Didn't EJ talk about doing this?

[Mega]

http://www.guardian.co.uk/money/2011...ossessed-homes

I location might be a problem.......
Mike

[flintlock]

Re: Didn't EJ talk about doing this?

Yes please, do come and buy up our real estate!

[pianodoctor]

Re: Didn't EJ talk about doing this?

"Duggan bought a four-bedroom Detroit home for £30,000 cash in the autumn, paying an initial £3,000 deposit and the rest 14 days later. Under a US federal housing and urban development scheme, rent for some low-income tenants is paid directly to landlords – and this is what British investors are relying on to achieve high yields."I'm getting about 20% return in year one and about 13% annually thereafter," Duggan says. "I pay a management fee of $100 a month but otherwise the money is rolling in.
"Obviously I hope the capital value of the house goes up, but if not in seven years' time I'll have covered my cost and everything I resell for is profit."


Hey, what could go wrong? ;-)

[jpetr48]

Re: Didn't EJ talk about doing this?

Hey, what could go wrong? ;-)

1) Opportunity costs- you can achieve a greater return in other investment over 2-5 year time horizon 2) 20% return in one year goes to those on the inside doing the deals.
Friend who is a realtor here in SoCal says before a find like above can be turned over to you and me, you have a realtor buying it for themselves. Also shadow inventory is like trying to figure out the state of CA balance sheet. What you buy today for 300K, a bank has/will unload property for 240K right after your deal.
Because the foreclosure process is long, messy and not transparent, buyer beware.

[metalman]

Re: Didn't EJ talk about doing this?

http://www.guardian.co.uk/money/2011...ossessed-homes

I location might be a problem.......
Mike

don't see the 'bus tours of brits to detroit' in ej's housing bust forecast from 2005

the prediction was loony enough in 2005 w/o bus tours of foreclosed properties. 6 rs later it's... ho hum... everyone knew that...