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zk
Participant[quote=SD Realtor]
zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal. [/quote]SDR and ur, I appreciate the suggestions regarding trustee sales. I like the suggestion about contacting the owner. A couple questions regarding title issues:
So, trustees have the option of selling at the trustee sale for less than the amount of the first? Is that right? I thought the opening bid had to be “a penny over” the amount of the debt (on the first). Is it just the opening bid that must be exceeded? Do they set an opening bid amount of their choosing based on their desire to get rid of the property?
Second question: I can’t imagine plunking down six figures for something without some assurance that I’m aware of all liens and title issues. One would obviously hate to get an expensive surprise in that situation. I’m sure I’ll learn all about checking for any liens or title issues that might exist. I guess my question is, why am I working with a title officer? Do they have access to something I don’t, or just the experience to catch something I might miss? I have two issues with this, either or both of which I could be completely amiss about. First, I’m having a hard time seeing that it might be so complicated that it’s something I won’t be able to do myself. I’m fairly not unbright (and modest) and I work very hard. Of course, at the beginning, I’ll have no experience, so there is that. Second, if I can’t get title insurance, I might have a hard time trusting somebody else to ensure that I’m not going to get a very large surprise at a very bad time. I don’t know if I’d be able to sleep unless I did it myself.
Thanks for your expertise.
Participant[quote=FormerSanDiegan]Yes, when we start talking about housing stagnating at a permanently lower plateau because of retiring baby boomers or some other reason, that’s when you should jump in.[/quote]
I agree that measuring the psychology is an important part of trying to locate the bottom. As far as the data side of the equation, our hero Rich will be closely listened to. I subscribe to Robert Campbell’s newsletter, and I find that helpful. Any other reccomendations for market timing would be appreciated.
Participant[quote=FormerSanDiegan]Yes, when we start talking about housing stagnating at a permanently lower plateau because of retiring baby boomers or some other reason, that’s when you should jump in.[/quote]
I agree that measuring the psychology is an important part of trying to locate the bottom. As far as the data side of the equation, our hero Rich will be closely listened to. I subscribe to Robert Campbell’s newsletter, and I find that helpful. Any other reccomendations for market timing would be appreciated.
Participant[quote=FormerSanDiegan]Yes, when we start talking about housing stagnating at a permanently lower plateau because of retiring baby boomers or some other reason, that’s when you should jump in.[/quote]
I agree that measuring the psychology is an important part of trying to locate the bottom. As far as the data side of the equation, our hero Rich will be closely listened to. I subscribe to Robert Campbell’s newsletter, and I find that helpful. Any other reccomendations for market timing would be appreciated.
Participant[quote=FormerSanDiegan]Yes, when we start talking about housing stagnating at a permanently lower plateau because of retiring baby boomers or some other reason, that’s when you should jump in.[/quote]
I agree that measuring the psychology is an important part of trying to locate the bottom. As far as the data side of the equation, our hero Rich will be closely listened to. I subscribe to Robert Campbell’s newsletter, and I find that helpful. Any other reccomendations for market timing would be appreciated.
Participant[quote=FormerSanDiegan]Yes, when we start talking about housing stagnating at a permanently lower plateau because of retiring baby boomers or some other reason, that’s when you should jump in.[/quote]
I agree that measuring the psychology is an important part of trying to locate the bottom. As far as the data side of the equation, our hero Rich will be closely listened to. I subscribe to Robert Campbell’s newsletter, and I find that helpful. Any other reccomendations for market timing would be appreciated.
ParticipantNor-LA-SD-guy,
I appreciate your “two cents.”
1)Yes, picking the top or the bottom is hard, maybe impossible. I’m hoping that sorta near the bottom will be good enough. I’m expecting the bottom to be long and flat, which would make it easier to time. I also figure that if that happens, it’d obviously be better to buy towards the end of the flat part, if you could manage to be so lucky.If you have an opinion on that, I’d like to hear it.
2)As far as a 10-year hold time, that’s another good point. If I keep some as rentals, which is part of the plan, I’d be expecting to hold them for a minimum of 8 years, probably somewhat longer for some of them. But what about buying at a discount from a bank, maybe even in bulk and turning them immediately for a profit? What’s your opinion on the profitability of that? Some guys at work are talking about buying in bulk in the 2012-14 time frame. If this thing continues to go badly, that could be the time frame when banks are overwhelmed with properties the don’t want to own. I’ve heard that in that situation they give larger discounts if you take a number of properties off their hands at once. The guys at work are talking with a professional about pooling resources and buying in bulk, where the discounts are greatest. Of course, at that point, they’ll be next to impossible to sell without giving your own discount. I guess that’s the sticky part. Thoughts?
3) Im not planning on investing in any property that won’t cash flow. Do you think that’s a good plan, or do you think some flexibility is warranted there?
When you say “reserves,” what do you mean? Why do I need that? How much?
Thanks for your input.
ParticipantNor-LA-SD-guy,
I appreciate your “two cents.”
1)Yes, picking the top or the bottom is hard, maybe impossible. I’m hoping that sorta near the bottom will be good enough. I’m expecting the bottom to be long and flat, which would make it easier to time. I also figure that if that happens, it’d obviously be better to buy towards the end of the flat part, if you could manage to be so lucky.If you have an opinion on that, I’d like to hear it.
2)As far as a 10-year hold time, that’s another good point. If I keep some as rentals, which is part of the plan, I’d be expecting to hold them for a minimum of 8 years, probably somewhat longer for some of them. But what about buying at a discount from a bank, maybe even in bulk and turning them immediately for a profit? What’s your opinion on the profitability of that? Some guys at work are talking about buying in bulk in the 2012-14 time frame. If this thing continues to go badly, that could be the time frame when banks are overwhelmed with properties the don’t want to own. I’ve heard that in that situation they give larger discounts if you take a number of properties off their hands at once. The guys at work are talking with a professional about pooling resources and buying in bulk, where the discounts are greatest. Of course, at that point, they’ll be next to impossible to sell without giving your own discount. I guess that’s the sticky part. Thoughts?
3) Im not planning on investing in any property that won’t cash flow. Do you think that’s a good plan, or do you think some flexibility is warranted there?
When you say “reserves,” what do you mean? Why do I need that? How much?
Thanks for your input.
ParticipantNor-LA-SD-guy,
I appreciate your “two cents.”
1)Yes, picking the top or the bottom is hard, maybe impossible. I’m hoping that sorta near the bottom will be good enough. I’m expecting the bottom to be long and flat, which would make it easier to time. I also figure that if that happens, it’d obviously be better to buy towards the end of the flat part, if you could manage to be so lucky.If you have an opinion on that, I’d like to hear it.
2)As far as a 10-year hold time, that’s another good point. If I keep some as rentals, which is part of the plan, I’d be expecting to hold them for a minimum of 8 years, probably somewhat longer for some of them. But what about buying at a discount from a bank, maybe even in bulk and turning them immediately for a profit? What’s your opinion on the profitability of that? Some guys at work are talking about buying in bulk in the 2012-14 time frame. If this thing continues to go badly, that could be the time frame when banks are overwhelmed with properties the don’t want to own. I’ve heard that in that situation they give larger discounts if you take a number of properties off their hands at once. The guys at work are talking with a professional about pooling resources and buying in bulk, where the discounts are greatest. Of course, at that point, they’ll be next to impossible to sell without giving your own discount. I guess that’s the sticky part. Thoughts?
3) Im not planning on investing in any property that won’t cash flow. Do you think that’s a good plan, or do you think some flexibility is warranted there?
When you say “reserves,” what do you mean? Why do I need that? How much?
Thanks for your input.
ParticipantNor-LA-SD-guy,
I appreciate your “two cents.”
1)Yes, picking the top or the bottom is hard, maybe impossible. I’m hoping that sorta near the bottom will be good enough. I’m expecting the bottom to be long and flat, which would make it easier to time. I also figure that if that happens, it’d obviously be better to buy towards the end of the flat part, if you could manage to be so lucky.If you have an opinion on that, I’d like to hear it.
2)As far as a 10-year hold time, that’s another good point. If I keep some as rentals, which is part of the plan, I’d be expecting to hold them for a minimum of 8 years, probably somewhat longer for some of them. But what about buying at a discount from a bank, maybe even in bulk and turning them immediately for a profit? What’s your opinion on the profitability of that? Some guys at work are talking about buying in bulk in the 2012-14 time frame. If this thing continues to go badly, that could be the time frame when banks are overwhelmed with properties the don’t want to own. I’ve heard that in that situation they give larger discounts if you take a number of properties off their hands at once. The guys at work are talking with a professional about pooling resources and buying in bulk, where the discounts are greatest. Of course, at that point, they’ll be next to impossible to sell without giving your own discount. I guess that’s the sticky part. Thoughts?
3) Im not planning on investing in any property that won’t cash flow. Do you think that’s a good plan, or do you think some flexibility is warranted there?
When you say “reserves,” what do you mean? Why do I need that? How much?
Thanks for your input.
ParticipantNor-LA-SD-guy,
I appreciate your “two cents.”
1)Yes, picking the top or the bottom is hard, maybe impossible. I’m hoping that sorta near the bottom will be good enough. I’m expecting the bottom to be long and flat, which would make it easier to time. I also figure that if that happens, it’d obviously be better to buy towards the end of the flat part, if you could manage to be so lucky.If you have an opinion on that, I’d like to hear it.
2)As far as a 10-year hold time, that’s another good point. If I keep some as rentals, which is part of the plan, I’d be expecting to hold them for a minimum of 8 years, probably somewhat longer for some of them. But what about buying at a discount from a bank, maybe even in bulk and turning them immediately for a profit? What’s your opinion on the profitability of that? Some guys at work are talking about buying in bulk in the 2012-14 time frame. If this thing continues to go badly, that could be the time frame when banks are overwhelmed with properties the don’t want to own. I’ve heard that in that situation they give larger discounts if you take a number of properties off their hands at once. The guys at work are talking with a professional about pooling resources and buying in bulk, where the discounts are greatest. Of course, at that point, they’ll be next to impossible to sell without giving your own discount. I guess that’s the sticky part. Thoughts?
3) Im not planning on investing in any property that won’t cash flow. Do you think that’s a good plan, or do you think some flexibility is warranted there?
When you say “reserves,” what do you mean? Why do I need that? How much?
Thanks for your input.
ParticipantEconProf, good point about the fortitude necessary to by when the gloom dominates. Hopefully I’ll have the same fortitude then that it took to sell in 2005. Of course shelling out money amid negative hysteria will probably turn out to be harder than collecting a bunch of money was, even if it did go against the prevailing wisdom.
ParticipantEconProf, good point about the fortitude necessary to by when the gloom dominates. Hopefully I’ll have the same fortitude then that it took to sell in 2005. Of course shelling out money amid negative hysteria will probably turn out to be harder than collecting a bunch of money was, even if it did go against the prevailing wisdom.
ParticipantEconProf, good point about the fortitude necessary to by when the gloom dominates. Hopefully I’ll have the same fortitude then that it took to sell in 2005. Of course shelling out money amid negative hysteria will probably turn out to be harder than collecting a bunch of money was, even if it did go against the prevailing wisdom.
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