In article <puOdnYUttbpg1VHbnZ2dnUVZ_j-dnZ2d[at]giganews.com> ,
Ignoramus13321 <ignoramus13321[at]NOSPAM.13321.invalid> wrote:

- quote -

The only place that I have seen deep discounts on apartments or
condos are places where the developer has gone bankrupt. There
are a few projects like that here in the Twin Cities that are
offering $100K off of the original list price. Given that these
units are still selling slowly, the discount price may still be
at or above market value.

-john-

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John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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On Tue, 21 Aug 2007 18:25:23 -0500, John A. Weeks III <john[at]johnweeks.com> wrote:
- quote -

So, John, in your words, the deep discount prices on such apartments
have not yet arrived.

i

On Tue, 21 Aug 2007 18:43:22 -0500, wyu[at]talisys.com wrote:

- quote -

Yes it's a vicious loop. In order to get growth, you have to create
greater and greater debt.
Thumper

"John A. Weeks III" <john[at]johnweeks.com> wrote:
- quote -

The banks have every reason to ride it out, they know that if they are
short on cash, the government will throw some cheap money their way.

On Aug 21, 4:25 pm, "John A. Weeks III" <j...[at]johnweeks.com> wrote:
- quote -

The banks have the same problem as the hedge funds. Once they sell,
the rest of their properties get marked to market. Repricing their REO
holdings then could push them into a margin call where they have to
sell even more holdings. Quite the vicious loop.

In article <afudnWaDloIgsVbbnZ2dnUVZ_rHinZ2d[at]giganews.com> ,
Ignoramus2170 <ignoramus2170[at]NOSPAM.2170.invalid> wrote:

- quote -

What I have seen so far is that most of these loans were made
with little or no money down. The result is that the owners
have no equity in the property. That means that they cannot
drop the price because they don't have equity or cash to pay
the difference at closing. The net-net is that they sit on
the high price until the bank takes it away. Even then, I
have not seen the banks cutting deals to get rid of property.
They also seem to be willing to sit on property right now.
Perhaps they are willing to ride it out.

-john-

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John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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On Aug 21, 12:31 pm, Ignoramus2170 <ignoramus2...[at]NOSPAM.2170.invalidwrote:
- quote -

If you have the cash to buy and the time to manage, by all means, and
look for foreclosed apartment buildings. Become friendly with your
local bank or mortgage company and get information on potential
foreclosures.

Have you owned and managed apartment buildings?

I am looking at the current subprime mortgage meltdown, which may be a
term which may somewhat overdramatize the situation.

It makes me suspect that a lot of apartment owners who took on too big
mortgages for their incomes, are now selling their apartments at fire
sale prices (perhaps forced by their lenders) and are becoming
renters.

The interest that I have in this situation is that, perhaps, rental
apartments can be purchased at discount prices and renting them is
more advantageous than just keeping cash in the bank.

I would like to know if anyone looked recently at the economics of
buying and renting inexpensive rental apartments, given today's
environment.

Thanks

i