Real estate blog entries tagged with financial crisis by Lane Bailey, Realtor & Car Guy (Century 21 Results Realty)

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financial crisis: I want Viper... and my wife won't buy it for me... - 05/31/09 04:46 PM

Please note, I specifically didn't say "a Viper"... I said Viper.
Fiat isn't getting the Viper Program from Chrysler... they are holding it back. And it is on the block. Robert Nardelli, the Hero of Home Depot (where is the eye rolling icon when I need it) has let it be known that the Viper Program can be had for $10,000,000... including the factory where Vipers are assembled.
Right now there isn't anyone offering up that kind of dough. The highest offer on the table is $5.5M. And of course any buyer is going to have to have something left over … (7 comments)

financial crisis: The FairTax is NOT a VAT... - 05/30/09 04:29 AM

I can't understand why politicians and the media can't understand some simple concepts sometimes.
Since the President and some of the Democrat leadership seem bent on taxing the ever-loving crap out of us while further eroding the economy, they have come up with the idea of a European style VAT (Value Added Tax). Here is a quick rundown of what a VAT is...
At leach level of 'production', there is a tax added to the value that has been added.
The mining company that mines the iron ore charges an extra 10% to the steel producer. The steel company charges a … (26 comments)

financial crisis: Is this really the answer? - 05/24/09 04:44 PM

I wrote a post earlier today about Chrysler closing dealerships and the deals that might be possible because of the way they are going about this... And honestly, it really ticks me off.
The dealers got barely a month's notice that they were losing their franchises. And many of these same dealers answered the call last year when Chrysler asked them to order extra vehicles in order to help avoid bankruptcy... so they are loaded with inventory.
And Chrysler WON'T buy back the inventory... the Bankruptcy Judge won't let them. And they aren't allowed to sell the vehicles as new after … (20 comments)

financial crisis: Deals are everywhere... Houses, Cars... all sorts of stuff... - 05/24/09 06:31 AM

Ok, I know that almost every real estate agent in the country is harping about how great the deals are in real estate right now. Interest rates rock and inventory is dropping, but still above average. I'll lay off the houses... You guys need a break.
But there might be some good deals on cars!
General Motors is closing 1100 dealers... at least. Chrysler is closing at least 789 dealers. Because of the Chrysler bankruptcy, their list is public, but GM has not had to release their list and hasn't. Also, while the GM closings ares tretched out over the next … (2 comments)

financial crisis: Chrysler's Biggest Challenge... - 05/11/09 09:52 AM

Here is the way things are scheduled to go down...
The UAW would own 55% of Chrysler Fiat would own 35% The US government and secured creditors would split the remaining 10% Honestly, I don't like any of it... but the one that is the Fiat stake. At least they would have only be interested in making cars and making the company profitable. And unfortunately, they are the ONLY ones that would be interested in those ideals.
The government ownership is just wrong to me on several levels. First, the concept of governmental control of "private" industry borders on fascism. Government … (12 comments)

financial crisis: Talk about a deal... - 04/29/09 03:11 PM

While running a quick search for a friend, I ran across a few interesting listings...
There are a few deals out there that stop me in my tracks for a minute. Some catch my attention because they are priced well below the competition... and they don't need more work that the deal is worth. Others grab me because their condition is amazing, and they are still priced competitively. Finally, there a few that reach out because they are unusual... in a good way.
These were of the third type...
I saw the pictures... and they didn't fit the price. Not that … (3 comments)

financial crisis: Can I tell my sellers it is a good idea to offer seller financing? - 04/24/09 05:34 PM

Looking at the legislative landscape, I see a new danger on the horizon. In addition to the existant dangers of financing a mortgage for a buyer such as their credit-worthiness and ability to repay, there is another risk which could soon be inserted into the pool...
Cram-Downs
If you aren't already familiar with the term, take a moment to read the definition... From the perspective of a lender, it is a scary scenario. In effect, a bankruptcy judge could force down the balance of a loan based on their view of the value of the property.
Regardless of whether the seller … (7 comments)

financial crisis: How well are my predictions doing? - 04/17/09 04:02 AM

While wandering through some old posts I ran across one of my prediction posts.
Lane's Top Ten Underdogs for 2009
It was interesting to look over. And I thought it might be fun to take a look at how I am doing on it so far...
10. GM still needs a cheerleader... and maybe a good bankruptcy judge. Despite them putting a couple of brands high up in the JD Power quality rankings... including Buick at the TOP, they are seen as junky compared to some foreign nameplates. I think they are going to end up the year in bankruptcy.
9. … (5 comments)

financial crisis: Do you have a Dream? Georgia has a Dream... for Buyers! - 04/07/09 03:17 AM

Image via Wikipedia Have you heard of the Georgia Department of Community Affairs Georgia Dream NSP Purchase Plan?
In effect it can provide $14,000 to qualified buyers of qualified properties that can be used as down payment or for re-hab of the purchased property. And, if the buyer is a First Time Home Buyer, they may also be eligible for the federal tax credit of $8,000.
Here are some of the qualifications (from the DCA website):
Buyer must recieve 8 hours of HUD approved home buyer counseling/education. Eligible income level for Gwinnett County for a family of four is $85,450. Smaller … (0 comments)

financial crisis: Buy a house, get $8,000... - 03/31/09 02:25 PM

It has been pretty well publicized, but I thought I would toss it out there again... There is an $8,000 tax credit available for 'first time home buyers.' Here are a few facts about the program...
A First Time Home Buyer is defined as someone that hasn't owned a home in the last three years. The Credit is good for 10% of the purchase price of a home (new or resale) up to $8,000. There is a phase out for people with a Modified Adjusted Gross Income of more that $75,000. There are several ways to recapture the tax credit NOW, … (0 comments)

financial crisis: Can I get a sub 4% loan, too? - 03/17/09 04:52 PM

A small bank in Washington state is hoping that they have the answer to bail-out some of their clients... clients that are builders and owe them millions of dollars.
They are offering loans as low as 3.875% for buyers with excellent credit and 20% to put down (3.973% APR). Basically, they are trading loans to builders that are underwater with loans to buyers that aren't. And while the loans won't really generate a lot of profit for them, they are certainly better off than they would be if they had dozens of builders going bankrupt on them.
It isn't all honey … (7 comments)

financial crisis: Sometimes I am just wrong... - 03/14/09 03:41 PM

Fast forward to the last line of this post and you will see me swallow my foot...
Leading indicators v. Trailing indicators
I didn't think Atlanta values would drop more than a couple of points... if that. Well... 20% later, and there is no way for me to spin it otherwise... I was wrong. I really thought that we wouldn't see more than a 5% decline.
The rest of the post is interesting as well... simply because of the talk of leading and trailing indicators. And that is what I want to expand on... Leading and Trailing Indicators.
As mentioned previously, … (5 comments)

financial crisis: We need Fuel. We need Fire. - 03/12/09 03:15 PM

I need to do some chainsawing in the yard. There is brush to be cleared and trees to trim. Unfortunately, my chainsaw doesn't really want to do any work right now. It needs two basic ingredients... fuel and fire.
The real estate market is similar. There are two ingredients, fuel (sellers/listings) and fire (buyers). Unlike my chainsaw, fuel is plentiful. While we don't have the record inventories of last year, there are plenty of properties on the market.
Fire on the other hand is tougher to make. And the powers that be are trying. There are things like the incredibly low … (2 comments)

financial crisis: Still think Cram-Downs are a good idea? - 03/01/09 02:16 PM

Ken Cook posted something today that was specifically about investor properties. Here is a link. Go read it... you should read his blog anyway.
What does it have to do with Cram-Downs?
Let me touch a couple of high points of Ken's post. These are the requirements to get ten Fannie Mae investment properties:
Middle Credit Score at least 720 Fully Documented income 25% down 45% or less Debt to Income 6 months of liquid reserves for every property Did your breath catch on that last one?
For my agent friends that are reading this... the ones that are thinking that … (4 comments)

financial crisis: The Power of Panic - 02/26/09 11:50 AM

Ken could NOT have written a better post. He summed up much of what is happening in the current panic incredibly well.
Please feel free to visit Ken's post to comment.

As I have written one of my favorite movie quotes of all time (next to most of Cool Hand Luke) is the line from Men In Black where K says to J, "A person is smart. People are dumb, panicky, dangerous animals." Go get some coffee ... and maybe a sandwich - you'll need it. Hang on, though, there is hope in this message!
Most of us have … (0 comments)

financial crisis: Low Interest Rates... Don't Blow YOUR Chance! - 02/25/09 02:32 AM

I generally don't word titles as strongly as that... But this is important.
Interest Rates on Mortages NEED to Rise...
It isn't that we want them to rise, it is that the underlying structure is going to force rates higher. Here are the things contributing to that coming increases...
The Government will be borrowing more than a Trillion Dollars this year... and next year... and likely the year after that. China is not able to buy as much of our debt as they have in the past. The Federal Reserve Bank is pretty much out of options to push down rates... … (5 comments)

financial crisis: Is a Trolley what Atlanta needs on Peachtree? - 02/24/09 03:55 AM

The latest plan to make Atlanta the place to live and visit (we're talking about the City of Atlanta, not the Metro Area) is to build a trolley system.
The proponents argue that the project would be ready to go quickly, would create jobs and would lower traffic on Peachtee Street... especially in the middle of the day (the people that work along P'tree might be able to hop a trolley instead of driving to lunch). This would reduce pollution and provide a cleaner transport than busses.
Detractors argue that this isn't the most brilliant way to spend $81,000,000. With the … (3 comments)

financial crisis: Cram Downs for Owner/Occupants a Good Idea? - 02/18/09 12:26 PM

It is gaining popularity among some in the political class. The idea is being floated to change the law and allow "cram-downs" on owner/occupant loans.
Cram-down: Basically, on many commercial (investment property) loans, a bankruptcy judge can alter the terms of the loan during a bankruptcy proceeding. Let's say that the property has deflated in value and won't support the payment it once did, the judge could lower the balance of the loan to allow the owner's payment to cover servicing the new lower debt. In effect, the new value is crammed-down the throat of the mortgage lender.
For most of … (6 comments)

financial crisis: Atlanta, 3rd Most Vacant City? - 02/17/09 05:18 AM

I just ran across a story from Forbes and Yahoo about America’s Most Vacant Cities. The list is this…
Las Vegas, NV Detroit, MI Atlanta, GA Greensboro/High Point, NC Dayton, OH Phoenix, AZ Orlando, FL Kansas City, KS and MO Jacksonville, FL (tie) Indianapolis, IN (tie) Miami area, FL Chicago, IL Tampa area, FL Bakersfield, CA Cincinnati area, OH (tie) Charlotte, NC This is based on data from the 75 largest cities, collected in Q4 2008 and released on Feb. 3rd by the Census Bureau. It is supposed to be based on an average of the rental and homeowner vacancy rates.
… (6 comments)

financial crisis: What's in it for for ME??? - 02/14/09 05:52 AM

With the recently passed American Recovery and Reinvestment Act of 2009, expected to be signed as soon as it hits the President's desk, many are wondering what might be in it for them.
Well, with $790,000,000,000 there is room for a LOT of people to find a bit of cash. These are the ones that directly relate to housing:
The First Time Home Buyer Tax Credit was raised to $8,000 and the repayment has been waived unless the home is sold within three years (previously capped at $7500 and required repayment at the rate of $500/year) The time period was also … (2 comments)

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