Investors rush into SF Bay Area real estate deals

By curious2   follow   Mon, 12 Nov 2012, 3:17pm PST   ↑ Like   ↓ Dislike   1,700 views   11 comments   Watch (1)   Share   Quote  

"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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ducsingle5313   befriend (0)   ignore (1)   Mon, 12 Nov 2012, 4:00pm PST   Like   Dislike     Share   Quote   Comment 1

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After renting this and similar homes out for five to seven years, Praxis will sell, hoping for significant appreciation.
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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.

bmwman91   befriend (7)   ignore (1)   Mon, 12 Nov 2012, 4:16pm PST   Like (1)   Dislike     Share   Quote   Comment 2

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).

Ceffer   befriend (0)   ignore (1)   Mon, 12 Nov 2012, 4:42pm PST   Like   Dislike     Share   Quote   Comment 3

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.

curious2   befriend (4)   ignore (6)   Mon, 12 Nov 2012, 4:50pm PST   Like   Dislike     Share   Quote   Comment 4

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.

37108605   befriend (0)   ignore (1)   Tue, 13 Nov 2012, 12:04am PST   Like (2)   Dislike (1)     Share   Quote   Comment 5

There is an adage that goes,

FOOLS RUSH IN

37108605   befriend (0)   ignore (1)   Tue, 13 Nov 2012, 12:04am PST   Like (3)   Dislike (1)     Share   Quote   Comment 6

And with that stated,

a fool and their money are soon parted!

coriacci1   befriend (1)   ignore (4)   Tue, 13 Nov 2012, 12:23am PST   Like (2)   Dislike     Share   Quote   Comment 7

sfgate, real estate shills from the getgo. a never ending story.

edvard2   befriend (0)   ignore (1)   Tue, 13 Nov 2012, 1:14am PST   Like (1)   Dislike     Share   Quote   Comment 8

This whole thing was written like an ad.

thomaswong.1986   befriend (0)   ignore (6)   Tue, 13 Nov 2012, 2:22am PST   Like   Dislike     Share   Quote   Comment 9

When it comes from SF..there usually is a self interest behind it.

BobMSN   befriend (0)   ignore (0)   Tue, 13 Nov 2012, 3:11am PST   Like   Dislike     Share   Quote   Comment 10

When someone tried to convince the public that a stock is booming, he is ready to unload.

REpro   befriend (1)   ignore (0)   Tue, 13 Nov 2012, 5:27am PST   Like   Dislike     Share   Quote   Comment 11

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.

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