All Forum Posts by: Account Closed

@Greg Flynn may be who you need to contact regarding finding rehab deals such as: SFRs, multi units and commercials for rehabbing and flipping in Jacksonville. Technically not able to advertise on here but you may be able to request this directly from him.

What is the average ARV of houses that you deal in and what is the typical yearly increase in value in the market where you do business in? Are you purchasing at a substantial discount or just anticipating the increase in value just from appreciation? Also what happens when you refinance (instead of selling) and market value declines hence you get stuck with a mortgage in excess of the assets market value?

This sounds like the definition of a bad deal -- find a better deal to make money on. This isn't some sort of investment simulation funds to play with on a new brokerage account.

Each state might vary. Most states have a 'cap' on what the investor is able to earn but when you have multiple investors bidding on the same property, it is typically a matter of who is willing to accept the lowest rate of interest which may often get very low to 0.  

If you are a rehabber, with excess inventory of properties that need to be rehabbed, the issue is not where to deploy cash to hence tax certs may not be on the radar. The tax sales route seems a strategy for those trying to deploy idle cash.

Having cash 'unavailable' for 2 years or however long it takes the defaulter to redeem the property, just to get 5% could be very costly. Each investor typically have a different business model and different requirements in regards to the return on their investment.

Personally, the answer is no. Waiting around for 2 years during which time the defaulter can pay the taxes and redeem the property isn't a route suitable for every investor. 2 years is a long time to just wait around. Often to win the bid, you have to essentially agree to a lower rate of interest than others which can be as low as 0%. There are also some risk with this strategy especially if the defaulter files bankruptcy which could complicate issues.

Every investors risk tolerance gene may be different as may be their target profit margin, cost of funds, exact business model, local market condition etc.

There are many things that may affect house price growth rates. House prices though and price patterns is however an element/variable that just about any government is able to influence and control -- if they feel like it. So through any governments action or inaction, they may be effectively for or against any price trend. I am also not sure $400K is an 'entry level' price range for homes based on some of the average income in some of these areas.

The fact that house price growth in Canada generally appears to be significantly more than those in the US in the last few years does not mean that there aren't certain cities in the US were house prices are well beyond what is considered average either in US or Canada.

There are always certain segments of a market where prices are so abnormal that some might exclude such markets when trying to determine general market average to avoid skewing the data. 

According to Zillow for instance, average home values in Los Altos CA is $2.6 million yet average household income in Los Altos CA is $154,000.  

Trying to get get a $2.6million mortgage with a $154K income may be somewhat problematic. So bankers are likely to be forced to try to generate creative ways of financing an unafforable mortgage which often isn't a sustainable solution and/or people are likely to move elsewhere.

Apparently house values also increased by some 21% in Los Altos from last year according to Zillow which certainly isn't the national norm nor am I aware of traditional income growth being in that range here.

 If the housing prices are unsustainable in Canada, according to this, the same would have to be said for Honk Kong, Britain and Australia; unless of course the income growth in those countries exhibit a different pattern. 

The House price growth rate in Hong Kong would probably make Canadians feel differently about their plight as apparently 30 percent of the population in Hong Kong lives in public housing:  http://www.citylab.com/housing/2015/02/inside-hong-kongs-public-housing-estates/384726/ ;

@Shields

That would depend on having access to recent and quality data sources. There seems to be graph of housing price against income here and for various countries.