All Forum Posts by: Ken M.

Quote from @Chris Seveney:

Quote from @Ken M.:

From CoreLogic

CoreLogic, a reputable real estate analytics firm, isn't just pulling these predictions out of thin air. Their Market Risk Indicator report takes into account a bunch of different factors

A Closer Look at the 5 Cities:

Let's take a closer look at each of the five cities identified by CoreLogic: None are CA, TX, OH or TN

1. Provo-Orem, UT: This area saw significant price increases during the pandemic, but things are starting to shift. According to Realtor.com, the median list price in Provo last month was $566,375, down 1.4% from a year ago. Even so, it's still up a whopping 38% from January 2020. This suggests that the market may be correcting after a period of unsustainable growth. High growth leads to high declines!
2. Tucson, AZ: Tucson is another market that experienced rapid price appreciation. List prices in January were down almost 2% from the previous year.
3. Albuquerque, NM: This city has seen similar trends to Provo and Tucson. While still relatively affordable compared to other Sun Belt markets, Albuquerque's housing market is showing signs of slowing down. I have also noticed that in the desert regions like Albuquerque, the lack of rains can make it extremely difficult to do construction in time and within budget leading to inventory problems.
4. Phoenix-Mesa-Scottsdale, AZ: Phoenix was one of the hottest housing markets in the country during the pandemic. However, it's now facing a significant correction. Increased inventory and cooling demand are putting downward pressure on prices.
5. West Palm Beach-Boca Raton-Delray Beach, FL: South Florida saw a huge influx of people during the pandemic, driving up prices. But the area is also vulnerable to rising insurance costs and other factors that could dampen demand. List prices were down a notable 10% from a year earlier in Palm Beach County, indicating a significant shift in the market.

The Future Outlook

While the CoreLogic report highlights the risk of price declines in certain cities, the overall outlook for the national housing market is still relatively positive. Most experts believe that home prices will continue to grow, albeit at a slower pace than in recent years.

 We will see this in other markets as well, especially other areas of Texas and Florida where insurance and taxes have skyrocketed. I also believe California is going to start seeing some softening which I will get a lot of hate for, but pricing in certain areas is just not sustainable. 

Lol You'll hear from San Diego for sure. ;-)

From CoreLogic

CoreLogic, a reputable real estate analytics firm, isn't just pulling these predictions out of thin air. Their Market Risk Indicator report takes into account a bunch of different factors

A Closer Look at the 5 Cities:

Let's take a closer look at each of the five cities identified by CoreLogic: None are CA, TX, OH or TN

1. Provo-Orem, UT: This area saw significant price increases during the pandemic, but things are starting to shift. According to Realtor.com, the median list price in Provo last month was $566,375, down 1.4% from a year ago. Even so, it's still up a whopping 38% from January 2020. This suggests that the market may be correcting after a period of unsustainable growth. High growth leads to high declines!
2. Tucson, AZ: Tucson is another market that experienced rapid price appreciation. List prices in January were down almost 2% from the previous year.
3. Albuquerque, NM: This city has seen similar trends to Provo and Tucson. While still relatively affordable compared to other Sun Belt markets, Albuquerque's housing market is showing signs of slowing down. I have also noticed that in the desert regions like Albuquerque, the lack of rains can make it extremely difficult to do construction in time and within budget leading to inventory problems.
4. Phoenix-Mesa-Scottsdale, AZ: Phoenix was one of the hottest housing markets in the country during the pandemic. However, it's now facing a significant correction. Increased inventory and cooling demand are putting downward pressure on prices.
5. West Palm Beach-Boca Raton-Delray Beach, FL: South Florida saw a huge influx of people during the pandemic, driving up prices. But the area is also vulnerable to rising insurance costs and other factors that could dampen demand. List prices were down a notable 10% from a year earlier in Palm Beach County, indicating a significant shift in the market.

The Future Outlook

While the CoreLogic report highlights the risk of price declines in certain cities, the overall outlook for the national housing market is still relatively positive. Most experts believe that home prices will continue to grow, albeit at a slower pace than in recent years.

Quote from @Tammy Christensen:

The property is free an clear a title search has been done. The BUYER n Seller have agreed on price, down payment,  n monthly payments etc. The seller is making sure the purchase agreement states that any an all money paid is non refundable.  I feel the seller knows that the property is going to have a lower appraisal value which gives rights to buyer to back out. 

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Your comment: "I feel the seller knows that the property is going to have a lower appraisal value which gives rights to buyer to back out."

If the buyer can back out, what is the problem? I'm unclear.

Quote from @Tammy Christensen:

Purchasing Property for $85,000. Down payment of $25,000, then $5,000 per month for 12 months. The Seller is giving keys to BUYER of  property, however the DEED/TITLE doesn't get transferred to BUYER til after the final payment. The SELLER says no matter what there is no refunds on any of the money under any circumstances.  What can the BUYER do to protect their money, from any unforeseen circumstances??

Sounds like a Contract for Deed setup. There are not enough details to know specifics but get a real estate attorney to draw up a contract for the state the property is in, ask if you need a title report, ask if they will escrow the deed, and ask the attorney all of your questions. Follow his/her advice.

So far, you haven't proven they have the right to sell the property, that it is free and clear with no liens or that there aren't other interested parties involved.

Quote from @Carlos Garza:

@Ken M. Thanks for replying to post.  Would like to know what part do you think is off? Just for an update, I received a notice of proposed abandonment from the trustee.

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 This can not be handled without seeing the paperwork and knowing what was filed, who is involved and what motions have been filed and how the judge responded. 

You need a bankruptcy attorney the moment you are notified of the debtor filing for bankruptcy.

Quote from @Marija Petrovic:

My partner and I hold property 50/50. I want to sell, she doesn't. We have operating agreement but it wasn't signed by either one of us, so I guess that is unenforceable. 

What should I do? Should I force company dissolution?sa

Can you find a buyer for her half?

Quote from @James Hamling:

Quote from @Ken M.:

Quote from @Jay Hinrichs:

Quote from @Ken M.:

Quote from @Travis Biziorek:

Quote from @Ken M.:

Quote from @Devin James:

There’s been a lot of talk about declining birth rates in the U.S., how will this impact housing demand in the long run?

I brought it up to a friend this morning, saying I was concerned about what a smaller population could mean for the market.

He made a great point: immigration will offset that decline.

Fewer people being born, but potentially more people moving in.

Has anyone else thought about this when looking ahead at the housing market?

Population trends do affect housing, but they are a lagging indicator. That is, the decline is only realized after the population shifts enough to matter for that market over quite a long time period. 

Detroit had a population of 1,800,000 people in the 1950s and was the most valuable city in the USA. I don't believe anybody makes that claim about Detroit today. 

There are more vacant houses there than fleas on a camel.

The irony of this post is off the charts.

Detroit is actually doing very well today. People are just stuck in their lagging narratives to realize it. 

Ask me how I know.

It isn't Detroit that is doing well, it's the suburbs. And it is by no means what it was in the 1950's. So, by your reasoning, if you buy today and wait long enough, you will be fine. Go for it.

Tell us, how many vacant houses in the city of Detroit? How many of those actually are tear downs?

they dont tear them down the kids burn them down on witching night.. google it Ken .. I know you know alot about most things but you may not be aware of witching night in Detroit.

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Actually, I have heard of witching night but I haven't experienced it. Thank God.

Your talking about Devil's Night? 

Well, whatever it is called, it's destructive. That is all I need to know to avoid it. ;-)

Quote from @Tyren Robinson:

I paid for a REI mentorship program. As I am working through all the aspects of the program, I realize I need to find investor friendly contractors or handymen as a part of my team. However, I don't know where ti begin searching. I thought Facebook would be an option, but either I am too green to understand the process of engaging a contractor or they were not really interested in working with me. Any advice would be greatly appreciated!

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Your comment: "I paid for a REI mentorship program."

Not to put too fine a point on things, but it looks like you hitched your horse to the wrong wagon (REI mentorship program).

I'd ask for my money back.

When we work with our accredited investors, all of our contacts and resources are included. That means reliable contractors as well.

If a mentor/guru doesn't have reliable contractors to refer to you, he hasn't done much real estate investing.

Quote from @Nicholas Boccella:

Hello all, 

I recently found an off market deal from a friend of a friend.  The bank is asking how I found out about the deal if it wasn't listed.  Is there anything I should look out for when responding to this question?  I am not sure what the bank is looking for with this question.

Any advise would be appreciated.

Thanks,
Nick

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If it's a great deal, he wants to know so he can access those resources.
If the title report comes back clean or can clear underwriting and escrow, that's all you need to worry about.

Quote from @Calvin Thomas:

They forgot Irvington, NJ and Newark, NJ, Atlantic City, NJ and Elizabeth, NJ. I'd say they are comprable to Philly; albeit smaller in size. Medellín, Columbia is still pretty dangerous, too.

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I don't think people around the world know of Elizabeth, NJ yet.

The company probably used known metropolitan city names and did not include suburbs.
There are a few areas in the Philippines that the police won't enter. So, those aren't listed either and so on. 

And what is not included are the areas where crime and violence are so bad, that they don't  have anyone to count them, that survives asking questions.

But, since you aren't likely to invest in those cities outside of the USA, the point is how easy it is to dismiss how bad things are, where you do invest, because they are "worse elsewhere"

My approach with my accredited investors, is to find places to invest where mom can walk down the street, in the evening and not have to worry about clutching her purse for dear life. That has worked out well for the people I invest for.