March 31, 2006

Real Estate Bubble Reaches $1m Crackhouse Phase


Bought in October 2005 for $235,000. Flipped four months later for $680,000 (wow, gotta love a good bubble!). Then put back on the market a few days later for $900,000 now.

Are people really THIS stupid?

Yup, they are.

Wonder how long until it's back under $235,000?

Thanks to gothamist for the
reporting:

Now, does anyone else think is just redonkulously insane? How can anyone look at evidence like this and NOT conclude that a full fledged real estate mania is currently in swing and approaching its peak? How can anyone expect to buy this place, put in $1m worth of renovation, and make a profit? How can someone sell this building at this price with anything approaching a straight face? GAAAAAAAAAAAAAAAAAH!

20 comments:

silverisgood said...

You have to be smokeing crack to even consider it.

brokersleaveyoubroke said...

Sounds a bit like a scam I've heard about. The guy who bought it for 235K gets someone he knows to buy it for 600K. They get a crooked appraiser and mortgage broker to do the deal and then they all split the profit. The new owner will try to sell it for a profit but if he can't he just walks away from it, he already made his money on it. I bet this property is in forclosure in a few months unless it burns down first.

devestment said...

Does it come with the crack?

gerlando_sciascia said...

"Sounds a bit like a scam I've heard about."

The was exactly how the S&L scandals went down.

InfidelSix said...

ReCockulous

keith said...

brokers - brilliant!!! I'd almost guarantee it's a scam.

with the GSE's buying up all the loans remotely, noboday at the wheel

Pootie said...

It's not a crackhouse! It's a crack home!

Osman said...

"How can anyone look at evidence like this and NOT conclude that a full fledged real estate mania is currently in swing and approaching its peak?"

I thought your position was that real estate *had already* peaked? Uh-oh. What changed your mind?

gerlando_sciascia said...

The stock market's sectors peak at different times. Telecom did not go bust until 2001. The dotcoms, which led the bubble, burst back in March 2000.

The leaders of the RE bubble were AZ, NV, CA, FL and they are going bust first. The other bubble markets will follow in due time. Some markets that did not experience the bubble might actually increase while the bubble areas go bust as speculators move around.

JohnB said...

Looks like an ideal Imminent Domain seizure property. Good luck!

Anonymous said...

money is worthless. crack is gold. amerika iz mezico.

raciest said...

Where will the Mexicans go once they turn the USA and Canada into a steaming pile of crap like their own beloved Mexico? I know, it's America's fault that Mexico is a craphole that people are fleeing

Anonymous said...

Or it could be the inflation is out of control and the US government is hiding it form us by stopping the M3 official numbers.

That $1 million dollar crack house may make sense, not as a %303 rise in stock but a %303 DROP in US dollar real value.

Anonymous said...

Very nice! I found a place where you can
make some nice extra cash secret shopping. Just go to the site below
and put in your zip to see what's available in your area.
I made over $900 last month having fun!
make extra money

Anonymous said...

Very nice! I found a place where you can
make some nice extra cash secret shopping. Just go to the site below
and put in your zip to see what's available in your area.
I made over $900 last month having fun!
make extra money

Anonymous said...

Very nice! I found a place where you can
make some nice extra cash secret shopping. Just go to the site below
and put in your zip to see what's available in your area.
I made over $900 last month having fun!
make extra money

Anonymous said...

Very nice! I found a place where you can
make some nice extra cash secret shopping. Just go to the site below
and put in your zip to see what's available in your area.
I made over $900 last month having fun!
make extra money

Anonymous said...

Blogging does not always widen my mental spectrum, which I need to do as a break from my own real estate work. We need more colorful blogs. Thanks for the read. Visit my site if you have a chance.

buy note said...

Very interesting read about notes. Thanks.

Sincerely,

DialNoteFinder
buy note
http://www.DialNoteFinder.com

Anonymous said...

Bulk REO Deals at http://builderblowouts.blogspot.com/