Who taught them economics?

[Mary Tiernan]

I mean, comon, $10,000 for a nice old house in a city where typical sale prices are $80-100,000? Why? Who told them this was the best way to run a business?


REO properties selling for 1/10th of their true value - get them off the books - sell them for whatever you can.

If the banks would run the numbers, they'd see they could save money by creating a foreclosure department.

Take the houses that have gone into foreclosure, fix them up, sell them for a little less than market value.

They'd make more money this way than they do by just selling to the highest bidder based on some phoney idea of value.

 

[DTB]

I mean, comon, $10,000 for a nice old house in a city where typical sale prices are $80-100,000? Why? Who told them this was the best way to run a business?


REO properties selling for 1/10th of their true value - get them off the books - sell them for whatever you can.

If the banks would run the numbers, they'd see they could save money by creating a foreclosure department.

Take the houses that have gone into foreclosure, fix them up, sell them for a little less than market value.

They'd make more money this way than they do by just selling to the highest bidder based on some phoney idea of value.

I think you just thumbnailed an excellent business plan for Michigan appraisers.

As a group, we appraisers tend to always question why other do or don't do something. It probably would be a better tactic to use their inefficiencies for one's own advantage.

Your plan would return significantly more profit than appraising wouldn't i?

 

[Terrel L. Shields]

If the banks would run the numbers, they'd see they could save money by creating a foreclosure department.

Take the houses that have gone into foreclosure, fix them up, sell them for a little less than market value.

They were taught economics by the bank examiners who are trying to make amends for their incompetent bungling of regulation in the early part of the century with overzealous forced sales of those same banks assets.
The banks frequently don't have a choice. They are told to raise cash...and do it now.

 

[Big ole Boy]

Who taught them economics . ?

Its not so much who taught them economics .....

... because, on any given day ... they can start "feeling" bad and refer to some old documentary on Adam Smith .....

... a guy the other night ... he did exactly that ... he started talking about Adam Smith with me. ...... he is socialist who is "feeling" a little simpathetic about the economy right now ...

... I said, yea, "the Invisible Hand" .... and the french word "Laissez Fare" ..... he had no idea what I was talking about..........

.... these people .... are not sentient beings ......

...these people can tell you many academic quanta ...... but they can not internalize a system of economics that does not serve their own interests .... to them ... economics is just a theory ..... whose only use is in a class room .....

.... they only understand cash book economics for the urban centric - and the urban centric is a being that entirely exists on a fiat printing press to serve the city/state