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The Secret is Out


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2012 Aug 30, 6:42am   45,676 views  90 comments

by BayArea   ➕follow (1)   💰tip   ignore  

You could not find a better investment between mid 2010 through the end of 2011 than low end real estate. Relatively low prices, record low interest rates, and the fact that the mainstream had not yet been fully let in on the secret. For the smart ones (or lucky ones for that matter) that got in during that time, congrats on the move.

Fast forward to 2012, inventory has reached inexplicably low volumes, prices have surged, and the secret about real estate investment is out.

Case and point... I sit at the family table at dinner, and the topic is real estate investment. I go to lunch with co-workers, and the topic is how to become a slum-lord. I go bowling with some friends, and everyone is talking about buying up low end real estate to rent out. I cannot believe what I am experiencing. It's like everyone with a stable job is all of a sudden a real estate investor. It's not just for the upper class anymore. My secretary bought a damn rental property this year in the Bay Area for gawd's sake!

It will be interesting to see what happens after the election and how real estate responds.

Don't get me wrong, with the rental market also surging, real estate is still a good investment today, but it was a great investment 12-24 months ago.

Waiting patiently...

#housing

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30   The Original Bankster   2012 Aug 31, 1:31am  

Biff Baxter says

The Original Bankster says

idiot, go back to the gay bath house faggot.

I'm confused. What's a faggot? A cigarette? And why does he need a bath?

Biff

someone from California.

31   Eman   2012 Aug 31, 2:22am  

The Original Bankster says

Biff Baxter says

The Original Bankster says

idiot, go back to the gay bath house faggot.

I'm confused. What's a faggot? A cigarette? And why does he need a bath?

Biff

someone from California.

The San Francisco Treat.

Aw. That's just wrong man. One size doesn't fit all.

32   REpro   2012 Aug 31, 3:12am  

E-man says

When everyone is talking about it, that means it's almost over

I agree. When everybody talks about it, something is fishy. Something going to be lifted out of fundamentals again. Somebody is going to lose Money or Mind.
1987- Real estate double every year
2000- Everybody was giving stocks advice
2006 – Real estate is going up to the roof, buy now
A year ago- gold, gold, gold
Hell, 3 mo. ago FB was the best investment, everybody were talk about it (18.25 today)

33   Rin   2012 Aug 31, 3:15am  

ELC says

Gays leading the appearence of straight lives is so common the gays have a word for it, "beard." "Katie is Tom's beard."

Ok, I got that but that doesn't make for a Gaydar, i.e. "Oh look ... that good looking, in-shape guy is with a woman. He must be gay."

Otherwise, you'll then have an inverse stereotype for a married hetero man being fat, balding, and ill who's stuck with a nagging wife. "Oh look ... he's fat & ugly, gotta be straight!"

34   Rin   2012 Aug 31, 3:19am  

The Original Bankster says

someone from California.

Massachusetts is a lot easier; we have the South End of Boston and Provincetown MA for open homosexuals and Northampton MA, for lesbians. But in all honesty, I don't think the South End is safe to live in anymore. Provincetown, however, is a gorgeous seaside peninsular region. If it were a straight destination, I might even consider moving there for the grand ocean vistas.

35   REpro   2012 Aug 31, 3:22am  

If rent drop only 5% - 50% of demand will disappear.

36   Rin   2012 Aug 31, 3:24am  

Dan8267 says

If it's Katie Holmes, I want to examine the documentation.

Actually, I was more interested in examining Nicole Kidman :-) !

37   Dan8267   2012 Aug 31, 3:29am  

Rin says

Dan8267 says

If it's Katie Holmes, I want to examine the documentation.

Actually, I was more interested in examining Nicole Kidman :-) !

Only if it was old documentation from the early 1990s. She's over 30 now, ewwww. Actually, she's over 40 now, double ewwww.

38   Goran_K   2012 Aug 31, 3:54am  

Dan, Nicole Kidman may be a vampire. She looks pretty good for a 40+ woman.

39   Dan8267   2012 Aug 31, 4:02am  

Goran_K says

Dan, Nicole Kidman may be a vampire. She looks pretty good for a 40+ woman.

You're thinking of Kate Beckinsale, the only woman almost 40 who still looks good, and who plays a vampire in Underworld.

40   Dan8267   2012 Aug 31, 4:05am  

Speaking of Kate Beckinsale...

http://www.youtube.com/embed/G6vYraQfxqM

41   bmwman91   2012 Aug 31, 4:27am  

LOL

Hilarious video.

42   Rin   2012 Aug 31, 4:44am  

Dan8267 says

You're thinking of Kate Beckinsale, the only woman almost 40 who still looks good, and who plays a vampire in Underworld.

Don't forget Raquel Welch, now in her 70s, and clearly looks like she's in that mid-40s category, talk about the eternal cougar :-) !

43   PockyClipsNow   2012 Aug 31, 5:01am  

funny vid.

unshaven clown!! hahahaha

i can see this election coming down to abortion. its the only issue simple enough to get the dumb ass 'swing voters' to actually express an opinion.

44   Homeboy   2012 Aug 31, 5:04am  

Seems like irrational exuberance 2.0 is starting a bit early.

45   CrazyMan   2012 Aug 31, 5:39am  

Dan8267 says

I'll be in my bunk pretending to be a Republican.

46   edvard2   2012 Aug 31, 6:04am  

I bought a house and have healthy retirement and cash savings. I work and I save. Somehow that seems to work out just fine and dandy for me. If anyone else has some sort of conspiracy-filled, whatever investment ideas.... go for it. Hope it works out for you.

47   ELC   2012 Aug 31, 9:06am  

Call it Crazy says

It is all very distressing to me...I'm just a simple guy who likes yoga, biking to work, and eating a healthy vegetarian diet..

You forgot hanging out with your dog on that list...

http://services.azre.gov/publicdatabase/SearchIndividuals.aspx

48   Eman   2012 Aug 31, 9:55am  

robertoaribas says

It is all very distressing to me...I'm just a simple guy who likes yoga, biking to work, and eating a healthy vegetarian diet... I'm too worked up right now, I'm going to go do some yoga and meditate.

Very funny, and I thought you didn't have a sense of humor although they're kind of dry. It must be from the Arizona's sunshine. :)

49   Homeboy   2012 Aug 31, 4:57pm  

robertoaribas says

I bought a home... then another and another... 13 total so far, 2 more under contract short sales... I remodelled and rented them all out...

then, the bottom end of Phoenix caught fire, and prices for these homes went up 30% and more...

Bullshit.

50   wbblair3   2012 Aug 31, 11:15pm  

"Ok, so if a man is married and has documented sex with his wife, then he's still potentially gay?"

No, he's potentially bisexual. There's gay, straight, and bisexual. Bisexual should not be categorized as either gay or straight as it is both. Here's Kinsey's scale on that topic:

http://en.wikipedia.org/wiki/Kinsey_scale

51   Dan8267   2012 Sep 1, 12:11am  

CrazyMan says

I'll be in my bunk pretending to be a Republican.

http://www.youtube.com/embed/xrFaTjcNzZM

52   thomaswong.1986   2012 Sep 1, 12:19am  

wbblair3 says

No, he's potentially bisexual.

or a sex addict

53   ELC   2012 Sep 1, 4:36am  

wbblair3 says

No, he's potentially bisexual.

Maybe he's Heteroflexible

54   Biff Baxter   2012 Sep 1, 7:23am  

wbblair3 says

Bisexual should not be categorized as either gay or straight as it is both.

It's pretty gay.

Biff

55   Biff Baxter   2012 Sep 1, 7:24am  

robertoaribas says

I'm just a simple guy

There's an understatement.

Biff

56   ELC   2012 Sep 1, 7:56am  

GameOver says

Hence, when the MORONS start jumping headlong into the RE market, the SMART money jumps OUT.

Would you say morons jumped in during the bubble because of people like Carlton Sheets? Would that be an indicator? There's some little weasel on TV now (forget his name) but in general I don't see too many Real Estate for Dummies programs out there right now.

57   Eman   2012 Sep 1, 9:10am  

Yup says

Refinance them all, pull out all that equity and buy 20 more.....

I F'ing dare you!

That would not be a wise move now. At least the 1st half of your suggestion is correct. Refinance them all and put that money under the pillows. The RE ship has left the dock. There is no reason to throw more money into the RE market now unless it's a screaming deal, and it can still produce a positive cashflow. Otherwise, there's nothing wrong with sitting on cash and collect 0.25% interest rate annually.

58   steve1   2012 Sep 1, 11:57pm  

Here in Phoenix, the mini boom is already over. It isn't stopping the flippers from buying and attempting to rent or sell. I live in a high demand neighborhood where the "for rent" signs are lingering along with the "for sale" signs. Yet "investors" continue to buy and refurbish, some spending lots of money. Let's face it, really savvy people with money don't put it in residential housing. It lacks one of the basic requirements of a good investment.....liquidity.

59   Zacksmom   2012 Sep 2, 4:58am  

Those arguing about Phoenix may want to do a little research on Chandler and Gilbert, AZ. These areas have had large increases in list and sale prices from Spring until now. Both cities have made CNN Money Magazines lists of Top 100 places to move @ #50 and #33. Google it!

These areas are low crime with low unemployment and excellent schools and colleges. I know several Californians relocating for those reasons. The area has long been desirable to Canadians and Midwesterners looking to escape cold Winters.

60   Zacksmom   2012 Sep 2, 5:13am  

I'm talking about traditional sales, not short sales, REO's that are receiving multiple offers and their prices are being bid up with multiple offers. Most traditional buyers don't want to risk buying a bank owned home with possible defects. Short sales take several months to close and with prices soaring why would a bank settle when they can sell it for more money in a few months?

61   B.A.C.A.H.   2012 Sep 2, 5:15am  

Zacksmom says

excellent schools and colleges

Excellent colleges? Really?

62   Zacksmom   2012 Sep 2, 5:02pm  

Gee thanks for the racist, tasteless cartoon. With colleges it's all about perspective. I'm in Orange County, CA and CSUF has cut many classes and is subpar education for the price. UC Irvine has also had a lot of cuts and prefers the tuition of out of state and foreign tuition to instate students.

I have several years before my oldest attends college, but I'm well aware of the college debt bubble and would rather my kids live at home and go to a nearby college or University vs. take on six figure debt and then spend a lifetime endentured to debt repayment.

Thanks Robert for affirming what I heard from my sister about CGCC.

Anyone trash talking AZ should spend some time living, working, and paying the high price of CA (especially OC and LA) then you realize that you have very little left over to save or plan for the future. The weather is great in CA but the pubic schools and pubic universities are a mess. The whole State is going bankrupt.

BTW, U of A has one of the top Geoscience programs in the country.

63   8675309 Jenny   2012 Sep 2, 11:19pm  

I've been tracking the Chandler zip codes, and it is true that listing prices are up, but at the same time, sales have fallen off a cliff here

64   8675309 Jenny   2012 Sep 2, 11:29pm  

Yeah, but listing prices are up!

Nobody is buying them, there are a glut of rentals, and dum-dum thinks he's a millionaire!

65   C Boy   2012 Sep 3, 1:59am  

8675309 Jenny says

I've been tracking the Chandler zip codes, and it is true that listing prices are up, but at the same time, sales have fallen off a cliff here

I think banks are still with holding properties from the market.

66   Bigsby   2012 Sep 3, 2:01am  

Darrell In Phoenix says

Zacksmom says

Anyone trash talking AZ should spend some time living, working, and paying the high price of CA (especially OC and LA) then you realize that you have very little left over to save or plan for the future.

Here my entire life. And it's a ghetto.

The fact remains that sales volume is cratering, prices are falling and entire neighborhoods are empty.

So you say, but then you've had rather a lot of personas over the months, so who's to say where you are really from.

67   Bigsby   2012 Sep 3, 2:09am  

Darrell In Phoenix says

And you've backstopped a rather large number of misrepresentations of the truth about housing over the years.

Is that directed at me? Care to give some examples?

68   anonymous   2012 Sep 3, 2:15am  

PockyClipsNow says

funny vid.

unshaven clown!! hahahaha

i can see this election coming down to abortion. its the only issue simple enough to get the dumb ass 'swing voters' to actually express an opinion.

but i thought it was the holier then thou independent voters that decide elections? you know, the one's that are so much smarter then the partisans repubes and demtards, that objectively look at both platforms and pick the worst of their ideas to turn into laws.

69   Bigsby   2012 Sep 3, 3:31am  

Darrell In Phoenix says

That's directed at you Pimp.

Now, now, Realtors are Liars, is there really any need for that?
You forgot the examples by the way.

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