Dream Posted December 7, 2006 Share Posted December 7, 2006 i heard about some investors/scammers buying up 10 or more townhouses in final construction phases around the east end, i've heard rumors about 20 or more lofts being bought at live oak lofts by investors and not owner occupied. is this some kind of scam/fraud? i hear big money from california is sitting on the townhouses/lofts and plans to sell for a profit in a few years. is this good for our market? will a bunch of foreclosures start showing up on the market? curious to see if anyone else has seen or heard of this going around?dream Link to comment Share on other sites More sharing options...
Guest danax Posted December 7, 2006 Share Posted December 7, 2006 i heard about some investors/scammers buying up 10 or more townhouses in final construction phases around the east end, i've heard rumors about 20 or more lofts being bought at live oak lofts by investors and not owner occupied. is this some kind of scam/fraud? i hear big money from california is sitting on the townhouses/lofts and plans to sell for a profit in a few years. is this good for our market? will a bunch of foreclosures start showing up on the market? curious to see if anyone else has seen or heard of this going around?dreamI haven't heard specifically of that phenomenon but it's completely understandable as speculators would be searching the country for a healthy real estate market and, with the rest of the large cities mostly in a correction mode, we are it. Boomtowns have always attracted such people, and look what the gold rush did for SF? At some point our market will cool off too and some of these speculators will get left holding the bag and there might be some foreclosures or ....maybe not. Link to comment Share on other sites More sharing options...
hokieone Posted December 7, 2006 Share Posted December 7, 2006 yeah i don't know if it makes them scammers as much as investors. what makes it sometimes undesirable is that these people will lease out the properties in the mean time and you could have a higher % of renters in what is a buyers community. is it the worst thing? no. it just changes the demographics some i think. Link to comment Share on other sites More sharing options...
TheNiche Posted December 7, 2006 Share Posted December 7, 2006 yeah i don't know if it makes them scammers as much as investors. what makes it sometimes undesirable is that these people will lease out the properties in the mean time and you could have a higher % of renters in what is a buyers community. is it the worst thing? no. it just changes the demographics some i think.The problem there isn't so much demographic as it is financial. Many lenders, including Fannie Mae, won't approve a loan if the ratio of renters to owner-occupants is too high. That can make selling the unit somewhat more difficult. Link to comment Share on other sites More sharing options...
lwood Posted December 7, 2006 Share Posted December 7, 2006 i heard about some investors/scammers buying up 10 or more townhouses in final construction phases around the east end, i've heard rumors about 20 or more lofts being bought at live oak lofts by investors and not owner occupied. is this some kind of scam/fraud? i hear big money from california is sitting on the townhouses/lofts and plans to sell for a profit in a few years. is this good for our market? will a bunch of foreclosures start showing up on the market? curious to see if anyone else has seen or heard of this going around?dreamIt is common for investors to buy units at discounted prices and hoping to resale later. This allows the developer to move forward with financing and construction by having a certain percentage sold.Live Oak Lofts was recently purchased by out of state investors. The prices were raised and the units marketed and sold also to out of state investors. All units have been sold although some are on the resale market.Capitalism. Link to comment Share on other sites More sharing options...
Smithterra Posted January 16, 2007 Share Posted January 16, 2007 Beware as there is a group of "investors" trying to buy builders inventory at a substantial discount. They are tying up builders inventory with contracts that are pulled prior to their earnest money going hard. As far as my knowledge goes, they have not closed on one property. They are in the mortgage fraud business, and a few of them went to jail last week.http://www.mortgagefraudblog.com/index.php/C14/ Link to comment Share on other sites More sharing options...
Ethanra Posted January 26, 2007 Share Posted January 26, 2007 I've been doing alot of work for a joint venture from California. They have bought over a hundred townhomes around the inner loop. They are renting them out, trying to break even for 5-10 years. The way Houston is booming in so many areas they plan on flipping their investment for a nice profit. Some of theis investors I met said Houston is what L.A. was in the 50's and that real estate in the city core is the best investment for an individual to make. Link to comment Share on other sites More sharing options...
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