New Listing - Elderberry Plan 2 home in Portola Springs (214 Geyser)

bones said:
USCTrojanCPA said:
paperboyNC said:
Kings said:
but, but...irvine housing market is slowing down!
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Interestingly enough, resales of homes with models still open seem to sell very quickly. Maybe because:
- Builder, Master Developer, etc. is marketing for you
- Immediate move-in compared to 6+ close
- Better lot available than from Builder
- Easy price comparison to Builder (who is presumably increasing price every phase)
- Still under warranty (buyer peace of mind)

In this case it seems the seller was willing to take a loss on the property - perhaps the job that offered relocation is covering this?
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I think the points that you raised had something to do with the buyer pulling the trigger.  It did help having the property be absolutely turnkey (most people coming through the open house asked me if the property was professionally staged which it wasn't) and ready to move-in right away.  The relocation company is paying for all of the seller's closing costs (max of 8%), including the commissions.
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Hope that means you?re taking the full 2.5%!
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The typical commission for relo transactions is 6% split equally between the buyer agent and the listing agent.  I do have to pay sizable referral fee to the relo company (40%+) and the relo company does not allow for dual agency on their relo transactions.  The buyer is represented by another agent.
 
paperboyNC said:
List for rent today at $5k/mo.
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If the buyer is paying cash, 60k of rent divided by 1,400,000 = 4.3% return. A mortgage of 80% of 1.4M at 4% is a principal and interest payment of 5,300, making it cash flow negative at the current asking rent

You can get a 2% return on 1 year cd from synchrony with zero risk. Better get that appreciation
 
qwerty said:
paperboyNC said:
List for rent today at $5k/mo.
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If the buyer is paying cash, 60k of rent divided by 1,400,000 = 4.3% return. A mortgage of 80% of 1.4M at 4% is a principal and interest payment of 5,300, making it cash flow negative at the current asking rent

You can get a 2% return on 1 year cd from synchrony with zero risk. Better get that appreciation
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you forget the tax deduction of a rental. this is a lucrative and a powerful deduction if done right.
 
Well perhaps as part of a portfolio where other real estate investments generate taxable income.

On a stand-alone basis there probably would not be any taxes due since it?s probably at a net loss with the depreciation of the structure and operating expenses (property taxes, insurance, gardener, HOA, occupancy, etc)
 
And let?s not forget, just like the greatest trick the devil had was getting everyone to beleive he doesn?t exist (or whatever the line is from usual suspects), one of the greatest lies the herd believes is that tax deductions are good. It?s never good to spend  a dollar to save 35-40 cents
 
agree...I am a little bit shocked that they only rent that out for 5K. Some believe in Irvine real estate more than other from this transaction.

Everyone has a way of making their money. So assume that they paid in cash, that mean this owner's must have done something right. Because I can say, hey you idiot you got too much money to do that. Well, he did many things right to be able to do that. I sure as hell can't do that. So I assume you can't too. Bitch all we want.
 
Landscaping also needs to be done.  Probably another $30k or so.  Not sure a prospective tenant is going to want to deal with that.  This property will take awhile to get leased out.  You really gotta wonder what this investor is thinking.  It's a pure appreciation play, but in the meantime, there is definitely money being lost due to opportunity cost (if cash buyer) and/or monthly cost.
 
Compressed-Village said:
agree...I am a little bit shocked that they only rent that out for 5K. Some believe in Irvine real estate more than other from this transaction.

Everyone has a way of making their money. So assume that they paid in cash, that mean this owner's must have done something right. Because I can say, hey you idiot you got too much money to do that. Well, he did many things right to be able to do that. I sure as hell can't do that. So I assume you can't too. Bitch all we want.
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Compressed-Village said:
agree...I am a little bit shocked that they only rent that out for 5K. Some believe in Irvine real estate more than other from this transaction.

Everyone has a way of making their money. So assume that they paid in cash, that mean this owner's must have done something right. Because I can say, hey you idiot you got too much money to do that. Well, he did many things right to be able to do that. I sure as hell can't do that. So I assume you can't too. Bitch all we want.
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I don?t know that they paid cash, just throwing scenarios out there, and definetly not bitching. The reason for this investment isn?t clear other than an appreciation play.

Now your falling for another myth, that all people with money (assuming they made it on their own and don?t come from money) are smart and make smart investment decisions. Plenty of smart people make bad financial decisions. The investor may be self made, or not, either way more power to him. I?m all for everyone making as much as they can as fast as they can, definitely not a hater.
 
qwerty said:
Compressed-Village said:
agree...I am a little bit shocked that they only rent that out for 5K. Some believe in Irvine real estate more than other from this transaction.

Everyone has a way of making their money. So assume that they paid in cash, that mean this owner's must have done something right. Because I can say, hey you idiot you got too much money to do that. Well, he did many things right to be able to do that. I sure as hell can't do that. So I assume you can't too. Bitch all we want.
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Compressed-Village said:
agree...I am a little bit shocked that they only rent that out for 5K. Some believe in Irvine real estate more than other from this transaction.

Everyone has a way of making their money. So assume that they paid in cash, that mean this owner's must have done something right. Because I can say, hey you idiot you got too much money to do that. Well, he did many things right to be able to do that. I sure as hell can't do that. So I assume you can't too. Bitch all we want.
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I don?t know that they paid cash, just throwing scenarios out there, and definetly not bitching. The reason for this investment isn?t clear other than an appreciation play.

Now your falling for another myth, that all people with money (assuming they made it on their own and don?t come from money) are smart and make smart investment decisions. Plenty of smart people make bad financial decisions. The investor may be self made, or not, either way more power to him. I?m all for everyone making as much as they can as fast as they can, definitely not a hater.
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I got it, I know what it is. UscCpa is the smart deal broker. He done the deal and got it closed. Now i will have to commission and get him over to NAFTA and make sure Trump do the deal right for USA.
 
After an escrow that took forever and a day to close, I got word from escrow that we officially closed this afternoon.  The closing price for the home was $1,380,000, significantly higher than any new Elderberry home (I think all of the Elderberry will like me now).  haha  Congrats to the buyer and seller.
 
USCTrojanCPA said:
After an escrow that took forever and a day to close, I got word from escrow that we officially closed this afternoon.  The closing price for the home was $1,380,000, significantly higher than any new Elderberry home (I think all of the Elderberry will like me now).  haha  Congrats to the buyer and seller.
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Nice, congrat. Now you have to do a post about and dispelled the market top and going down that was started a few months ago. ha ha
 
Compressed-Village said:
USCTrojanCPA said:
After an escrow that took forever and a day to close, I got word from escrow that we officially closed this afternoon.  The closing price for the home was $1,380,000, significantly higher than any new Elderberry home (I think all of the Elderberry will like me now).  haha  Congrats to the buyer and seller.
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Nice, congrat. Now you have to do a post about and dispelled the market top and going down that was started a few months ago. ha ha
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Slowdown Hoax?
 
Listed in July and in contract early August. If we were to sell right now we would be scr*wed.

As always big thanks to Martin for all his help and his patience with this stupid long escrow period.
 
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