I enjoyed the 1974 intro more than the 1977 intro - the action was spliced better and the film less grainy.  This matches with my perception that sports coverage has only gotten grdually worse over the past 35 years—these days you can’t even get all the track and field events covered at the Olympics, for Christ’s sake.  They only show the ones the Americans might win.  Pet peeve of mine.

Re: your comment on our ‘neighbors’...isn’t that really the problem?  People like this clown weren’t our ‘neighbors’, they were speculators. The fact that he tried to flip the property 8 months after he purchased it makes his strategy obvious enough—I’ll bet he didn’t just buy the place and then get laid off six months later.  Speculators like this don’t give a damn about the neighborhood, they just figured they would ride the wave a bit, with the banks money, and cash out a risk-free profit.  I am all for capitalism, and certainly in favor of people making money in real estate using their own capital, but I am not in favor of giving government-guaranteed loans to some guy who is, in effect, a day trader with someone else’s $1 million asset.

I am sure speculators like this will be back.  The lure of “easy money” and his relatively painless loss means that it’s a low-risk game with high possible payoffs.

It’s actually a very smart move.  If you can put 5% into a gamble that has a decent probability of large gains, it’s a smart move to do so.  The risk/reward dynamics still make real estate gambling a good proposition.

When will the Fed stop allowing people to gamble with the taxpayers’ money—not anytime soon.

I’ve always wondered why buyers have a first and second mortgage. Because the first wouldn’t cover the price and not enough down payment? Is the second mortgage through a different bank? Are they 2 totally different mortgages? Thanks.

I believe it is to avoid paying PMI.  80% first mortgage, 15% second mortgage, 5% downpayment will not require PMI whereas a 95% first mortgage, 5% downpayment would require PMI.  Can anyone provide further clarification?

Looks like another McStacker.  1800sf on 3 floors.  Really efficient home living, Not.  Max land usage.  A better model is the SF, CA with 2 family units—one on each floor.

Looks to me that “owner” broke even or ahead.
Cost: 18,130 down plus est. $4000 closing cost = $22,130
Free rent for year: 12 * $2400 = $28,800

$6,670 saving to “owner”

Buster’s comment of the Fed’s allowing only 5% loss limit is so true.  Just have issues with not paying my debts and obligations.

Why did the bank bid $561,267 or $42k above the first loan?

Ski Horror! ...

http://www.youtube.com/watch?v=cEM3wy8sdBg&NR=1

Lots of coming inventory in this neighborhood ... no need to stretch the budget for this postage stamp apartment. 

226 Tall Oak, Irvine, CA‎ - more info »
Foreclosure: $385,000
0 bed 0 bath
“This property is a Pre-Foreclosure.
22 Tall Oak, Irvine, CA‎ - more info »
Foreclosure: $333,700
0 bed 0 bath
“This property is a Pre-Foreclosure.
347 Tall Oak, Irvine, CA‎ - more info »
Foreclosure: $560,000
0 bed 0 bath
“This property is a Pre-Foreclosure.
137 Weathervane, Irvine, CA‎ - more info »
Foreclosure: $882,000
0 bed 0 bath
“This property is a Pre-Foreclosure.
125 Lattice, Irvine, CA‎ - more info »
Foreclosure: $1,000,000
0 bed 0 bath
“This property is a Pre-Foreclosure.
147 Tapestry, Irvine, CA‎ - more info »
Foreclosure: $1,000,000
0 bed 0 bath
“This property is a Pre-Foreclosure.
148 Tapestry, Irvine, CA‎ - more info »
Foreclosure: $1,240,000
0 bed 0 bath
“This property is up for Auction.
88 Canopy, Laguna Beach, CA‎ - more info »
Foreclosure: $560,000
0 bed 0 bath
“This property is a Pre-Foreclosure.
152 Tapestry, Irvine, CA‎ - more info »
Foreclosure: $956,250
0 bed 0 bath
“This property is a Pre-Foreclosure.
23 Balcony, Irvine, CA‎ - more info »
Foreclosure: $1,350,000
0 bed 0 bath
“This property is a Pre-Foreclosure.

We got a second wave coming.  FYI, Quail Hill is gonna hammered.

“When will the Fed stop allowing people to gamble with the taxpayers’ money—not anytime soon.”

The (bailed out) banks do this every day, gambling FDIC insured deposits with proprietary trading.

Heads they win, Tails they break even.

America has turned into a massive casino.

Problem with the “one on each floor bit” is everybody except the top floor tenant then has a neighbor stomping about above him, which can be a big problem, depending on the quality of the construction.  It also makes having a (small) yard or attached garage tricky or impossible.

I can’t wait until an gets it.  I am licking my chops.  That 3story shoebox should sell for 280k.

Lee, I commend your bearishness.  Will you be going to the Block Party?  I hope so because I’d like to meet you.  I am a friend of Irvine Renter’s (he can vouch for me that I am not a crazed realtor on Kool-Aid looking to take you out).  -Tom

Why would anyone buy this thing? Would it make a great rental? There are plenty of places in that same price range (just a few years older) available without the steps?

It also has to do with priority of claims.  A 95% first loan has more exposure to the borrower and the collateral than a first within a 80/15/5.  The 15% second is junior to the first.

These shoeboxes are awful - all stairs, no living space, tiny square footage in bedrooms.

Last July new ones in Palo Alto were asking and getting $700K.  Advertised as good family living in a good school district - can you imagine chasing your toddlers up and down all those damn stairs?Yuck.

The Palo Alto models had no yards, either.  No excuse for these POSs.  But they sell.

Believe it or not, I’m not an uber-bear, and I don’t enjoy talking down The OC real estate market or the national economy.  The difference between me and the typical OC resident, is I had/have inside information.  I saw this bubble forming, I knew it was a bubble, and I still know there’s a lot of hot air in the bubble.  Most of the “experts” said there was “no bubble”, and these are the same people who insist the bottom is behind us.  I know they’re wrong now, just as they were wrong 2 years ago.  Perhaps you’re one of these people.

Besides, how can anyone really believe we’re at a bottom when about 10% of OC homeowners are either in default, were in default and already lost their homes, or will be in default.  Then you add a crappy job market, and you see these are not the factors that are associated with real estate bottoms.

Here’s what I wrote today on Lansner’s Blog:

“The facts are very simple, we cannot have a recovery in real estate until the economic circumstances are ripe for one. We are still trying to get people to overpay for real estate with artificially low mortgage rates, that are backstopped with govt guarantees. The govt is borrowing more than 10% of the annual gross domestic product to keep this Ponzi scheme rolling. All this is completely unsustainable, and being run by irresponsible liars in the govt … and it will ultimately end with another (BIGGER) step down with our entire economy.”

I stick by those words.

BTW, I will not be at the block party because unlike Irvine Renter, I will not disclose my identity because of my business.  I am self employed, and I simply will not risk losing business due to my writings in the real estate blogosphere.

I can tell you this about me:

1) My real name is not lee.
2) I do own real estate ... probably more than most of the real estate bulls that post in here and other real estate blogs.
3) I am not a bitter renter, as my housing situation is based on choice, not financial circumstances.

Crap like this is built to feed the buying frenzy. Orange County is out of land, so i’m told.Better act fast,this one won’t last.