Traffic report, tour of the court house steps, a flying rat, and the old standard:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
Jim, your videos are very funny. The understated social commentary sometimes make me fall out of my chair laughing.
Also, nothing against the ice cream guy because at least he’s working trying to make a buck. But how in the world does selling ice cream buy the kind of house where he said he lives.
Take away the cell phones and you have another mob of slovenly American goons trying to get something for nothing.
Pathetic Scenes, Pathetic People, Pathetic Nation.
shadash, most likely he’s selling more than just ice cream from that truck…if ya get my drift 😉
I’m with shadash . . . an ice cream truck in Santa Fe Trails??? And, the guy actually lives right down the road not far from there! Where would that be, The Ranch?!?! What am I doing wrong?
Well said.
The knifecatchers are still alive and well. There seems to be a never ending supply of Donald Trump juniors out there.
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Take away the cell phones and you have another mob of slovenly American goons trying to get something for nothing.
Pathetic Scenes, Pathetic People, Pathetic Nation.
3rd Generation | November 12th, 2009 at 8:07 am
If parents can fund a college education (not saying college is a must) a mid twenties college undergraduate in early career (and I’m not saying one has to be an engineer or CPA) should have close to 100K if not more in the bank not including a funded 401K and zero debt. Seriously, putting 20K a year in the bank is not that hard. Pay now or pay later and it is not how much money you make, but how you spend it. Granted this is only fodder for those born without spoons in their mouths.
Regarding that guy in the Ice Cream truck: Maybe he got lucky and rode the wave – good for him. Maybe he has a wife that works and they have no debt? Maybe he has a job at night?
I’m tired of hearing the continuous whining coming from some of those that can’t afford a house. I understand some can buy and are just waiting for the right time.
“Take away the cell phones and you have another mob of slovenly American goons trying to get something for nothing.
Pathetic Scenes, Pathetic People, Pathetic Nation.”
This is a very misinformed statement. Aside from the fact that you need cash to bid on these sales, success requires research, perseverance and skilled analysis. I find it difficult to understand that people participating in a true market mechanism would be so criticized.
I agree with 3clicks re: continuous whining.
Fascinating video. I had no idea it was LITERALLY on the courthouse steps. I’ve heard that phrase a lot, but to see that they really do have the auction outside on the steps was…awesome.
By this time next year I may be in the market. Currently waiting out the tax credit extension and building up a down payment. Taking it a month at a time.
-Erica
“But how in the world does selling ice cream buy the kind of house where he said he lives.”
I’d bet he bought a house 20+ years ago and it’s now paid off. Housing is the biggest expense most of us have; if your house is paid off and you have a good nest egg/investments you can be doing pretty well. It’s probably just a fun hobby for him.
-Erica
Yeah, damn these greedy douches for buying crappy houses at low prices to fix up.
I hate the stretch on RSF road in Olivenhain. Stops signs every 50 feet. I can’t get enough of the ice cream truck footage. Ever wonder who takes all the photos for the google “street views”, maybe the ice cream truck is a cover for google cameraman.
I’m gonna agree with 3 clicks as well. You give the bank cash, they give you a house in whatever condition it’s in. A lot of these people are taking big risks with cash, which is far different than doing the same with a zero down loan. There’s no way that buying houses with cash is fueling a bubble.
Call me a pessimist but in my experience there are 10 times more people that live beyond their means (in So Cal) than those that don’t.
I’m sure the odds are in my favor that the ice cream truck guy hasn’t paid off his mortgage yet.
As much as all the “homeowners” want to whine about people questioning how people afford 500k. I feel the query is justified.
As Warren Buffet once said…
“You can’t tell who’s swimming naked until after the tide goes out”
Or there is the outside possibility that it’s the SAME ice cream truck guy in all of Jim’s videos? Which might account of the 500k+ house. 😉
a mid twenties college undergraduate in early career (and I’m not saying one has to be an engineer or CPA) should have close to 100K if not more in the bank not including a funded 401K and zero debt.
3clicks from da beach
You are joking, right?
$80k, less taxes and 401k/etc means taking home $3500/month.
mid20s=4 yrs of saving=$25k/yr or $2k/month
so your hypothetical 26year old is living on $1500/month, in a basement shared room, taking the bus to work, shopping at goodwill for suits, and eating off the dollar menu?
please show me one example of such a mizer.
We hear about the hard costs. Now what about the soft/intagible costs? Take commute for example.
The commute cost to a family with household income around $150K per year could be worth up to $40K per year. That would explain the price premium some pay to live in a favorable location. On the flip side, the more money one makes, the more they want to live in a castle ala RSF or cliff side 😀
Jim, did you keep track of the sales to identify Jon Mann’s buyer? My guess is the better-dressed guy usually standing right next to Jay. I see the sale in SD is still short enough that it doesn’t turn into the all-day campout like LA and Las Vegas.
‘please show me one example of such a mizer’
Thank you for demonstrating the point. Generation Me lacks the dicipline and basic fundamentals to to understand the concept of frugality.
FreedomCM, we can contine the conversation at Pizza Port if you are local 🙂
Hey Jim, was there ever a Pizza Port get to gether in Solana Beach? I do realize this may or may not happen.
FreedomCM | November 12th, 2009 at 10:22 am
I guess I’m considered that miser.
Before I got married last year at 25, I had $130k saved up. Hubby had even more saved. Granted, we are both engineers and never had student debt. It’s not like we flip burgers for a living. We’re frugal, but not completely cheap. OK, so I drive a 14 year old beater and shop for clothes at the clearance aisle in Ross. When I go to the theater, which is often, I only buy rush tickets on the cheap. But I blow my $ in other ways…I go on one international vacation each year. This year was Peru, next yr is the UK. Saving the $ is easy, you just got to be wise in how you blow it.
JtR
Why so far away? Are you not allowed to film on the courthouse property?
Are you trying to protect the identities of flippers? lol
JK
“Annual income twenty pounds, annual expenditure nineteen six, result happiness.
Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.”
– Wilkins Micawber in David Copperfield by Charles Dickens (immortalized by W. C. Fields)
“please show me one example of such a mizer.”
Me? Got my CPA 25 years ago. When I started all the guys I started with went out and bought RX7s etc. Me, no car, I took the bus, lived in a rooming house, strict food budget, limited new clothes. Result – three years later had saved $18K on a salary of between 14 (first year) and 26 (third year), then spent 3 years backpacking around the world, living very nicely (especially in Asia). Scrimp a little, then live nice.
Has continued on … no debt, smallish house, one car, and not working anymore either. In a capitalist society you are better off being the capitalist – of course they don’t teach you that at school, though it always seemed obvious to me.
“Before I got married last year at 25, I had $130k saved up. Hubby had even more saved. Granted, we are both engineers and never had student debt.”
You guys are admirable and should be proud, but I think you must be leaving something out. Did you save during college, or did you manage to save $40k+/year after graduation?
(Congratulations also on getting married at 25. I think educated people often get married too late these days. But I’m old fashioned.)
Well, once again the blog comment thread anecdote proves the case. Can’t argue with that.
…Did you save during college, or did you manage to save $40k+/year after graduation?…
What’s so hard to comprehend? Some were fortunate to have parents to put them through college and some weren’t. That said, there is nothing against working PT in college even when you don’t have to in order to get a head start. Even if one didn’t work in college, $80K by mid twenties is doable though most choose to incur unecesarry debt in the form of a car purchase/lease immediatley thereafter. That’s a 5K/yr reverse present that keeps on giving.
“What’s so hard to comprehend?”
The apparent starting salary is hard for me to comprehend. I had a Master’s in engineering when was 25 and happily made $40k/year, albeit in a lower cost-of-living area.
The apparent starting salary is hard for me to comprehend. I had a Master’s in engineering when was 25 and happily made $40k/year, albeit in a lower cost-of-living area.
Exactly, the median salary for a student coming out of SDSU is $50K a year which seems high since it may not account for those who didn’t get a job. At $50K a year you’d be pretty hard pressed to save $25K a year living in San Diego.
Secondly, working PT in college is usually done so you can reduce your debt load once finishing. I certainly didn’t make enough money in college to save up, go to school full time, pay for school and room/board.
JK–Let me take a stab at it–the reason Jim is filming so far away because Jay (the auctioneer) is very capable of pulling a Mike Tyson on him and the camera at anytime.
Local Boy,
Is the courthouse auction rigged then? Why wouldn’t they let someone film it?
Thanks
JK
‘3rd generation’ needs a hug or something.
JK,
The other video I did on the steps two years ago, back when things were civil (quieter) Jay objected to me sticking my camera in his face, so I wanted to film discreetly. But I think this angle gave you a better overview of the process.
Local Boy will tell you – it is a boring experience. The only real action is when there’s a property that people want to bid on, and that process takes about a minute or two to conclude.
Other than that you’re listening to a ton of postponements, sirens, buses, and some of the nuttiest people you have ever seen. Two different people came out of the courthouse strapped onto stretchers.
The reason Jim was filming across the street is because the seasoned pros at the auction won’t talk to the “new guy” let alone a guy with a camera in their face. I was down there with him and was lucky enough to talk to someone that had been on the scene before. He was nice enough to tell me some of the protocol and who to look out for if we come down to bid. The pockets are DEEP! On Tuesday (supposedly a slow day) there must have been at least 30 people that had at least two pages of properties that were regulars and another 15-20 that were first timers. The guy I talked to pointed out the players, there was a gentleman that represents an investment group with $200Mil behind them, he also pointed out two women representing investment groups with $50Mil and $75Mil to spend and told me if you start bidding against them be ready to lose or pay too much. It was a very eye opening experience, but educational, but the deals are out there.
Today at the sale in Oceanside a property in the development of Arryo Vista in Carlsbad that was listed at $925,000 as a short sale went back to the beneficiary for $739,500; a bidder could have had it for a penny more. The last model match in the same development just sold for $960,000 in August. And the thing is the bank had an all cash offer of $900,000.
Jim/Richard–I conclude exactly the same. From 20 or so unsuccessful visits to the courthouse steps (actually got to bid 4 or 5 times). It gets boring and frustrating. It is tough for the little guy. And then there is the “funny business” Here is one example of that–The last time I went out Jay called off all the postponeds/cancelleds and he started auctioning–then he took about a 1 hour break and when he returned he called-off a few more cancelled sales and one “Pulled-Bid”, which happened to be the property I had showed up for–I hadn’t heard that term before, so I asked him “does that mean that it is not going to sale today” he said 100% for sure it WILL NOT go to sale today–so I left. I later found out that it did indeed go to sale that day and it sold! Frustraiting yes–but I still don’t feel like a “victim”, it is just the system.
I’m with Erica, I really had no idea that they auctioned the homes off literally on the courthouse steps.
Love that the auctioneer is in shorts and a t-shirt, only in so cal!
Old Jay is a real class ass, oops I meant act. I don’t get the negativity about people who are trying to make a living buying properties at the auction. That is about the most “Free Market” way of selling and buying property that I can imagine. If someone gets funds to purchase a property, and then resells it at a profit, where is the hate coming from? If you can’t get your head around the idea that housing is a commodity that intelligent and skilled people are going to trade for profit, you are in for a very frustrating life. Just because you don’t have the patience to research the properties,the capability to fund the project,and the skill to remodel a fixer, etc. doesn’t mean that the folks that do it and make a profit are wrong. You are just too lame to do the work to pull it off. My recommendation is to move to a dump like Las Vegas or Riverside where the REAL bargains are.
A “flying rat”?? Man, that was a panda.
Just don’t ask me why it was orange.
EXCELLENT VIDEO!!
Okay, nobody knows what the ice cream man’s deal is, but the whole thing is pretty symbolic. Come on, that’s classic! My initial reaction is right there with Shadash. Maybe Jim can find one who lives in Rancho Santa Fe.
As for $100k in the bank in your mid-20’s? It’s an impressive feat. From ucla ’98 I didn’t know a lot of people earning more than $40k out of the gate. If you live in a big city, it’s even more difficult.
That was Po, from the movie Kung Fu Panda.
Next time ask the ice cream man if he has Rompope (pronounced “roam POE pay”). To die for. You’ll thank me.
Ok, I have two thoughts.
First, it is NOT that hard to save cash right out of college. I made mid-$30’s and saved $1000 a month while contributing the max 15% to my 401k.
Yep, I took a homemade sandwich to work, rented a 2 bedroom apartment with another guy, and drove a 5+ year old car. For entertainment we shared basic cable and I played pickup basketball, soccer, or roller hockey at Stanford.
By the way, this was in Silicon Valley no less.
Let’s say $1000 went to taxes, 401k, etc.
Another $1000 to savings.
About $1000k to live on (considering I probably lived on a couple hundred a month in college; this lifestyle didn’t feel bad at all.)
I guess off-setting this was that I was young, healthy, had full benefits and didn’t spend money.
Second, the process of purchasing at the trustee auction at the courthouse is not easy. Most of the people there are pros with DEAP pockets. There is plenty of risk so the margin must be say $50k+ for SD, probably higher like $100k. I don’t think Jim would say Jonathan Mann is a knife catching bubble head.
Love the videos Jim!
Maybe I’ll shoot one of the Phoenix auction. You all would be amazed! (700 properties a day, 4 to 6 trustees auctioning simultaneously, total chaos – unless you’re an insider)
If you can’t get your head around the idea that housing is a commodity that intelligent and skilled people are going to trade for profit, you are in for a very frustrating life. Just because you don’t have the patience to research the properties,the capability to fund the project,and the skill to remodel a fixer, etc. doesn’t mean that the folks that do it and make a profit are wrong. You are just too lame to do the work to pull it off. My recommendation is to move to a dump like Las Vegas or Riverside where the REAL bargains are.
Billyfeet | November 12th, 2009 at 8:00 pm
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It’s this notion that housing is a commodity that “intelligent and skilled” people trade for a profit (new lingo for “savvy” investors?) that makes some of us doubt this “recovery.”
See, it’s the same attitude and behavior that brought us “The Greatest Recession Since the Great Depression” and the “Financial Crisis.” (love quotation marks!) 😉
The fact that the govt didn’t let these fools burn is what’s bringing them out in droves now. Moral hazard and all that…
One of the biggest red flags during the bubble was the speculative fever and rampant flipping — the mindset that housing prices always go up. At the peak, about 40% of purchases were speculative purchases/investments. I’m guessing the ratio is getting awfully high again. This is the kind of market reasonable people should be very afraid of — especially when one considers all the manipulation going on, especially the artificially low interest rates.
Okay, I’ve got a *Jay-the-auctioneer” story too….
Was at the trustee sale about a month ago to try and buy a property. Before the bidding starts on each one Jay asks if anyone wants to qualify (which means you show him your cashiers checks and ID).
I move towards him and say that I want to qualify. Instead of discretely looking at my funds, he says within earshot of all the other potential bidders… “How much are you going to go?” I sheepishly say 275K, not wanting to tip my hand to all of my peers.
The bidding starts and I jump in at about 250K. The “pros” that are there every day have the time-wasting habit of bidding in $100 increments. I decide to jump in with 5K increments to announce my presence. A couple others start doing the same thing and before you know it the bidding has quickly gone from an opening bid of 220K to 275K.
At this point Jay stops everyone in their tracks, looks up at ME and announces “YOUR DONE”…….I was flabergasted and said “What?” He says “you told me that you only had 275K, your done!” I say, “I have more”. Then he goes ballistic and yells “It’s against the law to bid more than you have”. Again I fire back “I have more”.
So then, still in the middle of the bidding process with everyone huddled around he says, “show me your money”. I was so belittled and embarrassed at that point that I said “to hell with you, now I’M DONE”. A couple of profanities are exchanged and then the coward summons one of the courthouse guards over to have me removed. (yeah, like I’m really gonna initiate a physical confrontation).
I volunteered to go, but not without announcing to everyone that Jay was nothing more than an hourly paid MONKEY! I think that simple jab really got to him since he is one of those cocky SOB’s that really relishes his master-of-ceremonies role down there.
Would’nt surprise me a bit if he’s dirty and giving preferential treatment to his “regulars”.
Jim, did’nt mean to put a damper on your trustee sale parade. Just wanted to convey my personal experience.
I’m still interested in buying down there, I just have my wife go down instead (had her bidding on one today in fact).
Hey Jim, I’m interested in hiring you to help me land a Trustee sale for our next owner-occupied that will need some financing, but I have not heard back from you.
Here we go again…
What about those who are not CPAs or Engineers upon graduation? I had a Bachelor’s Degree and made $18k a year at my first job. Living in So Cal. I still remember my overhead: $750/mo. rent. $283/mo. car payment (I bought used, you misers – don’t worry – a $10k, 5 year old car). YOU do the math. I managed to save what I could which was at the time $42 worth of company stock. I bought 7 shares at $6/share over the course of a few months (couldn’t drop it all at once!) I sold it in 97 for about $500. It was the best I could do.
Don’t give people false hope about what is financially possible. I am all for saving. I am definitely called ‘frugal’ ‘cheap’ ‘millionaire next door’ amongst my friends, but not everyone has advanced degrees and no college debt out of school!
…and some of us who DO have advanced degrees paid $$, took student loans, and lived like college students in our 20’s in order to get them, thereby cutting into those “income earning” years…
BTW, I’m all for saving too, but I, personally, can’t manage saving 2K a month NOW at ~70K and an old paid for car.
Here we go again – you miss the point.
Buy my Dad always said, ‘if you end up being a Honey Truck driver, be the best Honey Truck driver there is’ – obviously, I wasn’t born with a spoon in my mouth. My Dad graduated only went to high school and never made more than $40K per year his entire life, but he put three kids through college. He has NO debt and is a triple dipper and owns a home free and clear. Some continually just don’t get it.
murf,
I don’t have the financing lined up yet.
Best to all.
@ Fletch, #23
“I think you must be leaving something out. Did you save during college, or did you manage to save $40k+/year after graduation?”
I worked my way thru college and took on no debt. The tuition that scholarships and grants didn’t cover my parents paid for (~$2000/yr). I had 2 jobs in college, i waited tables and worked @ a self storage center where I could be paid to study. I paid for books, rent, food and all misc costs. To save $, Freshmen year I commuted to school 60 miles from my parents’ house, and had roommates the other 3 years. I graduated with >$10k in savings at 21.
I got a job out of college @ $60k. The signing bonus ($5k) was immediately put into savings. I moved in with my bf (now my husband), so we shared a 1 bdrm apt. My half of the rent was $650. After taxes and 401k my takehome was ~$4000/mo (granted, now i make more and can save more). But w/o student debt, car loans, designer handbags, etc., a recent college grad can easily save $2k/month. I normally put away more like $2500/mo.
Currently, I’d say my husband and I save about $6k/month after all expenses. We rent a 1 bdrm apt, which is currently fine by me. We live frugally, but blow about $7k/yr on vacations and only go out to a fine restaurant or the movies 1x per week. Another thing to note is that we don’t have expensive toys, no boats or ATVs, and everything we do own was probably bought on sale.
Garbler-
Thanks for getting specific. I think it helps.
Your two exceptional circumstances were graduating with no debt (indeed, savings), and scoring a high-paying starting job. And I’m not implying you are “lucky”– you earned every inch of your exceptional circumstances. The fruit of your efforts included scholarships, a good savings start after college high starting salary (+bonus!).
Most recent college graduates will have debt and will not look forward to your starting salary.
As such, I do worry that stories like yours may serve not to motivate your peers, but cause them to envy. People tend to compare- especially people who read blogs like this.
The take-away is that early adulthood is a great time to scrimp (to the utmost of your ability) for the purposes of delayed gratification. 3clicks is right that this message doesn’t seem to resonate with most young adults.
Garbler, I commend you on your discipline and success. I also live the way you do, but had a bit more help from my parents (I lived with them until this year, when I finally found prices right to buy). If you are really saving 6k/mo, I think you should be looking to buy too – there are many homes available that you can pay cash for, and ones in that price range (below replacement cost) will not lose any value.