bumpytruck

OK guys I'm a little lost here . I've been watching a show on TLC "Flip that house"(people buy a fixer upper and do some things to it and flip it for a profit) They do alot of these flips in Calif. now heres what I don't understand These people are buying 1500-2000 SQ. FT. FIXER UPPERS WITH NO YARDS FOR $350,000.00 TO $850,000.00! And some of these people don't do any of the work and still make money on the resale.What is going on with these prices? I know that the market is different througout the country but this is rediculous.And where do these buyers work to make that kind of money?Here in WI. just about anywhere in the state $850,000.00 will buy you 1 <edit for language> of a house,with land. And the buyers are usally very well to do. Those from Calif. give me some insight here.

Geico266

Supply & demand.

What they are doing can be done anywhere in the country. The rules can be applied anywhere to make money in real estate. Know your market, buy low, fix up, and sell high. It's actually pretty simple. As you can tell by watching the show they are not the sharpest tools in the shed. (They drive Chevys) They buy stuff that is in really bad shape; termites, mold, structural problems, ect. The trick is stay away from that stuff.

The numbers are higher in CA is all. There is no difference in the concept.

dealseeker

It's a whole different world there. I just got back to the wintery north after a week in L.A. (Disney, Knott's, Universal, you know...the full meal family deal), and I bought a Sunday LA Times. I looked through the real estate section and was blown away. You need a pile of money just to live in a shack in any half decently nice area around there. I realized my hometown was in a different league as soon as I looked at the front page featured home which was on the market for $50,000,000 . My family agreed that we'd move to So. Cal. in a second if it ever became feasible...and not just for Disney.

GSP

First those flip it realestate shows are a crock of <edit for language>. They are selling you a couse thats <edit for language>.

I have a 1200 sq ft Manufactured home , with a stick garage ,on 3/4 acre in So Cal. it was a rural area at the time .Payed $85,000 for it 20 years ago. It was worthless through the '90s. About 6 or 7 years ago it went up in value . The last couple years prices have ski rocketed up $100,000 then up another $100,000 and another$100,000.

Its because all these <edit for language> people from Illinois, Minnisota, virgina,ohio and the rest of you liberal easterners are moveing to Calif and ruining the state. Look at the mayer or police chief what ever he is, That guy is from Boston . He Has this Eastern Boston accent . you now" You Paak your Caa next to the Coyb" Whats with that, He talks like Ted Kennedy, What the <edit for language> is this eastern dude mayer in Calif for?

On top of the easterners you have Asians, Mexicans , Middle easterners (arabs and such) europeans moveing To Calif.

No one speaks english in Calif anymore. California is a Foriegn contry.

My piece of <edit for language> manufactured home thats realy worth mabe $15000 can now be sold for $400,000.


<edit for language>
As it seems obvious to me that you understand the rules for posting due to your repeated use of * to bypass our software filter.
I can only surmise that you just don't care.

Consider this as Strike one.
Ed 'Shovelhead' Anderson

PS: I live in Virginia, and I am about as far from being LIBERAL as you can get.

From the forum rules that each member agrees to abide by when they join our site:
....
In addition, for the use of this forum, profane posts should be considered those completely spelled words, or partially spelled words with use of keyboard symbols that suggest a profane meaning. We repeat, profane posts will absolutely not be tolerated on this website and its forums.

dealseeker

And I hear your governor is from Austria.

Shovelhead

And his wife looks like she's from Anorexia.






That ain’t right, Lord I apologize for that right there and be with the starving pygmies down there in New Guinea there, Amen

GSP

Shovelhead , You sent me a PM complaining about my post, and act like you take my post personaly for some reason, saying its offensive.
Im a long time member of held in high regards of some other website forums . And we all use "*" to sensor our post from colorful expressions ,including the site owners. Never any complaints.

Then you go and post a negative degrading "profane" comment about the way someones wife looks.

Kinda hypocritical id say.

jthorpe

Well folks, this one is going downhill fast. GSP, all I can say to you is that you need to re-read the rules of our site and carefully understand them because I don't care what other sites do. This is DTR, not TDR or NWB or OB or ABC or anything else. You live by our rules while you're here or disappear.

spunbearing

OK heres the deal since I'm in the business. For the last 10 years I've been working mostly for realtors and lenders so I've seen the progression of the prices. Just as an example 6 years ago I had a 4 bedroom house locked in on a lease option for $107k. The same house now is selling for $480k.For the last 5 years you could buy a house that needed $10k in work and sale it 3-4 months later at a $60k profit or more. Many people borrowed against their equity and bought more and more to fix and flip these and they made big bucks. Some people that I know had 5 projects at a time. The market has peaked and is starting to go backwards now. I've seen the prices recently drop by $10-$20k. People are starting to realize that the profit is gone. A friend of mine sold his house and moved to Australia. 3 months after he moved his neighbors house ( which wasn't in as good condition) sold for $80k more. It's be a lucrative 5-6 years. Unfortunately I missed the boat and didn't share in the profit.

GSP

Yea, The Equity boom that lasted 1 1/2 -2 years seems to be dieing down. The low interest rates and buying frenzy was unreal. Im wondering if there is going to be alot of forclosers here in the near future. Like in the early '90s.
Alot of people barely got in on very high priced houses with creative loans with 3-5 year arms and can barely afford their payments . Whats going to happen when the fixed rate arm is up and their house payment go up and they cant refinance at a lower rate?

There are 3 houses on my road that sold at very high prices about 9-10 monthes ago. 3 other houses arent selling now and the have come down 40-50 thousand and stiil arent selling. I think the first 3 way over payed. One guy put his back up for sale the same day he bought it and now cant sell it. Counter offers at lower prices are being made now compared to earlyer last year when people were offering more than the selling price.

Geico266

Classic supply & demand. You are correct. There will be a bust cycle after such a run up in value. Keep an eye out for those value buys. They will be there.

apache

Personally I havent seen to many liberal easterners either. Its more like (no offence) greedy real estate agents and people riding the $$ wave. My 110K home in 97 is worth 420K, it a rental, where we live was 40 acres bought for 140K 12 years ago now worth 700K after being sold off to 8 acres left. Round here Its all the yuppie wanna be ranchers from so cal jacking the prices here trying to get away from mexifornia south, come here for the simple life away from Walmarts,gangs,strip malls and the like then they complain when they have to drive 45 miles to find a Starbucks or theres nothing to do. I say bring it on. eventually both places will be sold off for as much as possible, 2-3 million?? then we can buy an island somewhere and become the king of my own country .
So if I offered you the orininal price fro your house will you sell it to me? or are ya gonna hold out for the 400K you say its worth? I can guess the answer. As far work goes to afford them??, god only knows how they afford it. wonder it myself. working with finincal advisers Im told many of the "interest only loans" will be defuncted on when its time to start paying principal. Who knows only the crystal ball.

Shovelhead

I personally think much of the Housing Price "Boom" has been caused by greedy local governments who keep jacking up the assessments of the local real estate in an effort to pad their coffers so they can have enough money to fund their ridiculous salaries and pet projects.
Around here the local Gov jacks up the assessements one year and then jacks up the tax rate the next.
That way every year they can brag about how they're helping the local citizens by not increasing the assessment/tax rate (whichever one isn't getting raised that year) to get re-elected.

The house next to me which sold in 1995 for $189k is now assessed at $589k, and the cheapest house that sold in this neighborhood (in 7 days BTW) in the past year went for $650k.

It's not as much a real estate "Bubble" bursting as a taxpayer revolt.

rammtuff

Same in southwest Florida. House prices in Naples, Bonita and Ft Myers have increased an average of 64% last year. Our place has almost doubled since July when we closed. I don't know where the money comes from either.

apache

Good point Shovelhead about the tax assessments :Guess thats why Id never make it as a financial adviser or politician. Cant imagine paying the taxes on a million plus dollar spread these days . It really seems its nation wide pretty much.