Vulture real estate investors swoop in....LOL

Trooper_IHB

Trooper_IHB

New member
One broker in (you listening Liz?) Cape Coral, Florida sez: "<em>The savvy investors here," she said, "are buying up everything they can."</em> Now I know you have said that C.C. is just about the Ground Zero of the housing bubble bust, so WTF is she talking about ? I'm thinking she's just trying to create a buzz for that market, since there isn't one.



Graph...someone has already called themselves Condo Vultures, LLC....if you are going to create a Vulture REIT, you'd better get going before all the good names are taken ! :p



<a href="http://money.cnn.com/2008/06/30/real_estate/vulture_investors_take_flight/index.htm?postversion=2008070507&eref=rss_topstories">Future candidates for "Knifecatchers Anonymous"</a>
 
Nah... we would have to go with something more subtle, like graphcakes LLC., or Won't Touch VOC LLC., or Brightwater BKers LLC.
 
Well, I'm not sayin' that it's impossible to get a deal in Cape Coral.



Cobradriver at Calculated Risk has posted one place, that true, will

never be the Taj Mahal, but it was selling for 7, yep, 7 grand and needed

about that much in work.



The thing is, there's no there there.



No source of future jobs. Way too many houses. Now, I suppose

if you pay practically nothing you might be able to market them for practically

nothing plus 10% to retirees up north who can no longer pay their

heating bill..



And the aforesaid Cobradriver was muttering about having his

eye on some places. (But he's bearish and lives there, and is apparently

not buying yet.)



But basically I think this is just a variation of the Now Is a Good Time to

Buy meme, and total nonsense.



Remember, I have a tiny practice in Miami, and this area is hundreds of

miles away from me and I've had oh, half a dozen people come in

for short consultations (yeah, walkaway, nope, nobody getting deficiencies

yet) from all that distance. I imagine lawyers in Tampa or Orlando are

getting way more people coming in for the same reason
 
Ok, I looked at the article, and the buyer paid only 65,000 for a 3 family

house. That qualfies as practically nothing I think. She's getting

$1500 a month, so has positive cash flow. Only problem is that

she probably thinks that she's going to sell in any reasonable time and

make a capital gain.



Well, ok, if reasonable time == 10-15 years.



But as I say, she's got positive cash flow, and no reason to think she

won't for the foreseeable future, so she's not going to be a knifecatcher.

She's just not going to become rich either.
 
I prefer Biscuitninja LLC ... :p



But that's just me. I hope to start a REIT within 6-12 months or so. But we will see...

take it easy

-bix
 
Sarge - They may be an ok deal if they qualify for section 8 housing. Buy 'em cheap, rent 'em to section 8'ers, and let the government pay the rent. Anyone know how much rent section 8 pays these days?
 
My broker buddy is renting section 8 and is very satisfied with

what they are paying her, altho of course she isn't breaking

even. She lives in another place and IS breaking even on her

beach rental, and is working as a legal secretary to pay the

bills. She still has her license, and maybe has a re-fi, but actually

I'm losing hope that it will ever close.
 
Awgee,

Last time I looked it was a calcuation for a voucher.... 30-40% maximum of your salary, plus a few other things.

OR



A maximum payment standard according to size...



Single Room Occupancy studio $ 769



Studio $1026



One-bedroom $1172



Two-bedroom $1422



Three-bedroom $2074



Four-bedroom $2501



Five-bedroom $2875



Six-bedroom $3520



Mobile Home $ 746



Here you really coulden't make big bucks unless you picked it up for a song and a dance. Plus Section 8 people are not the best in the world (at least some of them that I've met).

good luck

-bix
 
Bix - My understanding is that if the tenants do not pay their 10%, the state picks up the last 10%, and the state picks up the tab for any damages. ?
 
Awgee,

To some degree. If it is out and out destruction, then no. If it is normal wear and tear then they will negotiate with you. Most of the time though, its a rather paltry amount, just enough to get some cleaners in there. You really have to be sure you don't blow the entire amount on anything that the renter might ... want.



Again, some people are good, most people are usually not that great....



OH well... good luck

-bix
 
Based on anecdote/war stories, I'd say that Section 8 tenants are slightly better

than regular tenants which isn't saying much.
 
[quote author="biscuitninja" date=1215424914]

A maximum payment standard according to size...







Three-bedroom $2074



Four-bedroom $2501



</blockquote>




wow, so this is what you'll get from sec8 for a house in OC?



Does anyone know if there are plenty of tenants who are qualified for sec8 in OC (only legal residents, right?)?



Does this mean that a small house in Santa Ana, etc will cashflow at about $200k-$250k on the government's dime?



hmmm
 
They give you money to rehab too. My niece lives out in Lancaster and I can't believe what she pays in rent, especially when you look at what you can buy a house like that for.
 
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