Panhandle real estate boom just starting

[WiLe]

Shelley, You might be able to get a loan for $800,00 without jumping through hoops. The average person who has an average income would not only have to jump through hoops, he would be denied the loan.

During the stock market crash in the 20's, everybody could buy.

 

[WiLe]

And what's your point about "no doc" loans? That somehow eliminates requirements for good credit and the customary down payment? I'm fairly sure that you'd have to get past the credit check and probably be an above average credit risk to qualify for "no docs." Right?

 

[SHELLY]

And what's your point about "no doc" loans? That somehow eliminates requirements for good credit and the customary down payment? I'm fairly sure that you'd have to get past the credit check and probably be an above average credit risk to qualify for "no docs." Right?

yeah, yeah right <nudge,nudge,wink,wink>

BAD CREDIT? NO PROBLEM!

 

[WiLe]

680 credit score required. A complete application is required, but nothing is verified. Rates are comparable to a fully documented loan. No IRS forms. Owner occupied properties only. Only 5% down payment needed. Loan amounts to $500,000!

Low Down Payment No-Income Verification. Lots of Options!
Hot Stuff. Income not verified. Assets not verified. 100% financing to $300,000 with a 720 credit score. 95% financing to $400,000 with a only a 620 credit score. Single family homes, condos, townhouses, all okay!

Shelley, how's a ZERO down payment going to help you, when you have to come up with a 20% a down payment to the developer? THEN you go to these guys?

yeah, yeah right <nudge,nudge,wink,wink>

 

[Bob]

So it's $20,000 (from home equity loans?) and a "letter of credit." But for those who've made it to hard contract the pain will hit home when the developer comes knocking and wants final payment. Then they've gotta scramble for a mortgage (probably trying for an optional ARM to hold them over while they try unload (along with everyone else) into a declining condo market)...the idiots who can't afford the condo and all the trappings that go along with "investment condo" ownership will take a bath and SERIOUSLY regret they didn't walk out on the deal.

If one has the money to carry the investment--no problem. But there are so, so many out there who are holding onto a fistful of these contracts for "investment" who will end up NOT having a pot...but will certainly have plenty of windows to throw it out of.

HOT TIP: Get out of the conventional real estate business and into the real estate auction game--that's where the next "boom" will come from. Property, home and condo auctions are going to be hot, hot, hot!

BOB: And I bet that 35 million in California don't include illegals either! It's true that Florida's employment figures look good...but the majority of these jobs are "service" jobs...just how many $500,000 condos can a person who makes $8.50ph buy in Florida? With all the "rich" folks flooding the state, surely they'll want someone to do their nails or clean their pool--people don't live on Botox injections alone.

2nd HOT TIP: Look out for some goomba from Jersey to start organizing the service sector folks in South Walton. Something's gotta give.

Service workers never bought high end inventory. You know that. Florida's population will double in the next 10-20 years, with NW Florida at a much higher density, those 500k condos will be at least several million a piece. The top 10-20 percent demographic buyers from most of the east will descend upon the Florida coast to retire, and the 500k price will be but a story of the good old days. Short term, prices will mitigate, but the long term will be, unfortunately, likely an unwelcome crush of newcomers.

 

[WiLe]

Here in Alabama, Brett-Robinson is building apartments to rent to service workers, at a discount as long as they are employed there. Also there are "dorms" being built in Foley, for service workers - about 12 miles north of Gulf Shores.

 

[SHELLY]

Here in Alabama, Brett-Robinson is building apartments to rent to service workers, at a discount as long as they are employed there. Also there are "dorms" being built in Foley, for service workers - about 12 miles north of Gulf Shores.

"Dorm Life!" Ah...the American Dream lives on! And do they pay to ship the workers back to the Ukraine during the "off season?" Or do they just drop them off the bus in downtown Mobile? (Hey, as long as there's no scum in the pool, who cares. )

 

[SHELLY]

Service workers never bought high end inventory. You know that.

Yeah, but....I know that folks who live in "upscale subdivisions" tend to want to shop or eat out from time-to-time in the hood (not to mention maybe needing school teachers and cops). I know that right now there is a glut of $500 per month apartments in the SoWal area <sarcasm implied>, but what happens when they fill up?.....or (GASP!) want to get married and raise a family?

 

[SHELLY]

Shelley, how's a ZERO down payment going to help you, when you have to come up with a 20% a down payment to the developer? THEN you go to these guys?

WiLe,

The way that it works is that you take out a home equity line of credit on your primary residence for any cash portion of the down payment over and above your "letter of credit".....THEN when the developer comes knocking for the MORTGAGE on the finished unit, you go and get the ZERO down optional ARM. Got it? ;-)

 

[WiLe]

"Dorm Life!" Ah...the American Dream lives on! And do they pay to ship the workers back to the Ukraine during the "off season?" Or do they just drop them off the bus in downtown Mobile? (Hey, as long as there's no scum in the pool, who cares. )

It's called freedom, Shelley. They're working for the same wages we pay everybody else for comparable work. If it wasn't desirable work, they'd either stay home or go somewhere else. I'd imagine they'd really thank you for being so concerned about their welfare.

Some do quite well here. The 20-something young lady next door left her husband for a guy from the Czech Republic. She owns her own business and her family is very big in real estate here. He's probably on his way to being a multi-millionaire.