All Forum Posts by: Account Closed

I was driving around checking out the single family homes just north of Montana Ave last week. I love that area. It's hard to picture prices on those houses ever dropping - classic California Craftsmans by the beach. They're certainly never going pencil out as rental properties :) If we're lucky, maybe they'll drop from 2.8 to 2.7 over the next couple years. hmmm

I was thinking some condo areas could come down in Santa Monica quite a bit. The area just south of Wilshire near 11th and up (away from the beach). But they haven't dropped much yet. Even the areas by Santa Monica College haven't dropped much.

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Originally posted by Matty M:

Originally posted by Jane Peters:

I really don't think it will go down much in those areas. They are not exactly distressed.

That's what I thought, too. That's actually the general consensus. However, I went and saw an experienced California investor speak a few weeks ago. Bruce Norris. He's older, and has been through quite a few cycles here. He addressed what he calls "The coastal prices do not drop myth". He said they will definitely come down quite a bit. He doesn't use his gut to make these predictions. His charts and analysis are pretty convincing.

But I agree with you that they have not dropped yet. I looked at Santa Monica the other day. It feels like Santa Monica is down about 10% since 2006. Where as the OC beach town, San Clemente, has 2/1 condos for 250k now. This was thought impossible not long ago as well.

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Hi Jane - Welcome.
I am in the area. LA still feels slow to drop as compared to OC and the Inland Empire. It's getting closer. But still feels like it has a ways to go. But I am looking buy here, too. Keep in touch and good luck. It will get better.

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Originally posted by Brian Gibbons:

* Cooperative Assignment (Lease Option then sell-assign the contract
* Straight Option and Assign the Contract (flip)

These look interesting. I spoke with a guy today who is doing these in orange county. I answered his "Rent to own" ad on craigslist. Next thing you know I am telling him I want to do what he does and he's telling me he'll walk me through a couple deals for a 50/50 split. Sounds good to me. But I am trying to learn a little more before hand. The way he described it it did not sound like a typical sandwich lease option. Any recommendations on books/resources that cover these two?

Sorry Jamie, not trying to hijack your thread. Great thread by the way.

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Originally posted by Tyler Thrush:

thanks dan i wiill ook up some previous posts. the problem is i cant do sub tos as i am a licensed broker...

Tyler - why can't a licensed broker in California do a sub 2 will full disclosure and acting as the principle and not the agent?

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Originally posted by Karen Hurley:

What planet do you all live on? Just as you did not understand what Jason Bourg said there are people in this world who do not understand financial documents thus they rely on the brokers and lenders to explain it to them.

No individual borrower needs to understand the small print in a complicated mortgage loan document to get the concept that if you get an adjustable rate mortgage loan, your monthly mortgage payment will change down the road, and could go up very much. That data is pretty easy to find on the internet, written in large print, and not written in legalese.

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Originally posted by David Peeples:

What has happened to personal accountability in America?

Seriously. We're in the information age. Anyone that got any type of loan over the last 10 years could have found a basic loan tutorial on the web with some fairly intuitive keywords to determine the ramifications of what he or she was getting into.

For example, back in the day, if I saw an ad: "$450,000 loan for 750 per month: 5 Year Option ARM". I could have - and did - google "5 year option arm pitfalls", to figure out what that really means, and what the risks are.

I am not saying the lenders are innocent, but the greed was not just on them. Where is the individual accountability. Joe the home buyer either knew the risk, or was too lazy to learn the risk. He is just as accountable. Even moreso

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Originally posted by David Peeples:

Can we agree to reference this thread next time anyone asks about spending thousands on "gurus"?
Priceless advice Jon and Richard.

Seriously. What a great thread. I've learned a lot in this one.

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I am no expert, far from it. So I try and go see experts - not gurus - talk whenever I can.

A long time respected Southern California real estate market expert I saw talk a couple weeks ago said rents will drop, especially in apts and condos, as we're about to be flooded with the biggest supply of single family homes for rent over the next few years that we've ever seen.

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All Forum Posts by: Account Closed

Account Closed has started 30 posts and replied 510 times.

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