New Listing - Helena Plan 3 townhome @ Eastwood (125 Breakwater)

ScottWilson said:
Where do multiple families get 1.4 million dollars in cash? I did the math in the last 9 years I made 1.3 million gross, after tax, ss, and living expenses I don't think I can come up with that kind of money.
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Putting foreign money aside, there are a few ways to be a "cash buyer" in today's market:
  • As discussed, through pure salary (including bonuses, RSU's, and/or commission).
  • Through existing equity. For example, a 1031-exchange where you own an investment property that has been paid off, and you take all the proceeds and dump that into a new purchase. Or, you've built up enough equity in your existing homes to leverage borrowing tools like HELOC's, refinances, etc to pull out cash.
  • Borrow from your 401k or other retirement accounts.
  • Borrow or be gifted money from parents/family.
For a subset of buyers, they'd probably pool as much cash as possible (from the above list) to make their offer attractive and close quickly. Once they close, they can get a mortgage and "payback" the sources.
 
OCtoSV said:
Are the cash offers below asking? Blows my mind that someone would pay all cash for an attached condo as an investment when they can get 8% in B rated corp bonds. Irvine RE appreciation belief is a strong religion for many. But happy for you USC - profit off their ignorance.
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8 out of the 10 cash buyers are above list price.
 
OCtoSV said:
Are the cash offers below asking? Blows my mind that someone would pay all cash for an attached condo as an investment when they can get 8% in B rated corp bonds. Irvine RE appreciation belief is a strong religion for many. But happy for you USC - profit off their ignorance.
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This home was purchased in 2017 for what I'm guessing was in the $700k range. They're about to double up their money in 6 years. How much would you have made in B-rated corp bonds from 2017 to now? Back in 2017, I remember people saying...don't buy, Irvine is overpriced, and a crash is coming. The bottom line is you can't time the market. Real estate is still an excellent long-term investment.
 
usctrojancpa said:
We have received a total of 15 offers, 10 of which are all cash. The top offers around around mid $1.4s. The best & final counters are due by Thursday at 5pm.
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Only one winner. Basically there are still at least 14 serious buyers and counting willing to pay at least $1.4 mil for an attached condo in Irvine. I dont see things getting better for Irvine buyers anytime soon.
 
potsticker said:
This home was purchased in 2017 for what I'm guessing was in the $700k range. They're about to double up their money in 6 years. How much would you have made in B-rated corp bonds from 2017 to now? Back in 2017, I remember people saying...don't buy, Irvine is overpriced, and a crash is coming. The bottom line is you can't time the market. Real estate is still an excellent long-term investment.
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You just made my point. My house has also doubled in 6 yrs as rates went to zero and I refid down to 1.99/15. Rates on all bonds sucked then but the prices on older bonds from higher rate eras were sky high - that's why it was called a 40 yr bull market for bonds. Now rates are many hundreds of bps higher and will only go down if the Fed is forced to cut, which doesn't look likely given sticky food and fuel inflation and full employment. But when the recession hits and they do cut not only will you still be getting yield but the price of those bonds will appreciate substantially.

In other words, the entry point on bonds in the current rate environment is much more attractive than the entry point into residential RE in nice areas.

I have a friend who is a principal at a very prestigious institutional investment consulting outfit. His wife is a CFA and former money mgr that now works for him. When they sold their Bay Area home on 20 years and booked s $2M+ cap gain recently what did they do? No 1031, but paid the taxes and invested the rest of the proceeds in private credit funds. That's a true pro move by 2 pros.
 
Bidding war and rent back… it’s still seller market big time. Who wouldve thought RE market still leans heavily on the sellers with 7% mortgage rate? 😀
 
Danimal said:
Bidding war and rent back… it’s still seller market big time. Who wouldve thought RE market still leans heavily on the sellers with 7% mortgage rate? 😀
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Yeah a very high bid plus a free rent back until mid-Nov. It's the lack of inventory and the fact that it was a premium corner Helena lot that did it, along with me providing the right kind of encouragement to the buyer agents. ;)
 
Having terms forced on you in a deal is something I have never opted into and never will. But nice to be the agent in such a transaction!
 
The Eastwood ROI for early buyers is insane. Despite what LL says, the 80%+ returns since 2016-2017 is ridiculous. Are there better returns? Sure. But is it still a great ROI? Of course.

Irvine new home appreciation makes no sense honestly.
 
irvinebullhousing said:
Its call the Arts Of Persuasion. Or good negotiation skills....OCtoSV, you better sign up Martin when its time for you to buy in OC.
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Yes, I tell my clients that you want me on the sell side when there are multiple offers as I provide the right kind of encouragement to the buyer agents. :cool:
 
Got word earlier today that escrow closed this afternoon. The sales price of the home is $1,550,000 and the buyer also provided the seller a free rent back for 2 months. Congrats to both the buyer and seller.

The buyer of the home was a financed buyer who put $550k down and waved both their loan and appraisal contingencies (the appraised value came in at $1,450,000). Before the best & final counters were sent out, the highest price was $1,470,000 (cash buyer). Most of the buyers significantly increased their offer prices via buyer counters to the best & final seller counter, including the ultimate buyer who increased their bid from $1,450,000 to $1,550,000. The second highest offer was a cash buyer who came in a little over $1,500,000. This goes to show that sending out best & final counters is extremely beneficial to sellers in a seller's market.
 
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