Realtors and Used Cars

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Why do some realtors think they can sell real estate like used cars or discount furniture?
I just got this over the fax: (This is one realtor letting another realtor know about the property.)

Here it is: Condo in A-Ho, $399k. Reads: GREAT INVESTMENT!!!!! (yes. five exclamation points!!!!!) Great renter in place till (sic) Feb ’08. (??) Paying $2300 this yr and $2400 next year. (blah,blah property details) Bring an offer, Seller is motivated!! (two exclamation points. apparently seller is not as motivated as the greatness of the investment.)

What the MLS tells me. Taxes 333/month, Mtce $588/mo Add them together $921/month. Let’s say Mr. Two Exclamation Points Motivated Seller Settles For a 10% discounted price of $360k (Like that’s going to happen.) Mr. Buyer puts 25% down. ($90k) Leaving Mr. Buyer with a $270k mortgage. If Mr. Buyer gets an optimistic 6.25% fixed mortgage, that’s $1662 per month. Add the $921 in fees and your at $2583/mo plus insurance and any ongoing maintenance. If you self manage this property and it is fully tenanted, Mr. Buyer gets the opportunity to lose $283/month this year and $183 per mo…
…nth Next year. (Sorry I had to stop typing to rush out and tell all of my clients about this rare opportunity to lose money in real estate. )

I’m no Warren Buffet, but I just bought an appreciation investment home that gives me a 15% return after paying someone to manage it. It’s in Charlotte, NC but as long as someone else takes the call from the tenants, it could be on the moon.

Hoboken Real Estate 2008
Investment properties
active 11
Information deemed reliable but not guaranteed

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