All Forum Posts by: Craig E.

I went to the dentist yesterday.  20 minutes. $1200 invoice.  I could've done the work myself with a mirror and swiss army knife. 

Conventional loan. Typically the lender will want you to show seasoned POF for the DP. Closing costs can be rolled into the loan by the lender with higher IR, or all/ part closing paid by seller. Even with a trusted family member/seller, I don't recommend paying over asking by 5% to cover your DP even if the house appraises.

Wholesaler shaming under the guise of ethics is slippery.  Let's face it, any offer less than full price, all cash, 3 day close with no contingencies or realtor fees is injurious to the seller.    

When I sell a property, that's all I want 99% of the time.  Anything less and I suffer to some degree.   

The insurance company hired a GC, but you were dealing with subs directly and signing CO's?  

Sac median is currently 280k. It was 380k late 05 at the peak (with much higher IR's and ARMS).  That is a 100k spread.   Demand drives the median, which in turn creates inventory (underwater sellers start selling - see 100k spread).   Rising IR's and rising prices fuel panic.  The ability to purchase fuels buying.  Loose lending practices create the ability to buy.  In that climate, high IR's and high prices (even high payments) are immaterial. 

In short, I wouldn't rely on rising rates to keep prices down or reduce demand.  Loose lending being the variable.  Examine our market carefully.  Look at history.  Analyze current economic conditions and why there are so few buyers.  We know why inventory is low (see 100k spread).  We know that current conditions/ prices are investor driven.  The masses are on the sidelines (and not happy about it).  Factor in emotion and pent up demand/ frustration, and the possibility of loose lending in the future.  

You need to decide whether that "alright deal" is a bad deal or a buying opportunity,

Best,

Coming - Credit/ lending similar to 04/05 will prompt renters to buy homes regardless of high prices, IR's and monthly payments (remember 0 down/ low doc/stated loans for self employed people grossing $30k per year buying $400k houses?).  The power of low doc/ no down loans coupled with the dream of home ownership mixed with panic.  Remember, "No buyer left behind."

Land Park is tricky.  Just had a 2/1 8 blocks away appraise for 390k.  Can you see Target from the backyard?  

Too boring.

Like stocks, housing could well surpass its pre crash peak.  In my market, the median pre crash was $380k.  It is currently $280k.  And, pre crash IR's were higher.  Prices are high, but not necessarily too high. 

Wait until most owners/sellers are no longer underwater, and inventory is high, and credit is widely available (starting to see low doc/stated ads again), and the mass public is able to buy and is buying, and prices are 30-50% higher than they are now, and (per Buffet) there are still no fundamentals to support the markets (RE and stocks).

I'm a broker in CA. I've used a piece of binder paper. Identifiers, price, contingencies with dates (cash/loan/closing cost, appraisal, inspection/ title co). Options/Assignable. Sign/date. EMD.