Mon, 26 Nov 2012, 11:44am PST
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Is that $360,000 median a 10% down "skin in the game price"
Or is it an FHA I've got nothing to lose ," bilk the general public price"...
Funny you should ask.
I can't say for certain, but in many parts of LA(and in particular the VERY HOT submarkets from Silver Lake to NELA), "investors" are getting sweetheart insider deals and turning around and putting maybe $50K of work into the place(which contractors would quote you $150K to do and if you're an idiot you would pay that without attempting to negotiate) and then re-list 3 months later on the MLS for a tidy $200-300K markup, some of which gets kicked back to the original REA after sale is completed(hence why "investor" got the property at a sweetheart deal).
So now you see the difference between the cash only buyer and the bent over and fucked hard with no lube FHA 3.5% down buyer. Oh and thats if theres not another willing FHA sub willing to go through the process and ignorantly overbid cause a $25K overbid is "just" $100 or so a month more.