Nah…I still say it smells suuweeeeeeeeeet :banana
With Christmas comming I am seeing a lot of New Construction where buiders are dicscounting entire projects…
I have one on my desk now in Beverly Hills, CA for 39 NICE NEW condos…
Comps at 12.7 Million, builder will take around 8.4 Million…
What is going on when BH is dropping in Value? :shocked
The rich are even getting hammered in this economy. Those that had used hedge funds like Bear Stearns that were heavy into the mortgage market got killed. They are still rich just less rich than they used to be and I think its making them spend more wisely.
What is happening, and will contnue to happen is a National Real Estate
correction. Are there pockets of appreciation?? Of coarse, but the majority of markets are experiencing falling prices.
Try getting a mortgage for $450,000… Good luck. That sounds like a ton of money but in the Northeast that’s almost starter home territory in the Boston Suburbs. That’s why that builder is having a fire sale in California. People can not get financing.
We haven’t seen the worst of this yet. People for the most part still have jobs. Wait…becasue that’s the next shoe to drop, and when that one let’s go look out below. The business owners I talk to are not doing well.
I’m still buying and selling homes. It takes much longer to sell them and you better STEAL them when you buy. I won’t even put an offer in on a home unless it will be THE LEAST EXPENSIVE home in that area when it hits the market. Even then I have 15 to 20 people look at it before it sells. One year ago that same house would have sold at these prices on the FIRST DAY. It’s telling you something. TIMES ARE CHANGING.
I love listening to the nit wits on CNBC. How in earth do you get up there and look into that camera and say “No Bob, we don’t see signs of a recession. The US economy is strong.” These are the same people who told everyone that housing wasn’t going to crash because of demand.??? Yea, until the demand dried up! Look at Florida, good god it’s a blood bath down there. I have ads in newspapers running there and I am getting over 100 calls A WEEK!!! All looking to just DUMP these “investment homes, land, apartments, any that has REAL ESTATE in it or on it” These people are screwed.
This WILL get much worse before it gets better. Don’t agree??
When you have the Treasury Secretary begging banks to lock interest rates on ARM’s in at FIXED rates. THAT’S FULL SCALE PANIC. He’s having these meetings because next year, 2008, will see $900 BILLION in ARMs re-adjust for the first time. In 2007 $200 Billion hit the first re-adjust, so multiply this years pain by about 4 1/2 times and you should have a pretty good picture of what 2008 is shaping up to look like. Don’t forget to add a tablespoon of recession to spice things up!
I agree, it seems to come in waves and when that happens, cash is king. Here’s an example, I recently bought two properties directly from bank in pre-foreclosure. The previous owner did a deed in lieu to the bank and then the bank flipped them to me at a steep discount. I had looked at another property some time ago that was condemned and after I looked at it I found out it was stuck in probate so I moved on. The attorney representing the family called me and I told him I couldn’t offer more than 10K for it. That was six weeks ago. Well today he called me and said the family wants to dump it for the 10K that I offered. Needs 30K in rehab and carrying expenses and ARV is 85K, my exit strategy would be to put it onto the market for 79K. Additonally, I have a multi-family six unit deal on the table for a purchase price of 40K and another SFH I am buying for 15K, needs 35K in rehab and carrying costs and has a ARV of bewteen 90-100K. It is a 1900 sf house with 4 beds and two full baths. Unbelieveable. I love this time of the year becasue the banks want to dump their inventory and will consider every reasonable and unresonable offer. They orginally wanted 35K for this latest SFH. I told them 10K and we eventually settled on 15K. Unless you are embarrassed by the offer, you have offered too much. But… and this is a big but… I am able to leverage cash on hand into cash “as is” offers and the banks love that. One last thing, none of these properties ever hit the market or had agent representation. Most of the good deals are done prior to them reaching this point. At least that’s been my experience. I have bought off the MLS, but for every property out of 1000, you might find one where the numbers work, especially in today’s market. The beauty of what I am doing is a can do lease options and still get them to cash flow after a 3K down payment. People tend to take better care of the property if they put 3K in at the outset and it protects me in the case of a property sitting on the market too long. I will always choose to sell first but if I can’t move it quickly I can move into a lease option. The opportuniies are countless so don’t settle for a bad deal. And leave plenty of cushion for any gotchas.
$361 BILLION in subprime loans are set to adjust this year.
:shocked
This market will…WILL get worse. Be careful how much you pay…
:bobble
$361 Billion set to adjust this year. Looks like this market is getting better. We are kind of like morticians they do better the more people die and we do better the more people get foreclosed on. We are bottom fishers, if nobody gets foreclosed on we don’t have product to turn around and make money on.
Ever see a carp? It feeds off the bottom but it’s fat and healthy. 
Investors have more leverage than EVER before!
haha good point!