Auntie Em, Auntie Em… its a twister!

3662 Antiem Street in the Vista Mesa neighborhood of Clairemont

OK so we’re still not in Kansas anymore, but there is a twist to this market crash. The flight from stocks/bonds to hard assets has arrived…

Are you telling me this 4bd, 2ba, 1,200sf+ home, and ~6,500sf lot… in seemingly decent condition, in a quiet neighborhood, is going for only $310k?? I’d wager a shoulder-high surf session that some investor will swoop on this, above list price, within the week… Why?

“Seth’s market bottom triangulation theory”…

  1. You can’t buy vacant land and build a comparable home without spending $80k more than this list price.
  1. A cash buyer at 13% above the asking price will still realize net annual return on investment of 7% (and that’s after factoring 25% for operating expenses). Booyah this Jim Cramer!
  1. Check back in a week to see whether this listing gets swooped before you can say “doh! who was that schmoozey realtor?”

Bottom line: smart money is flowing to select REO’s, in select markets, as vehicles to tie cash to hard assets, which are trading at or below the fundamental market cycle bottom, and at or below its intrinsic value, while earning a solid ROI of 7%… while at the same time, other investors are buying up similar properties to further validate this sea change. Smart investors are paddling into the wave of rental income inflation, not to mention long-term appreciation due to huge inflation, demographic explosion, and foreclosure displacement from properties that still cost more than renting.

“I’ll never leave home again”… except maybe to buy investment property.

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This entry was posted in advice, observations and opinion, seths picks. Bookmark the permalink.

One Response to Auntie Em, Auntie Em… its a twister!

  1. pjeary says:

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