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Sold !

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Everything posted by Sold !

  1. Let me know when you're ready. I HAVE the technology and can "git-er-dun"!! Rich B.
  2. What kind of "flipping" are you doing? Wholesaling? Rehab? What?
  3. There's an old adage someone said along the line somewhere once, "No matter how gorgeous, sexy, sweet, kind, generous, loving or wonderful she seems.............there's somebody somewhere who is sick and tired of her shit..." Keep that in mind always. Everybody is somebody's disgarded trash. COROLLARY: "ONE MAN'S TRASH IS ANOTHER MAN'S TREASURE." Always the prophet,
  4. So, cook up a dish of lasagna and move in with her. Is she cute? Sorry . Now back to our regularly scheduled thread.................
  5. 1. Offer $80K. Buy the place. (Worth $85K with 4% appreciation?) 2. Rent with a positive cash flow of a couple hundred bucks. 3. Hold for 5 years. (Value is now $103.4K. You now have $23.4K equity.) 4. Refinance and take your equity out TAX FREE. 5. Buy more properties. Repeat the above 5 steps with each property until you retire. How many millions of dollars of real estate do you need to be sitting on at retirement?
  6. Does the "consideration" have to be MONEY? Consideration can be love and affection, can't it? Consideration is whatever is given in exchange for something else, actually. Legally, consideration is the obligation that each party makes to the other to make the contract enforceable. A promise undertaken by one party must be supported by a promise undertaken by the other party. Mutual promises to do or not do some specific act are sufficient consideration, even though the benefit or sacrifice may not be equal. Also, the law does not generally concern itself with the fairness of the consideration, or whether it was "valuable" consideration (money) or "good" consideration (can't be measured in terms of money....like love and affection).
  7. Legal is making good on contract obligations, or esle you default. I assume you have remedies built into the contracts you use. And, I assume those remedies take you completely out of the picture at no fault to you, right? I'm sure we'd all benefit from seeing some of the verbiage you use in your contract clauses that get you released from a binding contract. I may be confused, here, but I think you said that you tied the property up with a sales contract, not an option. But, you contarct for 2 months with the seller, right? That sounds like an option, no? Help me understand what's in it for the buyer if he doesn't get earnest money until closing and why he agrees to take his house off the market for 2 months with no compensation and no real security that the deal is going to go through. If you don't go to closing, why can't he sue for damages? I think I am missing apiece of the puzzle, Dan.............HELP ! Thanks,
  8. Dan, What's your escape clause? Morally and ethically, if you tie the house up with a S&P contract, you really should be prepared to close on it yourself if you can't find a buyer for your simultaneous closing. That said, what's your "out" if you can't find a buyer in time? And do you contract to close in, say......, 90 days? 120? Thanks,
  9. Land rush: Speculators pour in as the water recedes in New Orleans Would-be home buyers are betting city will be a boomtown. And many of its poorest residents could end up being forced out. By David Streitfeld Los Angeles Times Posted September 15 2005, 10:16 AM EDT BATON ROUGE, La. -- Brandy Farris is house hunting in New Orleans. The real estate agent has $10 million in the bank, wired by an investor who has instructed her to scoop up houses — any houses. "Flooding no problem," Farris' newspaper ads advise. Her backer is a Miami businessman who specializes in buying storm-ravaged property at a deep discount, something that has paid dividends in hurricane-prone Florida. But he may have a harder time finding bargains this time around. In some ways, Hurricane Katrina seems to have taken a vibrant real estate market and made it hotter. Large sections of the city are underwater, but that's only increasing the demand for dry houses. And in flooded areas, speculators are trying to buy properties on the cheap, hoping that the redevelopment of New Orleans will start a boom. This land rush has long-term implications in a city where many of the poorest residents were flooded out. It raises the question of what sort of housing — if any — will be available to those without a six-figure salary. If New Orleans ends up a high-priced enclave, without a mix of cultures, races and incomes, something vital may be lost. "There's a public interest question here," said Ann Oliveri, a senior vice president with the Urban Land Institute, a Washington think tank. "You don't have to abdicate the city to whoever shows up." For now, though, it's a seller's market, at least for habitable homes. ************************ The article went on, but.....you get the picture. Regards,
  10. Sold !

    My Diary Log

    Hi, Bev !! Can you explain this a bit for us? Rich B.
  11. Another interesting article on the increase in home values. Is there a bubble? It's getting pretty darned big. I just had my house appraised for a re-finance. The value has doubled in 2 years ! Here's the article: No end visible for rising home prices OFHEO says second quarter housing prices jumped 13.4 percent September 7, 2005: 5:42 PM EDT By Les Christie, CNN/Money staff writer NEW YORK (CNN/Money) - Federal government figures released last week reveal that U.S. housing prices jumped by 13.4 percent for the 12-month period ending June 30, the largest increase in more than 25 years. Government officials see no end in sight. The report quoted Office of Federal Housing Enterprise Oversight (OFHEO) chief economist Patrick Lawler saying, "There is no evidence of prices topping out. On the contrary, house price inflation continues to accelerate, as some areas that have experienced relatively slow appreciation are picking up steam." The increase in home prices, which OFHEO calculates using average house price changes in repeat sales or refinancings of the same single-family properties, dwarfed the rate of non-housing price increases for the time period, which was a modest 3.1 percent. Housing prices rose more than that – 3.2 percent – for the second quarter alone. Leaders Nevada led all states in price appreciation with an increase of 28.1 percent for the 12-months and 5.5 percent for the quarter. Arizona was second with 27.8 percent for the 12-month period. It had, by far, the fastest growth for the second quarter, however, at 9.7 percent. Texas recorded the slowest housing price growth of any state in the nation, including the District of Columbia, with just a 4.7 percent bump for the year. Regionally, both coasts recorded double-digit increase in all regions. New England prices grew 13.0 percent, Middle Atlantic 14.8 percent, South Atlantic 16.7 percent, and Pacific 21.5 percent. The Mountain states increased 15.8 percent for the 12-month period. All the regions in the middle of the country recorded single-digit increases, including West North Central (7.5 percent), East North Central (6.9 percent), West South Central (5.7 percent), and East South Central (6.6 percent). California had five of the top ten metropolitan areas for 12-month price growth, but a Florida area, Naples/Marco Island led all metros with 35.6 percent. Second was Bakersfield with 33.9 percent. Strikingly, none of the 265 metro areas in the country suffered from a net decrease in housing prices over the 12 months. Mansfield Ohio came closest, recording an increase of just 0.4 percent. Future shock? Even though the OFHEO officials have observed nothing to indicate a slowdown, they don't believe housing price increases can continue forever. Lawler said the increases "result from many factors including low mortgage interest rates and the apparent impact of speculative investing.... They are likely unsustainable given the underlying inflation rate, income growth and other factors." *1-Year rank State 12-month gain 2nd Quarter gain 1 Nevada, (NV) 28.13% 5.51% 2 Arizona, (AZ) 27.82% 9.70% 3 Hawaii, (HI) 25.92% 6.22% 4 California, (CA) 25.16% 5.26% 5 Florida, (FL) 24.45% 6.52% 6 District of Columbia 23.53% 5.56% 7 Maryland, (MD) 22.98% 5.73% 8 Virginia, (VA) 20.93% 5.10% 9 New Jersey, (NJ) 17.76% 4.19% 10 Rhode Island, (RI) 16.72% 3.79% 11 Delaware, (DE) 16.53% 3.52% 12 Oregon, (OR) 15.92% 5.12% 13 Washington, (WA) 15.84% 5.29% 14 Vermont, (VT) 15.76% 3.47% 15 New York, (NY) 14.21% 2.89% 16 Connecticut, (CT) 13.61% 2.93% 17 Alaska, (AK) 13.52% 3.80% ** United States 13.43% 3.20% 18 Maine, (ME) 13.37% 2.53% 19 Pennsylvania, (PA) 13.01% 3.22% 20 Idaho, (ID) 12.92% 4.14% 21 Montana, (MT) 12.90% 4.01% 22 New Hampshire, (NH) 12.40% 2.44% 23 New Mexico, (NM) 11.81% 4.18% 24 Massachusetts, (MA) 11.80% 2.30% 25 Wyoming, (WY) 11.41% 2.41% 26 Illinois, (IL) 9.76% 2.32% 27 Wisconsin, (WI) 9.47% 1.97% 28 Minnesota, (MN) 9.32% 2.07% 29 West Virginia, (WV) 9.04% 2.74% 30 North Dakota, (ND) 8.97% 2.58% 31 Utah, (UT) 8.91% 3.28% 32 South Carolina, (SC) 8.11% 2.07% 33 Arkansas, (AR) 8.03% 2.21% 34 Missouri, (MO) 7.71% 1.61% 35 South Dakota, (SD) 7.66% 1.89% 36 Alabama, (AL) 7.45% 2.01% 37 Tennessee, (TN) 6.83% 2.34% 38 Louisiana, (LA) 6.55% 2.01% 39 Georgia, (GA) 6.05% 1.06% 40 Kentucky, (KY) 5.92% 1.41% 41 North Carolina, (NC) 5.88% 0.80% 42 Iowa, (IA) 5.67% 1.64% 43 Colorado, (CO) 5.66% 1.61% 44 Nebraska, (NE) 5.56% 1.52% 45 Kansas, (KS) 5.52% 1.80% 46 Mississippi, (MS) 5.51% 1.51% 47 Oklahoma, (OK) 5.39% 1.80% 48 Michigan, (MI) 4.93% 0.85% 49 Ohio, (OH) 4.81% 0.99% 50 Indiana, (IN) 4.70% 1.13% 51 Texas, (TX) 4.68% 1.75% *Note: Ranking based on one-year appreciation. **Note: United States figures based on weighted Census Division average.
  12. Sell high, rent low: The Bubble Sitters By Holden Lewis • Bankrate.com The American Dream comes with a twist for Dean Baker. Convinced that he lived in a housing bubble and that property values would crash, the economist sold his condominium and rented a similar condo two blocks away. Now he waits for prices to plunge so he can scoop up a new place at a bargain price. Call Baker a bubble sitter. He and others have taken themselves out of the homeownership game. Now they sit on the sidelines, renting and waiting for a housing bubble pop. Bubble sitters vary in their reasons and tactics: Warren and Sarah Bland sold their Los Angeles house ahead of retirement so their biggest asset wouldn't abruptly lose value at precisely the wrong time. Jordan and Linda Celkupa decided to bubble sit so they could move to grander accommodations in Hoboken, N.J. Vicki and Steve Sweeney sold their house in suburban Denver to flee a declining neighborhood; renting affords Vicki the chance to stay home with the children. Baker sees himself as a pragmatist, motivated by reality-based self-preservation. "I'm pretty sure the prices around here will plummet," he says from his two-bedroom rental in Washington, D.C. "We felt it would have been foolish to stay there." Amid their diversity, bubble sitters have something in common: They think home values have risen too high, that they will fall, and that homeowners will get burned. So they sell their homes and become renters. Bubble and burst, defined A housing bubble consists of a boom followed by a bust. Prices rise rapidly during the boom, and people buy homes on the assumption that prices will keep rocketing upward. The bubble bursts when home values fall. A burst bubble hurts homeowners who have to sell at a loss or who remain in their homes longer than intended, stubbornly waiting for values to return to previous levels. Some experts believe that a national housing bubble exists. Most economists don't perceive a national bubble, but agree that some local markets could pop. The most frequently mentioned markets include San Diego; Orange County, Calif.; Los Angeles; Las Vegas; Boston; New York City and Long Island; the District of Columbia; and South Florida, from West Palm Beach to Miami. Bubble believers maintain that low mortgage rates, combined with a mass delusion that property values will skyrocket forever, have inflated a bubble. They predict that rising interest rates will pierce the bubble, causing mass psychology to reverse: As houses take longer to sell, homeowners will put their homes on the market before the bottom falls out, panicking still more homeowners into dumping their homes on the market to limit their losses. In this scenario, potential buyers take their time, because they know prices will drop next week or next month. A deflationary spiral ensues. As evidence that home values have moved out of whack, bubble partisans note that house prices have far surpassed rental rates in some markets. Take San Francisco. From the first quarter of 2000 to the first quarter of 2005, average residential rent in the Bay Area rose 18 percent. Over the same period, the average home value in San Francisco rose 63 percent. To return to a more realistic balance, one of two things must happen: Either rents will rise while home prices stagnate, or home prices must fall. Whichever way, rapid price appreciation has to end. Unsustainable trend "Economists have a saying that unsustainable trends will not be sustained," says Paul Merski, chief economist for the Independent Community Bankers of America. "We expect that to apply in overheated markets" like the West. Merski predicts that price appreciation will decelerate in Arizona, California, Hawaii and Nevada, but he doesn't expect home values to fall. Bubble skeptics attribute the divergence between rents and prices to an earlier imbalance. They say that home prices once were too low in comparison with rents in some markets, so prices are merely bouncing back. They point out that values have risen fastest along the coasts, where developers have trouble finding land to build on. And when developers do find land, they run up against environmental and land-use rules that make it expensive to build. "Prices are supply-and-demand driven, and we have record housing demand going on in the economy today, and in many parts of the country, increasing supply constraints," says David Berson, chief economist for mortgage giant Fannie Mae. "There's no surprise that housing prices are strong." Skeptics see just froth High home prices might not surprise Berson, but they worry Alan Greenspan, chairman of the Federal Reserve. In his June testimony before the congressional Joint Economic Committee, Greenspan said: "Although a bubble in home prices for the nation, as a whole, does not appear likely, there do appear to be, at a minimum, signs of froth in some local markets where home prices seem to have risen to unsustainable levels." Froth. Not a bubble. A bunch of cute, tiny bubbles. Harmless little bubbles, enthuses David Lereah, chief economist for the National Association of Realtors: "Yes, there's froth in the markets, but froth can be healthy," he says. "It's not necessarily a bad word. When I think of froth, I could think of effervescence rather than some popping of bubbles." When Greenspan made his "froth" comment, legislators didn't pin him down. He didn't identify which local markets have unsustainably high prices. Bubble sitters think they know where prices have gone out of control -- their own neighborhoods. "We sold mostly because we wanted to get the money out when the money was good," says Bland, who sold his home in Los Angeles as a prelude to retirement. "I think it's very timely to think about selling before the bubble bursts."
  13. So, as I read this and think about it, how could a Realtor (broker or sales) Associate become an investor in Florida or eslewhere? Would he have to take himself completely out of the picture as a realtor to do the deal? Might he take an option himself and then try to sell it also on the MLS (with proper disclosure, of course)? MC, do you know anything about the rules in FLA concerning this? I dunno right now.............
  14. Hey.....did I miss something? What does S.C.A.M. stand for, anyway? I need in on the funny, please. Need a good laugh today. Thanks.
  15. One way to keep up is to market like crazy. Another way to do the big checks is to let the TB tell you how much money they have to put down instead of you giving a number first. You may want $5K and they have $10K. You just walked away from $5K !!!! My opinion only......your mileage may vary. Regards,
  16. Well, it's legal to list and bring in a buyer here in FLA, too. And it is done as a "transaction brokerage" agreement (as opposed to a "single agent" agreement, for those of you listening in . "Single agent" has a fiduciary responsibility to only one of the parties and can't act as a "dual agent.") Full disclosure required up front. And, that's why 90% of ALL Real Estate activity in FLA is done as "transaction brokerage." Realtors are basically facilitating the transaction between the parties and not taking any sides. Regards,
  17. VERY illegal in Florida. It violates the fiduciary responsibilities you have with either of the parties. ALSO, (Back to an earlier subject) according to Florida law, it is ILLEGAL for a licensed broker or sales associate to pay an unlicensed person any sum of money for the referral of real estate business or for performing any real estate service unless specifically exempted. That exemption being a property management company or an owner of an apartment complex paying a finder's fee or referral fee of up to $50.00 to an unlicensed person who is a tenant of the apartment complex. Then again, it is also illegal to run a red light, but people do it all the time. It's when you get caught that the trouble starts..... Regards,
  18. Rob, There's one of my concerns, too......kinda makes you go hmmmmmmmmmm for a while, right? Here's what I came up with when I thought about it, though. If I'm a seller and I want to sell my house bad enough (motivated) I will listen to just about anybody who has a solid idea to do so if the guy's not trying to screw me over. Let's say the value of the house is $200K and Pete comes along telling me he thinks he might have a buyer interested in it, but to make it work for everybody, the best he can do is $150K and would like to take a 60 day option. If I have to sell and I'm not getting screwed, I just might take him up on that option. Then, he tells me he has a friend who's a realtor that he can call on to list the house, also. And he'll list it for FMV of $200K. Now, I'm thinking, "Wow, Pete may have a buyer and he's got a realtor who's gonna jump in......this house could sell FAST !" That scenario is very enticing if I MUST sell it as quickly as possible due to circumstances beyond my control (divorce, transfer, job loss, etc = "m-o-t-i-v-a-t-i-o-n"). If Pete finds a buyer, he exercises his option and buys my house for $150K, which I agreed to. If the realtor finds a buyer, I sell for $200K - 6% = $188K - minus closing costs, etc. SURE I'm "routing" for the realtor right now, but in the situation we are talking about, I HAVE TO SELL. It's not about "WANT TO. And THESE are sellers you need to find to make ANY of these strategies work. It's not going to happen with every house. The secret to investing and making money is finding the MOTIVATED seller. Don't overthink it from your perspective, which is what I think you did. You are NOT a motivated seller. Put yourself in their shoes (like I tried to illustrate) and it's an entire new perspective on the way somebody thinks when they are introuble. Hope this helped.
  19. Be careful, everybody ! In most states, a real etstate associate can NOT offer referral fees to ANYBODY for leads like that. I will find the exact wording for you for Florida when I get a moment, but, if you do it......don't wave a big flag about your lucky new "partnership", OK? Very stiff penalties for getting caught. Regards,
  20. OK, Jeff....here comes the voice of experience. Or, at least the voice of radio. My background is radio. I also have an entertainment company and do a lot of public speaking and MC (Master of Ceremonies) work. I have always felt the need to be very polished in my speech. Well, I am here to tell you - that's NOT the normal way the average Joe speaks. A Realtor has a "schpeel" that they practice and rehearse until they are blue in the face. They sound scripted and my guess is that YOU DO TOO. Ease up a little. Stutter and stammer on the phone. Sound very un-easy AS MOST BUYERS DO, and your problems will be over. The more timid and unsure of yourself you sound, the more you are going to sound like a real "live" buyer and less like a Realtor. Give it a try. It worked for me. I can now switch into "geek" mode very easily when I have to speak with sellers. Let us know how it works for you. Regards,
  21. Well, THAT I can help you with (I'm still fuzzy on the rest of my questions above.... ) You have an option for $150K and are selling for $175K. You CAN assign it, I suppose, if somebody can come up with the $25K. But, most often, you will exercise your option and buy at $150K, then turn around and sell the house to your buyer for $175K. Regards,
  22. OK, thanks, Pete! Obviously, the seller needs to be somewhat motivated to sell his house if he's going to entertain the idea of giving you an option on it in the first place, right? I see the great potential here for everybody involved. But, the thing I guess I am missing is this: (Example) You get a seller to agree to a 60 day option to buy his $200K house at $150K. 1. What is the realtor trying to sell it for...$200K? (FMV) 2. Once you have your option, do you introduce the realtor and they jump into action and list it with MLS? He's trying to sell it at $200K and you're trying to sell it to your buyer at $175K or better, right? Somebody's going to sell the thing and everybody wins. I'm just trying to understand the sequence of events. Appreciate the feedback !
  23. So, Pete, I have a few questions, if you don't mind: How do you approach the seller? What do you say to the guy? How do you describe your partnership with the realtor? And does the realtor LIST his house and put it on the MLS? Are these "motivated" sellers or anybody that is selling a house? How long is your option for, usually? Are you leaving enough of a spread so you could flip the contract to another investor for some quick cash? Inquring minds want to know.......... Rich
  24. For example: What's a typical deal with the seller look like? Example: Value: $200K Option Strike Price: $150K You sell it for $180K and pocket $30K, Realtor gets $7500.00? Realtor sells it for $180K, gets a 6% commission and you get $2700.00? I'm just wondering how the numbers work out and why the seller AND the realtor can agree to do this. Again....I think I am missing a very important piece of this puzzle. Thanks,
  25. Can you show me some numbers and make this work for me? Thanks.
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