Seaside Sales

[Smiling JOe]

I come up with 8% ROI. But I agree with you that all in all it worked out fine for these owners given that the return also included the use of the house. I would have gladly taken the same deal.

Flyguy

Using $2.2 Million loan, you probably get about 8%, but that would be with zero down payment. Their purchase price was $2.2 Million, and my example shows 20% down, thereby leaving $1.76 million for the loan.

flyguy, thanks for bringing up the subject though. I'll take it to. I have posted several times that there was a time, not too long ago, when second homes were purchased as luxury items, not investments. Sure, they might have been a sound investment for the buyers, but that was not the buyers' motivation. We will get back to those times in the future. I don't think the people spending millions of dollars for luxury lots, planes, RV's, mountain homes, beach homes, private club memberships, etc, are doing so because it is a great investment. It is just the cost to play with the big boys and girls.

 

[Pirate]

Using $2.2 Million loan, you probably get about 8%, but that would be with zero down payment. Their purchase price was $2.2 Million, and my example shows 20% down, thereby leaving $1.76 million for the loan.

flyguy, thanks for bringing up the subject though. I'll take it to. I have posted several times that there was a time, not too long ago, when second homes were purchased as luxury items, not investments. Sure, they might have been a sound investment for the buyers, but that was not the buyers' motivation. We will get back to those times in the future. I don't think the people spending millions of dollars for luxury lots, planes, RV's, mountain homes, beach homes, private club memberships, etc, are doing so because it is a great investment. It is just the cost to play with the big boys and girls.

It is 8% before the community fees, 5-7% after them. I have looked at at least 10 deals there in great depth. Love it there, but this little town still falls into Joe's luxury category and always will in my view. Not a bad thing.

 

[Babyblue]

Thousands of innocent balloons were sacrificed for just these two sales!!

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Funny, it was a friend of mine from "Bama" that bought the home for 1.7, cash.