***Official Real Estate Thread***

casa_mugrienta

Duke status
Apr 13, 2008
43,212
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Petak Island
It's not fake.

Likely low income housing, got lucky after the 08 crisis and made money then went bonkers with low interest rates.

You want to know where the growing wealth gap comes from?

Look no further than the Fed.

Because that's the only reason why those guys in the video exist.

EDIT: Just looked at the comments in the video...the ignorance in the comments is another reason why those guys in the video exist.
 
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grapedrink

Duke status
May 21, 2011
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A Beach
That are likely leveraged in some way.

Or were bought via money withdrawn from 401Ks.

401Ks that they' haven't looked at because "don't worry the market always goes back up!"
If they actually withdrew their money from a 401k, then they probably cashed it out for a profit because that’s been the norm for the past 12 years.

Not sure if it even matters in that context.

Likely low income housing, got lucky after the 08 crisis and made money then went bonkers with low interest rates.
A lot of them were probably bought later than you think. You are correct about the low income part though.
 

sdsrfr

Phil Edwards status
Jul 13, 2020
5,857
11,266
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San Diego
It's not fake.

Likely low income housing, got lucky after the 08 crisis and made money then went bonkers with low interest rates.
I think these are the air bnb (debt) millionaires.

they don’t have mortgages, theyre business loans for a rental property. the loan is based on projected rental income, not borrower income.

apparently the brokers of these sorts of loans are cleaning up.
 
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2surf

Duke status
Apr 12, 2004
15,284
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California USA
www.allcare.com
It's not fake.

Likely low income housing, got lucky after the 08 crisis and made money then went bonkers with low interest rates.

You want to know where the growing wealth gap comes from?

Look no further than the Fed.

Because that's the only reason why those guys in the video exist.

EDIT: Just looked at the comments in the video...the ignorance in the comments is another reason why those guys in the video exist.
Not fake I have a dozen regular clients in north county that are at or above that level.
 

PRCD

Tom Curren status
Feb 25, 2020
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I think these are the air bnb (debt) millionaires.

they don’t have mortgages, theyre business loans for a rental property. the loan is based on projected rental income, not borrower income.

apparently the brokers of these sorts of loans are cleaning up.
Seems like the tide is about to go out on these mofos just like in '09, unless they all have fixed-rate loans and demand for their properties remains strong. How you gonna airbnb when a big mac costs $20?
Actually he's the guy who was saying the economy, as of last month, is a great economy for workers.

Yes, that's right.

He claimed people who generally work for wages - who are having their purchasing power destroyed by 8.6% (or 17% depending on how you spin it) - are experiencing a great economy.
This is just incompetence.
 
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grapedrink

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May 21, 2011
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Seems like the tide is about to go out on these mofos just like in '09, unless they all have fixed-rate loans and demand for their properties remains strong. How you gonna airbnb when a big mac costs $20?
sdsrfr is correct that these are mostly with DSCR loans, however I disagree that they are AirBnbs. Some quick head math from one of those guys puts the value of each unit around $100K, which sounds right for a dumpy house in Indianaoplis or the cost per unit in a large apartment in (insert midwest/southeast city here) . Those type of units actually cash flow pretty well because they are so cheap to buy into . . . . Assuming your tenants can still pay rent :toilet:

EDIT: Forget to mention . . . . No doubt at least one of these guys, if not all, are milking Section 8 for a significant portion of their portfolio.
 
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Mr Doof

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Jan 23, 2002
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San Francisco, CA
SF is a sh!thole and real estate related article. Some facts, some commentary.

Blurb:

San Francisco proper is the second-most densely populated city in America after the borough of Manhattan, and 29% of its households make more than $200,000 a year. That is, by far, the largest income demographic in the city. The next biggest one is people making $100,000 to $149,999 a year, at 15.2%. This is an annoyingly rich city.

And if you think the pandemic helped cool down prices after every yuppie fled the joint for Marin and beyond, you would be wrong. While COVID-19 cooled off a white-hot home sales market for about four or five months and contributed to a population drop in the city, it created a pent-up demand for luxury homes once the pandemic ebbed. When it did, home buyers, especially the most affluent ones, returned to the market with terrifying, and lasting, force.
 

PRCD

Tom Curren status
Feb 25, 2020
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sdsrfr is correct that these are mostly with DSCR loans, however I disagree that they are AirBnbs. Some quick head math from one of those guys puts the value of each unit around $100K, which sounds right for a dumpy house in Indianaoplis or the cost per unit in a large apartment in (insert midwest/southeast city here) . Those type of units actually cash flow pretty well because they are so cheap to buy into . . . . Assuming your tenants can still pay rent :toilet:
ahhh...the units are all section 8. Section 8 always pays.
 

2surf

Duke status
Apr 12, 2004
15,284
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California USA
www.allcare.com
Some quick head math from one of those guys puts the value of each unit around $100K, which sounds right for a dumpy house in Indianapolis

(more like $50k)

EDIT: Forget to mention . . . . No doubt at least one of these guys, if not all, are milking Section 8 for a significant portion of their portfolio.

That’s exactly how it’s done. There’s so many wise guys in my neighborhood leveraging equity to become slumlords in the Midwest.
 

PRCD

Tom Curren status
Feb 25, 2020
12,513
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Some quick head math from one of those guys puts the value of each unit around $100K, which sounds right for a dumpy house in Indianapolis

(more like $50k)

EDIT: Forget to mention . . . . No doubt at least one of these guys, if not all, are milking Section 8 for a significant portion of their portfolio.

That’s exactly how it’s done. There’s so many wise guys in my neighborhood leveraging equity to become slumlords in the Midwest.
I knew this wanna-be real estate mogul my age up north. He was talking about his rental properties in his in-laws' town that has a state pen. Somehow I mentioned section 8 then he got excited and said, "Oh yeah! It's great. You get the money straight from the government." I have trouble concealing what's going on in my head so he sensed that I thought section 8 was the opposite of great and he shut up.

The government's talking about giving the section 8 vouchers to the tenants instead of the landlords which should be hilarious to watch.
Why do they all look the same? Like they're a type.

They remind me of a group of teenage girls that came into a Mex restaurant we were at last week (last day of school). OMG! They all had the same haircuts and clothes. Blond cheerleader types.
We've got another physiognomy-believer here!
 

kool-aid

Michael Peterson status
Aug 28, 2003
3,026
2,614
113
San Francisco
SF is a sh!thole and real estate related article. Some facts, some commentary.

Blurb:

San Francisco proper is the second-most densely populated city in America after the borough of Manhattan, and 29% of its households make more than $200,000 a year. That is, by far, the largest income demographic in the city. The next biggest one is people making $100,000 to $149,999 a year, at 15.2%. This is an annoyingly rich city.

And if you think the pandemic helped cool down prices after every yuppie fled the joint for Marin and beyond, you would be wrong. While COVID-19 cooled off a white-hot home sales market for about four or five months and contributed to a population drop in the city, it created a pent-up demand for luxury homes once the pandemic ebbed. When it did, home buyers, especially the most affluent ones, returned to the market with terrifying, and lasting, force.
I'm long AF on San Francisco. Even with all its troubles, It's still, and always will be, a top 5 city globally.

The whopping 50k people that left SF are quickly being replaced by Millennials and Gen Z's clamoring for rooms for rent at $1500 a piece and one-bedrooms are back to $3600+. The rental market is coming back fast.

I talked to someone the other day who said it was hard to find a good apartment and they had to put down a deposit on the spot. The unit below me was rented out in 3 days and it's not that nice. Every single unit I have (with the exception of some office space) is occupied at 80+% of the rental high-water mark and no one is leaving.

No one wants to live in Austin forever. The Miami tech craze is dying with the collapse of crypto and all the homies that moved to Washington, Idaho, and Utah are starting to second guess their decisions.
 

sdsrfr

Phil Edwards status
Jul 13, 2020
5,857
11,266
113
San Diego
for all the complaints peeps will huck at SF, there are many reasons people stayed after the gold rush ended.

SF - not done.