Home #1: 2171 NE 44Th St, Lighthouse Point, FL 33064
- 3 Bed, 2 Bath SFH
- Bought in March 2007 for $900,000
- On the MLS for $850,000
- Days on the MLS: 70 Days
- Loss before the Realtor® commission: $50,000
- Loss after the Realtor® commission: $101,000
Home #2: 150 SE 12TH ST, Pompano Beach, FL 33060
- 2 Bed, 1.5 Bath SFH
- Bought in March 2007 for $750,000
- On the MLS for $680,000
- Days on the MLS: 61 Days
- Loss before the Realtor® commission: $70,000
- Loss after the Realtor® commission: $110,800
Stumble It!
9 comments:
Not sure how much he made during the boom, but, here is the reality;
2171 NE 44th is a fixed bridge property with a view of a "not so pretty" large condo building. This property at the peak was maybe worth $500K not $900K. Likely this was a cash out deal. If you look at the dates of purchase, he could have bought either of the two houses on NE 23rd which are slightly larger, no fixed bridge and sold in the high $700K range.
Once again, not sure what he made in the past but this home will not sell for over $500K. The bank will likely own it soon.
Admin,
How do you find out what properties they sold?
The 150 SE 12th St is also a "fixed bridge" home. A friend of mine passed up a home on this very street in 2000 whith an asking price of $160K. This "featured" house is completely redons and looks very nice, however, a 2 BR house in this area will likely drop to half the asking price.
140,
You simply look for Warranty Deeds *from* the individual in the Broward County Clerk's website.
In this case, I found that he sold three properties for profits in Broward to date.
He sold the following property for an $85,000 profit:
Property 1
This one for a $37,000 profit:
Property 2
And this one for a very nice $230,000 profit:
Property 3
However, keep in mind those profits ignore carrying costs and the cost to upgrade (if he did). His profit are probably considerably less than that.
And, unless he was buying or selling in some other market, I bet that the losses these two properties will exceed any profits he made.
Then again, he'll probably either short sell or let these go into foreclosure. In other words, he will probably not lose a cent in the process. Yeah, he'll have bad credit, but he won't give up his quarter-million in profits he made during the boom.
And, that's what is so screwed up with the bubble. This guy got to pocket all the profits and force the lenders to absorb all his losses.
140 dollars:
You mentioned in an earlier post that you "own a tremendous amount of RE and make an excellent living from my RE income properties".
I assume these are all cash-flow positive and were bought pre-boom. However, I was just curious: are you trying to sell those properties as well (I know you recently closed the sale of your Ohio home)?
The only reason I'm asking is because looking at the numbers, it seems to me that even investors with cash-flow-positive properties would be been better off selling and putting their profit into other investments (even a CD would outperform the RE market over the next several years). Then, buy properties back when the market bottoms. At least you would get to cash in some of that paper money (equity) that will dwindle away over the next several years, and get a guaranteed return on that money when you reinvest it while you're waiting for the RE market to bottom.
I realize we're past the peak now, but it seems to me that people would still benefit by selling now before prices decline even further. And we may not see 2005-06 prices again for another 10 years or more.
What's your position on this?
Re:
You mentioned in an earlier post that you "own a tremendous amount of RE and make an excellent living from my RE income properties".
Everybody on the "internets" is 6'4", built like a tank, and hung like a horse... ;-)
sr,
My properties are not in Fla, and we depend upon the cash flow for our living.
I know a lot of people make good returns in stocks bonds and commodities, but I know very little about them and don't feel like learning, so I stick with what I'm good at.
I bought my first property, a 2 family with a small cottage (originally a stable) for $8000 in the mid 1970's.
It was imprudent of me to comment on my holdings, but I was trying to impress on 'real', that I have 30 successful years experience in RE ownership and have done very well with it, so I do know more than the average individual, as does any professional in any field.
But I do not like putting my personal information out on the net, as I tend to feel it is no ones business.
Sometimes we get carried away feeling we are sharing with one person and forget how many anonymous internet Rambo's are out there looking to put someone else down trying to make themselves feel better about there sorry lot in life. You seem like a rational guy, so I'm sure you know what I mean.
140 said: "My properties are not in Fla, and we depend upon the cash flow for our living.
I know a lot of people make good returns in stocks bonds and commodities, but I know very little about them and don't feel like learning, so I stick with what I'm good at."
Fair enough. I wasn't looking for specifics. Just your take on the, "hold until things get better" vs. "sell now, cash out the equity and rebuy when market bottoms."
It just seems to me that even putting money in a 5% CD right now would be better than holding real estate--even if it's cash-flow positive. Your equity would be preserved, earning 5% guaranteed, rather than decreasing 20-30% over the next several years. Not to mention no stress or tenants to deal with.
Although I guess if your property is located in an area that didn't experience rapid appreciation, then you probably wouldn't have as much to lose, since the prices wouldn't go down as much.
PB,
LOL! My properties are in an area thats been down so long we don't see how it could get worse compared to the rest of the country.
We are in NE Ohio and I see where Fortune Mag actually thinks Cleveland will go up 20%.
Although not in Cleveland, we are not too far away.
I did take a loss to get a sale on my home, 20% below the CMA's of three different Realtors, and I took $70k to the closing table..
I wanted out from under the monthly payment, and I could never rent it for even close to the mortgage amount, so it would have been a cash drain. Not to mention it was far too nice a home to rent out. Having dealt with thousands of tenants over the years, it would break my heart to watch them destroy my home.
That's another point these f@cked buyers don't realize. When you rent out a really nice home, the tenants do some absolutely horrid things to them, and finding financially responsible tenants is a huge issue and problem today.
They will bring puppies in and let them poddy all over the carpet marble and even hardwood floors. It soaks in and you can never get rid of the stains and stench.
They will make "home improvements" that destroy some nice feature of your home and leave you with the expense of undoing the mess they made and paying someone to redo it.
I'm thinking of an ocean access home in Deerfield that has been rented at least 2 times in the last year. One time I drove by and the entire front yard was filled with junk and trash. My experience told me they probably evicted the people after losing 3 months rent and countless legal fees.
Now they pay to have dumpsters full of trash removed, repaint, re carpet and try to sterilize the kennel.
I think you are right, if I owned properties in S Fla, I would be trying to dump them and find another investment, even if it was another are of Fla that is still affordable.
We all know the ship is sinking, we just don't know how deep and how fast.
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