What happens to ‘investors’ when they all want to exit the housing market?

Tips and Deals Forums Buying Your Home Buying a Home in Los Angeles What happens to ‘investors’ when they all want to exit the housing market?

Viewing 4 reply threads
  • Author
    Posts
    • #199536
      Anonymous
      Inactive

      I’ve gotten to know a few amateur RE investors in SoCA who have purchased residential properties during the RE meltdown. They have met with varying degrees of success. What I find interesting is they are all at near break even to negative cash flow on an annual basis. And they all have an exit strategy of getting out in 3-5yrs and at that time making their profit on the investment.

      *

      Some areas have more investor activity than others but what happens when all these investors want to exit the market? Theoretically the RE market and economy will be stronger in a few years which also means higher interest*rates. How will people afford larger mortgages at higher rates in 3-5yrs when today so many struggle to accumulate a 20% down and stretch to make payments?

      *

      I see a lot of investors getting burned and ending up with large losses or holding properties with negative cash flow for longer than they planned.

    • #414989
      Anonymous
      Inactive

      try washington mutual,and jp morgan

    • #414990
      Anonymous
      Inactive

      WOW ?????????????

    • #414991
      Anonymous
      Inactive

      WOW! I hope you have money down and the credit (680 at least or better) to pull this off. I don’t know who exactly is going to do $ 10M (that’s ALOT for a residential property), but be prepared for the appraisal fees (at that price I KNOW they are going to request 2 appraisals) between $ 2k and $ 6k apiece. If this is not a one unit you may be able to do it as a commercial loan.

      GOOD LUCK!

    • #414992
      Anonymous
      Inactive

      You will probably want to work with a broker instead of dealing with a retail lender. When you deal with a retail lender it’s like going to McDonald’s, you get what they have on their menu at their prices. A broker has 30+ lenders to shop with.

Viewing 4 reply threads
  • You must be logged in to reply to this topic.
Register New Account
Reset Password