I don’t know if you know anything about option trading, but what these people did was take out a call option. If the property went up, they made lots of money, and if the option went down, the option expired worthless and someone else eats the losses. The only cost for this option: a blemish on their credit score—at least until the collection departments gear up.
Posted by lawyerliz on 11/22/07 at 04:38 AM
To Florida me, this is housing for the midmiddle to slightly lower middle class. It would have sold here at the height at $250,000, and now be headed for $125-150. Even if it were reduced by another 10%, the qualifying income would be $124,000, and how many peope even in the Land of High Salaries could come up with that much?
My almost out of business broker buddies have a listing for $297,000 and have had it for a year. Only sale in area is more than $60,000 less. The buddette told the seller that if she doesn’t lower the price to a reasonable amount, she’s not doing any work on it. So the Seller had
it lowered to 235. My budette said she’d have some open houses and tell anyone that comes that they should make whatever offer they want.
They are stuck with the ofc rent until February. They are thinking they are going to work weekends and nights. I think that you have to be there when the phone rings, and that they need to let go. The business was quite successful until August, so it is hard to let go of something that you’ve been doing so long and you enjoy. ——-
Posted by Cal's Caddy on 11/22/07 at 06:08 AM
IR says first seller in a while to have put money in the property. I say first one in a while with an RE with no mispelled words in the listing.
Posted by doug r on 11/22/07 at 06:35 AM
This may be one reason people went for those zero-down loans. If your house goes down in value, you lose less.
One commenter calls it the most Idiotic story of the year heh!
Posted by 7 on 11/22/07 at 10:48 PM
There is no free money. The “gift” set restriction on sale (can’t sell in three years), and there is a lot of cost associate with the lost of liquidity.
I make a comment about what if they file for divorce in less than 3 yrs. How will such restriction has on the restriction?
How much discount will you need if someone require you to live in a house for 30 years? 75% off? Remember, you can’t rent it out either.
Posted by housingcyclefund on 11/23/07 at 06:28 AM
It would be so valuable to list what some of the featured properties ultimatel sold for assuming properties are actually selling.
The board is great - but without seeing the ultimate sales price - we are only seeing half the picture.
But I am very appreciative for the board.
Posted by housingcyclefund on 11/23/07 at 06:29 AM
Using ultimately twice including mispelling it once.
Maybe I could be a Realtor and all I would need to do is use caps and exclamation points.
“luxury townhome”
This seems to reflect the post 2000 conventional wisdom that owning a house, no matter how small, is a luxury. Imho a 1500 sqft condo is the entry level for a young couple with kids, hardly an extravagancy, but, ok, I’m an old fashioned guy…
Posted by IrvineRenter on 11/22/07 at 07:55 AM
I don’t know if you know anything about option trading, but what these people did was take out a call option. If the property went up, they made lots of money, and if the option went down, the option expired worthless and someone else eats the losses. The only cost for this option: a blemish on their credit score—at least until the collection departments gear up.
Posted by lawyerliz on 11/22/07 at 04:38 AM
To Florida me, this is housing for the midmiddle to slightly lower middle class. It would have sold here at the height at $250,000, and now be headed for $125-150. Even if it were reduced by another 10%, the qualifying income would be $124,000, and how many peope even in the Land of High Salaries could come up with that much?
My almost out of business broker buddies have a listing for $297,000 and have had it for a year. Only sale in area is more than $60,000 less. The buddette told the seller that if she doesn’t lower the price to a reasonable amount, she’s not doing any work on it. So the Seller had
it lowered to 235. My budette said she’d have some open houses and tell anyone that comes that they should make whatever offer they want.
They are stuck with the ofc rent until February. They are thinking they are going to work weekends and nights. I think that you have to be there when the phone rings, and that they need to let go. The business was quite successful until August, so it is hard to let go of something that you’ve been doing so long and you enjoy.
——-
Posted by Cal's Caddy on 11/22/07 at 06:08 AM
IR says first seller in a while to have put money in the property. I say first one in a while with an RE with no mispelled words in the listing.
Posted by doug r on 11/22/07 at 06:35 AM
This may be one reason people went for those zero-down loans. If your house goes down in value, you lose less.
Posted by IrvineRenter on 11/22/07 at 07:53 AM
I almost made a comment on this being a well written listing, but they closed with an exclamation point, so I couldn’t bring myself to compliment it.
Posted by NanoWest on 11/22/07 at 10:51 AM
I wonder if you get a years supply of crack pipes when you buy this place?
Posted by NoWow!way on 11/22/07 at 04:53 PM
Here is a story of people getting “free” money to help buy their first home:
http://www.ocregister.com/ocregister/homepage/abox/article_1927394.php
One commenter calls it the most Idiotic story of the year heh!
Posted by 7 on 11/22/07 at 10:48 PM
There is no free money. The “gift” set restriction on sale (can’t sell in three years), and there is a lot of cost associate with the lost of liquidity.
I make a comment about what if they file for divorce in less than 3 yrs. How will such restriction has on the restriction?
How much discount will you need if someone require you to live in a house for 30 years? 75% off? Remember, you can’t rent it out either.
Posted by housingcyclefund on 11/23/07 at 06:28 AM
It would be so valuable to list what some of the featured properties ultimatel sold for assuming properties are actually selling.
The board is great - but without seeing the ultimate sales price - we are only seeing half the picture.
But I am very appreciative for the board.
Posted by housingcyclefund on 11/23/07 at 06:29 AM
Using ultimately twice including mispelling it once.
Maybe I could be a Realtor and all I would need to do is use caps and exclamation points.
Posted by IrvineRenter on 11/23/07 at 08:17 AM
We do updates on our properties periodically. The vast majority have been taken off the market unsold.
Posted by Gray on 11/23/07 at 11:22 PM
“luxury townhome”
This seems to reflect the post 2000 conventional wisdom that owning a house, no matter how small, is a luxury. Imho a 1500 sqft condo is the entry level for a young couple with kids, hardly an extravagancy, but, ok, I’m an old fashioned guy…