Last week, I got an email from a Real Estate Agent in San Diego. He works with a Wall Street Hedge Fund that wants to buy a Billion dollars ($1,000,000,000) worth of homes in San Diego. Their goal is to buy these properties and rent them out, in some cases, renting them back to the homeowner who just did a short sale. At the new median price for a home in San Diego of $400,000, that’s 2500 homes this Hedge Fund is looking to buy. Unfortunately for them, there are less than 4,000 homes for sale in San Diego! That is just one Hedge Fund and one San Diego Real Estate Agent…
Monday, our Bank Negotiator, Bekah Stone told me about a home that was short sold to a buyer for $450,000 last week. The Bank screwed up the paperwork and accidentally sent the home to the foreclosure auction the next day where an investor bought it for $650,000! That investor was no doubt a Wall-Streeter.
Remember when the real estate recovery first started and the Banks were putting together bulk property sales for big investors and Wall Street firms? It worked. They had success with it and now want more. That’s the problem. They will always want more. When will they stop? Not until they own every single house in America. Don’t be surprised when they call you up and ask to buy your house for $100,000 over the appraised value. All I can say is… DON’T SELL! We could get bailed out if the Stock Market takes a dive and these Wall Street firms are forced to issue refunds to their investors. They won’t want to sell stocks while they are down, so selling real estate that’s “in the green” will make more sense. I certainly wouldn’t count on it. I think we’ll see DOW 20,000 before we see 14,000 again.
Other topics discussed on today’s show:
– Is recourse on all mortgages the solution to preventing another real estate collapse in America?
– The IRS looks to punish people with off shore accounts and property. There is a way to avoid this or minimize the damage.
– Real Estate values up HUGE in San Diego again this month. What will cause this party to simmer down?
– Maybe the biggest opportunity in this hot real estate market… Refinance away your mortgage insurance!
Today’s On-Air Guests:
Jon Jerotz, VP of Mortgage Lending at Guaranteed Rate and San Diego Mortgage Expert
Jeff Kahn, Board Certified Tax Attorney in San Diego with KahnTaxLaw.com
Luke Middleton, Managing Director with Canter Companies
Listen to today’s show here: