November 09, 2007

Yup. This about sums it up.

“Everybody was basically using their house as an A.T.M. machine,” said Dave Simonsen, a senior vice president for NAI Alliance, an industrial real estate firm in Reno. “Now they are upside down on their house without that piggy bank to go back to.”

17 comments:

keith said...

FYI, you just know the REALTORS are getting killed the worst:

Bought too many homes with toxic loans (like cocaine dealers who do cocaine)

Live beyond their means

And now have no income coming in

I'd like to see what % of foreclosures are realtor homes

Eric said...

You mean I'm going to lose my leased Bimmer? What kind of shit is that?

christiangustafson said...

Bye bye Baby Boomers!

Way to finish strong, you guys! LOL

LauraVella said...

My husband and I would go check out the open homes (not many in SW Reno at the time) and we spoke with a realtor couple who told us their proud story that they moved to Reno from Washingston State 5 years earlier to sell homes. They told us they owned 4 rentals and looked at the slowing down in the market as a "buying opportunity to purchase more rentals". I wonder how that is working out for them now??

Typical Reno realtor drives a leased Lexus RX350 and a nice wardrobe.

Marky Mark said...

Since when - ever - is taking a loan an ATM?

wc said...

Bob Toll says it's all the medias fault. It must be true then.

LauraVella said...

We lived in Reno for 2 1/2 years and couldnt believe all the new homes.

At the time, we heard many homes were purchased by "Californias" as second, rental & retirement homes.

Reno's land mass is endless, with sub-divisions in Reno, Sparks, Spanish Springs, Carson City, even in remote towns like Fernly and Minden.

It's going to turn ugly fast for Reno, adding to that uglyness is the legalized gambling aspect.

When blackjack dealers turn in their aprons to become realtors, you know it will end badly.

Anonymous said...

My realtor friend bought 6 homes in 6 years on equity and convinced her friends and family to do the same (except me). At first, she wasn't concerned about the slowdown saying everything would turn around soon. Now, she won't call me back and I've stopped trying to reach her afraid of the depressing truth.
You are absolutely correct that a lot of realtors bought investment homes and we all thought they were brilliant until...
I can understand the unsavy buyer getting suckered into this, but these realtors understood the risk and bet everything anyway.
In my friend's case, she based her financial decisions on her understanding of Robert Kiyosaki's books.

Anonymous said...

Keith-

your 1st comment is right on! Me being in the business in south fla an being able to see this 1st hand is truly hard to believe what is happening d0wn here! I fortunately will be ok because i have 1 property. it is an income property which ables me to basically is a break even scenerio. if i had a single family then i would be f@cked bigtime!!! it also gives me the option to move out of the messed up south fl economy which is based on real estate and medical. the only other industry is hotel and restuarant which is going south due to the real estate going under. South florida is in trouble because of real estate and almost all realtors are stuck holding the bag on "investment properties/condo conversions/single family new construction" I easily could have been in this situation but i guess it is a good thing my credit isn't strong enough to do things other people were doing. I really thought i was missing out in the $$$ game!! I didn't know this was going to happen or even could happen especially in south fl. I guess i was a sheep/dope/nar propaganda believer! I started to see the downturn and i started to prepare a bit for it by going out less and cancelling gym membership and extra stuff, but i didn't know the extent of this crisis. Thank god i found HP for some guidance i am addicted.

thanks always enjoy reading,

rich in fla

k.w. - southern ca. said...

Essentially, across all income brackets, there were alot of very immature people getting into houses - houses they never could really afford, but hoped to keep paying into with money they didn't have.

Now, they have to start dipping into their own savings ... they should have at least thought that the nirvana, and good times would have to end at some point ... and now they are stuck with costs they have to actually bear.

We all need to be responsible for our own decisions, and the housing crisis is no different.

We shouldn't forget that many of these same house debters wouldn't bat an eye for evicting a renter if they were late on a payment, so why should it be any different for them?

Without taking responsibility for our own mistakes, we'll just keep repeating them over and over.

Anonymous said...

yep...no sex without bimmer......

Ruprecht said...

"Marky Mark said...
Since when - ever - is taking a loan an ATM?"

Exactly,

I don't use an ATM as an "ATM"

What does treating something as an ATM even mean?

what they should say is people were using their homes as street corner check cashing payday loan stores.
We all know how expensive they are!

Ruprecht said...

"keith said...
FYI, you just know the REALTORS are getting killed the worst:"

Gotta feel sorry for the realtors and the mortgage brokers, they saw all the money being made in the boom, couldn't stand to not get a piece of the action and just had to jump in, too late of course...

Anonymous said...

Many homes now for sale in my neighborhood with sign "for sale by owner/agent"

Michael said...

Marky Mark said...

"Since when - ever - is taking a loan an ATM?"

==============================

When I saw this first hand, people viewed their real estate profits as the same kind of income as their weekly paycheck. No one was thinking of them as paper profits. The lenders lead people to think this way by using terms like "tapping your home equity" to get people to take out loans. I did know one couple who did it the right way back in the late 80s. They sold a house here in Boston and moved to St Paul and lived off the profits for two years.

Anonymous said...

Reno's land mass is endless, with sub-divisions in Reno, Sparks, Spanish Springs, Carson City, even in remote towns like Fernly and Minden.


ok, ok, ok..(I said it like Joe Pesci playing Leo), just to maintain the HP tradition:

Reno sucks!

Sorry, I couldn't resist. ;)

Anonymous said...

I went to Reno on a roadtrip with some of my former co-workers with Merced County last weekend. On Sunday morning, our bus drove by a street across from one of the casinos. they had the street cardoned off cops and a ambulance. I found out someone took a leap from the 3 story parking garage across from the casino.