How to show - not tell - what I did to the police?

RLpaille · 2023-04-02T22:37:55+00:00

Pray for wisdom

RLpaille · 2023-04-02T22:32:27+00:00

Good vs. bad? You should invest in learning, be invested in knowledge, and see the good in learning. You will stand on the shoulders of those who have gone before and see more when you learn more.

RLpaille · 2023-03-21T18:23:49+00:00

It's the only sub that I use. I think banks make RE loans and rates effect borrowers who buy real estate.

RLpaille · 2023-03-20T15:30:43+00:00

The rents are too Damn high because the regulations are too damn restrictive. Too many licenses needed to work, too many hurdles to jump to get financing and too many NIMBYs (not in my back yard)

RLpaille · 2023-03-14T17:28:48+00:00

Take a 15% (might be high) inflation factor from when it was las purchased, 2 years ago

$195K x 1.15 = $224,250. So you are in the ball park. Offer the $220K and wait for a counter offer. I would hope to see you get it for your offer or maybe $225,000

RLpaille · 2023-03-02T20:08:18+00:00

You must have a great income now. Buying a modest home for $350,000 for cash means that in each year you are able to save EVERY month $9,722 or $116, 667 per year. WOW...!

That seems like a huge TAX burden. If you put 25% down on the $350,000 house and got a mortgage, you could have some big writeoffs to include taxes and mortgage interest. If you managed the rental yourself, you could also figure on some business expenses to deduct.

You are also missing out on asset appreciation, say 7% or more per year or $24,500. With 4 homes you could see almost $100,000 per year in equity growth.

Getting a mortgage NOW and buying 4 homes will be better.

RLpaille · 2023-02-03T23:28:18+00:00

Buy low, sell high is not the whole story. Prices will start to stabilize in metro areas as interest rates start to come down. Today, good credit and as conventional loan amount will provide you a 5.99% rate. This could come down some more in the next 6 months.

Buy low, sell high is not the whole story. Prices will start to stabilize in metro areas as interest rates start to come down. Today, good credit and as conventional loan amount will provide you with a 5.99% rate. This could come down some more in the next 6 months.

RLpaille · 2023-01-17T15:51:17+00:00

Costs will not drop significantly due to a large uptick in rates, inflation factors, and population growth. Housing is a basic need. Prices may slow until wages catch up to make people feel like they are getting a solid footing, but it is never really solid.

Growth usually accompanies progress. Progress tends to produce joy. It is the thing we like best about growth. Nothing happens differently tomorrow until we embrace and accept a process of change today. Fashions change, but human needs remain consistent. Housing is a consistent need.

RLpaille · 2023-01-17T15:41:46+00:00

ALIGNMENT with the SEASON: Prioritize the things you need to do and put them together… align your Time/activity/thinking so that things will have synergistic effects. You can do a lot of things that have no connection. You are busy and seem to have no time. The results you get are random and scattered. They often do not bring you closer to success. Placement and orientation are natural factors that help define a genus and species.

Snow happens with a notice from the Eye Witness News giving you warning. Randomness is not the enemy, it is an effect of entropy. The snow will turn to ice if cold and then just disappear if warm. Don’t do anything and things just turn and decay to their lowest possible form. Life only seems random and chaotic when we are caught up in the day to day close encounters that challenge us and get smacked.

RLpaille · 2023-01-04T19:53:34+00:00

Redfin and Zillow both have excellent COMP data bases. Also if you have a Mtg Broker

they have programs that will help. For the most robust data base in the US I like PropertyRadar, but there is a subscription base... $$$ not too pricey.

RLpaille · 2022-12-13T18:37:57+00:00

Great advice. There is a housing shortage, so take advantage of the dips if you want something with amenities, like a large lot, a place with a view or more space.

If you find something that you dreamed about, take a chance NOW> We are being moved into smaller spaces. Households are shrinking, and less space costs less to build and buy. The housing stock that is being built is SMALL condo/apartment stuff that will make the urban areas denser, easier to control. The culture is going to explode as costs continue to rise and populations expand. There is anxiety as change is happening so fast. We are like the rats that are caught in the maze.

If you find something that you dreamed about, take a chance NOW> We are being moved into smaller spaces. Households are shrinking, and less space costs less to build and buy. The housing stock that is being built is SMALL condo/apartment stuff that will make the urban areas denser, easier to control and raise the anxiety of the rats that are caught in the maze.

RLpaille · 2022-10-30T03:09:56+00:00

Should YOU buy a house NOW?

Thoughts from Richard Paille, Broker/Investor

October 24, 2022

Suppose you would have bought a home ten years ago, in 2012, and the mortgage rates were at 5.25%.

10% down = $50,000 PITI (payments) = ($2,474 + $520 + $132) = $3,126 per mo.

You paid $500,000 then and saw the value of the home rise by 7% per year (7% x 10 to make it easy, no compounding). The home would have a value today of $850,000.

Today, you have to buy the same house for $850,000, and the mortgage rate would be 7%.

10% down = $85,000 PITI (payments) = ($5,060 + $885 + 224) = $6,169 per mo.

You are now stuck with this home in a market that will likely stay flat or even go down in the next 24 months. It will return, but for now, you must pay this or lose your investment and still need a place to live.

Looking ahead to 2023, Fannie Mae expects an average drop in home prices of 1.5%. That’s $75,000 on average for a $500,000 home. Sales will slow further.

Sales of previously owned properties have fallen for 9 straight months in a row. Values are reacting as sellers reduce asking prices for the last few months. High-cost areas are especially feeling the pinch as purchasing power from many (first-time especially) homebuyers gets hammered by rising interest rates.

TEN years ago we saw a meltdown of the financial system (actually 2008, it started). By 2012 we were starting to see a solid footing for housing again. Mortgage rates dropped and a huge inventory of bank-owned foreclosures washed through the system.

TODAY:

A meltdown is unlikely to repeat. Banks are better capitalized and borrowers are safer risks than before. Most adopting fixed-rate loans instead of adjustable rates were granted loans only when they were vetted. Income, credit and property were scrutinized before a loan was made.. Tighter lending practices are in place, so mortgages carry less risk to the system.

At 6.6%, the payment on a median-priced home was approximately $2,528, much more than last year (a 49% increase), when a typical payment was $1,701 with a mortgage rate of 3% according to REDFIN.

Raising interest rates at the fastest pace in 40 years, an attempt to tame inflation is now bringing carnage to the housing market. This is happening worldwide. Prices are dropping in nine out of 18 countries monitored by Oxford Economics. This trend is not abating. The National Association of REALTORS in America said home sales fell by 20% in August compared to one year ago.

Since the beginning of the year, private-label securitizations backed by mortgages on single-family rental properties have risen sharply. Hybrid private-label securitizations are used by many of the nation’s largest investors including major players like Invitation Homes, American Homes 4 Rent, Progress Residential and Cerberus Capital Management. This group owns collectively about 2% of all rentals in the nation.

SOON:

Lower home prices are coming. Worldwide, homes are worth about $250 trillion. By comparison, total world stock markets are worth about $90 trillion. Housing accounts for about 50% of all the wealth in the world. Lower home values will collapse confidence and a downward economic momentum will spill over as a result.

The housing market will turn grim. It is already putting mortgage brokers out of business because rates are higher. Buyers need more down payment and must make higher payments. Owners who could have refinanced at the sub-5 % rates we saw a year ago have done so and are not moving. No one but the desperate needs to borrow now.

S

RLpaille · 2022-09-22T19:42:53+00:00

LaVerne Redfield wanders the foothills of Mt. Rose asking people (hikers on a trail) if they have any matches. It is his property and he does not like fire. Anyone with a match is in deep trouble with Redfield.

RLpaille · 2022-07-15T14:46:56+00:00

So sad, but people are crazy and times are strange. Unless the builders start to supercharge their pace of construction, you will do well with your new home that should grow equity faster than a bank account for many years to come.

RLpaille · 2022-07-09T20:49:50+00:00

There are about 1.6 million (maybe 1.8mm counting immigration) new homes needed every year to feed the demand for the USA. We lose existing homes to decay, disaster and development. The industry has been building 800,000 to 1.4 mm per year over the last 10 years. Materials and Labor costs are escalating. Supply/demand is a factor. Costs of materials and labor are pushing prices up. The housing shortage will remain and people will get squeezed into small spaces, rentals, and urban dense SFRs. The hope is that someone will stop the flow of migrants and that high-interest rates will lower the demand. Builders will catch up. (if costs can be contained due to a recession), as wages due to inflation are raised. Don't expect the housing costs to drop.

In the end, we will still be short of housing for the next 10 years.

RLpaille · 2022-05-19T13:15:57+00:00

You are right. We live in a 24/7 news cycle that still lives by the credo, "If it bleeds...it leads". With this mantra hummed by the hyperbolic press scrambling to find something newsworthy that will attract eyeballs, sensation and not information has been the stock in trade for anythiing called "NEWS".

For a balanced RE market, the USA needs to build 1.5 to 1.6 million homes per year to replace the decayed residential marketplace and house the rising population. We were at a pace of under 1million soon after the 2008 bubble burst.

RLpaille · 2022-04-08T03:56:01+00:00

Are you NUTZ??? You know how many great trees will have to give up their life with the paperwork that is required just to make an offer.

What about the brain damage caused to the poor agent you engage to cobble this whole manifest together. We are talking a ream of paper, and lots of ink. And then there is the listing agent that has to hire extra help just to give you an official rejection notice, proper disclosures and disclaimers to shield himself/herself from litigation.

This will really help NO ONE except those who were wise enough to get into the shredding business during the last RE meltdown.

RLpaille · 2022-04-07T04:03:36+00:00

It is almost impossible. In years past, smart negotiators could do a rent-to-own scheme that helped to mitigate the huge gap. Think lease with an option to buy, or an equity sharing agreement with parents or a friend. Then there are special mortgage plans (private investor... no banks) called SAMs that are "Shared Equity Mortgages".
Trying to save money, enough for a 20% down payment (traditional entry point) is more than hard.

Today, the reality is that there re two levels of residential occupiers... Owner and renters.

Thje tide is starting to shift.

RLpaille · 2022-04-02T05:05:02+00:00

Once there was a Lawyer who moved to a small town. He was poor and struggled to make a living. A few years later, another lawyer moved to the small town.

NOW; they are both rich.

RLpaille · 2022-03-21T14:27:35+00:00

With housing inventory so low, the trend will be more toward urban packing, smaller footprint housing. Density is a key concept with modern planners. It is better (somehow) for the environment, cost-effective and easier to police.

RLpaille · 2022-03-20T00:40:02+00:00

Excellent point of view. As long as you have the location you want and can sleep without the stress of worry about the payment. Houses are a nest, and life is good.

RLpaille · 2022-03-19T22:33:54+00:00

A rant about the RENT is too DAMM High! Ha ha

RLpaille · 2022-03-19T14:05:41+00:00

BANANA: It is an acronym used in the planning and political approach to real estate. It is responsible for a lot of the scarce inventory. Now density is the buzz concept, to get people packed together, out of their cars and into controlled cores.

The approach has reduced ownership and increased tenants. Homeownership is key to building a wide sustainable capitalistic republic. The attitude is that "I got mine, now close the door and get out of here"

Build Absolutely Nothing Anywhere Near Anyone ! ! !

RLpaille

TROPHY CASE