well in periods of recession as interest rates are raised.

Nothing beats the capital gains exemption on real estate so for the little guy. . .hold tight on gold and cash and jump in when it hits bottom.

Anything else is out of your league.

[SDHousehunter]

Ahh, Temecula.

Its been a little while since I posted, however, reading these posts “inspired”me.

I see nothing of value as far as jobs, industry to support the speculative real estate boom that occured out in Riverside/Imperial county other than stripmall retail, liquor stores or public service jobs. This is subprime ground zero and the whole areas will decline in value until rents can cover the mortgage or 2 million illegal immigrants are naturalized, given social security numbers and financed through FHA to buy all the overbuilt crap out there.

In my humble opintion, I see Temecula as the only city of any intrinsic value in Riverside due to its proximity to San Diego County and its job base. Palm Springs would be comparable if not better were it not for the heat.

I am currently renting a beautiful 1900 sq. ft. home for $1,600/month with everything I could ever want. I pay $19,200 a year to rent a home puchased for $440,000 in 2004. Please plug these numbers into a Rent vs Buy calculator and do a comparison.

Prior to this rental we lived in a condo area near Morgan Hill called Auberry Place. In 2005 units for 1,600 sq. ft. were at $389,000. Now they can’t sell any of the units for over $250,000. Do a redfin sales check on the area e.g., Winston Way.

Nationally we are in for another 3 years of pricing declines, however locally here in Riverside noone knows how bad it will get as the rates reset until 2011. The speed and degree of decline is amazing. YOY price declines of 13% do not occur in a vaccuum and do not dissappear overnight. You will have 13% than 8% than 4% than 2% declines as the inventory bleeds out. The question is: Who is going to buy this inventory now that subprime is dead and 60% of the buyers are out of the market?

Now they are requiring downpayments and max house payments of 28% of Gross income. Do you know many people that can fully document 140K salaries?

I can say from personal experience that the automobile industry is getting hammered with no end in sight. My colleagues in the banking industry are in the same boat. Generally automobile and housing data have a historical relationship.

Because I chose to rent I have:

a) No Credit Card debt
b) No Auto payments (2 vehicles 02 and 04)
c) 5K in Student Debt remaining
d) Cash Reserves

Since the housing boom gasoline is up by 50% and my monthly food costs have doubled. (Have you seen the food prices!) My surplus cash reserves have allowed me to take all these hits without losing any sleep and purchase a 6 speaker surround sound system from Magnolia Home theater in my living room and a Culligan Soft Water treatment system. I eat out when I don’t feel like cooking and make sure my family exactly what they need.

Temecula is a wonderful town with a family atmosphere, parks and easy access to shopping on 79 and Winchester. Schools are highly rated (e.g., Abbey Rinke) and you will have your pick of homes to choose from. Be patient and let things run their course. You have nothing to lose and everything to gain.

[SDHousehunter]

Ahh, Temecula.

Its been a little while since I posted, however, reading these posts “inspired”me.

I see nothing of value as far as jobs, industry to support the speculative real estate boom that occured out in Riverside/Imperial county other than stripmall retail, liquor stores or public service jobs. This is subprime ground zero and the whole areas will decline in value until rents can cover the mortgage or 2 million illegal immigrants are naturalized, given social security numbers and financed through FHA to buy all the overbuilt crap out there.

In my humble opintion, I see Temecula as the only city of any intrinsic value in Riverside due to its proximity to San Diego County and its job base. Palm Springs would be comparable if not better were it not for the heat.

I am currently renting a beautiful 1900 sq. ft. home for $1,600/month with everything I could ever want. I pay $19,200 a year to rent a home puchased for $440,000 in 2004. Please plug these numbers into a Rent vs Buy calculator and do a comparison.

Prior to this rental we lived in a condo area near Morgan Hill called Auberry Place. In 2005 units for 1,600 sq. ft. were at $389,000. Now they can’t sell any of the units for over $250,000. Do a redfin sales check on the area e.g., Winston Way.

Nationally we are in for another 3 years of pricing declines, however locally here in Riverside noone knows how bad it will get as the rates reset until 2011. The speed and degree of decline is amazing. YOY price declines of 13% do not occur in a vaccuum and do not dissappear overnight. You will have 13% than 8% than 4% than 2% declines as the inventory bleeds out. The question is: Who is going to buy this inventory now that subprime is dead and 60% of the buyers are out of the market?

Now they are requiring downpayments and max house payments of 28% of Gross income. Do you know many people that can fully document 140K salaries?

I can say from personal experience that the automobile industry is getting hammered with no end in sight. My colleagues in the banking industry are in the same boat. Generally automobile and housing data have a historical relationship.

Because I chose to rent I have:

a) No Credit Card debt
b) No Auto payments (2 vehicles 02 and 04)
c) 5K in Student Debt remaining
d) Cash Reserves

Since the housing boom gasoline is up by 50% and my monthly food costs have doubled. (Have you seen the food prices!) My surplus cash reserves have allowed me to take all these hits without losing any sleep and purchase a 6 speaker surround sound system from Magnolia Home theater in my living room and a Culligan Soft Water treatment system. I eat out when I don’t feel like cooking and make sure my family exactly what they need.

Temecula is a wonderful town with a family atmosphere, parks and easy access to shopping on 79 and Winchester. Schools are highly rated (e.g., Abbey Rinke) and you will have your pick of homes to choose from. Be patient and let things run their course. You have nothing to lose and everything to gain.

[SDHousehunter]

Ahh, Temecula.

Its been a little while since I posted, however, reading these posts “inspired”me.

I see nothing of value as far as jobs, industry to support the speculative real estate boom that occured out in Riverside/Imperial county other than stripmall retail, liquor stores or public service jobs. This is subprime ground zero and the whole areas will decline in value until rents can cover the mortgage or 2 million illegal immigrants are naturalized, given social security numbers and financed through FHA to buy all the overbuilt crap out there.

In my humble opintion, I see Temecula as the only city of any intrinsic value in Riverside due to its proximity to San Diego County and its job base. Palm Springs would be comparable if not better were it not for the heat.

I am currently renting a beautiful 1900 sq. ft. home for $1,600/month with everything I could ever want. I pay $19,200 a year to rent a home puchased for $440,000 in 2004. Please plug these numbers into a Rent vs Buy calculator and do a comparison.

Prior to this rental we lived in a condo area near Morgan Hill called Auberry Place. In 2005 units for 1,600 sq. ft. were at $389,000. Now they can’t sell any of the units for over $250,000. Do a redfin sales check on the area e.g., Winston Way.

Nationally we are in for another 3 years of pricing declines, however locally here in Riverside noone knows how bad it will get as the rates reset until 2011. The speed and degree of decline is amazing. YOY price declines of 13% do not occur in a vaccuum and do not dissappear overnight. You will have 13% than 8% than 4% than 2% declines as the inventory bleeds out. The question is: Who is going to buy this inventory now that subprime is dead and 60% of the buyers are out of the market?

Now they are requiring downpayments and max house payments of 28% of Gross income. Do you know many people that can fully document 140K salaries?

I can say from personal experience that the automobile industry is getting hammered with no end in sight. My colleagues in the banking industry are in the same boat. Generally automobile and housing data have a historical relationship.

Because I chose to rent I have:

a) No Credit Card debt
b) No Auto payments (2 vehicles 02 and 04)
c) 5K in Student Debt remaining
d) Cash Reserves

Since the housing boom gasoline is up by 50% and my monthly food costs have doubled. (Have you seen the food prices!) My surplus cash reserves have allowed me to take all these hits without losing any sleep and purchase a 6 speaker surround sound system from Magnolia Home theater in my living room and a Culligan Soft Water treatment system. I eat out when I don’t feel like cooking and make sure my family exactly what they need.

Temecula is a wonderful town with a family atmosphere, parks and easy access to shopping on 79 and Winchester. Schools are highly rated (e.g., Abbey Rinke) and you will have your pick of homes to choose from. Be patient and let things run their course. You have nothing to lose and everything to gain.

[SDHousehunter]

Just finished reading “Secrets of the Temple: How the Federal Reserve Runs the Country” by William Greider.

Excellent read.

Having grown up in the 80s and 90s I am currently unable to correlate the economic crisis of the real estate cycle today with those cycles that occured during Nixon/Carter.

This book has helped fill in many gaps and has provided unique parallels to our current real estate cycle.

Based upon my reading, I forsee a period of progressive credit tightening that has no emotion and is based purely on mathematical logic. Bottom Line: Millions of Americans, homebuilders and real estate investors are going to go bankrupt. Its for our nations own greater good that they do so in such a manner that preserves the structure of the existing economic system.

According to the author’s analysis the individuals who make the most profit during a period of interest rate hikes (recession) are the wealthiest 10% who control 86% of the assets and the banking industry.

Who (banks) will benefit most from raising interest rates?
Who (banks) owns the Fed?
Who benefits from a falling dollar (Gold Bugs)?
Who owns (Big Oil) most of the gold mining?
Who is the figurehead of the White House (Big Oil)?
Who ran up the spending to devalue the dollar (White House)?
Who (banks) handles the transaction fees as the dollar is valued or devalued?

I think the banks made far more in fees than they lose on defaults. Worse case scenario it was a wash. Best case they made a killing and the Chinese/Europeans picked up the mess.

So the politicians will do a dog and pony show for the media and the politicians will throw a bone to the american public, however in the end the Federal Reserve will make the decisions.

Although it is sad that the American public self-duped itself to believe that their “assets” were increasing in value as their dollar decreased globally it merely reflects that much of our population are financial “sharecroppers.”

Many of us here paid of debts, refused to believe the hysteria and prepared ourselves for these lean times coming. Although the wealthiest 10% need not worry, we can at least join them for a coffee at Starbuckswhen everyone is afraid of paying $8 US for a Venti Cappucino (It’s $3.55 now!). Although we will have thousands or tens of thousands in or checking accounts both us and the 10% will be earning 8-15% interest in the years to come as the rest struggle to manage their “payment.” Today I have no car payments, no debts, a good living, own all my furniture, have a stream of positive cash flow, reserve allocation and a rent that is $12K annualy cheaper than owning after tax benefits.

To all those who educated themselves. . .congratulations and enjoy your success/survival you earned it.

[SDHousehunter]

So your Jewish?

I am sure your Bubbe and Zaide would be proud of their grandson and his contributions to valuable causes. Such a Jewish thing to do 🙂

To answer your question I do not pay dues to any synagogue. Good idea to bargain though? Personally, my charity is geared to providing a Jewish education to every Jewish child regardless of affiliation, commitment or non-commitment. I have a firm belief that no Jewish child should go through life without learning about his heritage.

We are a remarkable people and have created and contributed so much to the world via law, education and science. Our history is something we all should be proud of and inspire us to do more.

Now, back to RE. . . . how do you think the credit market, CDO Swaps and the Bear Stearns debacle will affect lending conditions in the future. You can’t buy houses if nobody will lend the money?

A friend of mine on Wall Street who works as an analyst commented that his firm feels the Fed will tighten towards the end of the year and no mercy will be shown to specualtors. Also, as for the banks. . . . he stated that this liquidity crunch will be painful. . . not armageddon. . .but very painful as the hedge fund bets of Subprime unravel,

[SDHousehunter]

So your Jewish?

I am sure your Bubbe and Zaide would be proud of their grandson and his contributions to valuable causes. Such a Jewish thing to do 🙂

To answer your question I do not pay dues to any synagogue. Good idea to bargain though? Personally, my charity is geared to providing a Jewish education to every Jewish child regardless of affiliation, commitment or non-commitment. I have a firm belief that no Jewish child should go through life without learning about his heritage.

We are a remarkable people and have created and contributed so much to the world via law, education and science. Our history is something we all should be proud of and inspire us to do more.

Now, back to RE. . . . how do you think the credit market, CDO Swaps and the Bear Stearns debacle will affect lending conditions in the future. You can’t buy houses if nobody will lend the money?

A friend of mine on Wall Street who works as an analyst commented that his firm feels the Fed will tighten towards the end of the year and no mercy will be shown to specualtors. Also, as for the banks. . . . he stated that this liquidity crunch will be painful. . . not armageddon. . .but very painful as the hedge fund bets of Subprime unravel,

[Author]

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