Celtic_soulja Posted April 29, 2010 Share Posted April 29, 2010 No, I'm not missing the point. You're buying cheap properties and selling them at a significant premium above what you paid. That's not noble, that's profiteering. YOUR tunnel vision is missing that. You seem to think that because you're facilitating home ownership to those otherwise ineligible, your profiteering isn't profiteering. Largely because you have a seriously fallacious view of the idea of the "market worth" of a house. Here's a hint for you: the value of foreclosed homes in my area didn't increase to the value of my home after foreclosure...quite the opposite, in fact. Yeah, because it's in distress...once "rescued" and resold for 120k, which if I get buyers to pay that THAT becomes market value no?...ahhhhhh now you're catching on...and the value of homes in the previously blighted areas...INCREASE....ahhhhhhh ohhhhhhhh now I get it... And it isn't profiteering if I am not eating the profits...if I am pouring those profits into more blighted neighborhoods and driving up property values of urban towns...that IS noble no?...or is that only cool when the mortgage companies do it in whitey neighborhoods? Link to comment Share on other sites More sharing options...
DC Tom Posted April 29, 2010 Share Posted April 29, 2010 Yeah, because it's in distress...once "rescued" and resold for 120k, which if I get buyers to pay that THAT becomes market value no?...ahhhhhh now you're catching on...and the value of homes in the previously blighted areas...INCREASE....ahhhhhhh ohhhhhhhh now I get it... So your business plan is predicated by the appreciation of the properties by a factor of four? Sounds like the housing market from 1998-2006. I thought that was bad? Wasn't that bad? And it isn't profiteering if I am not eating the profits...if I am pouring those profits into more blighted neighborhoods and driving up property values of urban towns...that IS noble no?...or is that only cool when the mortgage companies do it in whitey neighborhoods? You're not driving up property values; if you're paying under market value (as you say), you're driving them DOWN. Do you even know what a comp is? Link to comment Share on other sites More sharing options...
Celtic_soulja Posted April 29, 2010 Share Posted April 29, 2010 So your business plan is predicated by the appreciation of the properties by a factor of four? Sounds like the housing market from 1998-2006. I thought that was bad? Wasn't that bad? You're not driving up property values; if you're paying under market value (as you say), you're driving them DOWN. Do you even know what a comp is? yeah initially...but I KNOW I can sell them for 120k...to my urban brothers...which will increase the property value...buying them up will depress the value because of what I'm getting them for...but after I've bought them, and then I sell them for 120k which I know I am able to do with the deal I am giving them...it will rebuild the housing market in my little pit :0) Link to comment Share on other sites More sharing options...
Chef Jim Posted April 29, 2010 Share Posted April 29, 2010 yeah initially...but I KNOW I can sell them for 120k...to my urban brothers...which will increase the property value...buying them up will depress the value because of what I'm getting them for...but after I've bought them, and then I sell them for 120k which I know I am able to do with the deal I am giving them...it will rebuild the housing market in my little pit :0) Who in there right mind is going to pay $120k for a home when the comps are $30k?? Link to comment Share on other sites More sharing options...
Celtic_soulja Posted April 29, 2010 Share Posted April 29, 2010 Who in there right mind is going to pay $120k for a home when the comps are $30k?? People who would otherwise rent for 650-750 a month and own nothing...the people financial wizards don't care about...my people... people that don't care about how much I paid for it...only about what it is appraised at and what THEY pay for it...people who are not as greedy as yourself...people who realize that the money is going right back into the next house to rebuild it...people who care about the community they live in...people who, like me, will celebrate that these investors will stay out of our neighborhood to let US invest in it...people who work hard for nothing...people who don't respect your financial system and realize that all the pricing is relative and is worth what WE say it's worth, not what Y'ALL say it's worth...just like anything, once the buzz hits that properties are being bought up like wildfire in my neighborhood, everyone will be looking to buy and reap the benefits...and the money flowing in, increases the value...not for me, who sold it for 120k but for them who bought it already...not five years ago these homes were selling for over 300k in this city...but the crash destroyed the value...now it's time to buy em up and remake the wave...this time with no mortgages and finances that will bankrupt us, but with honest straightfoward value... Link to comment Share on other sites More sharing options...
Wacka Posted April 29, 2010 Share Posted April 29, 2010 You said you are a college student. Looks like you haven't taken any econ classes. Also, you likely haven't been out in the real world yet. Also, some government entity is involved? Sure fire way to F' it up. Link to comment Share on other sites More sharing options...
Chef Jim Posted April 29, 2010 Share Posted April 29, 2010 People who would otherwise rent for 650-750 a month and own nothing...the people financial wizards don't care about...my people... people that don't care about how much I paid for it...only about what it is appraised at and what THEY pay for it...people who are not as greedy as yourself...people who realize that the money is going right back into the next house to rebuild it...people who care about the community they live in...people who, like me, will celebrate that these investors will stay out of our neighborhood to let US invest in it...people who work hard for nothing...people who don't respect your financial system and realize that all the pricing is relative and is worth what WE say it's worth, not what Y'ALL say it's worth...just like anything, once the buzz hits that properties are being bought up like wildfire in my neighborhood, everyone will be looking to buy and reap the benefits...and the money flowing in, increases the value...not for me, who sold it for 120k but for them who bought it already...not five years ago these homes were selling for over 300k in this city...but the crash destroyed the value...now it's time to buy em up and remake the wave...this time with no mortgages and finances that will bankrupt us, but with honest straightfoward value... Waaaaaait a minute. You're Jimmy Stewart aren't you? Link to comment Share on other sites More sharing options...
GG Posted April 29, 2010 Share Posted April 29, 2010 People who would otherwise rent for 650-750 a month and own nothing...the people financial wizards don't care about...my people... people that don't care about how much I paid for it...only about what it is appraised at and what THEY pay for it...people who are not as greedy as yourself...people who realize that the money is going right back into the next house to rebuild it...people who care about the community they live in...people who, like me, will celebrate that these investors will stay out of our neighborhood to let US invest in it...people who work hard for nothing...people who don't respect your financial system and realize that all the pricing is relative and is worth what WE say it's worth, not what Y'ALL say it's worth...just like anything, once the buzz hits that properties are being bought up like wildfire in my neighborhood, everyone will be looking to buy and reap the benefits...and the money flowing in, increases the value...not for me, who sold it for 120k but for them who bought it already...not five years ago these homes were selling for over 300k in this city...but the crash destroyed the value...now it's time to buy em up and remake the wave...this time with no mortgages and finances that will bankrupt us, but with honest straightfoward value... Too bad you're on to this game now. You would have made a killing 5 yrs ago. A foreclosed house will sell roughly for the difference between its current market value if it's in good condition and the cost needed to fix it up. There's a reason the house got foreclosed on. There's a reason that a house was boarded up during the biggest real estate climb in the history of this country. If your plan was so grand, don't you think every single workout officer in a bank would be onto it? You know, the guys who are trying to unload billions of useless inventory? It's like 2006 deja vu all over again. And then the idiots in Congress blame Wall Street for giving "entrepreneurs" like you enough rope to hang yourself. Link to comment Share on other sites More sharing options...
Celtic_soulja Posted April 29, 2010 Share Posted April 29, 2010 Too bad you're on to this game now. You would have made a killing 5 yrs ago. A foreclosed house will sell roughly for the difference between its current market value if it's in good condition and the cost needed to fix it up. There's a reason the house got foreclosed on. There's a reason that a house was boarded up during the biggest real estate climb in the history of this country. If your plan was so grand, don't you think every single workout officer in a bank would be onto it? You know, the guys who are trying to unload billions of useless inventory? It's like 2006 deja vu all over again. And then the idiots in Congress blame Wall Street for giving "entrepreneurs" like you enough rope to hang yourself. If I hang myself fine...but I'm not selling the homes using the same system...and I will have buyers because I'm tapping perviously screwed over clients...the loan payments were too expensive during the boom...the loans were terribly written...where we truly differ in opinion is that you blame the mechanic that bought a 700,000 home with an interest only loan because it is irresponsible to try and buy a home for that price when you make 50k a year...I blame the banks for designing an interest only loan and then marketing it to a mechanic instead of the investor that could use the loan... If I sell a home at above MV but keep the payments very low...keep the price under what I KNOW these houses are worth, not what these ridiculous bankers are saying they are worth becuase they can't find credit scores good enough to want these properties...there is no harm in rebuilding the neighborhood using these tactics...honestly, I believe the working class clients I will take on feel more like me and less like you...they feel if they can get a payment as low as thier rental payment but own the house...the overall price is not that important as long as it's not ridiculous...which seeing as how these houses sold for 300k a few years ago...once we fill in the ghetto with owners again, the market will rebound there enough to make the price I sold it for worth it to the buyer...if it is affordable, and they own it, it is nothing like 2006 Link to comment Share on other sites More sharing options...
Chef Jim Posted April 29, 2010 Share Posted April 29, 2010 If I hang myself fine...but I'm not selling the homes using the same system...and I will have buyers because I'm tapping perviously screwed over clients...the loan payments were too expensive during the boom...the loans were terribly written...where we truly differ in opinion is that you blame the mechanic that bought a 700,000 home with an interest only loan because it is irresponsible to try and buy a home for that price when you make 50k a year...I blame the banks for designing an interest only loan and then marketing it to a mechanic instead of the investor that could use the loan... If I sell a home at above MV but keep the payments very low...keep the price under what I KNOW these houses are worth, not what these ridiculous bankers are saying they are worth becuase they can't find credit scores good enough to want these properties...there is no harm in rebuilding the neighborhood using these tactics...honestly, I believe the working class clients I will take on feel more like me and less like you...they feel if they can get a payment as low as thier rental payment but own the house...the overall price is not that important as long as it's not ridiculous...which seeing as how these houses sold for 300k a few years ago...once we fill in the ghetto with owners again, the market will rebound there enough to make the price I sold it for worth it to the buyer...if it is affordable, and they own it, it is nothing like 2006 I just don't want to be around when the neighborhood finds out how much you paid for the houses you just sold them for $120k. Link to comment Share on other sites More sharing options...
GG Posted April 29, 2010 Share Posted April 29, 2010 If I hang myself fine...but I'm not selling the homes using the same system...and I will have buyers because I'm tapping perviously screwed over clients...the loan payments were too expensive during the boom...the loans were terribly written...where we truly differ in opinion is that you blame the mechanic that bought a 700,000 home with an interest only loan because it is irresponsible to try and buy a home for that price when you make 50k a year...I blame the banks for designing an interest only loan and then marketing it to a mechanic instead of the investor that could use the loan... If I sell a home at above MV but keep the payments very low...keep the price under what I KNOW these houses are worth, not what these ridiculous bankers are saying they are worth becuase they can't find credit scores good enough to want these properties...there is no harm in rebuilding the neighborhood using these tactics...honestly, I believe the working class clients I will take on feel more like me and less like you...they feel if they can get a payment as low as thier rental payment but own the house...the overall price is not that important as long as it's not ridiculous...which seeing as how these houses sold for 300k a few years ago...once we fill in the ghetto with owners again, the market will rebound there enough to make the price I sold it for worth it to the buyer...if it is affordable, and they own it, it is nothing like 2006 Unfortunately that's not how it works. A home's value equals what it can sell for today. A person credit score is based on his past payment history. A monthly payment on a $30K mortgage works out to about $200. So tell me about the great deal that you're offering to the fine underprivileged folk. And how are you going to get financing on better terms than qualifying FHA loans, and factor in the rebuild, maintenance, insurance and high legal fees of dealing with subprime borrowers. When you tell me that, I'll call some friends at the rating agencies to give you a AAA on this deal of a lifetime. Link to comment Share on other sites More sharing options...
DC Tom Posted April 29, 2010 Share Posted April 29, 2010 Who in there right mind is going to pay $120k for a home when the comps are $30k?? Well, he's targeting people who don't know any better, otherwise they'd probably have better finances and be able to get a mortgage. So the answer to "who in their right mind?" is pretty much "yeah, uh-huh". Link to comment Share on other sites More sharing options...
Celtic_soulja Posted April 29, 2010 Share Posted April 29, 2010 I just don't want to be around when the neighborhood finds out how much you paid for the houses you just sold them for $120k. Don't lie you'd love to be there...hoping they would riot and chase me back to central illinois heheheh but it won't happen I am giving them something they couldn't get anywhere else...because nobody believes in them or the neighborhood Link to comment Share on other sites More sharing options...
Celtic_soulja Posted April 29, 2010 Share Posted April 29, 2010 Unfortunately that's not how it works. A home's value equals what it can sell for today. A person credit score is based on his past payment history. A monthly payment on a $30K mortgage works out to about $200. So tell me about the great deal that you're offering to the fine underprivileged folk. And how are you going to get financing on better terms than qualifying FHA loans, and factor in the rebuild, maintenance, insurance and high legal fees of dealing with subprime borrowers. When you tell me that, I'll call some friends at the rating agencies to give you a AAA on this deal of a lifetime. If I buy up 80-100 houses...and then sell them for 120k each...I am selling them what you can sell them for...obviously or I wouldn't be able to sell them....and they couldn't get this phantom loan on a 30k home to live in on thier salary...so that's a pointless discussion...again...the banks are not looking to finance these homes, they are looking to unload them like yesterday because the market crashed and they need work...and they are not fit to hold onto so many properties... Link to comment Share on other sites More sharing options...
Chef Jim Posted April 29, 2010 Share Posted April 29, 2010 Don't lie you'd love to be there...hoping they would riot and chase me back to central illinois heheheh but it won't happen I am giving them something they couldn't get anywhere else...because nobody believes in them or the neighborhood Yeah and they're going to get it. It's more likely going to be "you're the white mother !@#$er who sold me a $30k house for $120k." Good luck and stay heavily armed. Link to comment Share on other sites More sharing options...
Celtic_soulja Posted April 29, 2010 Share Posted April 29, 2010 Well, he's targeting people who don't know any better, otherwise they'd probably have better finances and be able to get a mortgage. So the answer to "who in their right mind?" is pretty much "yeah, uh-huh". If by "right mind" you mean people that couldn't afford to buy homes at the prices the bankers sold them to them for, then yes, you are correct... and they have poor credit scores because they missed payments on crap they couldn't afford like when the banker or broker told them yeah, 30k will cost you 200 a month...they put together thier little finance stuff and said, oh yeah I can afford that no problem...then next month they were like...did we say 200? well the interest just went up, we dropped your insurance so now you insure with us, and the tax assessment is on the 23342258342948370987432397 that the house is worth now....you monthly payment is now 1400 bucks...sorry charlie...and don't tell me they don't do that crap, because I've seen it FIRST hand Link to comment Share on other sites More sharing options...
Celtic_soulja Posted April 29, 2010 Share Posted April 29, 2010 Yeah and they're going to get it. It's more likely going to be "you're the white mother !@#$er who sold me a $30k house for $120k." Good luck and stay heavily armed. My crew runs that town anyway...regardless of whether they got mad or not...I'd be alright safety wise...but it's not going to go down like that...I'm buying my house the same way...through my CDC...because I believe that it will work...and if not, whatever, my money went to rebuilding the town and putting people in thier own houses... Link to comment Share on other sites More sharing options...
DC Tom Posted April 29, 2010 Share Posted April 29, 2010 If by "right mind" you mean people that couldn't afford to buy homes at the prices the bankers sold them to them for, then yes, you are correct... and they have poor credit scores because they missed payments on crap they couldn't afford like when the banker or broker told them yeah, 30k will cost you 200 a month...they put together thier little finance stuff and said, oh yeah I can afford that no problem...then next month they were like...did we say 200? well the interest just went up, we dropped your insurance so now you insure with us, and the tax assessment is on the 23342258342948370987432397 that the house is worth now....you monthly payment is now 1400 bucks...sorry charlie...and don't tell me they don't do that crap, because I've seen it FIRST hand And I've seen first-hand where lenders tell my wife "Don't share the HUD-1 with the borrower, we don't want them to know the terms of the loan" or "We don't provide the loan information until after closing, so they can't back out." (The first is illegal as hell; the second is illegal and stupid as hell. And yes, my wife has had lenders shut down for that.) It doesn't change the fact that you're dealing with people that can't manage their own finances, or in more than a few cases their own lives, else they wouldn't be taken in by such scams (which are, by the way, the exception. Not the rule.) The reason your scheme has a chance of working is because your customer base doesn't even approach a level of savvy that allows them to question it. Again...not saying your idea is bad. Just that it's not any more noble than anything out of the banking industry. Link to comment Share on other sites More sharing options...
DC Tom Posted April 29, 2010 Share Posted April 29, 2010 My crew runs that town anyway...regardless of whether they got mad or not...I'd be alright safety wise...but it's not going to go down like that...I'm buying my house the same way...through my CDC...because I believe that it will work...and if not, whatever, my money went to rebuilding the town and putting people in thier own houses... Your "crew"? That can mean lots of things. Very few of those meanings carry a good connotation. Link to comment Share on other sites More sharing options...
Celtic_soulja Posted April 29, 2010 Share Posted April 29, 2010 And I've seen first-hand where lenders tell my wife "Don't share the HUD-1 with the borrower, we don't want them to know the terms of the loan" or "We don't provide the loan information until after closing, so they can't back out." (The first is illegal as hell; the second is illegal and stupid as hell. And yes, my wife has had lenders shut down for that.) It doesn't change the fact that you're dealing with people that can't manage their own finances, or in more than a few cases their own lives, else they wouldn't be taken in by such scams (which are, by the way, the exception. Not the rule.) The reason your scheme has a chance of working is because your customer base doesn't even approach a level of savvy that allows them to question it. Again...not saying your idea is bad. Just that it's not any more noble than anything out of the banking industry. ^ singing and dancing ^ I represent the ghettos across america, and you represent the hood...so hands in the sky...I'm soooo hoood...I wear my pants below my waste, and I never dance when in this place, cuz you and ya man is plannin to hate...I'm soooo hooood....and I got these golds up in ma mouth, if you get closer to ma house then you know what I'm talkin bout...I'm soo hoood...if you not from here then you can walk it out, and you not hood if you don't know what I'm talkin bout.... I am also giving them financial plans together for free... But my ends has working class america owning thier own hood...the banking industry has people being foreclosed on and losing everything...so I think it's more noble Link to comment Share on other sites More sharing options...
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