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Welcome to the Sacramento Area Flippers in Trouble Gallery. I'll update this blog once a week or so with the latest Flippers In Trouble listings.
35 comments :
Thanks, finally a little reality in a world of hype. I walk around Sacramento all the time. I keep walking past the same houses for sale. I've been collecting flyers with deep price cuts but rarely see this reflected in the news. Thanks again, TC
What's so shocking is that some of these flippers purchased the homes in 2006 -- even LATE 2006! You'd have to be deaf and blind and mentally disabled not to have picked up on the reality of the bubble popping by late 2006.
Wow! I'm a Realtor with a naturally rosy disposition; always expecting the best. The reality of your statistics has hit HARD, but I am very grateful for all your diligence in presenting the truth. Thank you for your service as a prophet and realist.
Everyone please note that these losses are based on the ASKING PRICES. There may be significantly greater losses when one compares the actual SALE PRICES.
Congratulations!!
Two weeks ago, the Bee published an interview with 5 local agents and they spun it to the positive like crazy. I bet real estate agents still don't understand why they're on the honesty list somewhere between used car salesman and politician. Additionally, I think the media is in cahoots with these agents...if the news is bad, don't say a word. If the news is good, hype it to the max. Of course, most of these agents ADVERTISE in the Bee, so follow the money, it leads you to the sad truth.
Can't load your FAQ page. Crashes my browser every time.
Could you post the Bee article....some of use would love to read it but don't want to "subscribe" to their database.
Thanks and Congrats
Thank you for all your hard work. I have pushed back on all the pressure from friends, Realtor's and famly to purchase a house for the last few years. I just couldn't bring myself to believe these older/newer homes were really worth what people were asking. The flippers have made the market unreachable to someone like myself who should be able to afford a home. Thank you for showing me that I was not crazy the whole time.
Great Job. Good statistics, data and all the facts. Gosh how realtors hate facts. Hang folks it's going to get worse, before it gets better. The roller-coaster goes up and then again it goes down.
RTC
Great news. So a question: If stock brokers are not allowed to pump and dump stocks why are RE "professionals" allowed to pump and dump homes, so they can collect fat commissions? It should be illegal for them to misrepresent the market.
I've been collecting flyers with deep price cuts but rarely see this reflected in the news.
You'd have to be deaf and blind and mentally disabled not to have picked up on the reality of the bubble popping by late 2006.
The reality of your statistics has hit HARD, but I am very grateful for all your diligence in presenting the truth. Thank you for your service as a prophet and realist.
It should be illegal for them to misrepresent the market.
They can't misrepresent what they don't know about. The more I do this, the more I think there's a lot of willful ignorance on the part of the RE industry. How many agents really take the time to research the market for their clients? For that matter, how many buyers/sellers spend 10 minutes on Google researching prices in their area of interest?
The problem is, the knowledge gap will be filled eventually, and when it does, these market inefficiencies will work themselves out. Welcome to FIT land.
Nice blog, just finding my way around the global market and you've got some great resources...
The losses are even greater than posted in this blog. The cost of carrying the house, plus settlement cost to buy and ultimately sell adds to the loss.
All information is welcome, if it portrays good news or bad. It is up to us to intelligently evaluate the information and form accurate conclusions.
Saw your article in the Bee. Great article. I'm a real estate agent in Roseville. I've been telling clients to never bank on the future. Invest only for cash flow. Only buy if you need the home and can truly afford it. Bashing realtors is nothing new. But there are a few of us out there that research and protect our clients. You just have to find a true professional, not a commission check whore. For those making blind statments that the Bee is on the realtor's side and "follow the money" etc....obviously you have no clue what the Bee has been printing for the past 18 months. It's been more Doom and Gloom than spin.
-Jason.
That place on 16th St. reeks of appraisal fraud. How can it sell for $85,000 in 2004, then $490,000 the next year. That is absolutely ridiculous, especially when considering it is tiny and on a postage stamp lot. What a joke. I can't believe this crap was allowed. The appraiser and lender (and probably buyer) should be jailed.
As a real estate professional, I'm constantly asked, "What is the market going to do?" And, frankly, it can be tricky to predict. I don't think a lot of people anticipated such a long, unswerving upward trend--or for prices to rise to the levels they did.
In my own industry there has been a lot of discussion (and, yes, attempts at prognostication) about where real estate prices are going.
The best answer: "That's a good question, and I'd love to be able to predict the future. Real estate is a great investment, but it's an investment like any other and should be entered into with respect and 'eyes wide open'."
The market has, in fact, changed. This is only a crushing thing for those who bought at the peak and are trying to sell now just a year or so after purchasing--many within months of purchasing. It's easy to forget that this isn't a wise strategy for a novice or even seasoned investor in a rising market... But that time has passed.
Real estate continues to be a great investment over the long haul, and even over shorter periods of 5-7 years. Think in those terms when buying, and don't bank on making fast money in mere months.
http://www.centralcityguy.com/
Hey Max,
Love your site. I was wondering, have you ever been contacted by any of the homeowners? Like the show "Cops" it's defenitely someplace you do not want to be seen.
Found out about this site from the Bee.
Good to see some reality on this topic.
As a resident of Elk Grove, this real estate meltdown will certainly have an impact on EG's and other cities finances and hence it's ability to provide services
Cudos to you Max! It's great to see you get the recognition you deserve.
It's interesting that some believe local media (the Bee, e.g.) doesn't have a vested interest in making local RE markets look as rosy as possible. The "clues" are enormous. The most obvious "clue" is the 10-20 page RE section that appears EVERY weekend and hypes new housing developments, planned communities, RE companies, including color photos, floor plans, "feature" homes, amenities, maps, financing plans, everything to entice a potential buyer to "make an offer". Perhaps I missed it, but I've never seen a 10-20 page section in the Bee that outlines recent RE market "Gloom & Doom" in similar exquisite detail. I believe the Bee has no interest in making one of it's largest ad revenue sources look bad. Hate to say it, but "following the money" has never led me to a wrong conclusion.
- anon in folsom
Anon in Folsom,
You do realize that the Bee referenced THIS WEBSITE right? I hate to agree with a Realtor, but yes, the Bee has been printing loads of dire RE articles this past year. They did keep blinders on for quite a while after it was obvious the bubble was popping. They would have lost what credibility they had otherwise, but they do print a realistic picture of the market now.
Excuse me, I mean a more realistic picture of the market. They still qoute the NAR and others with a vested interest in various articles but they have been reporting on the gloomy facts of what is going on locally as well.
Congratulations on being published in Sacramento Bee. It is about time that the mainstream media take up the baton of what many housing bloggers have been preaching for the last year. Sacramento will be hit hard just like Southern California in 2007. Your numbers indicate this happening. If anything, this is only the beginning of the Four Horsemen of the Housing Apocalypse.
Many thought that by pulling off their homes in late 2006 they would be saved in 2007 with the spring and summer housing fairy. Sorry, but with rates adjusting and inventory springing up like the California poppies, there will be nothing but a buyer’s market and a lot of sellers wondering what ever happened to the real estate boom.
Excuse me, I mean a more realistic picture of the market. They still qoute the NAR and others with a vested interest in various articles but they have been reporting on the gloomy facts of what is going on locally as well.
You have to sympathize with reporters. They're experts at reporting things, not in any one particular subject area. Unfortunately, there is no truly unbiased source, so they try and create "balance" by presenting opposing points of view. (The fallacy being, when there is a correct answer, it doesn't matter how many points of view you present ie, debating 2+2=4.)
What's interesting about the bubblesphere to the media (in my opinion) is it's the only place where debate is taking place on these issues. We've become the other side of the argument, and we can back our side up with facts and data.
More reasons why the REIC is terrified of us. :)
I was wondering, have you ever been contacted by any of the homeowners? Like the show "Cops" it's defenitely someplace you do not want to be seen.
Not that I can prove. I do get hate mail sometimes, but they never admit to being an FIT.
Has anyone besides me notices how eerily positive these RE investors can be? Even when they're going broke? I'm not just talking about Casey; check out some of these RE bull sites. Creepy as hell:
http://themillionairesblog.blogspot.com/
happyinsf...
I don't buy your view. Yeah, the Bee did reference this website...but in a 2" column in a MONDAY business section...the last place a RE shopper will be looking. Amazingly, the 2" article STILL tried to put a positive spin on it - "...sellers won't bear the full brunt of the loss..." blah, blah, blah. Compared to the 20 page RE section every weekend, it seems clear to me where the Bee's allegiance is. My point is simple...before you take credence in any information, check out where the money is flowing. It may change your conclusion.
anon in folsom
Anon in Folsom,
Would 20 pages of content about forclosures, YOY losses etc., every single week really be interesting enough to print? 20 whole pages weekly? What would these stories be? What you are talking about are Ads. Pretty easy for readers to ignore, if you disagree go read any article at About.com, each page is about 75% ads. Do you really confuse the ads for the news content?? I hear really small children cannot distinguish between the commercials and the actual programming on network television. Ads are going to be everywhere for the potential real estate buyer, and guess what, Ads are not going to talk about a down market. The consumers is going to have to look outside of the Ads in order to be an informed buyer.
happyinsf...
You can paint the Bee as a bastion of "fair & balanced" if you wish. I care not. Your oblique attempt at an insult, the comment regarding "really small children", is unfortunate (or welcome) as it signals the termination of our dialog. When personal attacks ensue, the knowledge and conclusions fostered in a reasonable debate are lost.
Good luck.
anon in folsom
Max-
Just read the link you posted:
http://themillionairesblog.blogspot.com/
Scary stuff. Nice to see most of his goals are dollar-centric, as opposed to helping others become homeowners or generally improving an area. Love his use of the term "buyers" too, like some mindless source of cash. The whole site reads like an Amway pitch.
Viva REIC.
Max - I also read the link you posted:
http://themillionairesblog.blogspot.com/
One easy way to determine the priorities of another person is to count the number of times they use a 1st person pronoun (I, me, my, mine, myself) in their writing. This guy used it about 480 times on his blog. He's only about himself. Interestingly, if you read anything written by JFK, he very rarely used a 1st person pronoun, and his actions were demonstrative of that trait.
What happened to the placer county flippers in trouble? I can't see to find that linked off this page anymore. :(
Try clicking the little down arrow next to the date on the right-hand side...
Dear Anon in Folsom,
I'm sorry I hurt your feelings. At least you didn't have to answer any of the bad man's questions. Seems to me you were the one claiming that ads where equal to real estate news which reminded me of something I read in, I think, Four Arguments for the Elimination of Television, that children do not know when Barney stops and the Barbi commercials begin. Sorry but it seemed, and still does seem apt. Further, I would appreciate it if you would read my posts before you respond. I never claimed that the Bee was totally unbiased, BUT I have read probably every RE article in the last year so I can say with authority there have been loads of gloomy reports. Not that you are going to respond anyways.
I Wish you the Best of Luck!
-=HappyinSF
I agree with ya anon in Folsom. I am in Folsom too.
I think the Bee tends to paint a rosy picture. Also why does it take them so long to post stats... especially Oct & Nov sales. I smell something fishy. I feel like they are trying to slow down the avalanche. It would be in their best interest to make the RE market look good, considering they make most of their profit from ads (RE ads). If things go sour for the homebuilders and such... there goes the Bee's gravy train!
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