Your favorite 'Tard-speak nugget.

NEW -> Contingent Buyer Assistance Program
Soylent Green Is People_IHB

Soylent Green Is People_IHB

New member
Other than the usual "buy now before prices go up", what is your favorite 'Tard-speak" nugget of market knowledge? The more intense the kool-aid strength the better.



Don't reference who said it, but try and share with the forum real time examples of what Agents are saying out there.



My current fav:



"Did you know that sales to list price ratio for all properties sold in the last 30 days between $250k and $500k is 100%! In this market don't make an offer at 10 percent off list and think it will get accepted."



My response: Most 'Tards list a home for $500k, sell it for $480k, then right before closing re-list the home for $480k so the sales to list price does come out to 100%. It helps when they show their potential victi...I mean clients that they sell homes at 100% list.



The higher word and number count in their pitch, the more likely the info is false.



Extra Credit IF you Use Lite-bright RealTard Case Fonts!!! in your post.



My .02c



SGIP
 
My favorite as of late is the big banner ad online that says, "Use your 401K to buy real estate!!! Ask me how!!" Poor people, not only has their 401K dropped 20-40%, now they want to sucker them into losing what's left.
 
"Don't wait too long."

I think we have been hearing that one since we sold our house in '05.

or

"Interest rates will never be this low. You better lock in now."
 
New Homes:



"As you can see, we've dropped prices significantly in the past year, you will be buying these houses for $100s of thousands less than your neighbors"



I bet my future neighbors would love to hear that.
 
There is one agent out there claiming that this next wave of foreclosures talk is a myth as pools of investors are buying them so they won't be coming on the market.



BTW IHO, love your new avatar! Where in the world did you find that?
 
[quote author="stepping_up" date=1242113529]BTW IHO, love your new avatar! Where in the world did you find that?</blockquote>
Thanks... just google-fu.



You can find ANYTHING on the internet.



I like that extended height on the single car garage... I can put a really tall mini-van in there (does anyone remember van conversions with bubble tops?)
 
[quote author="tmare" date=1242099261]My favorite as of late is the big banner ad online that says, "Use your 401K to buy real estate!!! Ask me how!!" Poor people, not only has their 401K dropped 20-40%, now they want to sucker them into losing what's left.</blockquote>


I expect that in some cases, this could be a good thing to do. I read about a strategy where you could ultimately end up buying the home you will live in when you retire, but I can't remember the details. You do have to convert the IRA into a self directed and have some assigned as the trust or something. What I do know is that every expense has to come out of the IRA, but also all of the income goes back into it.



Does anyone know more about the self directed IRA being used for real estate and whether it makes sense in some circumstances?
 
You guys will love these two lines I got from listing agents when I submitted offers for my buyers in the past 2-3 months:



"Those comps are not relevant to this property because this property is so much better do to x, y, and z" (when it reality it wasn't and the comps were on par or slightly superior to the subject property)



"Is that the best offer your buyers can present? If so, maybe they should be looking at less expensive properties."
 
[quote author="stepping_up" date=1242114230][quote author="tmare" date=1242099261]My favorite as of late is the big banner ad online that says, "Use your 401K to buy real estate!!! Ask me how!!" Poor people, not only has their 401K dropped 20-40%, now they want to sucker them into losing what's left.</blockquote>


I expect that in some cases, this could be a good thing to do. I read about a strategy where you could ultimately end up buying the home you will live in when you retire, but I can't remember the details. You do have to convert the IRA into a self directed and have some assigned as the trust or something. What I do know is that every expense has to come out of the IRA, but also all of the income goes back into it.



Does anyone know more about the self directed IRA being used for real estate and whether it makes sense in some circumstances?</blockquote>




I used to work with one of the foremost experts in the country for using self-directed IRAs to invest.



<a href="http://www.theentrustgroup.com/">Entrust Administration</a> has a <a href="http://www.theentrustgroup.com/elc/">Learning Center</a> with all the information you could want. In particular, you will want to read the <a href="http://www.theentrustgroup.com/elc/knowledge/article/9/76/">Swanson decision</a>. You can find a link to the PDF of the entire decision <a href="http://checkbookira.net/legal.html">here</a>.



Check out the sites: <a href="http://www.checkbookira.com/">Checkbook IRA</a> and <a href="https://www.iraservices.com/">IRA Services</a>. IRA Services is the custodian I use.



From there, you can do a Google search that will turn up other resources.



Basically, (1) you open and fund a Roth IRA with a Custodian (fancy term for an an IRA administrator). (2) You form an LLC. (3) You tell your custodian to take the money you put into the IRA and buy all the shares of the LLC. (4) the Custodian will send you a check written out to the LLC. (5) You open a bank account for the LLC and deposit the check. (6) You send the custodian an confirmation that the LLC got the money and that the IRA is now the owner of an LLC. (7) At that point, you are in complete control of the money in your Roth IRA that you can use to invest in whatever you want. There are rules you have to follow, but you have tremendous freedom.



If you have more questions, perhaps you should start a separate thread.
 
[quote author="irvine_home_owner" date=1242114175][quote author="stepping_up" date=1242113529]BTW IHO, love your new avatar! Where in the world did you find that?</blockquote>
Thanks... just google-fu.



You can find ANYTHING on the internet.



I like that extended height on the single car garage... I can put a really tall mini-van in there (does anyone remember van conversions with bubble tops?)</blockquote>


Remember them, geez, I live in Costa Mesa where they are still alive and kicking. There's one across the street from me and I just cringe when I see it.
 
[quote author="usctrojanman29" date=1242114647]You guys will love these two lines I got from listing agents when I submitted offers for my buyers in the past 2-3 months:

</blockquote>
My answers to the remarks:







[quote author="usctrojanman29" date=1242114647]

"Those comps are not relevant to this property because this property is so much better do to x, y, and z"

</blockquote>
Are you going to take the offer to your clients or should I do it myself?





[quote author="usctrojanman29" date=1242114647]

"Is that the best offer your buyers can present? If so, maybe these should be looking at less expensive properties."</blockquote>


No it is not the best. Here is my new best offer. (New offer will be ten thousand less and hopefully I can find a way to let the owners know that their agent is responsible for a decreased offer.)
 
[quote author="IrvineRenter" date=1242115041][quote author="stepping_up" date=1242114230][quote author="tmare" date=1242099261]My favorite as of late is the big banner ad online that says, "Use your 401K to buy real estate!!! Ask me how!!" Poor people, not only has their 401K dropped 20-40%, now they want to sucker them into losing what's left.</blockquote>


I expect that in some cases, this could be a good thing to do. I read about a strategy where you could ultimately end up buying the home you will live in when you retire, but I can't remember the details. You do have to convert the IRA into a self directed and have some assigned as the trust or something. What I do know is that every expense has to come out of the IRA, but also all of the income goes back into it.



Does anyone know more about the self directed IRA being used for real estate and whether it makes sense in some circumstances?</blockquote>




I used to work with one of the foremost experts in the country for using self-directed IRAs to invest.



<a href="http://www.theentrustgroup.com/">Entrust Administration</a> has a <a href="http://www.theentrustgroup.com/elc/">Learning Center</a> with all the information you could want. In particular, you will want to read the <a href="http://www.theentrustgroup.com/elc/knowledge/article/9/76/">Swanson decision</a>. You can find a link to the PDF of the entire decision <a href="http://checkbookira.net/legal.html">here</a>.



Check out the sites: <a href="http://www.checkbookira.com/">Checkbook IRA</a> and <a href="https://www.iraservices.com/">IRA Services</a>. IRA Services is the custodian I use.



From there, you can do a Google search that will turn up other resources.



Basically, (1) you open and fund a Roth IRA with a Custodian (fancy term for an an IRA administrator). (2) You form an LLC. (3) You tell your custodian to take the money you put into the IRA and buy all the shares of the LLC. (4) the Custodian will send you a check written out to the LLC. (5) You open a bank account for the LLC and deposit the check. (6) You send the custodian an confirmation that the LLC got the money and that the IRA is now the owner of an LLC. (7) At that point, you are in complete control of the money in your Roth IRA that you can use to invest in whatever you want. There are rules you have to follow, but you have tremendous freedom.



If you have more questions, perhaps you should start a separate thread.</blockquote>


Wow! That's one of the coolest vehicles I've ever seen. Reading all those links you put down.
 
[quote author="icey" date=1242121402]Wow! That's one of the coolest vehicles I've ever seen. Reading all those links you put down.</blockquote>


You do have to be very careful. If you enter into any of a number of prohibited transactions, the IRS will invalidate the entire structure and make you pay a boatload of taxes.
 
IR, I'm thinking before i'm typing here, but can your own LLC within the self-direct IRA be the beneficiary on the deed of trust acting as the lender to your primary residence? I guess the benefit would be an indirect ability to contribute beyond the annual limit. Trying to think of why this is a stupid idea and i need your help.
 
[quote author="tkaratz" date=1242131616]IR, I'm thinking before i'm typing here, but can your own LLC within the self-direct IRA be the beneficiary on the deed of trust acting as the lender to your primary residence? I guess the benefit would be an indirect ability to contribute beyond the annual limit. Trying to think of why this is a stupid idea and i need your help.</blockquote>


No, your LLC cannot own the property of or loan money to you or any direct relatives like your parents or your children. You are not allowed to benefit from the money in your IRA until you retire. That would be a prohibited transaction which would invalidate the entire structure.



There are ways to direct money into the LLC if it is structured as an investment. You can't just make direct cash deposits into the LLC, but there are so many way to structure "investments" that it is not difficult to get money in there. For the self-employed, there are ways to structure income as "investment" and funnel it into the IRA. If it is owned by a Roth IRA, it is completely untaxed. Of course, you won't have access to that money until you turn 59 1/2, so it isn't an income tax dodge as much as it is a way to avoid taxes on retirement savings, which was the point of retirement accounts.
 
I forgot another one:



Lowering the list price of a home is now called a "Price Improvement" as in



"My 1.2m property had a $500k price improvement today. The new list price is $700k"



SGIP
 
<A href="http://www.bloomberg.com/apps/news?pid=20601087&sid=akQEV5OocWbc&refer=home">http://www.bloomberg.com/apps/news?pid=20601087&sid=akQEV5OocWbc&refer=home</A>



?We are finally beginning to see the seeds of a bottoming? in the housing industry, Greenspan said today during a conference of the National Association of Realtors in Washington. The U.S. is ?at the edge of a major liquidation? in the stock of unsold properties, which may help to stabilize prices, Greenspan said.
 
[quote author="IrvineRenter" date=1242122331][quote author="icey" date=1242121402]Wow! That's one of the coolest vehicles I've ever seen. Reading all those links you put down.</blockquote>


You do have to be very careful. If you enter into any of a number of prohibited transactions, the IRS will invalidate the entire structure and make you pay a boatload of taxes.</blockquote>


Yep, thanks, I'll be sure to note all the restrictions and regulations.
 
Back on the thread topic, Shevy told me a story about clients he is working with who are looking at a property in Coto. They ask him about this one property, so Shevy calls up the listing agent who tells him there are no offers on the property. Shevy goes back to the clients and tells them there are no offers, and if they want the property, they should be able to get it under asking. The clients look at him and ask, "Are you sure?" He says, "Yes," and proceeds to outline a bid strategy. At the end of the conversation, these clients tell Shevy they are not going to bid on the property after all, but then they tell him the rest of the story.



Apparently, this couple went to see this property before with another agent they were working with. <strong>This previous agent told the couple that there were three offers pending on the property: one below ask, one at ask, and one above ask.</strong> It was a routine lie to this agent; one he had probably told every client he ever worked with. So if you have ever wondered if this really does go on, yes, it does.
 
[quote author="IrvineRenter" date=1242191533]Back on the thread topic, Shevy told me a story about clients he is working with who are looking at a property in Coto. They ask him about this one property, so Shevy calls up the listing agent who tells him there are no offers on the property. Shevy goes back to the clients and tells them there are no offers, and if they want the property, they should be able to get it under asking. The clients look at him and ask, "Are you sure?" He says, "Yes," and proceeds to outline a bid strategy. At the end of the conversation, these clients tell Shevy they are not going to bid on the property after all, but then they tell him the rest of the story.



Apparently, this couple went to see this property before with another agent they were working with. <strong>This previous agent told the couple that there were three offers pending on the property: one below ask, one at ask, and one above ask.</strong> It was a routine lie to this agent; one he had probably told every client he ever worked with. So if you have ever wondered if this really does go on, yes, it does.</blockquote>


The buyer's agent lied? I'm shocked! Shocked I tell you!









By the way, did they end up making another offer on another property in Coto? Maybe they made an offer on a home which is on a street that has a horse breed as the name of the street?
 
You must log in or register to reply here.
Back
Top