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SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
Thanks, I appreciate that. My wife and I were watching the sunset over the Gulf a few weeks ago. It was unfortunately our last night there till the fall.

We were going over the rental revenue for the summer and it looks very good. I do not think you could buy an investment grade bond right now that would generate the after tax ROI this thing will throw off in the first year. I think it is working so well because renters want the same thing we wanted when we bought. Low floor, no elevator, easy parking, great view, and lots of room.

After going over the numbers my wife tried to talk me into buying another condo, this time as a pure investment. I talked her into another rum and coke instead.

I am not bullish on real estate by any means. And I would not touch the cookie cutter stuff. We did not buy this condo as an investment, it is primarily our second home. But you can make money in this market if you buy the right stuff at the right price. I think I did my homework and would not change a thing.

:chill:
Bottoms Up!
flyguy

(1) What ROI did you arrive at?

(2) Have you two thought about AA?

.
 

elgordoboy

Beach Fanatic
Feb 9, 2007
2,482
524
I no longer stay in Dune Allen
(1) What ROI did you arrive at?

(2) Have you two thought about AA?

.
Reminds me of that part in "Tombstone" when the Earps are leaving town and Johnny Ringo says "smells like somebody died" and Curly Bill says "Jesus Johnny" while sort of cringeing, but can't help chuckling. I am cringeing...and chuckling.
 

flyguy

Beach Lover
Apr 2, 2007
77
12
(1) What ROI did you arrive at?

(2) Have you two thought about AA?

Shelly,

You are so quick on the post you caught me in mid edit. I removed the part about investment grade bond. I realized that it really depends on one's particular financial position and tax bracket It is hard to compare my after tax ROI with someone elses.

My after tax ROI would not really mean much if you did not know my tax bracket and the holding structure. Details I do not care to get into on an internet chat board. Lets just say I am happy with the ROI.

As far as question number 2. Loosen up and climb out of that bunker every once in a while. One's favorite cocktail waiting for the green flash at sunset. It does not get any better than that. Try to enjoy and have a little fun along the way...:D

:chill:
Bottoms Up!
flyguy
 
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Miss Critter

Beach Fanatic
Mar 8, 2008
3,419
2,116
My perfect beach
One's favorite cocktail waiting for the green flash at sunset. It does not get any better than that. Try to enjoy and have a little fun along the way...:D

Good advice for any of us. Thanks for the reminder. :wave:
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
Shelly,

Try to enjoy and have a little fun along the way...:D

:chill:
Bottoms Up!
flyguy

:D...who do you think puts "fun" in fundamentals?
7.gif


.
 

fisher

Beach Fanatic
Sep 19, 2005
822
76
May Real Trend numbers out today in the Walton Sun. Sales down across the board in May. Sales of new single family homes down big. Condos down big. Lot sales down big. Volume down more than price, but prices continue to fall too.

I think there is a good way to go before we see the bottom.
 
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sberry123

Beach Comber
Mar 5, 2006
39
0
"Notices
Hi sberry123, what's up? It looks like you haven't posted on SoWal in quite awhile. Please take a minute and ask a question, give your two cents, or just say hello in one of the forums. Thanks for joining in!"

Yes, I have not posted for a while. As I mentioned before I am on the Alabama beach side, but I have friends who own property in the Sowal area. The carnage continues on the Alabama side. We had a condo unit foreclose in our building, the owners took out the refrigerator, the washer and dryer and the microwave. All these appliances came with each condo when built! The developer of our condominium just filed for bankruptcy. What is sad to me is that this guy was an established developer who spent years buliding up his business. I signed preconstruction with him in August of 2000. We negotiated on the precon price a bit since he had almost 80% of the contracts he needed to get the construction loan. One guy bought ten precon units at my complex. His goal was to flip each unit for $10K more than precon prices after the building was completed in three years. I think he made a little more than $10K on each unit, but not much more than that amount.

I hear on this forum and else where about these flipper are and the problems they caused. Truth of the matter is that flipping has been going on for years. The developer wants to build a condo, the bank will not give the building loan to the developer until there is enough people who want to buy a unit. To entice the buyer of preconstruction, they developer will price the units lower than the current market. Once built, the precon buyer can sell at market price and make a little bit of money. It is a win win situation!

GREED KICKS:
There is a news article that states that some of the precon purchaser of several years ago with a now completed project was able to flip the condo unit(s) for much more than anticipated, some walking away with $100K.

EVERYONE WANTS IN:
Now there is a lottery just to get in on a precon deal, they sell out within 24 hours with checks being fedexed over night.

THE BANKS WANT IN:
Option Arms, pay not only interest, but not even principle and the loan balance increases monthly!

IS NOW THE TIME TO BUY?
I am curious to know if prices have stayed the same or gone down since flyguy decided to make the plung and buy. I wish I had a crystal ball, I am keeping my eyes on the prices, at some point I may jump back in!

I made up for not posting for a while huh :wave:
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
I think we are closer to the bottom then the top.:D

Why don't you call Barry Stafford "CEO of the Emerald Coast Association of Realtors"...according to an article in the FWB Mullet Wrapper he sees all and knows all.

-------------------------
"Even during the boom days of 2004 and 2005, Barry Stafford said Northwest Florida Realtors knew the rising wave of home sales would crest sooner or later.

"We all knew it was an anomaly, and it was terrifying to us," recalled Stafford, who is CEO of the Emerald Coast Association of Realtors. "We knew what goes up must come down."
------------------------

Then again, if what he says is true (i.e., in '04 to '05 we ALL knew prices would drop) I think the Realtors have some serious credibility issues to iron out.

{Personally, I this this guy is full of crap...just another feckless Rah-Rah RE fop} :roll:

What I find really pathetic is the FAR's desperate attempts to restart the RE frenzy again--good luck with that.

http://www.nwfdailynews.com/news/home_8857___article.html/percent_market.html
 
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