most of the bidding wars are taking place in the 300k or less price range. in my neighborhood theres foreclosures out the but. i actually saw the owners of a soon to be foreclosed home stripping it dry yesterday taking everything from door knobs to light fixtures to the air conditioning units. so that home will sell for much under the prices of the neighborhood now and push the comps down yet again triggering even more foreclosures.the illusion of a better housing mkt is only because banks have kept millions of homes off the mkt by allowing people to stay in them rent free. slowly they're releasing them but if the real estate mkt re tanks with skying rates the banks could panic throwing huge supply back on the mkt
@piggie2000 the good thing about the DC area is that some 30% of the people rely on jobs that require some form of security clearance, they can't risk that to taking pleasure in destroying a foreclosed property, that kind of shit mostly happens in broke states like CA also about a year ago I was looking at government statistics, the numbers showed that the number of properties across the country were 10% in excess of the number of households in the US, I was wondering how low that 10% excess in properties can push down the price of properties, not to mention that most of that excess is again in fucked up states like CA, DC area shouldn't have such high percent of excess properties, because most gov jobs are around this area, plus the gov is constantly growing, and promises to continue growing, I mean how else do they create jobs? obama, his like and their endless stupidity give me the assurance that this country and it's currency are fucked
I spent most of the day thurs with a guy who owns 240 apt buildings. His collection was started in 1933 by his grandfather and passed down from his dad. This month he plans to close on 20 more buildings and he's paying 100% cash. I don't know if he's right or if he's out of his mind but one things for sure, there will be 20 less buildings for sale in this area after he's done. On top of that there will also be a lot of guys working because most of these places, or at least the ones I saw, need some serious rehab which is why I was there. These are fairly large buildings too. I think most range from about 24 -100 units each.
^^^ Where are these buildings? Just curious. As for the DC area, let's not forget its a company town (Federal gubmint) and business is BOOMING baby. If there is one place in the country that should be able to cruise right out of a real estate slump, DC is it.
How does your buddy keep track of all those keys? I feel sorry for his plumber, poor guy have a never ending job of plunging toilets.
I would imagine that with that many buildings, this guy has a legitimate company with several full-time employees managing these properties. Just the showing these properties to potential renters would require several leasing agents. Let alone, maintenance, etc
This is how you know people are going to get burned again. They start in with the mental masterbation of how much money they are going to make. I saw people like this doing the same thing with houses back in 2005 thinking they were going to buy a house for 400k (that only cost 150k a few years earlier) and they would hold it for 2 years and sell it for 600k.
would you like to state where the possibility of getting burned is, worst case scenario; the collected rent will not rise as quickly as the fees and taxes, but still it will continue to cover all costs, because the mortgage is at fixed rate, but the possible future income comes from the assumption or actually fact, that the USD is losing it's value on an international level very rapidly, they can talk about deflation all they want, but you know and I know that the USD is fucked, and inflation is inevitable, because they can't pay for the cost of maintaining the system without devaluing the currency, anyhow like I stated earlier, worst case is the rent will continue to cover the costs