All Forum Posts by: Xing Zhu

A contract can be voided based on Mental Incapacity.
This old lady's problem might not just be her age.

How scary!

Unless it is written in the contract, the buyer won't be compensated. Sometimes the agents on both sides can be
compensated, as almost always stated in the contract.

If it were the bank, the closing would never have been scheduled.

Buy umbrella insurance

More troubles, more rewards! I call it TROUBLE PREMIUM.

A friend of mine has been buying ultra cheap houses for a couple of years. His net income is over 20% a year.

He has a contractor licence and knows how to fix things.

I myself is interested in the other end: ultra modern buildings
opened between 2007-2009 -- the prime of the bubble!
Developers had lost so much money on those projects and I figured those were good deals for me. So far my rental income is very low as I let rental companies take care of my properties. The appreciation is pretty though.

As far as I know, hedge funds (such as John Paulson) are interested in buying cheap and old properties for higher return.

Some land deals look so good for a reason.
For example, in LV near the Strip, some believe that no new major
developments will take place until 2023. The reason behind this calculation is that most of the condo buildings there are right now priced far below the construction costs.

Donald Trump has lost so much money in his gold tower in LV. Why not we just buy his condos? Hilton just bought 300 of them. Why not Hilton buys the piece of land next to the tower and build its own hotel?

I am also new here, as I just found this very interesting forum an hour ago. My bread and butter comes primarily from trading stocks.

The following quotation is from one of my early posts elsewhere:

"When US policy makers decided to further deleverage the housing market, they understood well how venture capital in general makes investment decisions based on Return/Risk (Sharpe Ratio). The investment in real estate must also be compared against investment with risk of similar scale, such as investment in stock market. They might have felt that Return/Risk ratio is higher for short term stock investment because of high liquidity of such market and therefore
investment banks are banned to trade stocks by Volcker's Rule, so that their money can be forced into real estate. This is exactly what has happened. Goldman Sachs started to buy real estate aggressively from the last fall in anticipation of full implementation of Volcker's Rule this summer. Then big investors such as Warren Buffett, John Paulson, and even some of the foreign sovereignty funds all
started to rush more dollars into US real estate market. QE3 is just another more direct push. "

I acquired an oceanfront property in August from Fannie Mae through a fierce bidding war . There was no appraisal or inspection! Fannie Mae would not even allow me to sell within a half
year period. This type of market had been very thin for a while.
Comps showed that I overpaid. If I had kept last year's mentality,
I certainly wouldn't buy. At the time, my decision was based on my local market analysis as well as the general Fed and Congress policy analysis. QE3 followed and now if Fannie Mae allows, I can easily sell it for 25% profit as buyers are lining up.