Lot of short sales and foreclosures out there, at least in the markets we are in. ( CA, Nevada, AZ, CO ) Homebuilders losing billions, tight lending, low sales, etc is even having an impact on the rental markets. The shadow market of unsold homes, homeowners renting instead of taking the losses, etc is becoming significant enough to show up in appraisals on our apartment deals. We are building a project in Anthem, AZ and renting 2bed 2bath apartments for $1200.00/month. You can rent a 3 bed 2 ba 2 car garage house with a yard for the same money. Not many West coast markets you can cover the carrying cost on a house, even bought cheaply, at this point. $3000.00/month rent covers taxes, insurance and payments on about a $400,000.00 note. Even with a significant down payment you aren't buying a house around here for that. Numbers are different but proportional in the other West coast markets we are in. Just wondering about Hammer's area because we aren't active there.

 

I failed to mentionin my previous post that I own a martial arts school and a small engine repair shop. Hope one of these or both take off so i can quit working for the man and be the man.

 

i sell crack.....

 

3hummers, the only thing I gotta worry about is whats for breakfest lol, no I am buying alot of properties and mostly holding them or selling them to other investors/buyers. Your right there are tons of short sales and preforeclosures and thats pretty much where I am buying especially in the downtown area of chicago, I dont get the full profits I use to when selling but I buy cheap enough where I can still move it and make money. I also am using alot of lease options/Rent to own's for my high end properties and still selling at full value or higher. So yes the market is slow, am I making the same money?? No, more because its even cheaper but it is taking time to sell. But for the average person the RE market is in bad shape and they are losing. I know alot of deals that were killed at the closing table because the banks are pulling programs so it sucks.

 

So Vilim... you are a pimp?

 

Thanks Hammer, just curious. We just closed construction loans on two of our AZ apartment deals and we had to overcome appraisal woes on both. Got it done but harder than it has been in years.

 

only on weekends errr i mean the internet[:@]

 

 

WHO'S

 

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