Smith Lake Topics: comments on prices
(Smith Lake Specific)
2,155 messages
Updated 6/25/2024 8:47:10 AM
Lakes Online Forum
83,915 messages
Updated 9/7/2024 7:52:09 AM
Lakes Online Forum
5,200 messages
Updated 8/23/2024 12:20:47 PM
(Smith Lake Specific)
61 messages
Updated 11/13/2022 9:38:51 PM
Lakes Online Forum
4,171 messages
Updated 6/27/2024 7:05:46 AM
Lakes Online Forum
4,261 messages
Updated 5/28/2024 6:31:10 AM
Lakes Online Forum
2,979 messages
Updated 6/26/2024 5:03:03 AM
Lakes Online Forum
98 messages
Updated 4/15/2024 1:00:58 AM
|
|
|
|
Name:
|
MotorMan
-
|
Subject:
|
comments on prices
|
Date:
|
4/6/2007 4:09:14 PM
|
|
boataholic - Subject: comments on prices Date: 4/6/2007 2:03:36 PM
"Very interesting idea on the 3x and 10x theory........." edited for brevity.
The 3x was no theory. If your house did not make it, you did not qualify for a sellable mortgage. Most lenders sell their "paper" to Freedie Mac or whatever and make about 75 basis points on the deal (0.75%). Other investors then buy these loans and get the interest + principal. Many income tax advantages and disadvantages.
Now the Bank of Dadeville will loan on Lake Martin. They may think a lot is worth $300,000 and the 30 year old house, depreciated, worth 200,000 and loan $400,000. These are what are "In house loans". They cannot be sold to the usual places. But ask them about interest !! Maybe 1.5% above the resale market. They are also a Bank that will make a loan when there is no mortgage. An APC lease is still owned by Southern Company (SO). A good stock pick in my opinion.
Here's the 10x in action. My wife bought a lot at a tax auction for $100 plus back "sewer and water dues" of $1200. She used it for dog sleding. A place to camp or whatever. She is trying to sell it and got an offer of $3000. The buyer wanted to put up a $100,000 house.
Now this would have the height of foolishness. The city of Iron Belt, WI is almost a ghost town. If he needed to sell, or died, the house might have gotten $40,000 for it because there are plenty of houses for $20,000. No work for 20 miles.
He would have murdered the 10x rule of thumb. If he wanted to build a new house, he should have picked the County Seat of nearby Hurley. Plenty of land for $10,000 a lot and it will always be the County Seat.
|
|