Investors rush into SF Bay Area real estate deals


By curious2   Follow   Mon, 12 Nov 2012, 11:17pm   1,144 views   11 comments
Watch (1)   Share   Quote   Permalink   Like   Dislike  

"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

Viewing Comments 1-11 of 11     Last »     See most liked comments

  1. ducsingle5313


    Follow
    Befriend
    4 threads
    205 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)
    40 threads
    1,539 comments

    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
    18 threads
    3,619 comments
    Berkeley, 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 (4)
    116 threads
    4,363 comments

    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)
    73 threads
    334 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
    53 threads
    3,807 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
    27 threads
    6,131 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
    6 threads
    107 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)
    26 threads
    619 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.

curious2 is moderator of this thread.

Email

Username

Watch comments by email
Home   Tips and Tricks   Questions or suggestions? Mail p@patrick.net   Thank you for your kind donations

Page took 132 milliseconds to create.