patrick.net

not true

these investors typically pay cash today vs in 2005 it was typcially zero down

In fact most deals for low end homes will cash flow with a mortgage right away today VS in 2005 you would be negative a large amount per month even when rented out.

investors swooping in at todays low prices is one sign prices are nearing or close or at the bottom. You are seeing the 'strong hands' take over from 'weak hands'. Basically MOST bubble buyers and anyone who pulled too much HELOC out of thier home needs to be removed from that home due to hopeless neg equity.

note that prices are DOWN every year for 5 years now - how is this a bubble? its an implosion/reset to 2002 prices or way earlier in flyover.

There are stupid seminars for every dumb get rich quick scam under the sun, what the hell does that mean? People are suckers for easy money schemes, but the only people who get rich are the ones selling the stupid programs for 99.95 and giving 4 thousand dollar "exclusive" seminars. Come on now. What the hell does this have to do with a real estate bubble.

real estate 'seminars' have been going strong for ever.

during peak fraud - they were telling people to max out HELOC to buy homes. or buy with zero down.

Now there is no HELOC money and no zero down. So now prices are 50% off peak and only cash heavy investors are buying, this seems sustainable to me!

no joke it is!

your right

if there's money to be made it's a bubble.

curtains off boys.

ok if this IS a RE investment bubble, what is the next phase? Lower prices, investors who are buying now get burned, then let thier flops foreclose - repeat whole process?

If investors pay cash, they probably can't be foreclosed upon, but it might be easier for them to walk away from a non-performing asset... in that case it's simply selling at any loss and writing it off for tax purposes.

Foreclosures are painful for banks and borrowers, but selling something you own outright at a loss is ridiculously easy.

This is why when those investors realize they aren't going to make money, and even start losing it, their exodus might have a bigger impact on the housing market than the foreclosure-era did.

California will not stop falling until it reaches the historic median multiplier with the rest of the US of around 2.

Ten housing analysts predict falling prices in 2012

http://ochousingnews.com/news/24681-charlton-dr-laguna-hills-ca-92653

Housing will never be a good investment there are too many costs associated with it.

PockyClipsNow says

these investors typically pay cash today vs in 2005 it was typcially zero down

I believe, the radio ad is saying that you can flip houses without using your own money.

Wonder if the people who buy into this stuff are the same people who buy late night TV crap

ptiemann says

The truth is, once the opportunity was discovered by mass media and seminar guys, it was ruined.

I understand that the same thing happened with storage units.

zzyzzx says

ptiemann says

The truth is, once the opportunity was discovered by mass media and seminar guys, it was ruined.

I understand that the same thing happened with storage units.

If the homeowner isn't insulted by your offer...you didn't bid low enough!!!

Yes, HGTV has plenty of shows about flipping. They always run into problems, yet always make a nice profit. So Joe Armchair thinks "That guy wasn't even good at doing it and made money, so if I did I would make a fortune!"

generallyfd says

If investors pay cash, they probably can't be foreclosed upon, but it might be easier for them to walk away from a non-performing asset... in that case it's simply selling at any loss and writing it off for tax purposes.

Foreclosures are painful for banks and borrowers, but selling something you own outright at a loss is ridiculously easy.

This is why when those investors realize they aren't going to make money, and even start losing it, their exodus might have a bigger impact on the housing market than the foreclosure-era did.

Investors are buying to rent. How can rental of a cash purchase house be a non performing asset? Even if you have to rent below rental market average, if the rent exceeds the taxes and maintenance it's a performing asset. Hard to get much worse performance then 1% or less in money market funds or bonds. There will be no exodus, people with money to pay cash for houses know what they are doing.

There was a forgotten RE crater in the 80's. After the retail market went flat, there were hundreds of get rich quick RE schemes for RE investors.
The zero cash down was specially invented for those dolts.
This isn't new, isn't a precedence, and is by no means a threat to future home buyers. In fact, I'm certain, future home buyers will buy many of these houses back from disillusioned investors for the same price if not less than they bought them for.

It's already starting in South Florida.

APOCALYPSEFUCK is Tony Manero says

Cannibal Anarchy

Duh! How many times must it be typed?

I agree that rich quick RE schemes have been around my whole life. They take different forms. Sports radio in the Bay Area was filled with constant commercials about buying people out of their ARMs.

Mortgages have a quality to them that suggests some things do come for free. I haven't figured out how to say it exactly, yet, but it just seems like that's what is suggested when someone hands you hundreds of thousands of dollars, asks you to pay interest, but at the same time suggests you'll end up with more money.

seminars like this one:

http://www.mubCkCAEiDQ&feature=results_video&playnext=1&list=PLD5A9CEC418040EC4

Bubble? Here in Florida RE investors have been buying up many homes. Average rental price is just about what the mortgage would be. I think there will be a demand for a while on rental homes as people that were foreclosed up or just send in the keys need a place to live.
What I wonder though is, with all these homes being bought up by investors, how long will they rent them before they actually sell and make thier money? I would think that they will do this when prices rise X%. I don't have a magic number, but I do they think they rent now and sell later.