CA Housing Market?

[Wash 10 Crew]

Eff STVR!!!

 

[Chingon619]

I have been listing and selling quite a few homes with delinquent tenants. It's really sad to see small mom and pop investors in trouble because the system allows the tenants to get away with this.  It's definitely risky these days to be a CA residential landlord that's for sure. 

No kidding!! It's a good time to be a dead beat! Well until the moratorium expired. Renter hadn't paid rent for about a year, house went under contract and borrowers had to wait until tenant left. They (sellers) negotiated for him to move out, ended up paying him $15k for him to leave and moratorium was soon to expire anyway. Wow! He played his cards right. Mfer!

 

[77charger]

Key now is to rent to low income immigrants, they pay their rent on time and want to be left alone.  Don't rent to low income white people, they have a tendency to want to feed off a nipple for life.  HAHA

My parents had a mexican family they rented too they paid cash couple times a little late but they let my dad know waiting on oncoming money so a week late. He never worried. They rented for years too. 
 

other rental they had in Merced in early 80s was usually a year rental to Air Force personal from Atwater. They rented that for a couple years great tenants too. 

 

[badgas]

 Everyone says they can time the market but in reality they can't. My next door neighbor sold his home in 2018 for 1.25 at the "top of the bubble".  That house would sell for 1.7 today in one day. Stuff is crazy all over the place and will cyle again at some point. All I can say with confidence is that when stuff does turn make sure  your debt is as LOW as possible or you will be headed towards bankruptcy, not that there is anything wrong with that. 

 I do love how every offroad and river forum is full of guys who say they can pin point the stock and housing market. If this was true we would all have a 42" tag axle with a stacker and a Funco parked full time at roadrunner.  Not to mention the fat house in Havasu with a DCB M44 hooked to an F650. 

talk is talk......just keep your debt low 

peace 

 

[Sand Shark]

Key now is to rent to low income immigrants, they pay their rent on time and want to be left alone.  Don't rent to low income white people, they have a tendency to want to feed off a nipple for life.  HAHA

Funny - I had a friend that had rental property and he said the same thing.  

 

[Crusty]

Eff STVR!!!

But you can meet really nice people while staying at a vacation rental..

Funny - I had a friend that had rental property and he said the same thing.  

My Grandmother had a property in East LA, 8 little 1920's adobe units. She kept them simple, clean, working and the rent was always too damn low - but the property had been paid off years ago, never borrowed against.

The families that lived there, never moved out - because when one family did, their cousin, uncle, best friend etc. took over. My grandmother never had an issue with drug dealers, people not paying ...nothing.

Unlike my Parents who dealt with all the full bag of shit...they even appeared on the People Court and won...stupid tenants LOL.

 

[LegitDuner]

There's an ugly side to this housing market currently. That is these quick escrows, no contingencies, hardly any type of inspections, paying well over appraisal. 

I'm showing up to these houses and giving people $30,000+ bids ( some I can't even bid they're so bad and keep in mind I'm just a termite and wood repair guy, I don't even get into the electrical plumbing roofing etc) and they are about fainting because they are broke just buying the house. I'm noticing a trend of people ramping up to try to start suing people. Some of this stuff is very obvious and should have been disclosed, in their mind anyway.

I have never understood why Banks don't require some kind of assurance that the million dollars they are loaning for the house is backed by a solid house/investment. Some of these banks are going to get some of these houses back and going to knock them down. 

For the last 50+ years you've always been required to do certain inspections and repairs and those are gone now. It's completely changed our industry. We're pivoting into "police" inspection reports that people are using in their lawsuits and insurance claims. I get at least one phone call a day from an insurance company asking me if the damage is old and could have been found easily.

 

[Cookie]

I have this friend that has about 9 rental properties.  He tells them all he is the property management company (not the owner).  Has all rent checks mailed to a PO box, a business card that has the property management name on it.  Anytime something comes up like negotiating and such, he just tells them he will talk to the owner.  Makes it so it isn't personal for the renters...............they also don't mess around because the renters think they are dealing with a company vs some random slumlord.

 

[badgas]

There's an ugly side to this housing market currently. That is these quick escrows, no contingencies, hardly any type of inspections, paying well over appraisal. 

I'm showing up to these houses and giving people $30,000+ bids ( some I can't even bid they're so bad and keep in mind I'm just a termite and wood repair guy, I don't even get into the electrical plumbing roofing etc) and they are about fainting because they are broke just buying the house. I'm noticing a trend of people ramping up to try to start suing people. Some of this stuff is very obvious and should have been disclosed, in their mind anyway.

I have never understood why Banks don't require some kind of assurance that the million dollars they are loaning for the house is backed by a solid house/investment. Some of these banks are going to get some of these houses back and going to knock them down. 

For the last 50+ years you've always been required to do certain inspections and repairs and those are gone now. It's completely changed our industry. We're pivoting into "police" inspection reports that people are using in their lawsuits and insurance claims. I get at least one phone call a day from an insurance company asking me if the damage is old and could have been found easily.

 In many cases with investors there is no bank. My brother flips houses and all of his bids are cash and they waive all contingencies for repairs. 

But you are correct, people with a "ready fire aim" mentality usually lose money. 

 

[LegitDuner]

 In many cases with investors there is no bank. My brother flips houses and all of his bids are cash and they waive all contingencies for repairs. 

But you are correct, people with a "ready fire aim" mentality usually lose money. 

That's somewhat part of the cause... they're going up against investors. They have to come in strong while asking for nothing or the investor gets it.

 

[Orange_R]

There's an ugly side to this housing market currently. That is these quick escrows, no contingencies, hardly any type of inspections, paying well over appraisal. 

I'm showing up to these houses and giving people $30,000+ bids ( some I can't even bid they're so bad and keep in mind I'm just a termite and wood repair guy, I don't even get into the electrical plumbing roofing etc) and they are about fainting because they are broke just buying the house. I'm noticing a trend of people ramping up to try to start suing people. Some of this stuff is very obvious and should have been disclosed, in their mind anyway.

I have never understood why Banks don't require some kind of assurance that the million dollars they are loaning for the house is backed by a solid house/investment. Some of these banks are going to get some of these houses back and going to knock them down. 

For the last 50+ years you've always been required to do certain inspections and repairs and those are gone now. It's completely changed our industry. We're pivoting into "police" inspection reports that people are using in their lawsuits and insurance claims. I get at least one phone call a day from an insurance company asking me if the damage is old and could have been found easily.

if they bought as is and didn't do their due diligence how are they gonna come back on the previous owner? We had all the inspections done on our place 6 yrs ago when we bought it and found all kids of hidden stuff, like walls patched up with mold and or water damage that was uncorrected. We bought under market at the time but DAMN! We contacted a lawyer and were told sorry, you signed off on the property... I was like they hid the chit inside the walls :dunno:

 

[LegitDuner]

if they bought as is and didn't do their due diligence how are they gonna come back on the previous owner? We had all the inspections done on our place 6 yrs ago when we bought it and found all kids of hidden stuff, like walls patched up with mold and or water damage that was uncorrected. We bought under market at the time but DAMN! We contacted a lawyer and were told sorry, you signed off on the property... I was like they hid the chit inside the walls :dunno:

90% of people probably will be spinning their wheels and wasting their time. It just feels like a big bitch session out there right now, everyone's contacting their insurance companies and asking lots of questions. 

 

[Orange_R]

90% of people probably will be spinning their wheels and wasting their time. It just feels like a big bitch session out there right now, everyone's contacting their insurance companies and asking lots of questions. 

that's why we bought got a 1yr home warranty plan. They such too though by adding all kinds of retrofit fees and installation charges. It's all chit

 

[Sand Shark]

But you can meet really nice people while staying at a vacation rental..



My Grandmother had a property in East LA, 8 little 1920's adobe units. She kept them simple, clean, working and the rent was always too damn low - but the property had been paid off years ago, never borrowed against.

The families that lived there, never moved out - because when one family did, their cousin, uncle, best friend etc. took over. My grandmother never had an issue with drug dealers, people not paying ...nothing.

Unlike my Parents who dealt with all the full bag of chit...they even appeared on the People Court and won...stupid tenants LOL.

You get a +2 for bringing in Summer Rental and one of the great scenes and following it up with People's Court.  

 

[RayClay]

I have a co-worker who just got screwed out of her deal to buy the house she has been renting for over a decade.

This is in North Hollywood, CA. The owner decided to sell it to her for about 150K under what the appraised value ended up being, meaning they agreed upon the price before going through any of the process. Even then the owner was fine with it until...

When drawing up the deal, the realtor he hired convinced him that he had to charge full value or it would screw up the local real estate market and him and other realtors like him would end up selling other houses in the area for less due to this one being a comparable at a way lower price (and obviously earning a smaller commission in the process).

And the realtor just happened to have a cash buyer handy.

Now instead of buying the home she has lived in for the past 12 years, she has to move. She cannot afford to rent in the area now and is moving to Tennessee next week.

 

[Cookie]

I have a co-worker who just got screwed out of her deal to buy the house she has been renting for over a decade.

This is in North Hollywood, CA. The owner decided to sell it to her for about 150K under what the appraised value ended up being, meaning they agreed upon the price before going through any of the process. Even then the owner was fine with it until...

When drawing up the deal, the realtor he hired convinced him that he had to charge full value or it would screw up the local real estate market and him and other realtors like him would end up selling other houses in the area for less due to this one being a comparable at a way lower price (and obviously earning a smaller commission in the process).

And the realtor just happened to have a cash buyer handy.

Now instead of buying the home she has lived in for the past 12 years, she has to move. She cannot afford to rent in the area now and is moving to Tennessee next week.

That agent needs an ass kicking.  That is shady and even though she won't get the house, this agent should be blasted on yelp or something.  Every area has some shady agents out there.......so many insider deals right now.

 

[dbart]

Pacific Heights told me everything I wanted to know about it.

Awesome movie.

My parents were owners of a 20 unit building in San Gabriel and that was a movie that made them CRINGE!

:lmao:

They also had a home in big Bear...vacation for us but would rent it out.

Days of Our lives Soap Opera crew and cast would rent it every year after the season was over for the end of the year bash...always left a mess.

People don't effing care if it isn't theirs...for the most part.

They sold it it a long time ago, but I wish they had kept that one, right on the lake at Eagle point. Yeah, wrong side of the lake with the wind but was still beautiful.

Funny story, the people that bought from my parents it sold it about 5 years after to Michael Jackson.

YES...Michael Jackson...King of Pop Michael Jackson.. :laugh1:  His people put a big fence around the whole property...   :simrak:

If you have a rental do yourself a favor and hire a Management company to handle it.

Stay out of the day to day crap if you are the owner.

 

[Crusty]

Awesome movie.

My parents were owners of a 20 unit building in San Gabriel and that was a movie that made them CRINGE!

:lmao:

They also had a home in big Bear...vacation for us but would rent it out.

Days of Our lives Soap Opera crew and cast would rent it every year after the season was over for the end of the year bash...always left a mess.

People don't effing care if it isn't theirs...for the most part.

They sold it it a long time ago, but I wish they had kept that one, right on the lake at Eagle point. Yeah, wrong side of the lake with the wind but was still beautiful.

Funny story, the people that bought from my parents it sold it about 5 years after to Michael Jackson.

YES...Michael Jackson...King of Pop Michael Jackson.. :laugh1:  His people put a big fence around the whole property...   :simrak:

If you have a rental do yourself a favor and hire a Management company to handle it.

Stay out of the day to day crap if you are the owner.

Eagle Point Estates is a really nice part of town now... :lol:

Cool story about MJ...now new kids were making childhood memories there too! :lmao:   ....ok that was bad :lol:

 

[Orange_R]

I have a co-worker who just got screwed out of her deal to buy the house she has been renting for over a decade.

This is in North Hollywood, CA. The owner decided to sell it to her for about 150K under what the appraised value ended up being, meaning they agreed upon the price before going through any of the process. Even then the owner was fine with it until...

When drawing up the deal, the realtor he hired convinced him that he had to charge full value or it would screw up the local real estate market and him and other realtors like him would end up selling other houses in the area for less due to this one being a comparable at a way lower price (and obviously earning a smaller commission in the process).

And the realtor just happened to have a cash buyer handy.

Now instead of buying the home she has lived in for the past 12 years, she has to move. She cannot afford to rent in the area now and is moving to Tennessee next week.

That agent needs an ass kicking.  That is shady and even though she won't get the house, this agent should be blasted on yelp or something.  Every area has some shady agents out there.......so many insider deals right now.

Also sounds like a state ethics violation... eff that guy

 

[TheSPAINishLover]

I have a co-worker who just got screwed out of her deal to buy the house she has been renting for over a decade.

This is in North Hollywood, CA. The owner decided to sell it to her for about 150K under what the appraised value ended up being, meaning they agreed upon the price before going through any of the process. Even then the owner was fine with it until...

When drawing up the deal, the realtor he hired convinced him that he had to charge full value or it would screw up the local real estate market and him and other realtors like him would end up selling other houses in the area for less due to this one being a comparable at a way lower price (and obviously earning a smaller commission in the process).

And the realtor just happened to have a cash buyer handy.

Now instead of buying the home she has lived in for the past 12 years, she has to move. She cannot afford to rent in the area now and is moving to Tennessee next week.

That sucks but she will be able to afford a nice place here in TN.