Blogcritics Comments on Buyers and Sellers Can Take Advantage of a Real Estate Market With High Sales and High Inventory

Comment by Mr. Real Estate

Mon, 27 Mar 2006 13:07:01 EST

::::::drum roll:::::::::

Comment by Jet in Columbus

Mon, 27 Mar 2006 12:58:37 EST

PS. I defy you to read the above out loud with a straight face... Drum roll please :-)

Comment by Jet in Columbus

Mon, 27 Mar 2006 12:43:32 EST

In regards to comment #31... In Study 3349, I quote, "With a negative aspect concerning resulting rationales towards percentages of population expansion in those areas, taking into account economic class distinctions, along with affiliated variables, versus the positive anti-reactionary conclusions based on several politically and commercially motivated studies, yielding several unsubstantiated claims, there would appear to be various destinations that the untrained mind could meander without the proper guidance..." However, in study 4547 I quote, "However, there contain several portions of the study that appear truly contradictory if not unsubstantiated, as opposed to partially substantiated, or completely substantiated. Whenever confirming scientific comparisons can be initiated through both layman and university classroom studies, resulting in not only a quorum on this very complicated subject, but also quite a bit of doubletalk, doublespeak, and of course deranged vocabulary lessons, yielding several radically different yet esoteric but conflicting conclusions. Seeing and reading that, I can see how you might get the two studies confused. Of course that's only my opinion... ...this has been a test of the National Emergency Broadcast system, had this been an actual humor emercengy, you would've been instructed to...

Comment by Christopher Rose

Mon, 27 Mar 2006 10:18:44 EST

Bliffle: The profile of people moving to Spain has changed radically in the last 5 years. We still get the tired old folk as they finally mark up their 40 years of labour and retire to the sun but the majority of newcomers now are more likely to be in the 25 to 50 age group. People are now starting to move around Europe much as I guess they do in the USA; following jobs or family connections or simply deciding in what kind of a climate, region or culture they prefer. My wife Ursula and I moved over partially because we were sick of the English climate and we also strongly felt, and still do, that Spain is part of the new Europe in a way that Britain too will be one day, but we didn't want to wait!

Comment by Mr. Real Estate

Mon, 27 Mar 2006 10:04:57 EST

Wow...there are a lot of comments on this post.

Comment by Mr. Real Estate

Mon, 27 Mar 2006 10:03:24 EST

Was that proven in scientific study #3349 or scientific study #4547? ::::does drum roll:::: j/k ;)

Comment by Christopher Rose

Mon, 27 Mar 2006 09:55:46 EST

Jet: I didn't mean to infer anything about your preferences, I was simply extending the phrase to refer to your possible outing of your id a little more by becoming a blogger or even a Blogcritic... When you've had a little more experience, you'll even be able to get your jokes to work too. And that's a fact!

Comment by Jet in Columbus

Sun, 26 Mar 2006 23:49:33 EST

dear Bliffle, thanks for the input, however let me tell you a little story that I was a victim of, and may explain my point of view. In Columbus, we have an area just south of Downtown called "German Village". Only 25 scant years ago, it was urban, run down, and not a nice place to live. One day some landlords got together and decided that what they needed was to attract a sub-set of the population that had lots of disposable income, and next to no family obligation. Let's advertise for them, they'd fix the area up in no time-and on their own dime... and without even being asked!!! Rollllll out the welcome mat! Who? Gays! Two men with upscale male incomes and no family to pay for, feed, or insure-PERFECT! Obviously what followed was a contest.. No a war to see who could dwell in the nicest house with the best landscaping. Well, if you know anything about them, they just CAN'T bear life in a run down location, and within 10 years the whole area was so fixed up, that the city even posted freeway signs directing you to German Village. I mean it became the place to be. Posh resturants, good stores and great neighbors, parks and lots of beauty shops. Then suddenly all those landlords "found out" all those nice people were faggots (gasp) "Now that we got the neighborhood fixed up and nice, how we gonna get rig of all them damned perverts and child molesters and and and uh heathens?" Now comes the funny part. Now that the houses were all fixed up, they began evicting tennants wholesale, because there were no laws protecting against discrimination in housing for that particular kind of people. By the time antidiscrimination laws were passed, it was too late for them, or me for that matter to sue, even expost facto. We'd moved out years ago. German Village is still one of Columbus' show pieces, though surrounded like an island by run down, crime ridden, low income urban housing, on all sides but downtown, and a lot of us have moved back... well those that can afford the rents that tripled and quadrupled "suddenly". Do I sound bitter? you bet I am.

Comment by Bliffle

Sun, 26 Mar 2006 23:27:01 EST

Chris, I'm glad to hear that Spain is still as attractive a target for retirees and expats as it has been for many years. I advise any US citizen with a too-small retirement nut to think seriously of Spain. It is inexpensive, beautiful, the people are wonderful and the climate is warm and relaxing. I'm partial to San Sebastian and Bilbao as my brother-in-law has a nice place in Biarritz (dreamland for golfers) in the Pays Basque. It's a short drive to Bordeaux and the border checks are abandoned (because of EU) so there's no delays.

Comment by Bliffle

Sun, 26 Mar 2006 23:13:55 EST

Jet, When you improve a landlords rental property you must ask a quid pro quo. Usually, the deal is that the landlord pays for the materials and any hired specialty trades. The tenant does the work. But the tenant should also ask for an improvement in rental terms, such as a longer term at the same rent, an option to buy, etc. If times are tough, you can ask for a delay in monthly rent or even a trade of rent for work. I've done all those things, and on either side of the deal. Just remember this rule: there are 3 equally important attributes of money: the amount, the form and the timing. You never know which is most important in a deal until you make an offer. Don't make guesses, make offers.

Comment by Bliffle

Sun, 26 Mar 2006 23:04:10 EST

Jet, Here in the SF Bay Area rentals seldom pay the mortgage. Rentals have been a good deal (tho it may not always seem that way to the renter) for about 20 years. Personally, I've rented houses to live in several times in the last few years, sometimes while renting out a house I owned! But I don't like being a landlord and don't like the risk/reward setup. My buddy J owns several houses in SF that he rents out (financed by his excellent income as a consultant) and complains endlessly about his negative cashflow and SF rent controls. But, of course, he will cleanup when he retires and sells them for the appreciated equity.

Comment by Mr. Real Estate

Sun, 26 Mar 2006 21:29:26 EST

::::does drum roll:::: ;) -John Mudd "Mr. Real Estate"

Comment by Jet in Columbus

Sun, 26 Mar 2006 20:51:54 EST

No doubt about it, I'm going to have to start labeling my jokes so people know when to laugh ha ha

Comment by Mr. Real Estate

Sun, 26 Mar 2006 19:21:40 EST

I'm not worried, and that stuff's not secret. Real estate columnists write this stuff all the time. It's public information if you know where to look. -John Mudd "Mr. Real Estate"

Comment by Jet in Columbus

Sun, 26 Mar 2006 19:00:17 EST

for heaven's sake Mr. Real Estate. You're GIVING information away free here. Do you realize the danger of all those late-night infomercial dorks suing you for putting out secret stuff they sell for 12 payments of $49.95 each!!!! sheesh!!!

Comment by Mr. Real Estate

Sun, 26 Mar 2006 18:54:32 EST

For investment property, it's wise to put 20 percent or so down, if you want it to cashflow. However, I have seen some good rental property in Maryland that will cashflow at around $200 or so a month after the tenant pays your mortgage, using 100% financing. There are some properties that will work with here, but I mostly sell luxury and waterfront, and that's the high-dollar stuff. Those take a lot more downpayment to cashflow. With investment property, typically investors want to achieve some cashflow, if possible, from my experience. Good investment properties, though, often have below market rents and an upside, such as location, or that one can fix it up to warrant higher rents after purchasing it and fixing it up, while attaining said property for less than it would be worth with above market rents because of ther lower rents it's getting. You may notice, on commercial properties proformas, where the loss in rent vacancies are subtracted from the price. This is not necessarily bad for an investor purchasing the property, as long as it has at least one really good upside. Cheers, -John Mudd "Mr. Real Estate"

Comment by Jet in Columbus

Sun, 26 Mar 2006 18:37:29 EST

Mr. Real Estate-I applaud your knowledgable answers; I knew that with a few well chosen remarks I could get some more untouched details out of you, and my respect for you has grown. Thanks for taking the time. Christopher Rose, I haven't been IN the closet since I was 12 if that's what you're implying. It seems like a dumb way to meander off the topic. You see my tag line says quite clearly that I absolutely don't know everything, that I'm falable and sometimes not even a good speller, but at LEAST I have the balls to admit I can be wrong with every comment I make I was taught at a very young age that "I don't know" can be the most intelligent thing that anyone can utter... ... but of course that's only my opinion.

Comment by Mr. Real Estate

Sun, 26 Mar 2006 16:20:35 EST

Jet, I know it works for some, but here in Florida it's harder to do because of high property taxes and insurance. It typically takes a higher downpayment to make the property cashflow. I typically can get someone with a 500 credit score 100 percent financing, though, so I'm not sure someone having bad credit is a guarantee of a tenant, unless the banks tighten up the money supply, which is what they're doing now, but not enough to get rid of those kinds of mortgages. Cheers, -John Mudd "Mr. Real Estate"

Comment by Christopher Rose

Sun, 26 Mar 2006 16:18:45 EST

Jet, er, that may be true and it may not be that great but a crime it sure ain't - and that's a fact! Do you like my new slogan?;-) And are you coming out of your closet and outing yourself or not?

Comment by Jet in Columbus

Sun, 26 Mar 2006 15:49:03 EST

Thanks for the cheers. The inescapable fact though is that a landlord with a good eye for property can purchase a house that lower income people can't, and have his tennants pay off his costs for him. In fact, it ususally costs the renter MORE then it would've, if he'd had the credit rating needed to buy it himself, but leaves him empty handed when he leaves, and the owner with a property nearly paid off by someone else! ..Of course that's only my opinion

Comment by Mr. Real Estate

Sun, 26 Mar 2006 14:52:18 EST

We appreciate your opinion, Jet. Your advice does actually work in some real estate markets. In higher-priced ones where taxes are high, though, instant cashflow is usually just a dream. It typically becomes reality with a large downpayment, or over several years time. Using the same strategy for commercial real estate can work wonderfully well in those kind of markets, especially since investors always increase the rents and tenants pay it. Cheers, -John Mudd "Mr. Real Estate"

Comment by Jet in Columbus

Sun, 26 Mar 2006 14:15:37 EST

Somehow I knew I shouldn't have bothered... but of course that's only my opinion...

Comment by Mr. Real Estate

Sun, 26 Mar 2006 11:29:10 EST

Spain's actually a wonderful place to invest. You can buy oceanfront property there for under $200,000 USD. -John Mudd "Mr. Real Estate"

Comment by Christopher Rose

Sun, 26 Mar 2006 11:22:50 EST

Well, Jet, the main problem with your entertaining, if unusually for you rather cynical, theory is that generally speaking property in Spain is very cheap compared to the USA so that wouldn't be necessary. And that's a fact!;-)

Comment by Jet in Columbus

Sun, 26 Mar 2006 11:00:53 EST

Here's a good real estate tip for the rich and almost rich man. 1. Buy a median priced home 2. Rent it to a family that can't get credit to buy that very home. Charge them a rental rate that'll pay the house payments on it, plus maybe a little more for the taxes. 3. Tell them your giving them a break on the rent by allowing them to do the upkeep out of their own pockets. 4. After the real estate prices go up sufficiently enough to make a tidy profit, or for them to pay for most of your investment, sell the property for a tidy sum right out from underneath them, oh but wait until they've made enough improvements to make it look really nice. 5. Buy another property nearby, and do your victims a favor and let them know that you own a nice house they might like to rent, it just needs to be fixed up a little. 6. See step 1 7. Do this enough times with as many rental properties as you can acquire, using them as collateral to buy even more, and guess what, soon you got enough for a nice villa in Spain!!!!! ... of course that's only my opinion