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Investors rush into SF Bay Area real estate deals

By curious2   Follow   Mon, 12 Nov 2012, 11:17pm   937 views   11 comments
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"Droves of cheap foreclosed homes are drawing serious investor money. From mom-and-pop folks seeking retirement income to Wall Street-backed funds with hundreds of millions to spend, investors buy distressed homes to either fix and flip or, increasingly, to hold and rent out, mainly focusing on the most-affordable areas - those most devastated by the downturn."

http://www.sfgate.com/realestate/article/Investors-rushing-into-real-estate-deals-4026281.php

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1. ducsingle5313 Follow Befriend 4 threads 206 comments Redwood City, CA

   1   12:00am Tue 13 Nov 2012   Share   Quote   Permalink   Like   Dislike   ========================== After renting this and similar homes out for five to seven years, Praxis will sell, hoping for significant appreciation. ========================== My guess is the price/rent ratio only works in very outlying (less desirable) Bay Area locales. And if these companies are paying cash, it seems like there is a high lost opportunity cost? I wouldn't want to rely on "significant appreciation" over the next 5 to 7 years.

2. bmwman91 Follow Befriend (7) 37 threads 1,539 comments Mountain View, CA bmwman91's website Premium

   2   12:16am Tue 13 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike   ducsingle5313 says I wouldn't want to rely on "significant appreciation" over the next 5 to 7 years. Do not underestimate the lengths that the government (local, state and federal) and the central banking nexus will go to to ensure inflated property values. Our president has openly declared that he will put a floor under housing prices, and the Fed has openly stated that their goal is to create the wealth effect via "home equity" to get consumer spending up again (which is supposed to be a panacea for our unemployment situation).

3. Ceffer Follow Befriend 6 threads 650 comments Pleasanton, CA

   3   12:42am Tue 13 Nov 2012   Share   Quote   Permalink   Like   Dislike   I love newspaper articles that ignore the distinction between advertising (real estate) fantasy/puffery and reality. Another "get them while they're hot, get rich quick" lure for the suckers, a service for the real estate advertisers disguised as journalism.

4. curious2 Follow Befriend (5) 31 threads 2,265 comments Premium

   4   12:50am Tue 13 Nov 2012   Share   Quote   Permalink   Like   Dislike   Ceffer says a service for the real estate advertisers disguised as journalism. I liked the headline about "rushing," i.e. not taking the time to think things through. The investors are presumably looking for an inflation hedge, the investment companies are making money providing one, but no one knows where prices will go.

5. 37108605 Follow Befriend 1 threads 1,055 comments

   5   8:04am Tue 13 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   There is an adage that goes, FOOLS RUSH IN

6. 37108605 Follow Befriend 1 threads 1,055 comments

   6   8:04am Tue 13 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   And with that stated, a fool and their money are soon parted!

7. coriacci1 Follow Befriend (1) 65 threads 268 comments

   7   8:23am Tue 13 Nov 2012   Share   Quote   Permalink   Like (2)   Dislike   sfgate, real estate shills from the getgo. a never ending story.

8. edvard2 Follow Befriend 34 threads 2,116 comments

   8   9:14am Tue 13 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike   This whole thing was written like an ad.

9. thomaswong.1986 Follow Befriend 15 threads 2,851 comments

   9   10:22am Tue 13 Nov 2012   Share   Quote   Permalink   Like   Dislike   When it comes from SF..there usually is a self interest behind it.

10. BobMSN Follow Befriend 3 threads 98 comments

    10   11:11am Tue 13 Nov 2012   Share   Quote   Permalink   Like   Dislike   When someone tried to convince the public that a stock is booming, he is ready to unload.

11. REpro Follow Befriend (1) 22 threads 471 comments San Jose, CA

    11   1:27pm Tue 13 Nov 2012   Share   Quote   Permalink   Like   Dislike   It looks to me like a typical Wall Street game. Wipe from the market low priced inventory, created greed, lift prices, and spread more greed, then when profit rich 25-35%, big players will dump 1000’s of homes back on market living unaware last time buyers with losses. By the way, stock market appear to me like is ready for another sharp decline.