Jellyfish said:
Isn't that the way the cookie cumbles sometimes?
Just Got An Email From A Realtor
- Thread starter RiverOtter
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Isn't that the way the cookie cumbles sometimes?
Jellyfish, your acquaintance is indirectly educating you as well here. If he is sweating his first option ARM adjustment, then he was totally unqualified to buy the land in the first place. The lender just enabled him to financially corner himself.
Jellyfish said:
These lots with "build-out dates" are getting interesting to watch...they add a whole new layer of risk to real estate investing where none existed before. For someone who is ready to build at any time, I'd say the chances of picking up one of these lots at or below original cost will get better and better.
What is an "investulator"? How does one differ from an investor and why do you put the term in quotes?
TooFarTampa
SoWal Insider
kurt said:
Investor + speculator. Right Shelly?
Is this a term you are trying to coin in your thesis? It's pretty clever actually.
If you have decent credit or home equity, the banks and other lenders are almost like drug dealers...they have been, and still are, pushing these crazy mortgage products that enable people to do stupid things. The "option" ARM is my favorite
the option part is you can go bankrupt if you wish since your loan amount goes UP, not down.I know these produts can be used to leverage great returns, but I like sleeping at night.
Everyone looks like a genius when values are going up- the latecomers will be the ones who get hurt if they are in it just for the flip.
TooFarTampa said:
That's correct. An "Investulator" is a hybrid--a cross between an investor and a speculator. They claim to be an 'investor' to be PC in social circles or to secure a property where flipping is discouraged--but they are really in the game for the short-term money grab as a speculator or flipper.
(I can't take credit for coining the phrase--it's being used in investment circles.)
Cork On the Ocean
directionally challenged
You've hit the nail on the head with your analysis of the investulators (cute), Shelly. Thanks for asking Kurt, I was wondering myself.
Jelly, you make a good point about the lenders and their creative loan programs. I remember a term coined "lender liability" several years back where there could be liability on the lenders part for lending money to people that couldn't afford it. Any attorneys here that could comment on the concept of lender liability related to all these non-traditional loans that they've made that could financially bankrupt the borrower?
Jelly, you make a good point about the lenders and their creative loan programs. I remember a term coined "lender liability" several years back where there could be liability on the lenders part for lending money to people that couldn't afford it. Any attorneys here that could comment on the concept of lender liability related to all these non-traditional loans that they've made that could financially bankrupt the borrower?
I like to think of this speculative real estate buying (like pre-construction, flipping, etc.) by the novice investor and your normal Joe Citizen to what I call the Money-Magazine-phenomenon. By the time the hot stock tips make it to print, they are rarely hot tips anymore. Same concept in this real estate game. Those that made great money were #1 here before the rest of the world found out what was happening and/or #2 are/were seasoned investors and/or #3 had/have either cash or enough cash to weather the storm. I have also heard a lot about "mortgage fraud" from ECAR over the last week. Hold on for the ride!