Investors / Speculators snatching up properties (sales, renter, HOA)

macgeek · 10-31-2010, 11:13 AM

Well, House #4 - on the market and a week later off the market.
is anyone seeing this phenomena or is it just my bad luck?

Jonathan

WestieJeff · 10-31-2010, 03:09 PM

Oh yeah, all the time. I would say most of "good condition" properties in the area that I am looking at are being snatched up by investors at trustee auction and resold for tens of thousands more. Not sure how the appraisals are justifying what is going on right now.

As a recent example, 6920 Schirlls St was bought up at trustee auction by an investor for 240k last month. It was just listed last week for 320k and it was under contract within a week.

3385 Arby was bought at an REO sale by an investor a couple months ago for 320k and it recently resold for 415k. I saw this home when it was an REO sale and when it was being re-sold by the investor. I'd guess the investor dropped 15k in the property to do cleanup and landscaping.

crazy_bd · 10-31-2010, 05:31 PM

What price range are you in? I was looking for something around 120k-170k and I bid on 15-20 homes, let alone the ones I went to look at and all the ads browsed, before I finally closed on my home. So, hang in there and don't be surprised if it takes a while.

jhiker1o · 10-31-2010, 05:37 PM

Condo above my unit changed hands pretty quick. I met the first investor during the renovation and he told me he was going to flip the unit. He was not kidding, a couple of weeks later the unit already has a different owner. A Chinese-American investor from Dallas. Now the unit has a For Rent sign on it.

Swigchow · 10-31-2010, 06:00 PM

Quote:

Originally Posted by jhiker1o

Condo above my unit changed hands pretty quick. I met the first investor during the renovation and he told me he was going to flip the unit. He was not kidding, a couple of weeks later the unit already has a different owner. A Chinese-American investor from Dallas. Now the unit has a For Rent sign on it.

Is this good or bad?

jhiker1o · 10-31-2010, 06:06 PM

As a homeower, I prefer the unit occupied by the owner and not a rental. The previous renters of the unit never cared for the community and thrashed the place. I'm not saying all renters are like that but I'd rather have the property owner occupied, as far as I'm concerned, there will always be pride in ownership.

xofruitcake · 10-31-2010, 06:09 PM

Quote:

Originally Posted by WestieJeff

As a recent example, 6920 Schirlls St was bought up at trustee auction by an investor for 240k last month. It was just listed last week for 320k and it was under contract within a week.
.

that sort of defy economic principle.. If the margin is so hugh, more folk will go to the turstee sales and bid up the price of the properties.. I guess the question unanswered is how much money do the buyer from the trustee sales has to do spent to fix up the property and his transaction cost (agent commission, carrying cost etc.)... At the top of the RE bubble, we hear all the stories about people making 100K a properties within a month flipping them.. It sound like we are doing that again..

sdreloc · 10-31-2010, 06:14 PM

Quote:

Originally Posted by jhiker1o

As a homeower, I prefer the unit occupied by the owner and not a rental. The previous renters of the unit never cared for the community and thrashed the place. I'm not saying all renters are like that but I'd rather have the property owner occupied, as far as I'm concerned, there will always be pride in ownership.

What are some of the things the renters did to trash the place?
I hoped that since a condo renter has no yard to destroy and park cars across and the HOA maintains the outside and common areas and should be able to enforce other CC&Rs the renters break, these renters would be limited in the amount of chaos and destruction they cause.

jhiker1o · 10-31-2010, 06:26 PM

Quote:

Originally Posted by xofruitcake

that sort of defy economic principle.. If the margin is so hugh, more folk will go to the turstee sales and bid up the price of the properties.. I guess the question unanswered is how much money do the buyer from the trustee sales has to do spent to fix up the property and his transaction cost (agent commission, carrying cost etc.)... At the top of the RE bubble, we hear all the stories about people making 100K a properties within a month flipping them.. It sound like we are doing that again..

It is happening all over again, the young investor I was talking about was thinking of purchasing another unit in my complex. He can't be making that much money with all the taxes he's gonna pay but I guess he makes enough or has deep pockets if he is thinking of purchasing another unit in my complex.

Swigchow · 10-31-2010, 06:27 PM

Quote:

Originally Posted by jhiker1o

As a homeower, I prefer the unit occupied by the owner and not a rental. The previous renters of the unit never cared for the community and thrashed the place. I'm not saying all renters are like that but I'd rather have the property owner occupied, as far as I'm concerned, there will always be pride in ownership.

It seems reasonable the a primary homeowner would be preferable to a renter, but where would prices be without the huge influx of investors?