Real Estate Forums

San Diego Real Estate · 05-31-2005, 10:40 AM

afm1...Great information as usuall and thanks for sharing! Can you elaborate on why you see foreclosures in the future?

afm1 · 06-01-2005, 12:21 PM

Basically, I feel that the real estate market and mortgage markets have been flooded the last 2-3 years with employees and "quick buck thinkers". Everyone wants a piece of the action. I use the ole saying "only the strong survive". I don't think it is a trend but rather opportunity. People see dollar signs and they jump for the opportunity. I can't say I blame them, but one must understand that this industry is hard work and you can't ride the gravy train forever.

Ok, same premise. I think that too many people saw appreciation percentages and rates drop and decided to buy real estate. So many people in our market think they are Carlton Sheets or Donald Trump. They need to understand the complexity of owning real estate. The liability, the laws, landlord experience, occupancy, what to pay for and how much, maintenance, capital gains, LLC's vs Partnerships, cash flowing a property etc. I do not feel that the average bear understands the above mentioned. I think that the "average bear" believes that he/she can buy a property and rent it out. Unfortunately, it is not that simple. If one does not understand the ins and outs of owning and renting real estate they can get into some real trouble. That is just my take on it.

In my market, I see newer homes leveling off and holding value for the future. However, I think that a lot of these older homes that were purchased in 2000 for $125K and sold recently for $350 will be upside down. How much value does an 1800 square foot home built in 1940 hold for the next 10 years? I don't care where the location is. It is a dangerous venture in my opinion.

Las Vegas Real Estate · 06-14-2005, 04:21 PM

Yes, because the Las Vegas real estate market moves so quickly, interest only loans have been huge with my investors as well.

San Diego Real Estate · 06-14-2005, 06:26 PM

Quote:

Originally Posted by afm1

Basically, I feel that the real estate market and mortgage markets have been flooded the last 2-3 years with employees and "quick buck thinkers". Everyone wants a piece of the action. I use the ole saying "only the strong survive". I don't think it is a trend but rather opportunity. People see dollar signs and they jump for the opportunity. I can't say I blame them, but one must understand that this industry is hard work and you can't ride the gravy train forever.

Ok, same premise. I think that too many people saw appreciation percentages and rates drop and decided to buy real estate. So many people in our market think they are Carlton Sheets or Donald Trump. They need to understand the complexity of owning real estate. The liability, the laws, landlord experience, occupancy, what to pay for and how much, maintenance, capital gains, LLC's vs Partnerships, cash flowing a property etc. I do not feel that the average bear understands the above mentioned. I think that the "average bear" believes that he/she can buy a property and rent it out. Unfortunately, it is not that simple. If one does not understand the ins and outs of owning and renting real estate they can get into some real trouble. That is just my take on it.

In my market, I see newer homes leveling off and holding value for the future. However, I think that a lot of these older homes that were purchased in 2000 for $125K and sold recently for $350 will be upside down. How much value does an 1800 square foot home built in 1940 hold for the next 10 years? I don't care where the location is. It is a dangerous venture in my opinion.

afm1...I see your point!

Thanks for sharing!

afm1 · 06-15-2005, 07:20 AM

Just my take on it. I hope everyone that bought an investment home in the last two years will prove me wrong.

Las Vegas Homes · 06-24-2005, 06:42 PM

My last 9 out of 10 buyers have gone w/ interest only as well. I agree with Mack, it simpliy seems like the most reasonable way to invest within the Las Vegas real estate market.

San Diego Real Estate · 06-25-2005, 07:39 AM

Same here in San Diego!

San Diego Real Estate · 07-08-2005, 12:24 PM

Folks IMHO this is one of the best Mortgage Options out there!