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Old 10-24-2014, 04:09 PM
 
Location: Los Angeles (Native)
24,151 posts, read 13,675,815 times
Reputation: 11364

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Quote:
Originally Posted by ticking View Post
Talk about buying low, prices can't go much lower...but they also aren't going much higher either...I can recall 15 years ago the prices were next to nothing (literally) in some of those areas...and they still are! Meanwhile if somebody wants to pay property taxes, that isn't a bad thing.
This is pretty interesting...
Someone bid $3million for 6000 homes in detroit!

Buying Derelict Detroit: Mystery Bidder Wants 6,000 Foreclosed Homes - Businessweek

I've researching the Detroit market a bit , and there actually seems to be some good things happening in the downtown area. Also it's become somewhat of a hipster area from what I hear.

The trendy parts aren't that cheap though .

Stuff like this is happening
John Varvatos Bringing Men’s Designer Clothing To Downtown Detroit « CBS Detroit


We are also seeing articles like this where there is a fear of gentrification in Detroit which some worry will push out blacks..

http://www.metrotimes.com/Blogs/arch...roiters-behind

This sounds like the articles that worry hispanics will get pushed out of parts of L.A , the big one now is Boyle Heights...before it was Echo Park.

If you read between the lines of "Detroit is hell on earth and homes sell for $100 " you can see some positive things going on there.

At one point Harlem in NYC had properties going for next to nothing...now properties there literally go for millions.

The city at one point had a lottery and was selling properties very cheap. Crime was very high and people weren't paying their taxes on the properties...does this sound familiar...?

CITY TO SELL HARLEM BROWNSTONES BY LOTTERY - NYTimes.com

The article above is from 1981 and it's interesting because there is a quote in the article that says ..

Five years ago, you couldn't give these buildings away,'' said Robert K. Davis, a deputy city housing commissioner, in referring to the 13 brownstones. ''Now Harlem is becoming a viable alternative because available housing in Manhattan to the south of it is virtually nonexistent.''

That gives you an idea of how cheap properties must have been there in the 1970s...

I had heard of people buying properties in Harlem for as little as $1,000. sure the 1980s or 1970s was a while back but if you look at inflation rates versus how much properties have gone up it's pretty amazing.

The key as I see it is to invest when there are some signs of life/redevelopment/gentrification but before everyone and their mother knows an area is hip.

I don't see any places in L.A like this because even the rough areas are in the 300k plus range now.

That 3bedroom home in Compton might go up ...but it's more likely that a property in a cheaper area that becomes cool is going to go up a lot more.

I could see a 50k property go to 150k before a 300k compton house (as an example) goes to 900k..

In an area like Arcadia you gotta have big money to make money..the land alone is going for millions. Plus the way to make money is to develop the property which costs millions more.

If you think of the leveraged returns if something goes up 3x , it's quite significant.
It's more like a 900% return .

There is an area in Philadelphia called Fishtown which was a previously 'bad' area that has turned hipster.

I read that the property prices have increased like crazy.

The point is that there are areas outside of the L.A,NYC,SF bubble that can go up like crazy and have gone up like crazy.

These cities have become too expensive for a lot of people and people have been looking for alternatives...this comes at a time when a lot of downtown/historic areas are being revitilized.
The younger generation seems to have more of an appreciation for history and nostalgia than previous generations that wanted everything new

 
Old 10-24-2014, 04:50 PM
 
822 posts, read 920,440 times
Reputation: 626
jm1982, a lot of the players, even overseas ones, in the Arcardia market use Chinese banks to finance the development. They probably cannot borrow locally as their is no track record, credit reports etc., but the local ethnic banks have set up shops overseas to facilitate local DD.

I know of one local investor who picked up 20 properties all single family homes in and around Vegas during the crash but the turnaround there has been anemic.

Brooklyn NY around year 2000 would have been a great opportunity.
 
Old 10-24-2014, 04:52 PM
 
Location: SF Bay Area
14,330 posts, read 19,019,556 times
Reputation: 18436
I was in Arcadia last month. Very nice place. Very comfortable. Good for them.
 
Old 10-24-2014, 06:54 PM
 
674 posts, read 481,312 times
Reputation: 1109
Quote:
Originally Posted by BeatAngMoh View Post
jm1982, a lot of the players, even overseas ones, in the Arcardia market use Chinese banks to finance the development. They probably cannot borrow locally as their is no track record, credit reports etc., but the local ethnic banks have set up shops overseas to facilitate local DD.

I know of one local investor who picked up 20 properties all single family homes in and around Vegas during the crash but the turnaround there has been anemic.

Brooklyn NY around year 2000 would have been a great opportunity.
Interesting about the 20 properties in Vegas...If your buddy got it near the bottom he should have made out ok...but you seem to be saying he didn't. My impression is that Vegas rose quite a bit off the bottom, but has recently stalled out. Do you have any numbers info on how the 'local investor' did?
 
Old 10-24-2014, 06:57 PM
 
674 posts, read 481,312 times
Reputation: 1109
Quote:
Originally Posted by jm1982 View Post
This is pretty interesting...
Someone bid $3million for 6000 homes in detroit!

Buying Derelict Detroit: Mystery Bidder Wants 6,000 Foreclosed Homes - Businessweek

I've researching the Detroit market a bit , and there actually seems to be some good things happening in the downtown area. Also it's become somewhat of a hipster area from what I hear.

The trendy parts aren't that cheap though .

Stuff like this is happening
John Varvatos Bringing Men’s Designer Clothing To Downtown Detroit « CBS Detroit


We are also seeing articles like this where there is a fear of gentrification in Detroit which some worry will push out blacks..

http://www.metrotimes.com/Blogs/arch...roiters-behind

This sounds like the articles that worry hispanics will get pushed out of parts of L.A , the big one now is Boyle Heights...before it was Echo Park.

If you read between the lines of "Detroit is hell on earth and homes sell for $100 " you can see some positive things going on there.

At one point Harlem in NYC had properties going for next to nothing...now properties there literally go for millions.

The city at one point had a lottery and was selling properties very cheap. Crime was very high and people weren't paying their taxes on the properties...does this sound familiar...?

CITY TO SELL HARLEM BROWNSTONES BY LOTTERY - NYTimes.com

The article above is from 1981 and it's interesting because there is a quote in the article that says ..

Five years ago, you couldn't give these buildings away,'' said Robert K. Davis, a deputy city housing commissioner, in referring to the 13 brownstones. ''Now Harlem is becoming a viable alternative because available housing in Manhattan to the south of it is virtually nonexistent.''

That gives you an idea of how cheap properties must have been there in the 1970s...

I had heard of people buying properties in Harlem for as little as $1,000. sure the 1980s or 1970s was a while back but if you look at inflation rates versus how much properties have gone up it's pretty amazing.

The key as I see it is to invest when there are some signs of life/redevelopment/gentrification but before everyone and their mother knows an area is hip.

I don't see any places in L.A like this because even the rough areas are in the 300k plus range now.

That 3bedroom home in Compton might go up ...but it's more likely that a property in a cheaper area that becomes cool is going to go up a lot more.

I could see a 50k property go to 150k before a 300k compton house (as an example) goes to 900k..

In an area like Arcadia you gotta have big money to make money..the land alone is going for millions. Plus the way to make money is to develop the property which costs millions more.

If you think of the leveraged returns if something goes up 3x , it's quite significant.
It's more like a 900% return .

There is an area in Philadelphia called Fishtown which was a previously 'bad' area that has turned hipster.

I read that the property prices have increased like crazy.

The point is that there are areas outside of the L.A,NYC,SF bubble that can go up like crazy and have gone up like crazy.

These cities have become too expensive for a lot of people and people have been looking for alternatives...this comes at a time when a lot of downtown/historic areas are being revitilized.
The younger generation seems to have more of an appreciation for history and nostalgia than previous generations that wanted everything new
Thanks Jim, that is an interesting post and story. I guess if somebody buys 6000 properties (in a given area) then can little by little clear the riff-raff out and start anew and make the place nice and potentially make out...but it must take hugely deep pockets and a willingness to take a pretty big risk.
 
Old 10-24-2014, 07:35 PM
 
822 posts, read 920,440 times
Reputation: 626
Quote:
Originally Posted by ticking View Post
Interesting about the 20 properties in Vegas...If your buddy got it near the bottom he should have made out ok...but you seem to be saying he didn't. My impression is that Vegas rose quite a bit off the bottom, but has recently stalled out. Do you have any numbers info on how the 'local investor' did?
The sellers were banks. Foreclosure. I don't know what happened to those people. The renters market there is more transient than thought and there was not enough research into it IMO.
 
Old 10-24-2014, 07:42 PM
 
10,847 posts, read 10,572,735 times
Reputation: 7539
Quote:
Originally Posted by BayAreaHillbilly View Post
"For buyers from mainland China, Arcadia offers excellent schools, large lots with lenient building codes, and a place to park their money beyond the reach of the Chinese government."

BTW this is also happening in the Bay Area. The high end is insane right now.
why else do you think a middle income city like Vancouver devoid of any high pay jobs has a property price rivaling San Francisco?
 
Old 10-24-2014, 07:42 PM
 
822 posts, read 920,440 times
Reputation: 626

https://www.youtube.com/watch?v=jijRIFpSbRY

https://www.youtube.com/watch?v=gRwJQXCyE38
 
Old 10-24-2014, 07:43 PM
 
822 posts, read 920,440 times
Reputation: 626
Quote:
Originally Posted by botticelli View Post
why else do you think a middle income city like Vancouver devoid of any high pay jobs has a property price rivaling San Francisco?
So does Hononlulu.
 
Old 10-25-2014, 08:16 AM
 
Location: So Ca
13,865 posts, read 13,545,555 times
Reputation: 11793
Quote:
Originally Posted by Exitus Acta Probat View Post
We've really sabotaged our own society by firstly, allowing foreign students from China and elsewhere to attend universities and bring Western knowledge back to Asia, and then by allowing them to not only take jobs but use their own capital to buy us out.
And this trend looks as if it will continue.

"American University Preparatory School at L.A. Hotel Downtown is brainchild of Chinese billionaire Wei Huang. Chinese billionaire Wei Huang made his fortune in real estate. Chief executive and headmaster David Unruh, a former UCLA administrator who helped recruit students from China, says the school plans to focus its recruitment efforts on Asia and Europe."
New downtown L.A. boarding school aims to enhance culture, education - LA Times
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