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Help: How Many Freepers Are Considering Buying Their First Home Any Time Soon?
3/15/10 | Reaganesque

Posted on 03/15/2010 11:09:12 AM PDT by Reaganesque

I've been reading in real estate news that first time home buyers are starting to buy homes again. Interest rates are still low, the First Time Home Buyer Tax Credit is still available and houses are affordable but, I'm just curious, how many Freepers are looking to buy their first home? This isn't necessarily a thread to comment on the Obama economy, I'm simply interested in buyer's current attitudes. I'm a real estate investor and I thought I would ask some real people about this.


TOPICS: Business/Economy; Chit/Chat
KEYWORDS: buyer; first; home; time
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To: MikeWUSAF

I would imagine that a lot of military personnel would flip homes or have rental properties for extra income. Is that the case to your knowledge?


61 posted on 03/15/2010 12:27:58 PM PDT by Reaganesque ("And thou shalt do it with all humility, trusting in me, reviling not against revilers.")
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To: Reaganesque

10% of 80,000 is 8,000


62 posted on 03/15/2010 12:29:12 PM PDT by Chickensoup (We have the government we deserve. Is our government our traitor?)
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To: Reaganesque
My definition of a real estate investment is "something that will comfortably cash flow as a rental".

If it doesn't cash flow, you're not talking investment, you're talking casino bet.

63 posted on 03/15/2010 12:32:35 PM PDT by Notary Sojac (Mi Tio es infermo, pero la carretera es verde!)
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To: Notary Sojac

I have to ask about your tag line...”Your uncle is sick but the highway is green?” Say what?! LOL!


64 posted on 03/15/2010 12:36:06 PM PDT by Reaganesque ("And thou shalt do it with all humility, trusting in me, reviling not against revilers.")
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To: CodeToad

>> You’re kidding, right? Price continue to fall and there is no trend to say they won’t continue to fall, but there ar eplenty of trends that say they will. If you are an investor, then you should know that.

That depends on the market (if you’re an investor, you should know that). Generally, prices have stabilized. In some markets, prices continue to plummet, and in others (particularly in the South), prices have risen some.

I was speaking generally. For the record, I wouldn’t invest in Detroit at this moment ... Tennessee, Texas, Georgia, Flordia, etc. have some good buys, though.

SnakeDoc


65 posted on 03/15/2010 12:39:05 PM PDT by SnakeDoctor ("Rise and rise again, until lambs become lions." -- Robin Hood (Russell Crowe))
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To: OldPossum

>> I would not be so sure what remnants of capitalism we will have left once the Democrats’ program is fully in place.

That their current powerplay will likely cost most of them their jobs is reason for hope.

A lesser nation would (as many lesser nations have) invite this debacle with open arms. We may not be on the right track at the moment ... but the general unpopularity of this bill indiciates the American mindset is both correct, and unique in the world. It is that unique mindset which made us what we are, and which will deliver us from what we face.

SnakeDoc


66 posted on 03/15/2010 12:45:25 PM PDT by SnakeDoctor ("Rise and rise again, until lambs become lions." -- Robin Hood (Russell Crowe))
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To: texmexis best

You have FReepmail.


67 posted on 03/15/2010 12:48:03 PM PDT by rightly_dividing
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To: Reaganesque

I know one or two with rentals but not many. Military types move around too much to manage rentals.


68 posted on 03/15/2010 12:56:30 PM PDT by TSgt (RE-ELECT NOBODY - VOTE THEM ALL OUT!)
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To: Attention Surplus Disorder

Thanks for your advice. It sounds reasonable to me. I have returned to college full time and I anticipate graduation next year, at that point I will have to assess my situation. The only down side is that the house is very old and a termite city, so there will be extensive improvemrnt costs afterwards. But hopefully I will be employed full time by them.


69 posted on 03/15/2010 12:58:23 PM PDT by rbosque (11 year Freeper! Combat Economist.)
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To: MikeWUSAF

OK. Thanks!


70 posted on 03/15/2010 12:58:51 PM PDT by Reaganesque ("And thou shalt do it with all humility, trusting in me, reviling not against revilers.")
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To: rbosque

It’s not only a classic “model”...I did it myself...sort of.

I lived in 1/2 of a duplex l0 months that was listed for sale/lease at $425K. 2 months before my lease expired, out of the blue, the owner offered me the place for $300K, no bargaining. She owned it outright and offered to finance the thing 15 yrs @ 7% (quite decent at the time, 1995) if I put 10% down. I wrote her a $30K check and starting making payments, shazam, the easiest RE deal of all time. The escrow people were absolutely furious at me because they made almost nothing on the deal.

You don’t by the way have to wait for the owner to kick; at least to start the idea wheels turning. Although, should he sell now he could be subject to a giant capital gain that is in most cases better handled by transferring the stepped-up basis to the heirs.

Still, strategically, you may want to start thinking about laying the groundwork for the deal now. It’s entirely a matter of the relationship you’ve developed with the current owner. *ANY* California RE deal *MUST* go thru termite inspection, even the most “as-is” of “as-is”, which itself is semi-meaningless in CA. Nevertheless, that could be a $4K-$20K affair the heirs will have to deal with off in the future, and it will be real money they have to spend. If you’ve been timely with your rent for a few years and place has some deferred mtce, those are things in your favor. They key is for you to put yourself in the place of the heirs, trying to sell a property which they have no attachment to, but which they will have to pay perhaps $20K-$25K each to sell. (assuming 3 heirs, $50K sales commish, $15K termites, $10K misc selling expenses) Yes, they got the property for free so in one sense it doesn’t “cost” them to pay those fees, (though they will have to advance termites & fixup) but you’re offering to deliver a 5 or 6% coupon to them they cannot ordinarily get.

My suggestion is to spend some time pondering this, I repeat, it is a classic situation than usually can be worked out into a very easy deal to everyone’s benefit without undue effort.


71 posted on 03/15/2010 1:28:46 PM PDT by Attention Surplus Disorder (Voters who thought their ship came in with 0bama are on their own Titanic.)
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To: Attention Surplus Disorder
The property was actually given to my landlord by his friend who had no heirs. The house was a gift and has been a cash cow for them for the past 12 years I've been renting it. I did ask him to sell it to me not too long ago but he turned me down. They just sold two or three houses last year so it's not like they're hurting for money. Plus, the guy is 92! You'd think he wouldn't care but his wife is pretty tight with money, she just sees the house as a money machine and won't sell. Of course, I'm not sure what the kids would do.
72 posted on 03/15/2010 1:41:39 PM PDT by rbosque (11 year Freeper! Combat Economist.)
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To: rbosque

So much the better. It will remain the money machine it is now for them should you construct a deal where they continue to receive payments over a long period of time. Without them having to pay the prop taxes nor do the mtce which, it sounds like they have an unpleasant appointment with in the future. See if you can develop a non-aggressive dialog with the heirs. You’re not necessarily looking to steal the place. But you can avoid conventional financing origination fees and they can avoid a fat RE commish if the fundamental interest is there. If they have cashed out of other properties, they already know there is a challenge to achieve yield on the proceeds.


73 posted on 03/15/2010 1:57:50 PM PDT by Attention Surplus Disorder (Voters who thought their ship came in with 0bama are on their own Titanic.)
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To: Attention Surplus Disorder

True. Their kids live out of state but I’m sure I’ll have the opportunity to talk with one of them at some point. My wife and I know that the house is out of code and it would be an inspector’s nightmare. To be honest, the property it sits on is worth more than the house. It is a double lot on the corner of a busy street. One can even demolish it and put in three new houses; but I’m sure it’s crossed the minds of the kids. But I’ll just have to wait and see.


74 posted on 03/15/2010 2:14:10 PM PDT by rbosque (11 year Freeper! Combat Economist.)
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To: Reaganesque

I’d like to, and started looking into it, but don’t have enough of a down payment to qualify for financing.


75 posted on 03/16/2010 2:32:06 PM PDT by Unlikely Hero ("Time is a wonderful teacher; unfortunately, it kills all its pupils." --Berlioz)
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To: Reaganesque
I have to ask about your tag line...”Your uncle is sick but the highway is green?” Say what?! LOL!

Google "43 Man Squamish"

76 posted on 03/17/2010 6:44:27 AM PDT by Notary Sojac (Mi Tio es infermo, pero la carretera es verde!)
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