Saturday, August 05, 2006

Real Estate Quickie

So I'll jump in real quick with interesting tidbit about everyone's favorite subject - real estate. I just cancelled an offer on a foreclosure that I was looking at renovating and buying with about 30K of equity built it, if all went as planned. Why I didn't go through with the deal is material for another post, but suffice to say the numbers didn't work as well as I would have liked.

Here's something picked up from the LA Times. (I still read them since I lived in Orange County, CA for 2 years until December 2002):

"But Angelo Mozilo, chief executive of Countrywide Financial Corp., the top U.S. mortgage lender, told analysts last week that 'I've never seen a soft landing in 53 years.' "

I don't know about you, but Mozilo has 22 years more in the business than I have in life. That is a very telling remark. The whys, hows, and possible investment ideas based on that are material for another day.

1 comment:

NO DooDahs said...

You didn't mention your intentions with the foreclosure/renovation. I assume you were planning on flipping, which I agree could be more dangerous depending on the market. I'd have little fear of doing a fix-n-flip in Texas but lots of fear of doing it in Boston or San Diego.

However, did you run the numbers on buying, fixing, and KEEPING as a rental property?

When you do, don't forget to include the tax benefit of depreciation over 27 years. You'd be reducing taxable income while increasing spendable cash flow.

Just a thought ...