Time to buy Real Estate?

Discussion in 'Economics' started by jem, Apr 13, 2012.

  1. jem


    I am hesitant to talk my book because I never liked doing that with futures or equities until I sold half at a profit... but...

    I bought my first property today since getting smoked for a lot of money in Florida 5-7 years ago. I was planning to trade more actively but I just did not see risk reward.

    My theory is, interest rates should stay low and the market should stay hot for the next few months. I have about a 60 day hold on this. I think I can get a conservative 20 percent return after expenses. I am buying an REO right from the bank's portfolio... we inspected it and we will spend 20 grand on updating.

    Background I am a broker I have about 35 other listings mostly short sales... many properties are getting multiple offers and I have potential buyer's in may database.

    If this works and there are still REOS in two months, I will try and do it again once or twice before say Sept or Oct. My 3rd target may be for a rental investment.

    I was not stoked about funding on friday the 13th but I was born on friday the 13th.

    I will update when the property records early next week.
  2. "As many as 1.25 million of America’s least cared for homes are headed for auction after a year-long probe into foreclosure practices kept them off the market."

    You think this will keep prices down longer?

    I've been waiting and waiting to buy a rental property , thinking I'll wait till this winter.
  3. ptrjon


    this summer could bring a lot of home sales, but it's tough to say. Since 2008, families have not been branching out and many twenty-somethings have stayed away from buying- when this changes, we will see home prices go up. But it could happen this summer or it could be in 4 years.

    Either way, people who are buying now will pay low mortgage payments and they'll do better than buyers in 2005.
  4. NO.

    Ah, let me put it another way.

    Definitely NOT.

    How about this...

    Absolutely, Positively, DO NOT BUY RE

    Can I make it any clearer?


  5. I recently tried to buy a condo in Miami and it sold before I could get my offer in. I tried the next one in the building and got out bid by someone else. Seems like more buying activity lately. My only concern is that the buying pressure won't be enough to absorb the endless supply of foreclosures.

    Also, on the higher end of the mkt I'm not seeing any buying pressure, only on the lower end.
  6. The slumlords lol

    NEW YORK, April 12 (Reuters) - For the second time in five months, Bank of America is tapping the red-hot market for foreclosed homes by seeking bids on a bulk offering of several hundred single-family homes.

    Over the past several weeks, the nation's second-largest bank by assets has solicited bids for a bulk deal that includes up to 500 largely vacant single-family homes, some of which BofA acquired after its merger with Countrywide Financial, according to several sources within the real estate and mortgage sectors. Countrywide was one of the largest subprime lenders in the United States.

    The bulk deal, which includes foreclosed homes in California, Florida, Arizona, Texas, Pennsylvania and Georgia, is one of the biggest block offerings of foreclosed homes ever done by a bank, these sources say.

    The bulk sale comes at a time that institutional investors, including private equity firms and hedge funds, are raising money to invest in a bulk offering of 2,500 renter-occupied foreclosed properties being auctioned by Fannie Mae. The government-sponsored mortgage finance firm is currently accepting bids for that bulk sale under a trial project by the Federal Housing Finance Agency, which regulates both Fannie Mae and Freddie Mac.

  7. What state are you doing this in jem?
  8. if you are buying in california you are a bit late.

  9. piezoe


    I think this winter should be the low. Good time to buy in my opinion.
  10. RE price may look enticing but Imo, the wild card is property and school taxes. Municipalities are in deep doo doo and the next few years will probably get worse, tax wise.

    Secondly as far as remodel and repairs, many of these product rise in price with the rise in price of oil, and the ones that aren't made with petro chemicals are affected with transportation costs.

    The house may be a bargain but the saivngs will vanish with the peripheral costs.
    #10     Apr 14, 2012