Thanks, Rick, for this nearly end-of-year analysis. It is good to hear that you and the billionaire investors have not bought anything lately. Why? Because TRUE real estate investors only buy when the deal is right. They will have their pick of the berries when the market implodes further in 2011 (per previous discussion).
I have bought few mobile homes this year as there haven’t been many sensible deals. I am funding a friend’s deal that he found on a SFH. Sold in 2005 for $90K, current ARV $65K, Cash price $24.5K, repairs $5K. This house has the right things wrong with it and is a deal. Here’s why:
Banks WILL NOT LEND on a home that cannot be occupied immediately. HUD discounted this house due to flooding problems (no elec., no sump pump operation) inoperable furnace (gas utility removed meter) mold (2 sq ft of drywall moldy from water in basement all summer) and needs gutters (two brackets missing). This is what we are looking for: Continued stupidity among the lenders.
My friend was outbid on a SFH on 1/2 acre 3/2/ Sold for $125 in 2006 missing kitchen, Cash price $31K.
I believe this is the time for appetizers, the feast is yet to come. Just ask the billionaires.