Banks are in the business of lending money, not owning or managing real
estate. Thus, they have zero skills to own a foreclosure, and zero desire
to own one.
ln a perfect world someone would invent a business hustle that took
advantage of their weakness and seized the opportunity of taking the
Most banks sell their mortgage loans either immediately after closing or within
a few years. So the new debt-holder is some mortgage-backed investment fund.
They don't know anything about the properties backing the debt, only that they
allegedly appraised at the required percentage of the loan
They generally have people who deal with this stuff with no common business
sense.
Sent from my iPhone
> On Dec 12, 2022, at 9:43 AM, dan penoff.com via Mercedes
> wrote:
>
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So the banks are in the business of loaning money on homes, knowing that
some of those loans will be going into default, but they have no plans to
deal with the houses they now own.
"Prior Planning Prevents Piss Poor Performance"
On Mon, Dec 12, 2022 at 10:14 AM Buggered Benzmail via Mercedes <
When I get some more time I’ll tell the story of my friend’s house that flooded
and they walked away from it, was foreclosed, legal festivities followed
--FT
Sent from iFōn
> On Dec 12, 2022, at 11:03 AM, dan penoff.com via Mercedes
> wrote:
>
> To add to this, there was a bank sale in my
Probably.
-D
> On Dec 12, 2022, at 11:09 AM, Jim Cathey via Mercedes
> wrote:
>
>> They don’t care about reducing the costs or considering the overhead of
>> having properties sitting around.
>
> "Not my department?"
>
> -- Jim
>
>
> ___
>
> They don’t care about reducing the costs or considering the overhead of
> having properties sitting around.
"Not my department?"
-- Jim
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To add to this, there was a bank sale in my current neighborhood that we made
an offer on a few years ago.
Seems the dad was not a bright guy. He turned in his work laptop to his
employer’s help desk for a backup, where they found child porn on it! The guy
went AWOL and couldn’t be found for a
Sometimes I wonder "Wouldn't the bank make more money if they just dealt with
these things promptly?"
Then I wonder if the salary cost of somebody dealing with things promptly would
cost more than just letting it slide...
-Curt
On Monday, December 12, 2022 at 10:43:06 AM EST, dan penoff.com
As my good friend and real estate attorney who worked for Chase for many years
says about this, “Banks are dicks.”
The house we bought in Indianapolis was a bank sale. Bank foreclosed on it, sat
on it for two years after they flooded the basement by turning off the power so
the sump pumps
The carrying costs amaze me. There's a house in our neighborhood that a guy has
been rehabbing. He bought it at auction after the bank sat on it for 6 or 7
years. After sitting empty for 6 years it had no glass, plumbing or wiring. The
inside was destroyed, the barn roof had leaked and the barn
I think Kaleb had mentioned this previously, but it’s certainly something I
noticed, and that was they were paying inordinate amounts of money for used
cars. Granted, they sold them for some of the highest prices on the market, but
I can’t imagine the profit margin was in any way decent over
I mean, they seem to have a hard time proving they actually own a lot of the
cars they try to sell.
https://www.foxbusiness.com/markets/carvana-car-buyers-without-title
-Curt
On Sunday, December 11, 2022 at 08:48:23 PM EST, Allan Streib via Mercedes
wrote:
More bad news for Carvana --
As we speak, I'm drawing up a business plan to buy all the strange
buildings and convert them to pole dance clubs pennies on the dollar.
The only thing is, there seems to be a shortage of really athletic
attractive women who will perform semi nude on a 10 story pole in a glass
building for
More bad news for Carvana --
"After a blockbuster few years during the COVID-19 pandemic, Carvana has seen
98% of its market value evaporate and its stock plunge to just $4.81 as of
Friday morning. The upstart used car retailer is fading so fast, many industry
players are wondering what
How about very small apartments?
Randy
On 18/11/2022 3:20 PM, Andrew Strasfogel via Mercedes wrote:
Maybe repurpose them as cannabis dispensaries?
On Fri, Nov 18, 2022 at 4:18 PM dan penoff.com via Mercedes <
mercedes@okiebenz.com> wrote:
And excuse me if I sound like an old fogey, but how
This has been a subject in my business for a while. Yes it seems like they have
to be close to the end.
Sent from my iPhone
> On Nov 18, 2022, at 3:20 PM, Rick Knoble via Mercedes
> wrote:
>
> I expect carvana to end up below earth.
>
> "It's dead, Jim."
>
>
> Rick
>
Maybe repurpose them as cannabis dispensaries?
On Fri, Nov 18, 2022 at 4:18 PM dan penoff.com via Mercedes <
mercedes@okiebenz.com> wrote:
> And excuse me if I sound like an old fogey, but how stupid was that. “Wow!
> I get to put a giant coin in a massive 5 story machine and my car comes
> down
I expect carvana to end up below earth.
"It's dead, Jim."
Rick
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And excuse me if I sound like an old fogey, but how stupid was that. “Wow! I
get to put a giant coin in a massive 5 story machine and my car comes down an
elevator and is delivered to me!"
Stupid. I’m betting many of these will be empty monuments to excess in a few
years.
-D
> On Nov 18,
The other problem they had was spending huge amounts of money on those huge
vending machine parking structures instead of renting cheap land or warehouse
space somewhere. They got way ahead of themselves in the infrastructure without
proving the business model. It was “cool” and “edgy”
--FT
Yep. Used cars are not like software. You can't create infinite copies at no
marginal cost and sell them for pure profit. They are actually hard assets and
have a carrying cost just to keep them in inventory. There's only so much
margin in the pricing (even allowing for buyers who will overpay
I read an article about their situation. It was a a really bad business model
from the beginning, although interesting. They overpaid for inventory and
didn’t have a good way to recoup their money and overhead. Plus a lot of people
were having problems with the cars and carvana was not honoring
Just like OpenDoor with house flips. They’ve got three houses on the market in
my old neighborhood that they bought within the last 90 days or less, and
they’re barely listing them for $5k over what they paid. They keep dropping the
prices - I’m waiting to see them go negative.
Heck of a
High interest rates starting to hurt demand for used cars. Carvana stock has
lost nearly all its value. Maybe prices will start to come back to earth?
https://www.bloomberg.com/news/articles/2022-11-18/carvana-says-it-will-cut-1-500-jobs-as-company-s-troubles-mount
If that's paywalled, below is
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