Real estate investment/speculation

[pharmacy_sucks]

Today I decided to accept an offer with a bidder for my property, and I am expecting to be $250k+ richer if the deal goes thru. I am a bit worried if we do fall into a global depression later this year. Massive UI claim numbers everywhere deeply concern me.

With stock market tanking, interest rate down to zero, and bond market in extremely low yield territory, when do you guys think would be a better time to buy another real estate property when the market dips, for long term investment purposes?

I have low five figure student loan debt, but I don't want to pay it off yet. I live in SF bay.

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[mentos]

Maybe 2 years from now? Real estate dips always lag behind the stock market.

 

[Momus]

No one can time the market consistently. Best of luck.

 

[confettiflyer]

Hope that deal is all cash and closes within the next 10 days.


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[pharmacy_sucks]

Hope that deal is all cash and closes within the next 10 days.


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The buyer and I signed the offer summary agreement last night. After some final negotiation, it turned out to be ~$300k above my cost after agent commission fees lol.

fingers crossed

 

[wagrxm2000]

$250k in San Francisco, what was it a shack?

 

[pharmacy_sucks]

$250k in San Francisco, what was it a shack?

that was my rough anticipated profit when the bidder made the initial offer. now the profit has increased to ~$300k since last night, not the actual price sold lol.

 

[confettiflyer]

$250k in San Francisco, what was it a shack?

It’s his profit, so my guess is a $1.35M condo in SoMA.


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[mentos]

$250k in San Francisco, what was it a shack?

Think you've been reading these posts too fast man LoL. Last week you thought Victorofhungergames had a $35k car (he clearly said his loan was refinanced with $35k left) but it was a $50k car.

OP clearly said $250k is profit.

 

[wagrxm2000]

Think you've been reading these posts too fast man LoL. Last week you thought Victorofhungergames had a $35k car (he clearly said his loan was refinanced with $35k left) but it was a $50k car.

OP clearly said $250k is profit.

I need summary's.

 

[pharmacy_sucks]

The buyer paid 35k deposit today, so the deal is going forward.

 

[mentos]

The buyer paid 35k deposit today, so the deal is going forward.

When does the offer expire? They can always back out and get their earnest money back if they find something wrong at the inspection. It's not guaranteed until you close.

 

[pharmacy_sucks]

When does the offer expire? They can always back out and get their earnest money back if they find something wrong at the inspection. It's not guaranteed until you close.

The buyer has mortgage pre-approval, and he is expected to secure the loan within 10 business days. The contingency clause says after next Friday, I keep the earnest money even if he pulls out. Inspection will take place this Wednesday.

 

[confettiflyer]

The buyer has mortgage pre-approval, and he is expected to secure the loan within 10 business days. The contingency clause says after next Friday, I keep the earnest money even if he pulls out. Inspection will take place this Wednesday.

Preapproval don’t mean jack, the juice is in underwriting. Also better hope the appraisal holds up (that’d be my #1 concern) luckily a PUD is easier to appraise.

This is gonna be a harrowing 21 days til all contingencies are removed. good luck.


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[grumpyRph]

i think he can legally find something he/she doesn't like in the HOA's too to back out after ernest money as well. there's a bunch of time frames. i know first hand in bay area i went through all these steps almost until the very end...

 

[pharmacy_sucks]

Preapproval don’t mean jack, the juice is in underwriting. Also better hope the appraisal holds up (that’d be my #1 concern) luckily a PUD is easier to appraise.

This is gonna be a harrowing 21 days til all contingencies are removed. good luck.


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Inspection was just done today. The buyer seems happy, and so am I. Moving forward~

 

[pharmacy_sucks]

Preapproval don’t mean jack, the juice is in underwriting. Also better hope the appraisal holds up (that’d be my #1 concern) luckily a PUD is easier to appraise.

This is gonna be a harrowing 21 days til all contingencies are removed. good luck.


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The buyer seems more interested in buying it for rent and long term appreciation. Rich Asian buyers usually don't cause too much headache tbh. One bidder attempted to pay it upfront with cash lol, can you imagine that?

 

[Momus]

The buyer seems more interested in buying it for rent and long term appreciation. Rich Asian buyers usually don't cause too much headache tbh. One bidder attempted to pay it upfront with cash lol, can you imagine that?

Most of them pay cash and leave the house empty. It's asset hidden away from China, etc. They don't care.

 

[confettiflyer]

The buyer seems more interested in buying it for rent and long term appreciation. Rich Asian buyers usually don't cause too much headache tbh. One bidder attempted to pay it upfront with cash lol, can you imagine that?

That actually doesn’t sound out of the ordinary, which is why I was surprised we were talking mortgage here.


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[pharmacy_sucks]

Most of them pay cash and leave the house empty. It's asset hidden away from China, etc. They don't care.

Yeah, I have seen several like that, and they just don't care. I know a friend who sold his property a few years back for almost 2M, and the buyer paid in cash.

 

[pharmacy_sucks]

That actually doesn’t sound out of the ordinary, which is why I was surprised we were talking mortgage here.


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The cash guy turned out was not the highest bidder, and the highest bidder is a SWE, who needs mortgage lol.

 

[pharmacy_sucks]

The turbulent stock market has somehow driven hordes of people into the real estate market lately, and that may not necessarily be a bad thing.

 

[BMBiology]

The turbulent stock market has somehow driven hordes of people into the real estate market lately, and that may not necessarily be a bad thing.

Good way to protect your asset from hyperinflation.

 

[pharmacy_sucks]

Good way to protect your asset from hyperinflation.

nobody knows really. if unemployment numbers does go up to 20%, we might see a real estate market crash in a few months.

 

[BMBiology]

nobody knows really. if unemployment numbers does go up to 20%, we might see a real estate market crash in a few months.

Not when there is a mortgage freeze

 

[pharmacy_sucks]

Not if there is mortgage freeze

The problem is, if job is lost, it doesn't matter if it's a 3 months freeze or 5 months freeze. no money in, no money out.
How many more months can banks not collect money lol? Will banks survive even？

 

[BMBiology]

The problem is, if job is lost, it doesn't matter if it's a 3 months freeze or 5 months freeze. no money in, no money out.
How many more months can banks not collect money lol? Will banks survive even？

You have not heard? The government is sending $1200 to each adult/$500 to each child. Where do you think this money is coming from? The Fed has turned on its money printing machine.

 

[pharmacy_sucks]

You have not heard? The government is sending $1200 to each adult/$500 to each child. Where do you think this money is coming from? The Fed has turned on its money printing machine.

then expect the stock market to rise to new record high after the pandemic is over.

 

[dmd20000]

You have not heard? The government is sending $1200 to each adult/$500 to each child. Where do you think this money is coming from? The Fed has turned on its money printing machine.

They said something about this money coming from some future tax returns? I didn't understand this part.

 

[confettiflyer]

They said something about this money coming from some future tax returns? I didn't understand this part.

It’s technically a tax year 2020 credit that is advanced today based on 2019/2018 income. IIRC, if your married income
BUT if your income goes up from 2018/2019 to 2020 above limitation/threshold, you don’t have to pay back anything.


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[pharmacy_sucks]

The buyer's loan is approved today. the deal will move forward.

closing this friday lol

 

[SELDANE]

Congratulations on the sale. As for buying right now? I don't think anyone can predict what the real estate market is going to do. The only sure thing is that even after this health crisis ends the financial ramifications will be felt for quite some time.

 

[BMBiology]

The buyer's loan is approved today. the deal will move forward.

closing this friday lol

$250 k tax free profit for doing jack. Congratulations! haha

 

[pharmacy_sucks]

$250 k tax free profit for doing jack. Congratulations! haha

actually $300k lol

i have a hunch this pandemic won't be over in 3 months, and tsunami of mortgage default will come eventually regardless of the freeze.

 

[pharmacy_sucks]

some of my friends were telling me to not sell right now cuz they predict the price might go up by the end of the year, but i am satisfied here. this sars 2.0 virus won't be over until taking a huge toll on the economy.

on the other end, it sucks to be graduating this year

i really admire some of my pharmacy classmates who are brave enough to keep working right now. i don't know if they really need that money or what. but i would rather die than having a lung transplant if i somehow get this virus working in pharmacy.

 

[mentos]

Maybe 2 years from now? Real estate dips always lag behind the stock market.

Wow my guess was spot on. The peak was March 2022.

Another thread where SDN banned the OP, hilarious.