Obama's great first time home owners credit!How the $8,000 Tax Credit Cost Home Buyers $15,000

[GuyNTexas]

Originally Posted by KStreetQB

Now even if my house had devalued 2.7% instead, I would not care. I don't lose 20k, and it is truly truly stupid to portray short term fluctuations as realized losses on a long term investment like a house. The 20k I pocketed is real money that would have otherwise been swallowed by taxes.

Again, it's up to the individual to make a sound financial decision. Just because 8k is on the table, doesn't mean that you have to take it. It worked out well for me, and considering the scope of my renovation, it also worked out well for the local economy.

Couple of points ... and I'm not trying to rain on your parade, but ... what we are experiencing is no short term fluctuation .... no one is predicting a recovery in the near term (no one honest that is) .... best case, 5 years ... worst case 10 years to never, and the decline others have already been experiencing is not likely to skip over you ... it may not have reached you yet, but it knows where you are.

Secondly, it is impossible for an individual to make a sound financial decision in the current climate of fraud occurring with banks and mortgages ... (read my earlier post for details). The reality is, for anyone who has purchased a home within the last 6-10 years, chances are, no one knows who holds title on the home ... since the mortgage has probably been sold to multiple investors ... each one believing they purchased the mortgage ... whether that is a private investor or a hedge fund or whatever. This is why people who have paid off mortgages are also being foreclosed on.

Thirdly, you do not make a penny per sq ft until you sell, and this is neither a buyers or sellers market right now .... it is an Oh $hit market, because liquidity is being retracted, and we're about to go into stage three ... a collapse of the commercial real estate market ... business are failing at alarming rates. And as the residential market continues the decline with the commercial collapse ... and the dollar is on it's last gasp of air .... either interest rates are going to increase DRAMATICALLY to put the dollar on life support ... or the dollar dies ... either way ... that is the death blow for residential real estate ... choose your poison ... hanging or electric chair?

If that all sounds terribly grim ... it's because you are following the mainstream propaganda. It's beyond grim ... we are looking at full fledged catastrophe that will make the great depression look like a minor recession. And I'm not being melodramatic here ... the reality is the US Dollar and the Euro are going to collapse ... not might ... not maybe ... they are going to collapse. Keep your eye on the news ... and I don't know exactly when ... could be this year, or early next year ... but when the Euro collapses ... you have two weeks to prepare and unload everything denominated in dollars, because the US Dollar will collapse two or so weeks after the Euro (this is inside info from a very reliable source).

The real estate market is not going to recover ... the unemployment rate is about 22-24% right now (not the 10% claimed) and that to is going to continue to rise. Broke, unemployed people don't buy houses .. they lose homes, and that is going to continue right to the end.

and today will be referred to as the good old days, very soon.

[KStreetQB]

Originally Posted by GuyNTexas

it is impossible for an individual to make a sound financial decision in the current climate of fraud occurring with banks and mortgages ... (read my earlier post for details).
...
The reality is, for anyone who has purchased a home within the last 6-10 years, chances are, no one knows who holds title on the home ...

The reality is, I'm not required to buy mortgage insurance for my lender because I have over 20% equity in the home, you are required to have a title search performed and carry title insurance. For me to be underwater on my home at this point (including the cost of renovation), comparables in my neighborhood would have to devalue over 40%. I'm willing to make that bet, and quite frankly I brokered a great deal and didn't get close to my risk threshhold.

Sound financial decisions can still be made in the current environment, although you can never eliminate risk. You are pretending that extreme circumstances are the norm. They are not.

Originally Posted by GuyNTexas

Thirdly, you do not make a penny per sq ft until you sell,

That's exactly what I said in the next paragraph. Real property is a long term investment and nothing is realized until you sell...

Originally Posted by GuyNTexas

(this is inside info from a very reliable source).

Yeah, yeah, everyone seems to have one of those.

[GuyNTexas]

Originally Posted by KStreetQB

The reality is, I'm not required to buy mortgage insurance for my lender because I have over 20% equity in the home, you are required to have a title search performed and carry title insurance. For me to be underwater on my home at this point (including the cost of renovation), comparables in my neighborhood would have to devalue over 40%. I'm willing to make that bet, and quite frankly I brokered a great deal and didn't get close to my risk threshhold.

Look, I was trying to provide you some valuable information ... you wanna bite the hand ... fine .. get something straight ... only Banks & idiots are viewing residential or commercial real estate as good investment opportunities at the moment, and it isn't a joint venture. Care to guess which one is going to come out on top?

Your risk threshold? You don't even realize what your risk is, cuz you aren't listening ... because you think you know ... but as the old saying goes ... you don't know what you don't know.

Here's what you don't know ... there is mortgage insurance on your mortgage, whether you know it or not. Now maybe you're one of the unique lucky ones who's lender is the local bank of Podunk Idaho, and no funny business has occurred behind the scenes. Lets hope that's your situation. But if you are dealing with a mainstream lender ... like BOA ... your mortgage, if the ink is dry, has already been sold ... likely several times .... and your title insurance is worthless. (Ever notice how tiny the Title Insurance Co offices generally are?) This is a sanctioned from the highest levels of the financial system, total ponzi scheme .... unbridled criminality and lawlessness beyond your comprehension. You'd be better off dealing with the Gambino Family. Why do you think the system is collapsing? Because it is collapsing by design.

Looking at our financial system as a stolen car ...the thieves have already removed the engine, transmission, wheels and tires. Now, they are gutting the interior. And that car is never going to be driven again. That's where we are right now.

Also, your scenario presents a short term investment strategy ... buying, renovating, selling ... yet you speak of long term. There is no long term. Those days are over. So which is it ... are you flipping or holding?

Originally Posted by KStreetQB

Sound financial decisions can still be made in the current environment, although you can never eliminate risk. You are pretending that extreme circumstances are the norm. They are not.

Pal ... I'm not the one pretending here ... you're pretending that this is a bump in the road, and relying on a stabilization, followed by some form of recovery. I'm telling you that we haven't even seen the extreme yet ... we've just touched the outer edges. Extreme is on the way.

Originally Posted by KStreetQB

That's exactly what I said in the next paragraph. Real property is a long term investment and nothing is realized until you sell...

That has been the traditional situation ... we are not dealing with a traditional situation now. (This is not a recession, which will be followed by a recovery). Since 2008 ... Trillions have been pumped into the markets to keep this criminal enterprise floating ... you're on the Titanic, not the Queen Elizabeth II. You can sit back and relax in the dining room and order dinner if you like ... I suggest you grab your vest and make you way to the life boats.

Originally Posted by KStreetQB

Yeah, yeah, everyone seems to have one of those.

The source I referred to has for the past several years predicted geopolitical and financial events at 100% accuracy. His "predictions" are actually advanced warnings ... insider information .. not speculation or palm reading.

A couple examples ... he predicted the sharp rise in oil prices a couple of three years ago, and the $4+ gal gas two months before it occurred. He then predicted the fall of oil to $50 a barrel, and everyone said NO WAY .. we'll never see it. He said, watch. 90 days later oil fell to $47, and gas back down to $1.65. Last November, he said there would be major crisis in the Middle East beginning in the 1st Q of 2011 .. and oil prices would again begin to rise .. and would continue throughout 2011, to upwards of $200+ barrel, and gas $5-6 gal. We're in the midst of that cycle right now, just as he said.

Last month, he came out and said forget what you see happening in the Middle East ... it's a diversion ... keep your eyes on China. And he said that both the Euro and the US Dollar will Collapse .. between the end of 2011, to mid of 2012. That the Euro would go first, and two to three weeks later, the Dollar. So when you see in the news that the European Union has defaulted ... you have about two weeks to divest yourself ... if your assets are not liquid when that occurs ... and you are not holding Gold/Silver .... you're going to suffer tremendous losses, no matter how well positioned you think you might be.

Now you know what you didn't know ... and if you still don't know ... just remember that you were warned. Remember ... Euro first ... then the Dollar ...and keep your eyes on China.