Sunday, May 8, 2011

Is the price right?

Notice in our last entry that investors bought a waterfront property for
60 percent of the loan value.

There is a investment group having meetings etc and in their partner program
they say: "We typically do not pay more than 50% of the future retail value of a property" so is this price right? what is future value????


home prices in double dip:click

Housing double dip:



140 dollars per sq foot said...

Since I have not seen the context of the Investors Group statement about 50% of future value, I am wondering if they may be basing it on the projected bottom that Standard & Poors is publishing.
I saw that in one of your articles here.
Never heard the term future retail value before, it's a new one.
If nothing else, this crash seems to be following true to form as the prior re crashes.

140 dollars per sq foot said...

Strange, I know I posted a comment here last week.

Anyway, I stumbled on an interesting short sale.
This tiny cottage sold for $7000 in 1972 then $24k in 1992 $88k in2003, then $185k in Nov 2005, and $220k in Dec 2005
Now on the market for $25k.
$7k in 1972 = $24 in 1992 dollars, adjusted for inflation, but only $33k in 2003 dollars.
Regardless, this property should qualify for the biggest loser award. lol

Dec-2005 19676/1064 $220,000 WARRANTY DEED MARINO JOSE
Nov-2005 19597/1105 $185,000 WARRANTY DEED PINEAIRE COMMONS LLC
Jul-2003 15733/1312 $10 QUIT CLAIM FOSTER GARRETT A &
Feb-2003 14851/0160 $88,000 WARRANTY DEED FOSTER GARRETT A
Jan-1992 07090/1716 $24,000 WARRANTY DEED
Jan-1975 02468/0166 $7,000 EXECUTOR'S DEED

140 dollars per sq foot said...

Oh yeah, forgot the info.

mls# R2971670