Posted by michaela-CA on August 03, 2008 at 13:25:48:
Congratulations on your potential deal for your daughter.
Let me know if you want me to take a look at it for you - but you’ve probably already seen it.
Michaela
Today was a good day - Posted by Brian_Wa
Posted by Brian_Wa on August 01, 2008 at 14:43:44:
Just received a 45k check in net profit today for a lease/option house I just sold to my tenant/buyer. Bought the house (as a short sale) April of last year. Found a tenant with great credit scores five or so months later. Tenant exercised option to purchase by obtaining his own conventional loan.
Docs were also recorded for another house I just sold today. Picked up the house about 3 months ago. It was a doublewide with its own land. I actually asked a bunch of questions regarding buying a doublewide at that time as a matter of fact. This was my first mobile home purchase ever. Spent about 1 month “cleaning” it up (I hired people to do it cuz I know nothing about fixing things). Found a buyer soon afterwards. The deal was suppose to close 2 weeks ago but buyers had a horrible time dealing with Countrywide and its VA loan program. Everything finally aligned yesterday and they came in to sign yesterday. I came in to sign at 9:00 AM today. Escrow will wire the proceed into my account on Monday. Net profit should be about 35k.
It’s a good day so I just want to share it with you great folks. Hope you all have an even better day.
Brian
Nice deals… - Posted by Natalie-VA
Posted by Natalie-VA on August 02, 2008 at 06:08:50:
I was in a little bit of a slump earlier this year, but did a few recent deals also. It makes summer more fun!!
–Natalie
Re: Today was a good day - Posted by tampasteph
Posted by tampasteph on August 01, 2008 at 16:00:36:
You are lying. You can’t make any money in real estate anymore.
Just kidding.
Congrats on your deal!!
Steph
Re: Nice deals… - Posted by Ben (NJ)
Posted by Ben (NJ) on August 02, 2008 at 13:02:40:
I have had the exact same situation. Had a lot of inventory sitting around, had sold 3 properties all year until a few weeks ago. Suddenly sold three in a row and went under contract for a fourth. Dare I say things are starting to loosen up?
Re: Nice deals… - Posted by michaela-CA
Posted by michaela-CA on August 02, 2008 at 16:10:37:
Hey, Ben,
Where have you been? We’ve missed you around here.
I’ve been watching similar here - REOs sitting in my neighborhood since last year and suddenly they’re
all sold in june and July.
Here’s what I think is happening:
Last year when the whole mortgage debacle hit there were lots of people that had been ready to buy. They held off and kept renting, but not giving up the idea, waiting for the right moment. Right now I keep hearing agents say that ‘this is the time to buy’ and I think people are coming out of the woodwork to not lose the ‘bargain’. Mind you, This is a collection of buyers from the past 12 months, that are buying now. BTW, the only ones in my neighborhood that sold are the REOs, not the normal listings.
So, now it looks as if the market is coming back, when in reality it’s a collection of buyers from the past 12 months. Once they’re off the market, we won’t have that many new elligible buyers coming every month.
So, in my opinion it’s a false temporary reprive.
Michaela
Re: Nice deals… - Posted by Kristine-CA
Posted by Kristine-CA on August 03, 2008 at 10:54:27:
Hi Michaela. For the REOs that sold after 12 months, have you
watched the price changes? In my market, the REOs that sat on the
market more than 6 months did so because of the lender’s
unwillingness to change the price. REOs are selling at very low prices
in my area, and lenders are getting the clue and starting them at the
broker’s recommended pricing. But the ones that sit for months, are
just overpriced, period. Kristine
Re: Nice deals… - Posted by Ben (NJ)
Posted by Ben (NJ) on August 02, 2008 at 18:09:55:
Hey Michaela, good to hear from you. I’m still around. Most of my buyers lately are all cash types (is there any one else left, LOL)> Like you said, maybe they’ve been sitting on the sidelines waiting for the deals. No matter to me, a sale is a sale.
Re: Nice deals… - Posted by michaela-CA
Posted by michaela-CA on August 03, 2008 at 11:17:25:
kristine,
the point that I had been trying to make, and that may have not come across, is that I don’t believe that the sudden surge of purchases are due to an upswing of the real estate market again, but rather that I think that it’s all those buyers that have accumulated for the past year, that are now willing to jump on ‘bargains’ and that I don’t believe that we will keep having monthly sales like we’ve had the past couple of months. I think once those buyers have bought, we will still have a lot fewer qualified buyers coming into the market and still a lot more properties coming on the market. Subsequently, I think the descrepancies will increase.
just my opinion
michaela
Re: Nice deals… - Posted by Michaela-CA
Posted by Michaela-CA on August 03, 2008 at 11:06:34:
kristine,
you’re absolutely correct. The REOs did drop their prices finally, which contributed to their sales. The Owner’s were/are not willing to do that as they’re still stuck in a certan thought patterna as to price, plus they may just be trying to break even.
Since about 38% of all inventory sales in California are REOs, that means the banks are in control of setting where market values are is and not the ‘normal’ sales.
Many owners won’t or can’t lower their prices to the levels that banks can. So, those are the properties that will sit and maybe eventually become REOs as well.
Michaela
Re: Nice deals… - Posted by Kristine-CA
Posted by Kristine-CA on August 03, 2008 at 13:11:26:
That reality check for owners that are selling right now isn’t always
relevant…because they owe more than they can sell for. Not that
many people have cash to bring to closing.
That being said, the REO pricing is affecting comps and the sellers that
can afford to sell are paying attention (and listening to their agents
pricing suggestions). This is good news for me because it makes it
easier to work with sellers who have equity AND when the comps are
so abundant.
The number of cash buyers must be limited everywhere. I just made an
offer on a junker house near UC Berkeley (for my daughter)…a totally
low ball offer…and it looks like it may be a deal. There is no lack of
interest in that house (worst house on a great street). But the
owner/occupant loan thing cancels out the majority of buyers. Kristine