"Buying a beach house? Bring Cash"

"For lenders the mantra today is don't trust, verify. Stated income loans, popularly known as liars' loans, are history. Expect to be asked to produce proof of your income. When it comes to affordability, lenders want to see that you earn enough to sustain payments on two loans - and don't want to see your total housing payments (first and vacation) top 40 percent of your income. At the height of the boom, that cap was more like 55 percent.

On top of that, says Michael Lefevre, chief executive of the National Association of Mortgage Professionals, you may have to show that you have six months' worth of home payments in reserve in case you lose a job or have any kind of financial calamity."

"If you need to rent out your home to afford it, count on lenders taking a hard look at how much you plan to charge. You may have to spend $500 to $1,000 for an appraiser to do a rental analysis to make sure your assumptions are reasonable."




There go the investulators.


.

"For lenders the mantra today is don't trust, verify. Stated income loans, popularly known as liars' loans, are history. Expect to be asked to produce proof of your income. When it comes to affordability, lenders want to see that you earn enough to sustain payments on two loans - and don't want to see your total housing payments (first and vacation) top 40 percent of your income. At the height of the boom, that cap was more like 55 percent.

On top of that, says Michael Lefevre, chief executive of the National Association of Mortgage Professionals, you may have to show that you have six months' worth of home payments in reserve in case you lose a job or have any kind of financial calamity."

"If you need to rent out your home to afford it, count on lenders taking a hard look at how much you plan to charge. You may have to spend $500 to $1,000 for an appraiser to do a rental analysis to make sure your assumptions are reasonable."




There go the investulators.


.

Wow, 40% of income. That's still a fairly low bar to jump over compared to historical norms. When my parents bought their first house and I bought my first house, the lenders typically place the housing cap at 28% and the total debt at 33% to 35%. So even the tightened standard of today is loose historically speaking.

Proof of income required, verification that you can actually pay for your purchase..............what will these crazy folks think of next! :roll:

The last transactions I have closed the lenders were easy to work with. The buyers placed 10% to 20% down and showed income with good credit. The loans closed up nicely. The problems I hear from most of the lenders is not enough business. They want and need to loan more money. If you have 10%-20% to put down and good credit you will have no problems getting a loan. The loans can also close a lot faster then the old days. Most transactions take about 30 days. We use to wait on the bank. They now wait on us!

The problems I hear from most of the lenders is not enough business. They want and need to loan more money.

:roll:

If you have 10%-20% to put down and good credit you will have no problems getting a loan.

Geez! Louise!! Next thing they'll be asking for is some verifiable source of income. :angry:

We use to wait on the bank. They now wait on us!

And everyone waits on the buyers.


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Just like the old days Shelly. Just a lot more agents. I have no issue with the current RE market. My issues are with some of my stupid purchases.

I wish I was buying in today's market versus when I bought!

Just like the old days Shelly. Just a lot more agents. I have no issue with the current RE market. My issues are with some of my stupid purchases.

I wish I was buying in today's market versus when I bought!

I tried to warn ya

There's still PLENTY of excess to be wrung out of this market....no rush.




.

I think this is Shelly's new ride. My guess is the back is filled with cash and business cards on which to write his offers to property owners. You've heard of Condo Vultures, and now we have Shelly's Cleaning Company. :funn:

I tried to warn ya

There's still PLENTY of excess to be wrung out of this market....no rush.




.

Your probably right but some deals are really tempting. Can we trade!!!!!!

I think this is Shelly's new ride. My guess is the back is filled with cash and business cards on which to write his offers to property owners. You've heard of Vulture Condos, and now we have Shelly's Cleaning Company. :funn:

I got a great deal on it too,....it used to be a Realtor's? lease car.

Who da thunk one could make a tidy profit just by dusting cobwebs off of "For Sale" signs.




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Bring more cash

http://tinyurl.com/2pugwg

I think this is Shelly's new ride. My guess is the back is filled with cash and business cards on which to write his offers to property owners. You've heard of Condo Vultures, and now we have Shelly's Cleaning Company. :funn:

Well SJ, that some pretty good investigational work. I think you finally found his (Shelly's) ride. I guess his boss finally laid him off from answering the phones over at the real estate office.

Just like the old days Shelly. Just a lot more agents. I have no issue with the current RE market. My issues are with some of my stupid purchases.

I wish I was buying in today's market versus when I bought!

I think there's more realtors in Bay and Walton Counties than grains of sand. Granted most of them are waiting tables now.

c'mon Bobby, you bought the bulk of your portfolio years ago and have done very very well. You are a very shrewd and astute buyer of real estate. What you have forgotten about real estate most agents will never know.

Bring more cash

http://tinyurl.com/2pugwg

"Under Freddie Mac's new fee system, a lender selling a mortgage to the company from a borrower with a credit score of 675 who made less than a 30 percent down payment for the purchase of a $300,000 home will forfeit $2,250 in charges. The lender, which would typically make less than $3,000 on the sale, could get paid more by raising the interest rate on the loan."

...........or the lender can offer his services pro bono.


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Well SJ, that some pretty good investigational work. I think you finally found his (Shelly's) ride. I guess his boss finally laid him off from answering the phones over at the real estate office.

FFF--If I were to have a choice as to who I would want to manage my investment portfolio, you or Shel, I would pick Shel hands down. She and a few other voices on this forum have been dead on for the last 2 plus years in calling the real estate market and the debt markets. You on the other hand have been dead wrong so far on your predictions regarding the RE market.

I think there's more realtors in Bay and Walton Counties than grains of sand. Granted most of them are waiting tables now.

New poll: Are there more realtors waiting tables in Bay and Walton county, or more screenwriters/actors waiting tables in L.A.?

FFF--If I were to have a choice as to who I would want to manage my investment portfolio, you or Shel, I would pick Shel hands down. She and a few other voices on this forum have been dead on for the last 2 plus years in calling the real estate market and the debt markets. You on the other hand have been dead wrong so far on your predictions regarding the RE market.

Fisher, I wouldn't even consider handling your's and Shelly's CD accounts, they are too underfunded to purchase even a use red wagon with three wheels. I have you both pretty much figured out cause you are both so anti-growth and anti-investment on this board. You just sit on the sideline's throwing darts. Thanks to you guys constant negatitivity, good buys are showing up every single day and I appreciate both your efforts. If you have cash to invest, there is not a better time than now to invest in RE at the beach. But you have to be smart and know what to buy! I have a simple and basic stratagy with regards to buying RE on the beach, and I am far from a speculator. Keep your money in CD's, keep throwing darts at people who are willing to take a risk cause working at walmart is a good retirement stratagy for you both

I think there's more realtors in Bay and Walton Counties than grains of sand. Granted most of them are waiting tables now.

Not quite, but I bet there are as many real estate signs as there will be election signs sprouting up in the next year. Statistics for ECAR actually show that the number of subscribers to ECAR decreased last month. Not by much, but there was a decrease.

"...Thanks to you guys constant negatitivity, good buys are showing up every single day..."


Evidently they are market makers.


If "good buys" are showing up every single day, I think I will
sit on the sidelines today, as a better deal will come along tomorrow.



Now, where did I put those darts....

Fisher, I wouldn't even consider handling your's and Shelly's CD accounts, they are too underfunded to purchase even a use red wagon with three wheels. I have you both pretty much figured out cause you are both so anti-growth and anti-investment on this board. You just sit on the sideline's throwing darts. Thanks to you guys constant negatitivity, good buys are showing up every single day and I appreciate both your efforts. If you have cash to invest, there is not a better time than now to invest in RE at the beach. But you have to be smart and know what to buy! I have a simple and basic stratagy with regards to buying RE on the beach, and I am far from a speculator. Keep your money in CD's, keep throwing darts at people who are willing to take a risk cause working at walmart is a good retirement stratagy for you both

Based on of the some posts on the board over the last few months, sounds like you have been thinking more about selling than buying.

Also, I am not throwing darts at anyone that is willing to take a risk. More power to you if you want to take the risk. You were poking fun at Shelly so I was merely poking back by pointing out that I would trust Shelly with my investment dollars based on his/her crytal ball over the last few years versus your crystal ball.

Based on of the some posts on the board over the last few months, sounds like you have been thinking more about selling than buying.

Also, I am not throwing darts at anyone that is willing to take a risk. More power to you if you want to take the risk. You were poking fun at Shelly so I was merely poking back by pointing out that I would trust Shelly with my investment dollars based on his/her crytal ball over the last few years versus your crystal ball.

Fisher, I am too only poking fun at Shelly. She is a very smart guy and from a distance is probably a nice looking cross dresser. I don't sell unless I can double my money which typically occurs within 4-5 years down there. I am not a flipper and I buy to enjoy, depreciate it out on rentals and buy something else when or if I get tired of it. I also don't buy stuff I can not afford and the last thing I purchased was in 2003. I could have sold everything I own and retired back in 2004-05 but that has never been my goal. I just like knowing that when I do sell, I will make a profit. Guess you could call me a recreational buyer, nor am I in the RE business but have great friends who enjoy it. There have been great buys all though this down turn in the RE market and Bobby J, Smilling Joe and others have pointed them out. I only buy beach or water front and occasionally view properties. I don't buy to sell but to keep with the option to sell. I get no pleasure seeing people who take greater risk than I do suffer or called fools.

Fisher, I wouldn't even consider handling your's and Shelly's CD accounts, they are too underfunded to purchase even a use red wagon with three wheels.

You underestimate the value of FDIC-insured CDs for storing cash on the sidelines--they're as close to low risk as anything available on the street. I'm holding a modest amount of my portfolio in cash waiting for the dust to settle --at a guaranteed 5% return, that's not too bad.

I have you both pretty much figured out cause you are both so anti-growth and anti-investment on this board. You just sit on the sideline's throwing darts. Thanks to you guys constant negatitivity, good buys are showing up every single day and I appreciate both your efforts.

Glad we could be of service. Too bad everyone didn't listen to our sage advice as much as you did.

If you have cash to invest, there is not a better time than now to invest in RE at the beach.

You first...there's two big auctions tomorrow (but probably no snacks).

The Realtors have been beating the "There's No Better Time to Buy" drum pretty loud for the past 7 or 8 years now. What do you know that those folks who are dumping their properties into the market don't know?

Keep your money in CD's, keep throwing darts at people who are willing to take a risk cause working at walmart is a good retirement stratagy for you both

Thanks for the tip. Although I'm pretty much past the toiling for dollars stage of my life, working is a far better retirement strategy than gambling one's 401K on a depreciating asset class. I did have aspirations of being a "Greeter," that was until recently, when they did away with those jaunty blue smocks.:angry:



.

Shel

You didn't address the cross dresser remark. I have no problem with cross dressing since I only wear moo moos after my evening meal !!

Fisher, I am too only poking fun at Shelly. She is a very smart guy and from a distance is probably a nice looking cross dresser. I don't sell unless I can double my money which typically occurs within 4-5 years down there. I am not a flipper and I buy to enjoy, depreciate it out on rentals and buy something else when or if I get tired of it. I also don't buy stuff I can not afford and the last thing I purchased was in 2003. I could have sold everything I own and retired back in 2004-05 but that has never been my goal. I just like knowing that when I do sell, I will make a profit. Guess you could call me a recreational buyer, nor am I in the RE business but have great friends who enjoy it. There have been great buys all though this down turn in the RE market and Bobby J, Smilling Joe and others have pointed them out. I only buy beach or water front and occasionally view properties. I don't buy to sell but to keep with the option to sell. I get no pleasure seeing people who take greater risk than I do suffer or called fools.

So, you say that there are lots of great buys out there right now and this is a great time to invest. Do you consider a great buy one that will double in 4 to 5 years? If so, are you predicting that if someone takes one of these great buys, that they will double their money in no more than 5 years? If you answer yes, please point me in the direction of these properties so I can take a hard look at them. I would certainly like to double my money on another piece of RE.