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Five Reasons to Buy Now!

Profile picture for nvchaz
Contributions: 1617
Opportunity!
Opportunity!
Opportunity!
Opportunity!
Opportunity!

I just went into escrow on a 3bdr 1ba 1100sqft for $115,000 ... 1/4ac total; the lot's been split and I'm ready to sell back parcel as soon as escrow closes... comps say the back parcel is worth around $40K ... I'll net around $30K plus $8K from Obama = about one year's salary for me. Total out of pocket = $850/mo.

Instead of muttering doom and gloom, you should emulate me: be positive, look for good deals, have fun. In chaos is opportunity!

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April 01 - US
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Best Answer
Great thread!

There is opportunity in every market, and profits to be made if you are willing to work hard and find them.

Congrats!!!!!
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April 01
Profile picture for nvchaz
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Imagine locking down a good 30 year PITI at a good rate and inflation sky rockets. Sweet!
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April 22
Profile picture for Pasadenan
Contributions: 6712
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Since January 2009

My address is already posted on Zillow.  From that it is extremly easy to look up my name and phone number.  And from those, it is exceptionally easy to look up my business, my license number, and business info.  And from those, it is easy to look up birthdate, birth place, and family.  And property interests are easy to look up in county records.  Any realtor or lender or title company can do that.

The whole process only takes about 3 minutes.  Someone posting on Zillow already bothered to look up my business phone number and leave a threatening message.  Anyone can do it.  I have done nothing to prevent it.

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April 22
Profile picture for Pasadenan
Contributions: 6712
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Since January 2009

"When you are broke living in an alley somewhere try buying a can of tuna with your FICO score and see where that gets you." -

Are you speaking from experience?  Why would someone with a FICO score of 800 ever be broke?  Even with no income, one can easily live off of credit for at least one year, especially with so many companies offering 0% interest credit cards for periods exceeding one year.  But if on the streets, why bother buying the can of tuna?  The soup kitchens are more than happy to serve anyone that comes regardless of income or residence.


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April 22
Profile picture for nvchaz
Contributions: 1617
So you have rentals Pasa?

Interesting. Tell us a little about them. How are they doing? How ya doing cash flow wise?

I'd like to know more. Maybe I'll do a little stalking like you did on old Bob. Maybe then we'll all know the truth.
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April 21
Profile picture for Pasadenan
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Since January 2009

And if you were renting from me, I would accept a 680 FICO score, but only if I received first and last month rent plus security deposit and cleaning fee up front, and verified your employment as well as talking with your employer.
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April 21
Profile picture for nvchaz
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April 21
Profile picture for Pasadenan
Contributions: 6712
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Since January 2009

Didn't you say Reno?  Why would we meet for lunch???

You already posted that your FICO score was only 680, so why would I bother to check it?  Now, if you posted that it was 840, I might have more reason to check; but I wouldn't bother as that score would be inconsistant with your posts and thus a waste of time.

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April 21
Profile picture for nvchaz
Contributions: 1617
FHA is not adjusted by FICO -- just a minimum is established.

FICO as an index as we know it is doomed - even the lending institutions acknowledge this.

When you are broke living in an alley somewhere try buying a can of tuna with your FICO score and see where that gets you.

Again shows how you are living in the past and not seeing the world around you.

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April 21
Profile picture for mrfnuts
Contributions: 1353
...Jeez, take some more snorts and take a rest.

Of the drugs that I know of that one would 'snort', I've never heard of one that is a relaxant.  Just the opposite.


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April 21
Profile picture for Pasadenan
Contributions: 6712
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Since January 2009

By the way; I have lots of crystal balls; but I don't use those for predictions.  I use linear regression, extrapulation and statistics for that.

As for alcohol; the only alcohol that has been in this house for at least 20 years is "rubbing alcohol" used exclusively for cleaning.  I won't even buy medications with acohol.  Besides, who needs any alcohol?  Yashua had water served after being placed in purification jars, and it was considered substantually BETTER than any alcohol that had been served that day!

Thus, I am better off just drinking clean water, and so are most other people.
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April 21
Profile picture for nvchaz
Contributions: 1617


Pasa:

So you're gonna run a credit check on me before we meet for lunch? And, BTW, it's not that easy, so tell me that you can run a FICO on me from your computer without significant hassle and expense. "Extremely easy"??

Your calculations are so shallow that they ignore eventual pay-down of principle and many other factors.

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April 21
Profile picture for Pasadenan
Contributions: 6712
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Since January 2009

Besides, with a marginal to worse FICO score, a typcial person would be wasting substantually more than that each month.

There is a reason people with lower FICO scores are considered higher risk, and it is not because they have learned to take advantage of the system.

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April 21
Profile picture for Pasadenan
Contributions: 6712
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FICO scores are extremely easy to obtain.  It is called a "credit check", and 3rd parties get these regularly.

$120 a year positive return on an $80k purchase is an extremly poor investment.  You would be much better off at 1% interest in a bank account.  Your paperwork for that "investment" will cost more than $120 per year.
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April 21
Profile picture for nvchaz
Contributions: 1617
Pasa:

"As they say, never take financial advice from anyone with a FICO score of less than 790."

Who says that? I've never heard any one say that. And how would one become privy to anyone's FICO score?

What do you say: "Whoa, fella, you're venturing into financial advice territory, I'll have to ask you for your FICO score before we can continue." Do you ask for copies of his credit reports at this juncture?

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April 21
Profile picture for nvchaz
Contributions: 1617
Pasa:

Here's a couple tips:

You always want to look at the rent calculus to see if you'd be above water in the event you have to move. Got it? Sure, if I do so within 3 years I'd have to give back the $8K.

Re: $80K condo for $1200? -- lots of people, take a look around.

"who cares of you have "positive cash flow" when that cash flow is only $10 per month?"
I care and so do most people.

Why do you assume negative equity flow if you buy right and hold? Maybe you have that "crystal ball" everyone keeps talking about.

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April 21
Profile picture for Pasadenan
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Since January 2009

of you have --> *if* you have
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April 21
Profile picture for Pasadenan
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1) Who cares if you have positive cash flow if you have negative equity flow?

2) Who do you know that is renting an $80k condo for $1200 per month?

3) Since rents include property tax, maintenance, association fees, insurance, and utilites; who cares of you have "positive cash flow" when that cash flow is only $10 per month?

4) Why do people always mention the positive cash flow in addition to the $8k tax credit?  You don't qualilfy for the tax credit if the property will be occupied by others.  (I don't want to call it "income property" or "investment property" as it will be "income losing property" for a long time to come.

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April 21
Profile picture for nvchaz
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Pasa,

I'd stay right where you are. An old codger like you needs to stay on the sidelines, act wise and comment.

God knows what would happen if you ventured out into the traffic!
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April 21
Profile picture for Pasadenan
Contributions: 6712
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Since January 2009

Thanks for the reminder that it is still a good time to sell, as there are many that still want to overpay for a house, and many more than want to be parted from their money.

There is still time to cash in on some of that imaginary equity.  Only, we better watch those realtor commissions and the change in property tax rate, or the sale of a property will still be a loss, with the benifit going, not to the buyer, but to the government and the lenders, Real Estate professionals, and contractors.


As they say, never take financial advice from anyone with a FICO score of less than 790.
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April 21
Profile picture for OliverIndra
Real Estate Agent
Contributions: 53
The San Diego Market is a bit different. But true, same thing here, meanwhile you can get condos for 80,000 USD. Positive Cash Flow right away! Rents go between 1200 - 1500 a month.

Deals are out there! Just have to find them and do it!
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April 21
Profile picture for Pasadenan
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Since January 2009

Yes, I agree one should lock in a 30 year fixed loan before rents climb substantually, and before interest rates substantually go up....

BUT, rents are still dropping, housing prices are still dropping, interest rates are still dropping, and all this will continue as long as there is a backlog of 90 day lates that haven't been delt with.

And we will have substantial warning before seeing double digit inflation, and even before seeing interest rates rise a 1/2 precent.

I don't qualify for the $8k first time buyer tax credit.  And my monthly housing payment is less than $400 including principal, interest, property taxes, maintenance and insurance.  Even with all utilities I'm still less than $1k; so why should I be obligated to pay $1k per month plus a lot of other expenses?

Besides; you could have locked in for at least 1/2% less annual interest simply by addressing the FICO score prior to applying for the mortgage.

Two years from now is a better time to buy, and will save you substantial money, and you will not see inflation in U.S. housing before then.  You probably won't see inflation in housing for more than 10 years.

I expect to see 4% annual interest 30 year fixed fully amortized loans available before then end of the year, and they are not going away until the foreclosure issue is under control.


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April 21
Profile picture for nvchaz
Contributions: 1617
Low rates; 8K incentive; lots of REOs; idiots like the Splooge, Bette et. al. cowering on the sidelines; and, perhaps most importantly of all:

CHEAP MONEY!!!

LOCK DOWN A 30 YEAR PITI OF $1000 WHILE RENTS CLIMB THE INFLATIONARY SPIRAL! 
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April 21
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April 21
Profile picture for Bette Defarm
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So sad to hear that your loss is compounded by that sort of unpleasantness, LC. It makes grief so much more difficult to cope with, I imagine.
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April 16
Profile picture for Lady Chattel
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Since October 2009

I have always said that the death of someone and the inheritance brings out the inner self in everyone.   My mother was bequeathed a ring that is nowhere to be found. My aunt went to the safe deposit and got everything out of it....she says there was nothing of value in there, that it was all junk jewelry.....I know my grandmother had dementia but I know she never kept a lot in the house and had lots of nice stuff......we found some in the house but not all the diamonds......yup......I believe in karma taking care of her......
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April 15
Profile picture for K101
Contributions: 6569

I second Sunny's sentiments, LC.  Sorry to hear about the family grief.  That kind of stuff disgusts me.  There have been similar rumblings from my Mom's siblings concerning my Grandmother's assets - and she is recovering from her hip surgery and still going strong.  I don't get how people can be so shallow, greedy and devoid of caring emotion.

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April 15
Profile picture for sunnyview
Contributions: 10849
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Since January 2009

Ick. I am so sorry to hear that. Losing people is hard enough without all the other grabby family politics that seem to start. I promised my favorite grandmother in law that I would stand on the step of her house with a bat just to give her two sons a chance to look through her things without any interference from extended family and stepfamily. I felt like that was time that would need to reminisce about her and decide what personal items that they felt connected to keeping. The scramble for stuff when you are grieving seems so unimportant, until you are feeling better and then the anger is massive against the people who took advantage of the situation. Thankfully I didn't need to bat when she died, but I made it clear to everyone that I intended to keep the promise that I had made to her beforehand. I must've looked mean so they didn't want to chance it.
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April 15
Profile picture for Lady Chattel
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Since October 2009

Speaking of money evils......my grandmother's passing is bringing out the worst in my aunt.....my mom was so appalled....she told my mom that my uncle had no idea about the treasury bonds my grandmother had and they two could split them.....my mom told her she didn't feel right and that she wanted to split it three ways......I told my mom that she is probably hiding stuff from the two of them since she was the executor and on all my grandmother's accounts.   You should have seen her while we were cleaning out my Grandmother's home.....everytime we found anything of "value" she came to see and claim it.   She even moaned to my mom about giving my uncles wife the saran wrap.......I swear my blood was boiling from it all. 
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April 15
Profile picture for Lady Chattel
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Since October 2009

A biatch slap would be in order fo sure.......
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April 15

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