For the Real Estate Drop in sales and price Naysayers HOLD ONTO YOUR HATS

[HNL2LHC]

I got this on the commercial side last week from a contact at Voit.


Roger,



I hope you had a fantastic Thanksgiving break.


I would like to reach out and share that a freestanding building around 10,000 SF just sold recently for a purchase price around $415 PSF. This is virtually the only building to transact since the last time we connected. Lease rates are holding steady around $1.70 PSF. Please see brochure attached.



Please let me know if you have any additional questions and I’ll be more than happy to help.



Best regards,





Last time we connected, 2 months.

So if I read this right you can buy this property at $4m and rent out for $14k a month. So if you come up with a paltry $2M you’d break even.

 

[bonesfab]

I got this on the commercial side last week from a contact at Voit.


Roger,



I hope you had a fantastic Thanksgiving break.


I would like to reach out and share that a freestanding building around 10,000 SF just sold recently for a purchase price around $415 PSF. This is virtually the only building to transact since the last time we connected. Lease rates are holding steady around $1.70 PSF. Please see brochure attached.



Please let me know if you have any additional questions and I’ll be more than happy to help.



Best regards,





Last time we connected, 2 months.

Where is this?? I am choking on the 1.70 per sqft.

 

[regor]

Where is this?? I am choking on the 1.70 per sqft.

Anaheim for Industrial.

 

[Englewood]

So if I read this right you can buy this property at $4m and rent out for $14k a month. So if you come up with a paltry $2M you’d break even.

Right?! And get 0% return on your $2m cash. Crazy how hard it is to find a property that pencils out anymore.

 

[HNL2LHC]

Right?! And get 0% return on your $2m cash. Crazy how hard it is to find a property that pencils out anymore.

You’d have a negative with taxes, maintenance and all the other fun stuff.

 

[NicPaus]

If I build out a property like planned. It will be 2 houses 1600 sq ft and 2 ADUs 1200 sq ft. Plan was to sell once completed. Now I am considering keeping them and renting. I would be in it for 1.7M. Does it pencil out to keep if it brings in $14,500-15,500 in rent. If I sell what do you think it would go for in the Southbay based on rent?

Or I sit on it longer. Bought it 10 years ago. And plan was to do a small lot subdivision. Built 2 similar down the street and should of sat on that 1 longer.

 

[LargeOrangeFont]

You’d have a negative with taxes, maintenance and all the other fun stuff.

That’s why it’s an “investment”

 

[Englewood]

If I build out a property like planned. It will be 2 houses 1600 sq ft and 2 ADUs 1200 sq ft. Plan was to sell once completed. Now I am considering keeping them and renting. I would be in it for 1.7M. Does it pencil out to keep if it brings in $14,500-15,500 in rent. If I sell what do you think it would go for in the Southbay based on rent?

Or I sit on it longer. Bought it 10 years ago. And plan was to do a small lot subdivision. Built 2 similar down the street and should have sat on that 1 longer.

1.7 that returns 16k in rent is a property I would definitely hold on to.

 

[HNL2LHC]

1.7 that returns 16k in rent is a property I would definitely hold on to.

Unless they are going to rent control. There is talk about the government making some changes with rental properties and what you can charge for rent. That is what I am concerned with. They can screw up a good thing for sure.

 

[LargeOrangeFont]

If I build out a property like planned. It will be 2 houses 1600 sq ft and 2 ADUs 1200 sq ft. Plan was to sell once completed. Now I am considering keeping them and renting. I would be in it for 1.7M. Does it pencil out to keep if it brings in $14,500-15,500 in rent. If I sell what do you think it would go for in the Southbay based on rent?

Or I sit on it longer. Bought it 10 years ago. And plan was to do a small lot subdivision. Built 2 similar down the street and should of sat on that 1 longer.

Agree.. Keep it.

 

[NicPaus]

Unless they are going to rent control. There is talk about the government making some changes with rental properties and what you can charge for rent. That is what I am concerned with. They can screw up a good thing for sure.

It will be rent control once a second unit is added. Can't avoid that. Down the street similar was built across from the last 2 I built and subdivided. He is collecting $3700 on each 1200 sq ft adu. $15,600 on all 4. He built it to keep.

 

[Member: 71]

I got this on the commercial side last week from a contact at Voit.


Roger,



I hope you had a fantastic Thanksgiving break.


I would like to reach out and share that a freestanding building around 10,000 SF just sold recently for a purchase price around $415 PSF. This is virtually the only building to transact since the last time we connected. Lease rates are holding steady around $1.70 PSF. Please see brochure attached.



Please let me know if you have any additional questions and I’ll be more than happy to help.



Best regards,





Last time we connected, 2 months.

Come on, man...... roger = regor

 

[Cdog]

I received this email today from a Richmond American broker I’ve worked with on the west side.

I have over 40 homes that can close by the end of the year and with any home that I get under contract by the end of the day December 10th, I am able to offer 4.87% 5/1 ARM for FHA / VA buyers and 4.99% 7/6 ARM for Conventional buyers. 5.75% 30-year fixed rates FHA and VA loans for qualified buyers and up to $10,000 towards closing costs. I can also offer 5.99% 30-year fixed rate on Conventional loans along with up to $10,000 towards closing costs on homes that close by December 29th.

 

[HNL2LHC]

I received this email today from a Richmond American broker I’ve worked with on the west side.

I have over 40 homes that can close by the end of the year and with any home that I get under contract by the end of the day December 10th, I am able to offer 4.87% 5/1 ARM for FHA / VA buyers and 4.99% 7/6 ARM for Conventional buyers. 5.75% 30-year fixed rates FHA and VA loans for qualified buyers and up to $10,000 towards closing costs. I can also offer 5.99% 30-year fixed rate on Conventional loans along with up to $10,000 towards closing costs on homes that close by December 29th.

Care to share the specifics on this? PM would be good to keep it on the down low.

 

[Cdog]

Care to share the specifics on this? PM would be good to keep it on the down low.

Shoot me a text. 480-720-7649 and I’ll text you the spread sheet of available homes & tracts

 

[HNL2LHC]

Shoot me a text. 480-720-7649 and I’ll text you the spread sheet of available homes & tracts

Text sent.

 

[Englewood]

I received this email today from a Richmond American broker I’ve worked with on the west side.

I have over 40 homes that can close by the end of the year and with any home that I get under contract by the end of the day December 10th, I am able to offer 4.87% 5/1 ARM for FHA / VA buyers and 4.99% 7/6 ARM for Conventional buyers. 5.75% 30-year fixed rates FHA and VA loans for qualified buyers and up to $10,000 towards closing costs. I can also offer 5.99% 30-year fixed rate on Conventional loans along with up to $10,000 towards closing costs on homes that close by December 29th.

That’s very interesting. Not able to move the homes even with a 5.75% rate

 

[shintoooo]

Feds held the interest rate at 5.5% today and they are planning on rate cuts next year. I think real estate is going to go crazy. All the people on the sidelines are going to buy now because when rates go down, prices will go up even more. They figure they will refinance at that time. Just my opinion. It's good to be a homeowner right now.

 

[Cdog]

Feds held the interest rate at 5.5% today and they are planning on rate cuts next year. I think real estate is going to go crazy. All the people on the sidelines are going to buy now because when rates go down, prices will go up even more. They figure they will refinance at that time. Just my opinion. It's good to be a homeowner right now.

Fingers x’d. We will be selling our rental next year and take our profits before our gains tax increases. Come on baby!!

 

[RiverDave]

Feds held the interest rate at 5.5% today and they are planning on rate cuts next year. I think real estate is going to go crazy. All the people on the sidelines are going to buy now because when rates go down, prices will go up even more. They figure they will refinance at that time. Just my opinion. It's good to be a homeowner right now.

That's what I believe as well.. I just spent most of our investment money on speed cars though so I can't jump in the game right now anymore than we already are.. LOL

RD

 

[baja-chris]

Hoping the market is good for selling in the spring. We are moving to the Havasu house full time and selling our Gilbert home, furnished (snowbird or rental special?).

 

[hallett21]

The final push. It’s gonna happen. Idk wtf you do come a year from now.

 

[hallett21]

That's what I believe as well.. I just spent most of our investment money on speed cars though so I can't jump in the game right now anymore than we already are.. LOL

RD

Honestly if housing surges again so will toys. Maybe keep one and unload the other 19 lol.

 

[Cole Trickle]

Feds held the interest rate at 5.5% today and they are planning on rate cuts next year. I think real estate is going to go crazy. All the people on the sidelines are going to buy now because when rates go down, prices will go up even more. They figure they will refinance at that time. Just my opinion. It's good to be a homeowner right now.

Its all a gamble. I wouldn't want any part of a bidding war so perhaps some kind of arm for a bit.

I'm glad I sold and bought when I did I don't like gambling...haha

 

[LargeOrangeFont]

Feds held the interest rate at 5.5% today and they are planning on rate cuts next year. I think real estate is going to go crazy. All the people on the sidelines are going to buy now because when rates go down, prices will go up even more. They figure they will refinance at that time. Just my opinion. It's good to be a homeowner right now.

Yup. Brace for impact. Home prices will be going up by the end of Q1. I bet mortgages will be under 6% in 18 months.

 

[EmpirE231]

Hard to imagine real estate going any higher.... but who knows. Nothing has made financial sense for a while now.

 

[LargeOrangeFont]

Hard to imagine real estate going any higher.... but who knows. Nothing has made financial sense for a while now.

There is stupid amounts of money out there on the sidelines waiting to buy as soon as they get a sniff of lower rates.

 

[shintoooo]

The final push. It’s gonna happen. Idk wtf you do come a year from now.

It's so tempting to try and time the top and sell and either rent or buy a condo for a while and wait it out and see what happens. Problem is, that's what people did two years ago and they lost on 20-30% appreciation lol.

 

[RiverDave]

Honestly if housing surges again so will toys. Maybe keep one and unload the other 19 lol.

I have two four seaters and one Diablo

 

[LargeOrangeFont]

I have two four seaters and one Diablo

You better unload that shit. Make $10k on each and call it good. Or sit on them for 10 months.

 

[hallett21]

I have two four seaters and one Diablo

Haha I was kidding

 

[Hammer]

Feds held the interest rate at 5.5% today and they are planning on rate cuts next year. I think real estate is going to go crazy. All the people on the sidelines are going to buy now because when rates go down, prices will go up even more. They figure they will refinance at that time. Just my opinion. It's good to be a homeowner right now.

Yup. Brace for impact. Home prices will be going up by the end of Q1. I bet mortgages will be under 6% in 18 months.

Hard to imagine real estate going any higher.... but who knows. Nothing has made financial sense for a while now.

I don't see how home prices can go up? Cost of living is going up but people aren't making more money? I don't see how any non investor type can swing a house payment if they go way up...

 

[shintoooo]

I don't see how home prices can go up? Cost of living is going up but people aren't making more money? I don't see how any non investor type can swing a house payment if they go way up...

There's a lot of people that have been waiting with cash to see what happens with the market. Waiting for a possible crash but that's not going to happen anytime soon. It could happen but I don't think it will in the next two years. Also, a lot of mom and dads and grandparents are helping their kids and grandkids buy their first or next house. If rates go down and they will, housing will go up where there's jobs.

 

[LargeOrangeFont]

I don't see how home prices can go up? Cost of living is going up but people aren't making more money? I don't see how any non investor type can swing a house payment if they go way up...

There are loads of people that just watched their home ownership chances evaporate about 20 months ago when rates went up. They are still working, and still have that money, or help from family. There is an entire Boomer generation sitting on tons of money to help their kids.

Look at history. How many times have people said "Prices can't go up any more"? All they have done is go up. Even the people that bought in 2006 in the IE were positive again in less than a decade.

 

[Hammer]

There's a lot of people that have been waiting with cash to see what happens with the market. Waiting for a possible crash but that's not going to happen anytime soon. It could happen but I don't think it will in the next two years. Also, a lot of mom and dads and grandparents are helping their kids and grandkids but their first or next house. If rates go down and they will, housing will go up where there's jobs.

Can you get me a refund on my '23 taxes I paid early? Too bad the check cleared, I'd cancel that bitch. I need some seed money!

 

[Hammer]

There are loads of people that just watched their home ownership chances evaporate about 20 months ago when rates went up. They are still working, and still have that money, or help from family. There is an entire Boomer generation sitting on tons of money to help their kids.

Look at history. How many times have people said "Prices can't go up any more"? All they have done is go up. Even the people that bought in 2006 in the IE were positive again in less than a decade.

I have no doubt RE is the safest investment Long term. Value will always rise. Renters that can squat in CA with no recourse scare the shit out of me though...

 

[LargeOrangeFont]

I have no doubt RE is the safest investment Long term. Renters that can squat in CA with no recourse scare the shit out of me though...

I may regret selling my CA house at some point, but that was my biggest fear with keeping it.

 

[Hammer]

I may regret selling my CA house at some point, but that was my biggest fear with keeping it.

My biggest regret was not forcing the issue with my mom when I wanted to buy my grandparents house at 25. She wouldn't let me because I wasn't responsible. I could have afforded the $250k. It just sold for $1.4M lol. It would almost be paid off by now.

I would reinvest that money out of state somewhere, unless you want to come back to CA? On paper, this isn't a good place to live.... Unless you are wealthy...

 

[prorider]

You guys have a lot more faith in Biden than I do.

 

[monkeyswrench]

Hard to imagine real estate going any higher.... but who knows. Nothing has made financial sense for a while now.

3 weeks ago a lady from Norco bought the place down the road from me. 10ac horse place...mobile home. It's a nice mobile, but I still saw it "parked" 6 years ago.
700k!
I don't understand this current world at all

 

[LargeOrangeFont]

You guys have a lot more faith in Biden than I do.

Its the establishment. Has nothing to do with Biden.

 

[shintoooo]

You guys have a lot more faith in Biden than I do.

Do you think they're going to allow anything to crash? Look at the stock market. A lot of the Nasdaq stocks hit all time highs today. They are going to make everything look great to win the next election. Might as well ride it as long as you can. At this point, might as well vote for Biden and get it while the getting is good.

 

[LargeOrangeFont]

Do you think they're going to allow anything to crash? Look at the stock market. A lot of the Nasdaq stocks hit all time highs today. They are going to make everything look great to win the next election. Might as well ride it as long as you can. At this point, might as well vote for Biden and get it while the getting is good.

At this point, we should start a pool of when the market is gonna hit 40K.

My guess is before we see these great RE prices "around the corner".

 

[hallett21]

You guys have a lot more faith in Biden than I do.

My phone just said he’s getting impeached. Apple news

 

[EmpirE231]

3 weeks ago a lady from Norco bought the place down the road from me. 10ac horse place...mobile home. It's a nice mobile, but I still saw it "parked" 6 years ago.
700k!
I don't understand this current world at all

That’s a GTFO of CA move.

 

[evantwheeler]

I just spent most of our investment money on speed cars though so I can't jump in the game right now anymore than we already are.. LOL

RD

I guess that beats betting on bitcoin during a FOMO spike and then selling as it nose dives.....

 

[evantwheeler]

Just my opinion. It's good to be a homeowner right now.

Wish I would have started home ownership earlier….

 

[angiebaby]

You guys have a lot more faith in Biden than I do.

I have faith they will artificially make the economy look good to win the election. “See? Unemployment is down! Inflation is down! Interest rates are down! Everything is great! Vote Democrat for more of this.”

 

[angiebaby]

My phone just said he’s getting impeached. Apple news

That means nothing unless you control 2/3 of the Senate.

 

[hallett21]

That means nothing unless you control 2/3 of the Senate.

I hadn’t even heard rumors of this happening. My phone buzzed with the update and I was shocked.

To this point in American history no president has been successfully impeached right? Nixon included.