***Official Real Estate Thread***

ghost_of_lewis_samuels

Michael Peterson status
Oct 27, 2019
3,141
2,080
113
Oh like just buy some reit shares or something with exposure to rental residential
REIT's are one way to do it.

What I was referring to was institutional buying. In the specific case I'm talking about a large 'group' who has raised money from private investors, pension funds, etc. to then deploy in the real estate market. So if you happen to contribute to one of these pension funds then maybe you'd be exposed. I don't believe that this fun is open to individual investors.
 

Subway

Administrator
Staff member
Dec 31, 2008
11,371
6,585
113
LBNY
Ah yes I have an old neighbor who periodically buys into these. Like, 20 unit buildings that need some TLC and are projected to generate X $ over 15 years etc. bunch of guys get together, one of them an expert in this sort of investing

invite only and the the only ones my neighbor got me invited to had a $50k minimum.
 

ghost_of_lewis_samuels

Michael Peterson status
Oct 27, 2019
3,141
2,080
113
Ah yes I have an old neighbor who periodically buys into these. Like, 20 unit buildings that need some TLC and are projected to generate X $ over 15 years etc. bunch of guys get together, one of them an expert in this sort of investing

invite only and the the only ones my neighbor got me invited to had a $50k minimum.
Probably similar, just on a much smaller scale
 
  • Like
Reactions: Subway

grapedrink

Duke status
May 21, 2011
20,803
10,065
113
A Beach
Ah yes I have an old neighbor who periodically buys into these. Like, 20 unit buildings that need some TLC and are projected to generate X $ over 15 years etc. bunch of guys get together, one of them an expert in this sort of investing

invite only and the the only ones my neighbor got me invited to had a $50k minimum.
Private Syndication is all that is

If you really want to invest in passive real estate, get in on some storage units $$$$
 
  • Like
Reactions: Subway

StuAzole

Duke status
Jan 22, 2016
22,480
5,329
113
Everything's fine.
fairly true.

A 20% price decline in my area would take prices all the way back to...... October 2021. The proportion of homes purchased in that time frame is tiny compared to the 20% recapture size in 2008, and loans for the vast majority of these homes were well-underwritten with 3% 30-year fixed mortgages.

Higher rates will just end up keeping people in their current homes. Inventory will stay historically low, and those homes that are listed will still sell for a good price.

Put another way, this is not 2008. At all.
 

One-Off

Tom Curren status
Jul 28, 2005
11,190
6,044
113
33.8N - 118.4W
fairly true.

A 20% price decline in my area would take prices all the way back to...... October 2021. The proportion of homes purchased in that time frame is tiny compared to the 20% recapture size in 2008, and loans for the vast majority of these homes were well-underwritten with 3% 30-year fixed mortgages.

Higher rates will just end up keeping people in their current homes. Inventory will stay historically low, and those homes that are listed will still sell for a good price.

Put another way, this is not 2008. At all.
How much do you think it would cost in legal fees to evict a foreclosed homeowner? How ugly could it get?
 

StuAzole

Duke status
Jan 22, 2016
22,480
5,329
113
How much do you think it would cost in legal fees to evict a foreclosed homeowner? How ugly could it get?
It’s not that expensive but it takes a long time. There are plenty of lawyers who do nothing but this type of stuff. Did you carry a note or something?
 

Chocki

Miki Dora status
Feb 18, 2007
3,804
2,879
113
Planet Earth
How much do you think it would cost in legal fees to evict a foreclosed homeowner? How ugly could it get?
You’re in CALI correct? I’m not a lawyer but I’ve played one in a lot of erotic films and this what me n Google came up with

 
Last edited:

One-Off

Tom Curren status
Jul 28, 2005
11,190
6,044
113
33.8N - 118.4W
You’re in CALI correct? I’m not a lawyer but I’ve played one in a lot of erotic films and this what me n Google came up with

I came across that. That info is for the foreclsoed owner or tenant. I would be on the other side, looking at a property that listed for $650k in an area where it should be $1,100k. But the realtor told me the previous owner lives in the property and that the buyer is responsible for the eviction and that it was not possible to inspect the property. In my mind I see an crotchety old guy with a shot gun saying "get off my lawn."
 

Chocki

Miki Dora status
Feb 18, 2007
3,804
2,879
113
Planet Earth
I came across that. That info is for the foreclsoed owner or tenant. I would be on the other side, looking at a property that listed for $650k in an area where it should be $1,100k. But the realtor told me the previous owner lives in the property and that the buyer is responsible for the eviction and that it was not possible to inspect the property. In my mind I see an crotchety old guy with a shot gun saying "get off my lawn."
If I’ve learned two things in life: no free lunches and if it sounds too good to be true…

And know thy enemy. Particularly from a legal standpoint bc that would be the worst case scenario long drawn out expensive court proceedings in a state where the law might not exactly favor your case.

And no inspection is mucho no bueno.
 

StuAzole

Duke status
Jan 22, 2016
22,480
5,329
113
If I’ve learned two things in life: no free lunches and if it sounds too good to be true…

And know thy enemy. Particularly from a legal standpoint bc that would be the worst case scenario long drawn out expensive court proceedings in a state where the law might not exactly favor your case.

And no inspection is mucho no bueno.
Half price seems like a tempting deal lol.

But yea, I'd run from this.

Unrelated, I saw a stat that suggested even with a 15% market correction, only 3.7% of all homeowners would have negative equity. In 2007, that number was over 20%. Moral of the story - this isn't 2007.
 

sdsrfr

Miki Dora status
Jul 13, 2020
3,836
7,616
113
San Diego
I saw a stat that suggested even with a 15% market correction, only 3.7% of all homeowners would have negative equity. In 2007, that number was over 20%. Moral of the story - this isn't 2007.
I said it earlier, but I think the concern will come from HELOC’s that are not yet in use thus not showing in the “numbers” yet.

Once their cash flow runs dry - the compulsion will be to grab it from where it is available and the cheapest, which is from their home equity.

Have to bet the banks have drawn up some really enticing loan products for the unassuming.
 
Jun 27, 2019
71
143
33
Californians, what do you all think is a reasonable/safe debt-to-income ratio for purchasing house? The national recommendation is about 36% but it seems most people in California play by different rules.

And if you do own a home and are comfortable sharing: what was your debt-to-income ratio when you purchased? And when do you buy?
 

grapedrink

Duke status
May 21, 2011
20,803
10,065
113
A Beach
I don’t recall what my DTI was. Probably slightly more than 36% at the time but less now after raises and Refi’s.

At the absolute very least you should be able to cover your monthly PITI with 1 of your 2 monthly take home paychecks. Ideally you should have a good chunk of that check leftover. If you need more than 1 paycheck/month, or both people in the household (assuming you are married) to cover, then you can’t afford it.

I bought in 2015. I’d be SOL and eating rice and beans if I didn’t :toilet:
 
  • Like
Reactions: slipped_disc