Now They’re Ready To Cash In
I suggested a topic on the increase in housing inventory. “Let the carnage begin!”
A reply, “We are going to be selling homes this year. But to do so, we need to kick out the residents (who will need another place to live). The most important things in these markets is the type of homes that are coming onto the market. Are they vacant homes that have been held off the market? Or are they homes that were full that are coming onto the market?”
“Vacancy rates matter. I suspect those looking for housing carnage will be disappointed…except POTENTIALLY in markets where there are large numbers of vacant homes.”
One said, “Don’t you worry at least a little bit that investors everywhere might get the same idea at the same time, in order to sell ‘before interest rates go back up’?”
The Herald Tribune. “The anemic inventory level that has plagued Southwest Florida’s housing market is regaining health. More sellers have listed homes for sale this winter than a year ago, the result of rebounding equity that has empowered underwater borrowers and boosted confidence for sellers on the fence, data show. There are now an estimated 8,145 active home listings in the Sarasota-Bradenton area on the website Realtor.com, an increase of 12 percent from the same time last year, when the residential real estate supply in the region flirted with decade lows. The trend was similar in Charlotte County, where the 2,967 active listings rose 19 percent from the same time last year.”
“‘Because of the market’s improvements, more people who would have had to go through a short sale or foreclosure can now sell their homes without bringing any money to the table,’ said Jack McCabe, a Florida real estate consultant. ‘There are thousands and thousands of people who have been prisoners of their own homes,’ McCabe said. ‘We’re seeing pent-up demand from them to sell.’”
“‘We had the best listing month in January that we have had in seven years,’ said Gloria Weed, managing broker of the Michael Saunders & Co. office in Lakewood Ranch. ‘People have waited a long time, and they’re anxious to get on with their lives. They have been waiting to move up, move down or move away — and they’re ready.’”
“The increased listings come as hedge fund buyers like Blackstone Group and Colony Capital have slowed their pace of home acquisitions in Florida, which has beefed up inventory and eased competition. Foreclosures that had been stuck in the courts for several years also are beginning to flow into the housing market, helping to supplement that existing supply further, said David Guarino, a senior research analyst with John Burns Real Estate Consulting.”
“‘A lot of people are getting more equity in their homes, so as home prices rise, it looks more attractive to sell,’ Guarino said. ‘We are seeing a lot of that resale inventory pop up that we haven’t seen in a while.’”
From Bloomberg. “Suzanne Baker and her siblings bought a foreclosed home in Atlanta two years ago, added a fourth bathroom, then waited for values to rebound before considering a sale. Now, she says, they’re ready to cash in. The family last month listed the four-bedroom house in the affluent Buckhead neighborhood for $710,000. It was purchased as an investment for about $375,000 in late 2011, before bulk buyers snapped up many of the area’s distressed homes, helping to drive up prices in Atlanta by more than 25 percent.”
“‘The market is back up,’ Baker said. ‘We think we can make a good amount of profit so we’re going to try.’”
“In Southern California’s Inland Empire, east of Los Angeles, homeowners got a jump on the spring selling season and began listing properties earlier than usual, said Paul Reid, an agent with brokerage Redfin. Sellers are ‘nervous about what the spring is going to bring,’ said Reid, who is based in Temecula, California. ‘They don’t know if everybody will list this spring then you’ll have a big counterbalance toward too much inventory, or if there’ll be a crunch again. They figure they’ll get out ahead of the market, list, sell and be done with it.’”
Contra Costa County, CA Housing Demand Craters 5 Consecutive Years
http://www.zillow.com/local-info/CA-Contra-Costa-County-home-value/r_3159/#metric=mt%3D30%26dt%3D1%26tp%3D5%26rt%3D6%26r%3D3159%26el%3D0
There is no place like CA.
There is no place like home. (Said by a former Contra Costa County resident.)
“There is no place like CA.”
Says the guy from AZ.
Inventory is still in Seattle, the prices are still high…
… is till low…
… oh come on…
Inventory is still LOW in Seattle and the prices are still high…
Housing inventory is up 6% and prices fell 3% and falling in Seattle. With prices as grossly inflated as they are, it’s no wonder there is massive housing inventory there.
http://www.movoto.com/seattle-wa/market-trends/
Washington, DC Rental Rates Crumble 7% Y-o-Y and Falling
http://www.zillow.com/local-info/DC-home-value/r_12/#metric=mt%3D46%26dt%3D1%26tp%3D5%26rt%3D14%26r%3D12%26el%3D0
“WARPED, DISTORTED, MANIPULATED, FLIPPED HOUSING MARKET”
http://www.theburningplatform.com/2014/02/02/warped-distorted-manipulated-flipped-housing-market/
Not that we need anymore evidence that you’re screwed if you bought a house in the last 14 years.
“Local realtor, others indicted in federal case”
http://www.oaoa.com/news/crime_justice/law_enforcement/article_068a62de-795c-11e3-b66d-001a4bcf6878.html
“Boca Realtor Sentenced In Sex Crime”
http://bocanewsnow.com/2014/01/14/exclusive-boca-realtor-sentenced-in-sex-crime-family-member-speaks-out/
Ventura, CA Median Asking Prices Fall $240,000
http://www.movoto.com/ventura-ca/market-trends/
With fewer than ten homes listed for sale, that’s a pretty thin market!
“We are going to be selling homes this year. But to do so, we need to kick out the residents (who will need another place to live).”
It’s happening to our single mom neighbor with four kids — the scum carpet bagging FL investor who owns the place gave her sixty days notice to move her family out so they can get the place ready to sell. I’m hoping and praying that a rush to the exits sinks prices to levels where the investor has to sell at a loss.
That’s a downside of renting from a single SFH LL. They don’t jack the rent as much but they kick you out when they feel like. In a commercial complex, you generally keep the unit, but they jack the rent.
“They don’t jack the rent as much but they kick you out when they feel like.”
Doesn’t that depend on the rental contract? Ours is one year, which means we are good to stay put through December.
I have never been asked to move out of a rental house.
Um let’s see, I have a years lease and there was no rent increase last year or this year. So it’s been 3 years with the same cost. Per the debt donkeys on here, it always goes up 5 percent a year.
HA, is it you?
I never raise the rent on an existing resident. If they want to stay forever, that works for me. One resident has been in place since 1993. His rent is about 70% of market, but the house is free and clear now.
Fantasy Island is in Seattle eh Jingleballs?
One resident has been in place since 1993.
WTF??
You mentioned buying to LL back in 2010, but this is the first I’ve heard that you have owned rentals since 1993…
Who is “we”? I know this was Rental Watch, but what is he, part of a conglomerate?
He’s an officer in the Liars Club.
not worth a continental ?
“Who is “we”?” “but what is he”
When you use the word “is” it gets complicated.
“It depends on what the meaning of the word ‘is’ is. If the–if he–if ‘is’ means is and never has been, that is not–that is one thing. If it means there is none, that was a completely true statement….Now, if someone had asked me on that day, are you having any kind of sexual relations with Ms. Lewinsky, that is, asked me a question in the present tense, I would have said no. And it would have been completely true.”
The “we” is often a clue that you are dealing with a slimeball shyster. They all like to say “we” when they are only talking about something they themselves are doing to convince the rubes that there is some consensus of opinion or something.
Unless the person is talking about a spouse or known business partner, run the other way when you hear someone refer to “we.”
“The “we” is often a clue that you are dealing with a slimeball shyster.”
There are NARscum PR consultants posting all over the net. Spend 30 minutes and take a look at the names, connections and how they’re networked. These guys change the words of the narrative every few weeks or months but the message is always the same and always false…. “low inventory, housing is an investment, housing is hot so get in now”, etc.
Yeah, I’m getting really annoyed with trend toward paid internet trolls. I don’t know if Rental Watch is one or not, but it’s getting overboard these days. There are actually whole blogs that are run by paid trolls, and they work with the other paid trolls to decide on the content and tone of the blog “posts”, but the whole thing is literally done on contract. Most of them are obvious from the get-go, but some of them are a little more sneaky about it. I’m just surprised at the number of people who actually get sucked into it, and never realize what’s going on.
It’s not just real-estate, it’s everything. And it seems that most if it is being done by the “conservative” (read “short-term antisocial corporate interests”) side of the table.
Don’t these companies realize that it’s cheaper to just buy a Senator or two?
“There are actually whole blogs that are run by paid trolls,…”
That’s truly pathetic.
‘Liar’s club…When you use the word “is” it gets complicated.’
Doesn’t that depend on what the definition of “is” is?
I work for a real estate investment company. A very small part of what we own is a portfolio of rental homes (most of what we own are commercial properties). The original plan was to rent the homes and keep them for cash flow for several years before disposing of the portfolio (either in bulk to another rental investor, or one-by-one).
I guess you pretty much just explained why you constantly cherry pick the ‘facts’ you post here.
Cherry pick? Really? I have asked over and over again for people to post facts counter to the data that I provide, and what I get is unsubstantiated data. I post data and the sources for that data. The best counter I have heard for the data I provide is conspiracy theories.
You post garbage. Incredulous garbage.
Why does your company want to dispose of the rental portfolio? Isn’t it getting double-digit income from the rents? I mean, the Joshua Tree Fund is getting double-digit income, so I would assume that your company gets the same.
On a leveraged basis, we are getting double-digit income. However, our funds have finite lives…at some point we need to exit the strategy. For a little while, we thought that perhaps the public markets would be accepting of the strategy enough for someone to buy in bulk from us (to add to their portfolio). However, based on today’s estimate of value, and how the public is valuing the strategy, the best exit is going to be one-off sales, unless something changes dramatically in public markets.
We will be selling over time, so the complete exit will take over a year. While I can make lots of arguments why we shouldn’t be in a hurry, we are thinking of the time that it will take to get to the last sale, and deciding to start selling now. Also, the current rate of increase in prices is not sustainable. If we are lucky, prices will flatten out for a while, if we are not lucky, prices will go a lot higher before crashing hard again. Pigs get fat, hogs get slaughtered…now is a good time to start the exit.
We will get together sometime for Lunch Rental Watch…What downtown are you near ?? Castro Street ?? Main Street Palo
Alto ??
Closer to Palo Alto. I think you have my e-mail.
Ha! I knew it. Instantly discredited forever by a single word.
“WE” don’t like shills.
And the one that posted above you pukes realtor pablum.
That is what I worry about, along with the return of my deposit.
I’ll accept that before losing hundreds of thousands of dollars and the eviction from a depreciating house.
Me, too. I suspect we’re going to get a bit of a rent hike this year, due to insurance rates. And don’t even get me started on crap the HOA is trying to pull on our LLs just because they can. I had to take time off from work and get all the legal info from the county and other sources to demonstrate that the LLs (who live out of state) did not have to comply with something the HOA was demanding and in fact that if they had complied, it would have violated county ordinances.
property taxes going up-especially w the bernack boom looking to be over.
PENSIONS !
This statement here, “they kick you out when they feel like it” is all you need to hear to disregard debt donkeys and other Stealtor type shills and sycophants forever.
It undermines every single attempt at rational argument over the years and tells you where she is really coming from. It is the turd in the punchbowl that cannot be ignored.
Dont they have to honor a lease? when the lease is up sure the owner can choose not to extend and liquidate his appreciating asset.
You can easily protect yourself against the potential non-return of your deposit. The trick is to simply not pay the last month’s rent. Tell your landlord that if there is any damage to fix, then you will fix it yourself or pay for it with a separate check. I have always done this with questionable landlords. If they are good landlords who never try to screw with me, then I pay like a good little tenant, and wait for the return of the deposit. It works for me.
The trick is to simply not pay the last month’s rent..It works for me ?
Works until it doesn’t…Common lease will specifically state that the deposit shall not be used as the last months lease…If you don’t pay the last months rent then you have violated the lease…You expose yourself to a small claims court remedy…If you no-show at small claims then a judgement is recorded effecting your credit score..
Last months lease = Last Months rent…
The landlord can only sue you for money that you actually owe. The security deposit is there for the explicit purpose of covering a month’s rent, in the case that the tenant does not perform under the terms of said lease. In other words, the security deposit is not for the purpose of paying for repairs. It is for the purpose of making sure that the landlord gets paid for the last month of tenancy. And BTW, no LL in their right mind is going to bother trying to sue a tenant. The reward is too small in comparison to the effort involved.
The security deposit is there for the explicit purpose of covering a month’s rent ??
Fine, so you are guaranteeing the last months rent with the security deposit…
So, are you suggesting that your landlord does not secure a damage deposit ?? If you say yes then you have some pretty dumb landlords…
scdave:
I have never paid a separate deposit for damages, except for a pet deposit. I haven’t paid a pet deposit in a long time either. As I grow older and continue to demonstrate a very solid credit rating, and a well-above average pay stub, and good references from prior landlords, I have seen my rental situations get better and better. Landlords are willing to give up a lot for a good tenant who won’t trash the house or forego payment of the rent whenever they want.
And like I said, I don’t pull the last-month’s rent trick on the landlords who are decent toward me. I only do it to the jerk lords, and I don’t stay past my lease at those places.
“The trick is to simply not pay the last month’s rent. Tell your landlord that if there is any damage to fix, then you will fix it yourself or pay for it with a separate check.”
Doesn’t that run the risk of damaging your credit rating?
A couple of other potential options are:
1) Make sure to leave enough unrepaired damage behind to cost the amount of the damage deposit, then tell your landlord what needs to be fixed before your leave.
2) Take them to small claims court if you believe they are screwing you out of the deposit.
Rents don’t get reported on your credit report. Only judgements and evictions do. As mentioned previously, there will be no judgement unless you actually owe money to your landlord, and that would only happen if you stiffed the lord for damages, and they sued you and won. The eviction thing isn’t germane to this, since I am talking about moving out at the end of your lease.
I just ran your suggest past my lovely wife, and she is on board with the plan, which goes like this:
Since our current rent is higher than the damage deposit, we will submit a final payment = final month’s rent - damage deposit, with an itemized thank you letter to the landlord for all the wonderful years we lived here, which includes a breakdown of the payments.
I’m going to run this plan past the legal experts in my family (i.e. my sister and FIL who are both attorneys, FIL in commercial RE). Will report back here on whether they think it will fly to shift the property right to the damage deposit into the renter’s hands.
I’m going to run this plan past the legal experts in my family (i.e. my sister and FIL who are both attorneys, FIL in commercial RE).
I suspect that you will not like their answer: the lease generally does not give the tenant a right to apply the damage deposit to the last month’s rent.
As a result, such an action puts you in violation of the lease agreement—as you will not have paid the last month’s rent in full. If the LL has any damage that they wish to charge you with, the fact that you violated your lease will make his/her job that much easier in convincing the small-claims court judge that you are at fault. You will have besmirched your reputation in the court’s eyes before the case even begins.
Do you actually expect your LL to try to screw you out of the deposit?
If you were the LL, how would you feel about someone going out of their way to make it harder to collect on any damages? Personally, I would be pissed, and it would make me that much more inclined to look very closely for damage, and to ding you for borderline things that I otherwise might have ignored as wear-and-tear.
My take: you are better off following the lease to the letter, and then using the small-claims court on the LL if necessary. The court will be far more likely to be sympathetic if it is the LL that has abused their discretion, rather than you.
It’s always worked for me. If you think your LL is going to try to keep your deposit, then you should take my advice. Just be sure to actually cut that check for any damage that is legitimately your responsibility. The LL can’t sue you until after he makes a request for the funds, which is then refused. If there is going to be a lawsuit over the deposit, then you would rather be the defendant than the complainant. The defendant has an easier job. Always remain in control of the funds.
“If there is going to be a lawsuit over the deposit, then you would rather be the defendant than the complainant. The defendant has an easier job. Always remain in control of the funds.”
That sounds right to me. Along with the suggestion to deduct consideration for any damage you know is yours.
I’d be willing to risk a p-o’d landlord on the presumption that they won’t bother incurring the cost of coming after us in the event they don’t expect to win the case.
“…following the lease to the letter…”
Unless the lease specifically prohibits the tenant from making the final payment net of the damage deposit plus consideration for known damages, I don’t believe the approach I suggested would violate our lease. But I will have our family’s legal eagles (including my wife, who worked as a legal secretary for her dad for five summers) check the contract fine print.
P.S. The fine print on our contract does not require the tenant to feed the squirrels, either.
I just read this and was wondering if anyone on the HBB could translate it from Realtorspeak® into English for me?
“We have a closing date on 2/27 for the house we are leasing to purchase.”
Does this suggest the ‘we’ in question is planning to start a series of monthly payments to buy the house in question, or did something get lost for me in translation?
Lease-to-purchase is a fairly common scheme among small-time LLs. They offer to rent the house to someone, at something above market rent, and accrue some portion of the overage as a “down payment”. The idea is that eventually the tenant will buy the house from the LL, with their accrued down-payment being used at closing.
The appeal for the tenant is that they are typically less credit-worthy—e.g. unable to get a mortgage. So they are willing to pay above-market rent in order to get a leg on the property ladder.
This is a beautiful scheme for the LL, as the tenants generally either do no manage to improve their financial picture enough to complete the deal, or life/job changes intervene; in that case, the LL has collected an above-market rent, and gets to keep the accrued “down payment”.
From the quote you provided, it sounds like the tenant is one of the rare ones who actually completes and closes on such a deal; in other words, yes, they are “start[ing] a series of monthly payments to buy the house in question”, but it is also the house that they have already been living in for some time as a renter.
They don’t live in the house. They already own three houses; one they rent out, a second my sister and her son live in, and the third my BIL is (gradually!) fixing up to sell.
I have to ask my parents what is going on, as so far it sounds to me like more real estate investing insanity.
as so far it sounds to me like more real estate investing insanity.
+1. Get in quick, before it goes to the moon!
Did germany consider its gold fungible when it put it on deposit with the US and France?
We got another picture in from Mz. Crateron’s space trip the other day. Here, she is depicted standing in one of the craters that she discovered on the moon:
http://www.picpaste.com/Crater_Donkey-WSZsCWIR.jpg
phony scandals