All Forum Posts by: Jonathan David

I know other people have posted speculating about the next downturn in real estate. After 2008, people are understandably still shellshocked. However I have noticed a disturbing trend in conversations amongst friends and family, and I thought I would share.

That is, everybody and their brother owns rental properties these days. My sister, who is a disaster with finances, who could not even pass “math for every day living” the most basic math class our high school offered, Has six. My cousin has 12. My other cousin has several. Numbers of people at the office have rentals. I think these TV shows have made people believe that it is a hidden goldmine.

CNBC had an article this week discussing how first time homebuyers are competing with investors, who snap up entry level houses. All that is good of course until there is a downturn. And they happen, always, and of course our economy is on borrowed time If history is any

Indication.

It kind of reminds me of the late 90s when taxicab drivers were daytrading in between fares. If you say something cautionary, you sound pessimistic. Of course in the rearview mirror it becomes obvious to everybody that something was askew. The bottom line, it is alarming to me how many people own rental properties.

So what happens when a recession hits? Well the first thing is people lose their jobs, and people tend in the lower economic categories get hit hardest. So they stop paying rent. Then all these amateur investors start saying, we can’t afford the mortgages, or things have tightened down for us to, we need to unload the rentals.

So I predict, when the next recession hits, there will be a glut of entry-level single-family homes for sale, which will push values and prices down disproportionately.

I don’t believe there will be a systemic real estate meltdown like last time, but even then 25% of foreclosures were of investor properties. I do think many people dabbling in real estate, and I know the people I mentioned are not doing their homework or buying right— will be in for a rude awakening.

Put differently, I think the single-family home segment is in a bitcoin moment, where prices are skyrocketing because of demand that will vanish and become a rush to the exit. That said, money can always be made in real estate when you do it right. I sold my first flip in 2010, the first day it hit the market.

Sell my money pit and get out of flipping. It's a flop in western mi these days. Buyers will pay to dollar for cat houses with paneling and green carpet while appraisals say mine are no different. I am sick of buying trash and giving away free remodels to people who don't appreciate it because they saw some show that made it look easy and made them think I'm rich

hi guys (and gals), I am doing a midgrade flip.  The budget is kind of tight.  I am trying to decide between butcher block counters with an undermount sink (about 500 bucks total) or just a basic laminate (about 250 total).  Is this something that is worth the extra expense, or do people see it as a hassle that can stain and needs to be maintained.  The cabinets are off the shelf white shaker with basic subway tile backsplash.  The floor will be a midgrade laminate.  Thanks

Check out this poor landlord. Charged http://woodtv.com/2016/09/21/landlady-accused-of-scamming-desperate-renters/

I am in the same boat, but they told me on some auctions the liens and back taxes get paid and on some options they do not. They advised me to call and check on every property I am interested in. As an attorney myself, I am not sure what good hiring an attorney will do for you other than to perhaps explain to you all the ways you can get screwed. They have an airtight 50 page waiver that basically says you can lose your shirt. But you were buying the house as an investor so you know there can be problems with the property, that is why you were buying at a discount. On the title end A warranty deed and title insurance should cover you so long as you make sure there are no outstanding liens

OK as a lawyer, let me respond. Why does everybody expect their lawyer to work for free. Nobody says where do I find a free plumber, a free kid to mow my lawn, a free doctor you don't even let people refill your glass at the dinner table without leaving a tip. But when it comes to lawyers, everybody wants it free. By the way when you see these TV commercials offering "free consultations" it is not because lawyers work for free. The lawyers are hoping to sign the clients to a large contingency agreement. There is no free lunch in life. That's like a car dealer saying come down for a free test drive. It does not mean car dealers are in the business of giving away cars for free. And to answer your question, yes a quiet title action can be complicated. You will need to prove something that you like we do not have the evidence to prove

I'm just curious why people will say that they are not giving legal advice. It kind of makes me smile. Yes lawyers say that but for a very specific reason. If something can be construed as legal advice, that they can become responsible for malpractice or somebody could make the claim that a client relationship was created. But if you are not an attorney, the advice speaks for itself. I grew up in a neighborhood of rentals, and somebody had a trampoline. It was great fun. I would hate to see some mistaken fear about liability deny children an innocent activity. People argue this issue back-and-forth, but it seems to me, that a trampoline is not a permanent fixture on the property and should not be placed in the same category as a loose stair banister, faulty steps, dangerous wiring, and the like. I'm sure the rules very by state. http://www.nolo.com/legal-encyclopedia/who-liable-trampoline-injuries.html

What kind of properties are you interested in? Do you want to buy rental properties?

I use the app on my iPhone, and I am wondering if there is a way to jump to my previous comments to see if anybody has responded, without having to scroll through every post. When I click on my name on my account it does not give me any options like the desktop version does to see The post so I have responded to

What are the ethical requirements for a realtor who has two or more clients who are interested in the same property. I work with a guy who represents investors almost exclusively, so every time I see a good property on the MLS, several of his other clients like it as well. Yet I am relatively new at this, and I get the impression that he strings me along. For example last summer, a great deal listed over Memorial day weekend. he told me they would not return his calls, so we could not get in to see it. However on Tuesday morning the house had four offers, so obviously somebody was able to get in. Another house I was interested in but he told me it had six or seven offers, and it was not worth pursuing. It turns out the house sold for asking price, while I was willing to pay over. He later let it slip, because he forgot I was also interested in that house, that he sold it to one of his investors. Right now I am interested in a property, yet he told me they are having trouble getting the keys to get in. He is a investor friendly realtor, and I have used him on a number of transactions so I feel like we should have some relationship developed. Yet something in the back of my mind tells me that he is stringing me along to see whether or not other offers of his get accepted. Just a month ago I asked to see a HUD home, and he told me he would have to wait until the following day to show it, although it's about five minutes from where he was. Numbers of other people were looking at it that night, and I think he wanted to see if one of his investor offers would get accepted that following morning before showing it to me. What are realtor supposed to do in this situation