Global Economy Bursting?

[Big ole Boy]

soil

I will build my own soil if I have to ...... its old pecan orchard land ... which means it is old cotton land which means it is old homestead land ... which means it is some of the best land in the county ...

... the water is from the best spring in the county (high in calcium) .....

.. I got out bid ..... so I raised the bid ... ... waiting ........

...ready to raise my bid again ......

.....if it does not happen ..... something better will happen instead ....

 

[Greg Bell]

When interest rates rise with the coming inflation , you won't be able to give away Real Estate..Cash only will be the norm..

 

[Austin]

You guys won’t believe what is going on here. As I reported earlier, the recent census shows a loss of 11% or 6,000 people. That is about 2,500 households loss in total housing demand units. The real estate market is at an all time low, the market is flooded and most of the transfers are owner back to lender. Last week there were about 10 transfers of all kinds in the MSA.
Guess what is happening. Right across the street from a low income housing project, crime infested, they are building 37 new detached government houses. I assume this is the latest idea to cure the crime problem. Put some space between them. They are not building one at the time, I mean they framed all 37 at once and the place sprang up like toad stools over night. This is the latest version of Federal Housing policy. This is total insanity. To top that off, I have an assignment to build a mansion from plans scheduled for today. About the third one in the last 6 weeks.

PS. Over the last 15 years I have known a local real estate lawyer. I used to see him all the time coming and going at the court house. About four years ago he was making a killing and purchased about $600,000 of real estate. One of the nicest farms in the county included. I was riding around some time ago and saw surveying on the land and asked a friend what was going on. He said the bank had to take all the property back from this lawyer, the lawyer’s wife left him for another man and the lawyer is homeless.
I went by to see my Realtor buddy for the last time last week. He is closing his office at the end of the month. Has sold nothing in months. Said he needed a new computer monitor but didn’t have the money to buy one. He has applied for a job. He told me the biggest Realtor in the area had planned to retire and turn the operation over to his son and daughter. Things are so bad the daughter opened a consignment shop for used furniture and the son is looking for a job. I do not know how these people keep the lights on.

 

[Riick]

When interest rates rise with the coming inflation , you won't be able to give away Real Estate
..Cash only will be the norm..

Sorry Greg.. Been there, done that.
Was selling (and actually sold) real estate during the period in last inflation when we had 18% 1st mortgage rates.
The technique was called "creative financing"; Sellers took back 1st & 2nd mortgages, Banks "wrapped" a new 2nd mortgage around the old one, etc., etc.
If there is an eager buyer and seller, a meeting of the minds can take place, and most anything can be sold.

.

 

[Doug Meyer]

Sorry Greg.. Been there, done that.
Was selling (and actually sold) real estate during the period in last inflation when we had 18% 1st mortgage rates.
The technique was called "creative financing"; Sellers took back 1st & 2nd mortgages, Banks "wrapped" a new 2nd mortgage around the old one, etc., etc.
If there is an eager buyer and seller, a meeting of the minds can take place, and most anything can be sold.

.

I agree Rick. I sold real estate at that time.......

 

[Randolph Kinney]

Existing-Home Sales Plunge, Setback for Housing Recovery

http://www.cnbc.com/id/42192395

 

[Terrel L. Shields]

When interest rates rise with the coming inflation , you won't be able to give away Real Estate..Cash only will be the norm

If you have cash, however, land is likely the only thing that will keep up with inflation. Vacant land...land you can rent to a farmer and let them grow corn or soybeans..cotton or scuh...commodities. Eventually Ag land will crash when commodities fall but that won't happen until inflation is tamed. I agree inflation is rearing its ugly head and we are seeing the tip of an iceberg that will quickly float to the top.
It is exactly what the fed wants and exactly the opposite of what Volcker did as the Fed chief. Helicopter Ben is living up to his name and it will mean an inflation disaster looms.
Small banks are doomed and we are then at the mercy of a handful of big banks.

"Deregulating" ATT lead to a large number of phone companies. Now these are down to a few players as the merge, remerge and expand into digital TV, cable, phone, wireless, long distance. Banks will do the same, you will have "competition" in the form of ATT v. Verizon and not much else. What "competition" is that? So we end up with BoA v Wells Fargo? some choice.

The April fools rules are meant to stifle, not create competition and will likely force the consolidation of thousands of banks into large regional players or into the fold of the "big boy"....TBTF...but fail they will. They are into "risky behavior".

 

[Austin]

In reference to my above post about the new housing project. After I posted that this morning I headed into town to work on an appraisal and passed this new subdivision. Brick was being laid and the place looked like a bee hive of work. I went to the city tax assessor’s office to get a map on the land I was appraising and asked the assessor for the scoop on this new subdivision. I had counted 37 lots from the tax plat but he said they are building 47 new detached homes starting at $100,000. He said this was a HUD project probably to stimulate the economy. I can tell you emphatically that there is no market demand for houses in this price bracket and if there were demand it would not consider this location. The houses are close together; next to an old convenience market know as a crack sales lot and directly across the street from a rat’s nest of crime in public apartments. Another HUD project to help those in need. The assessor said there is another similar project done about 5 years ago and all of the houses are now rented by the local housing authority to low income people. The former owners could not afford the costs including payments and turn them back over to the housing authority who is renting them.
I got the map to the new home I am appraising from plans and went there. This man purchased 45-acres of land inside the city overlooking the river adjacent to two of the most exclusive subdivisions in town in the heart of the city for $2,500 per acre. This tells me that no developer is even thinking about development in this town from now into infitium. It is total insanity on a grand scale. Six years ago this land would have sold for $10,000 per acre or more.

 

[Greg Bell]

Sorry Greg.. Been there, done that.
Was selling (and actually sold) real estate during the period in last inflation when we had 18% 1st mortgage rates.
The technique was called "creative financing"; Sellers took back 1st & 2nd mortgages, Banks "wrapped" a new 2nd mortgage around the old one, etc., etc.
If there is an eager buyer and seller, a meeting of the minds can take place, and most anything can be sold.

.

Agreed...I did a few "Creative" deals at 20%myself.That was then and this is now.Buyers will be unable to pay such high interest rates and more important due the glut of homes there will be no investors to purchase the notes.Remember all the balloon payments popping , I can hear the bang right now.It's a new world now , no fun.Beans and ammo are a good investment.I am looking for a wood stove,Got plenty of trees with good wood to barter..:new_snipersmilie: (mini 14) PS. Got a 19% VA loan in 79 , what a bargain..

 

[Terrel L. Shields]

in the heart of the city for $2,500 per acre

I just finished the first land tract in years that has "toyed" with the value below $1000 an acre...and another small town has 2 poulty farms being built...as insensible as the housing project.

The technique was called "creative financing"; Sellers took back 1st & 2nd mortgages,

cousin was doing well doing interim financing for REOs back in the mid-late 80s in Denver...market changed so quick he got hung with some yuppie buyer houses, and ended up losing some serious money...