Interest rates. WTF? Why are we getting almost free money?

[BigRedChief]

I put a contract on a house yesterday. Locked in a rate and loan. Got 3.625 and they gave me $8,800 towards closing costs. Which is obviously more than it costs.

We were able to lower the purchase price because we didn't have any closing costs.

Last time we bought a house we got 5.25% which at the time our loan guy said was the lowest rate since WWII.

So my question for the board is why is the public getting home loans that are maybe 1%-2% above inflation? Where's the money being made or lost?

[Pawnmower]

Originally Posted by DaneMcCloud

So what's you're point? Great, your a rural real estate agent. That doesn't qualify you to pass judgement on people that deal with much larger monetary investments.

Let's put it this way: The average Angelino or San Franciscan or New Yorker isn't even considering paying cash for a property.

well since only 32 % of the deals are cash, that wasn't my claim

but nice straw man

If you truly are in LA, you might know some of this basic shit.....and if you dont think there are cash deals happening in LA youre a ****tard

[DoucheMcCloud]

Originally Posted by Pawnmower

well since only 32 % of the deals are cash, that wasn't my claim

but nice straw man

If you truly are in LA, you might know some of this basic shit.....and if you dont think there are cash deals happening in LA youre a ****tard

Truly in LA?



You never fail to show your stupidity. Good job.

[Pawnmower]

Originally Posted by DaneMcCloud

You're not helping.

There is NO REASON to purchase in cash. It's just ****ing dumb, regardless of what your clients choose to do.

Dumb. Money is cheap. CHEAP.

Youre so ****ing stupid you didnt read what I said......there are plenty of reasons to make the offer in cash and do the initial deal in cash, IF YOU ARE ABLE.


You can always finance afterwards to get the cheap money.

Keep being a ****ing idiot though, this is amusing.

[Pawnmower]

Originally Posted by DaneMcCloud

Truly in LA?



You never fail to show your stupidity. Good job.

http://losangeles.cbslocal.com/2013/...-foreign-cash/

foreign investors credited for driving the real estate market here in Southern California could be making it more difficult for local buyers – at least in the short term, according to analysts.

One Rancho Cucamonga man told the Los Angeles Times he has placed over 200 offers on various properties, but has lost each time to cash buyers who can avoid the red tape of a traditional down payment and financing.

“[We] put in offers on a bunch of homes that we liked right from the get-go, put an offer in and then our offer gets rejected because they select an all-cash offer,”

Again, you have proven in this thread you are nothing more than a blow hard phony...try reading a newspaper sometime

[DoucheMcCloud]

Originally Posted by Pawnmower

Youre so ****ing stupid you didnt read what I said......there are plenty of reasons to make the offer in cash and do the initial deal in cash, IF YOU ARE ABLE.


You can always finance afterwards to get the cheap money.

Keep being a ****ing idiot though, this is amusing.

Right. Because most people have $700k to $4 million in cash to purchase a home on a whim.

[DoucheMcCloud]

Originally Posted by Pawnmower

http://losangeles.cbslocal.com/2013/...-foreign-cash/




Again, you have proven in this thread you are nothing more than a blow hard phony...try reading a newspaper sometime

Are you able to read? It's a ****ing PREDICTION.

From a radio guy.

You're a retard.

[DoucheMcCloud]

Originally Posted by Pawnmower

http://losangeles.cbslocal.com/2013/...-foreign-cash/






Again, you have proven in this thread you are nothing more than a blow hard phony...try reading a newspaper sometime

Furthermore, genius, they're referring to Asian buyers that feel that SoCal real estate is safer then than the markets.

Welcome to the 80's.

[Pawnmower]

Originally Posted by DaneMcCloud

Furthermore, genius, they're referring to Asian buyers that feel that SoCal real estate is safer then than the markets.

Welcome to the 80's.

Thats who you are competing against with multiple you ****ing genius

[Pawnmower]

Originally Posted by DaneMcCloud

Right. Because most people have $700k to $4 million in cash to purchase a home on a whim.

the avg SOLD house in LA is $400k, you know what average means you drugged out hippie moron?

And you do realize that around 1/3rd of single family homes are purchased by investors (like me) as rental properties...?

[Pawnmower]

Originally Posted by DaneMcCloud

JFC. The advice in this forum is just ****ing short-sighted and awful.

I never said any of tha shit, you just didnt bother to read what I said. The more cheap money you can use to make money the better....All i am ****ing saying is it can benefit to use cash INITIALLY, and then finance after.

But since you would rather argue and make up shit i didnt say, I dont even know why I bothered trying.

[DoucheMcCloud]

Originally Posted by Pawnmower

the avg SOLD house in LA is $400k, you know what average means you drugged out hippie moron?

And you do realize that around 1/3rd of single family homes are purchased by investors (like me) as rental properties...?

In Los Angeles county? That may be true. Where I live, to the beach, Santa Monica, Studio City, Hollywood, Brentwood, BH, Manhattan Beach, Malibu, PAC Palisades, etc.? No ****ing way.

[DoucheMcCloud]

Originally Posted by Pawnmower

I never said any of tha shit, you just didnt bother to read what I said.

No, I read what you've said and I think it mainly applies to wealthy buyers looking for a second home in SoCal.

I referring to Pete's advice that people should pay off their homes, which is dumb, especially in an unstable economy.

[Pawnmower]

Originally Posted by DaneMcCloud

No, I read what you've said and I think it mainly applies to wealthy buyers looking for a second home in SoCal.

I referring to Pete's advice that people should pay off their homes, which is dumb, especially in an unstable economy.

I agree with you on Pete's advice...It is quite simplethese numbers are made up but will serve)


2 guys have 500k

guy #1)
buys a 500,000 dollar home

paid all cash, and it generates 3% per year inflation (so in year 2, it is worth 515,000......etc....)

guy # 2)

buys a 500,000 dollar home, pays 20% down.(100k down, rest is financed)..same inflation as guy #1 (3%)



they both live there many years.....and one day they realize the house is now worth 600,000!

they both sell

they both make 100k!

But guy2 DOUBLED his money (invested only 100k, made 100k in inflation)

Guy 1, it took 500k to make that same 100k....



moral: guy 2 couldve bought 5 of the homes and made 500k

***kept it simple and didnt factor interest or deductions, which would favor guy 2 even more imo
---------------------

I just made up some shitty numbers but i agree with you on your advice to pete...what i am saying is if these 500k houses are being snapped up by asains with all cash...you might need to do the deal all cash at FIRST just to get your foot in the door....then refi your cash back out ...

how do i know?

After many rejected offers......cash is king

[petegz28]

Originally Posted by DaneMcCloud

You're ****ing dumb. Good luck.

You're going to need it.

you're precious

[BigRedChief]

Originally Posted by Pawnmower

I have made dozens of offers on real estate,in the last 3 years alone and have been beaten out (on some) for many reasons...but most of all beaten by the 100% cash offer.

Why does it matter if the cash comes from the buyer or a mortgage company?

I understand that financing can fall through and cash doesn't. But, if the loan clears the underwriter within a week, the loan is a done deal, correct?