The house in #31 is in abominable condition. Everything needs to be redone. What kind of buyer would that attract?
The type of buyer it is going to attract is someone with all cash (that house cannot qualify for a loan) who wants to just slap some paint on it and put in cheap stuff to turn it into a rental because it is 1-2 blocks from ocean. The area is not a place that someone would want to live… in my opinion. Surrounded by renters, partiers, homeless, college kids and renters. With no parking!
Another lurker just signing on to say thanks for starting another thread! I loved reading the last thread and look forward to you adventures with #5!
Oh wow, coralbrook, that explains a lot. No way would I want that place.
Heck. I would tear it down and replace it with a modular home. Cheaper and nicer if you get a quality one!
Well, it does apear to have a garage. Or maybe that’s the house from another angle, LOL.
I mentioned the Long Branch house because it looked like the most honest pictures we’ve seen! And yes, that peeling bunker does appear to be a detached garage.
In that neighborhood, someone would try to rent out that garage to a roommate!! Would never be used to park a car. At best, it would be used to hold a bunch of stuff.
It has the aura of holding a torture chamber.
I have a granite question - I am familiar with shiny granite. I was at a home recently where the kitchen had just been remodeled. The granite had a matte finish rather than a shiny finish. Is that a new trend? I had never seen/heard of a matte finish before.
Yes, it is a new trend. It is called ‘honed’ granite and it’s a little harder to find than regular polished granite. Probably costs more also, but I haven’t really researched it too much.
5 Property
I just followed up with the listing agent and she didn’t give me much hope that it will come on the market until February. And, she has had several inquiries already on the property so she knows that it will go onto market to get highest possible price. Think I am going to give up on this one (unless I’m still looking in February!)
8
Been searching hard and driving around a bit. Although I will admit I’m not working as hard as I usually would on the hunt. I have been working the lists of foreclosure auctions. I was focused on a small house in Bay Park area in poor condition but I knew it would require more cash than I have available for cashiers checks to go to auction. So I have spent some time talking to my investors. They are all agreeable to loan money, with interest of course, without collateral of a specific property. This is good news because I will have higher buying power at auctions, but bad news that I’m paying interest without specifically having a project. I’m thinking about it really hard. What if I find a low price project and wasted all that interest holding someone’s money I didn’t eventually need? Dilemna
So I get everything organized and drive out to snoop the property, which is still occupied by owner (as far as I can tell from snooping around). But, thank God I did this, I decide to drive to upper street and see if I can look down to property. There is a steep slope behind house and it’s covered completely with giant blue tarps!!! No way, I don’t want anything to do with a steep slope and erosion issues. Its the one of the key things I’m scared of.
cb, that’s very wise that you poked around.
You mean, you’d be paying your investors interest even though you won’t have actually taken their money yet? I’m not a fan. I understand that they’ve basically committed the funds to you, so in effect you’ve borrowed them already, but still – it could be months before you find the right property. Isn’t there another way?
No, I would take the money and put it in the bank. This way I would have the ability to draw cashier’s checks for a higher amount if I was going off to auction. Since the auctions are such a crap shoot, I need the money available on a moment’s notice - I don’t draw checks and head off to the auction unless I am very sure that the property might actually go up for sale. You cannot determine if property is going to sale until about 8:30am that morning. Then rush to the bank and wait for it to open at 9am, draw multiple cashier’s checks in various denominations, go back out to car and call up Trustee phone lines and check again, and then rush to auction which starts at 10am. Check multiple times while sitting there to see if property is still active for auction. No time to call someone up and ask if I can borrow some money for the day.
99.9% of the time I then schlep back to the bank the very same day and put all the cashier’s checks back into account and start all over again.
The rule at the auctions years ago is that you don’t want to pay more than 20% off fixed up future value for a property because there are so many risks involved. Unfortunately, the competition is so fierce now that the bidding gets up close to only 5% off future value. That is craziness because just the future selling commission alone is 5% (although most of my competition sells in house so they are only paying 2.5%). I have no idea what these guys are doing with these properties. A lot of them are purchased to hold and rent, but that isn’t making any sense right now because San Diego values are back up pretty high so they would have to hold these properties for a very long time to get any decent appreciation.
Maybe the auction route is no longer the route to go.
I’m trying to work all angles. Nothing new is coming up for sale in my target neighborhoods so I have to look at the auctions also.
I hope it’s only because of the holidays that things are slow.
Damn holidays. Bah, humbug.
This really belongs back in the #4 thread, but… the buyers of the Liberace House/Nipoma project have already put the property up for rent. In fact, they had it up for rent by Dec 3rd I think.
$5,200 / month!! Yikes, that is close to ridiculous in my book. And, they seem to be using our photos from the sales listing which I don’t think they are allowed to do. I don’t think they have any renters yet.
Yikes! That is huge rent.
There is another property listed on that link that is about the same orice…with a pool. I know which one I woild choose!
Can’t believe they will get that rent!!
But you don’t care!!!
I woild inquire about the pics! Sounds like they are too lazy to stage it themselves. Imagine seeing those pics, and then coming to see the house either empty or with different furnishings! Weird!!