Is Eldebrock toast?

[LS short box]

Its too bad some of these companies don't go the ESOP route and let the employees buy the company. The company I worked for close to 40 years did an ESOP in 2000. As employees we bought in at $2.20 per share. Only employees could invest and money had to come out of your 401K. No outside cash. When I retired three years ago and the stock price was a bit over $50 per share. Prior to the ESOP we were partially owned by an investment company. I wasn't in management at that time but office rumor was they were a real pain to deal with.

[67ChevyRedneck]

Originally Posted by FleetsidePaul

My wife and I drive through California City from time to time.

California City was supposed to be the new Los Angeles. It never happened. All the infrastructure is there to build homes. Miles of empty streets. Ready to go.

My wife asked me why.

It simple. No jobs. If someone wants to build or buy a home then they usually need a good job. And there's nothing there. So all that land just sits. It's been like that for 30+ years.

If you could build some large factories in that area then people would come for work. It would turn things around. But that's certainly not going to happen in California. No one is going to build a factory here.

You weren't kidding... and it's not just a few city blocks, its MASSIVE. As a civil engineer, I've never even seen anything on this scale. Running street view the few homes/businesses there look old and run down.

This is just a small section. Anyone interested... just google map California City, CA.

As most everyone else has noted, my wife and I really enjoyed our trips out to CA, even considered moving there a few years ago (wife even interviewed at a vet clinic while we were out there on vacation) but the beauty and lifestyle just aren't worth it anymore. The math just didn't make sense then (2015) and it's even worse now. We're pretty well off in SC, should even be able to retire quite a bit early... I'd be paying off my house in CA until I died.

[MikeB]

The buyout and merger are not recent news. I hope Edelbrock is not going away, but simply closing their CA HQ.

2010 – Industrial Opportunity Partners strategically invests in the Edelbrock Corporation
(I read elsewhere that IOP owned a majority share of the company.)

February 2020 -- Edelbrock along with its Russell Performance division joined forces with the Memphis, TN-based COMP Performance Group that includes COMP Cams, TCI Automotive, FAST Fuel Air Spark Technology, Racing Head Service (RHS), ZEX, Inglese Induction Systems, Powerhouse Products, COMP VThunder and COMP GoParts.

Seems like Holley has done well buying so many companies. Must be strength in numbers!

[FleetsidePaul]

Originally Posted by Andy4639

Do you cally people hear crazy **** about us easterner's like we here about ya'll?

Only people from Boston and Philly. J/K

[3767]

Not surprised they are leaving. This reminds me of what happened during the first part of the 80’s. Company’s we’re leaving the north east and moving south, while some moved more south west. People had a lower cost of living here and a big workforce to cover the labor needed. California is a nice place to visit and has a lot of nice folks. Those are who I feel sorry 4 the most. They depended on that job and now with this pandemic and all the costs associated with being n California, I have 2 believe more will leave the state for elsewhere. I do hope that the quality we have come to expect from edelbrock won’t change.

[FleetsidePaul]

Originally Posted by 67ChevyRedneck

You weren't kidding... and it's not just a few city blocks, its MASSIVE. As a civil engineer, I've never even seen anything on this scale. Running street view the few homes/businesses there look old and run down.

This is just a small section. Anyone interested... just google map California City, CA.

As most everyone else has noted, my wife and I really enjoyed our trips out to CA, even considered moving there a few years ago (wife even interviewed at a vet clinic while we were out there on vacation) but the beauty and lifestyle just aren't worth it anymore. The math just didn't make sense then (2015) and it's even worse now. We're pretty well off in SC, should even be able to retire quite a bit early... I'd be paying off my house in CA until I died.

Yeah. California City is a nice place to visit if you want to get depressed.

But they do have a McDonalds there.

Property is stupid expensive here. I watch what my rental house in So. Cal is worth and I wonder how anyone could afford it. It's only 1400 sq. ft. and it's at $675,000 I own it but I couldn't afford to buy it now.

[Boog]

Wow. If the housing market tipped downward would you try to unload it or continue to just sit on it until such time as you could no longer take care of it?

[Ol Blue K20]

I'm trying to get my girlfriend to retire. I want to liquidate everything and move out of here!

[davischevy]

The great exit is showing up here.

Our U-Haul dealer has the lot full of trucks and has trucks on off site lots. People are moving here and nobody is taking them back out.

For years our real estate market has had between 500-600 homes for sale at any given time. Last week there were under 70 houses in the entire market and they are over priced. For the first time in my 50+ year building career, houses are bringing over asking price.

Nothing is at face value any more. I wrote what I thought about investment companies, but I deleted it.

[67C10Step]

Originally Posted by LS short box

Its too bad some of these companies don't go the ESOP route and let the employees buy the company. The company I worked for close to 40 years did an ESOP in 2000. As employees we bought in at $2.20 per share. Only employees could invest and money had to come out of your 401K. No outside cash. When I retired three years ago and the stock price was a bit over $50 per share. Prior to the ESOP we were partially owned by an investment company. I wasn't in management at that time but office rumor was they were a real pain to deal with.

The company I work for went ESOP in 2018 with a bit of a twist. It's going to be on top of my 401K and I don't have to contribute any of my salary to it. Company donates shares of the company to my account each year as a retirement bonus. I am hoping to only work about another 12-13 years but it should be another $150K or so in my retirement fund so I won't turn it down.

Hope this means the companies under the new umbrella in Mississippi will be stronger and better. Not to mention I actually work out of our Bartlett, TN office so if they have a store front I can run down while I am in town!

[57taskforce]

Originally Posted by davischevy

Nothing is at face value any more. I wrote what I thought about investment companies, but I deleted it.

Aww come on now Larry, where’s the fun in that!?

[1976gmc20]

Originally Posted by davischevy

The great exit is showing up here.

Our U-Haul dealer has the lot full of trucks and has trucks on off site lots. People are moving here and nobody is taking them back out.

For years our real estate market has had between 500-600 homes for sale at any given time. Last week there were under 70 houses in the entire market and they are over priced. For the first time in my 50+ year building career, houses are bringing over asking price.

Nothing is at face value any more. I wrote what I thought about investment companies, but I deleted it.

The Colorado Springs house market is hot. The first contract on my mom's house fell through, and a few weeks later we sold it for almost $40K more than the first contract!

The guy who was an @$$ about something really screwed himself

[Andy4639]

We put our son's house on the market a week before Christmas 2020. The next day we sold it for $5,000 more than our asking price! We had 25 people in less than 24 hours look at it. Our realtor showed it to a guy and she had told him we had a full price offer and he offered the $5k more. He wrote us a check for it at closing!
We needed to sell it because our son & daughter-in-law had already moved to the beach and needed the money for a house here.
We have made offer on one here and waiting to here back now.

[ChevyRacefan]

The housing market is nuts everywhere ATM.
No one learnt anything in 2005-2009 I guess.
I do think the bubble will go higher, IF, and this is a big If. Many companies embrace the work at home model.
If they do, People will have no need to stay in an overcrowded city. And high cost of living area's.
These people are used to high taxes and day to day cost and higher than normal housing cost. This will make even the overpriced housing in other places seem cheap to them. adding hot air to the bubble.
There is a down side to this and I will try to tip toe around it. BUT, these people if they get to work from home and move, have different ideals mind set that can change your red eyes , blue. (take on crystal gale ) .
If the work at home becomes the new normal because businesses can save huge/silly money not having a high lease office building, We will see a huge number of folks moving out of cities and the areas surrounding them.
I know what my aunt pays in rent for a 2 bedroom(1 bed, 1 office) flat in cali. and it is double my mortgage of my house. That to me is nuts.

[MikeB]

Originally Posted by ChevyRacefan

The housing market is nuts everywhere ATM.
No one learnt anything in 2005-2009 I guess.

The last housing crisis was due to banks lending money to folks who were totally unqualified. In fact they were actually referred to as NINJA loans -- "No Income No Job". Easy money, of course, raised home prices. The NINJA loans were then "packaged" and sold to investors as Mortgage Backed Securities, which, in the past, were as secure as any investment you could make.

I'm not saying it won't happen again, but that's not what's driving up prices this time. I think it's super low interest rates.

I strongly recommend a movie about the sub-prime lending scandal. It's called "The Big Short".

[FleetsidePaul]

Originally Posted by ChevyRacefan

The housing market is nuts everywhere ATM.
No one learnt anything in 2005-2009 I guess.
I do think the bubble will go higher, IF, and this is a big If. Many companies embrace the work at home model.
If they do, People will have no need to stay in an overcrowded city. And high cost of living area's.
These people are used to high taxes and day to day cost and higher than normal housing cost. This will make even the overpriced housing in other places seem cheap to them. adding hot air to the bubble.
There is a down side to this and I will try to tip toe around it. BUT, these people if they get to work from home and move, have different ideals mind set that can change your red eyes , blue. (take on crystal gale ) .
If the work at home becomes the new normal because businesses can save huge/silly money not having a high lease office building, We will see a huge number of folks moving out of cities and the areas surrounding them.
I know what my aunt pays in rent for a 2 bedroom(1 bed, 1 office) flat in cali. and it is double my mortgage of my house. That to me is nuts.

I haven't paid rent since I was 22 years old. (long time ago) I bought my first house for 65K and that was really expensive for me at the time. I looked the old place up on Zillow. It's over a half a million bucks now. I should have kept it.

I don't care about a bubble because I'm not selling anything. That's my kids problem when I croak.

[ChevyRacefan]

Originally Posted by MikeB

The last housing crisis was due to banks lending money to folks who were totally unqualified. In fact they were actually referred to as NINJA loans -- "No Income No Job". Easy money, of course, raised home prices. The NINJA loans were then "packaged" and sold to investors as Mortgage Backed Securities, which, in the past, were as secure as any investment you could make.

I'm not saying it won't happen again, but that's not what's driving up prices this time. I think it's super low interest rates.

I strongly recommend a movie about the sub-prime lending scandal. It's called "The Big Short".

Millions lost their job in 2020 . What makes it through 2021 is yet to be seen. Sure the low % is driving it, but who buys At an over priced market with that looming and better yet, what lender is signing off on a loan that the loan to house value is upside down from day one.
this is 2006-9 all over again, loans underwater, and when a person has to move to get a new job, but can't sell.
The handing out loans like candy was only 1/3rd the problem the last time. The buyers, buying at tens of thousands over asking price, and lenders handing buyers a (example) 350k loan for a home that is valued at 309k. Because the buyers credit score was great. was as big if not a bigger problem.

[ChevyRacefan]

Originally Posted by FleetsidePaul

I haven't paid rent since I was 22 years old. (long time ago) I bought my first house for 65K and that was really expensive for me at the time. I looked the old place up on Zillow. It's over a half a million bucks now. I should have kept it.

I don't care about a bubble because I'm not selling anything. That's my kids problem when I croak.

And do you honestly think a house that was 65k should be over 500k now?
I know what the house I grew up in cost when my parents bought it, and what it is worth today. Wages have not kept up to the housing market.
They say it is the 1%ers that are the greedy ones. I think everybody is in on that angle.
I still owe on my house, but I could not think of looking at houses today at what they are going for.
Fools are paying 329-359 and up for a 2 bed condo. And that is the low end.
This is a bubble, and it will go pop, and because it is less likely to be sub prime dragging it down next time, it is going to hurt even more.
My home value almost tripled since 2010. this is a bubble, it can't stay this way.

[67ChevyRedneck]

Originally Posted by FleetsidePaul

Yeah. California City is a nice place to visit if you want to get depressed.

But they do have a McDonalds there.

Property is stupid expensive here. I watch what my rental house in So. Cal is worth and I wonder how anyone could afford it. It's only 1400 sq. ft. and it's at $675,000 I own it but I couldn't afford to buy it now.

I watched a few short youtube videos on it. Neat story. The guy that had the idea made out like a bandit because at one point, all of the land had pretty much sold, but as the years and decades passed the vast majority of people never moved out there, let their taxes lapse, and now the state owns most of it. It's unreal to me how massive it is. It's the 3rd largest city in CA by land size. I did find a few nice pockets of home on google maps. Looks like Honda has a proving grounds near by and theres a few other places to work at near by.

[FleetsidePaul]

Originally Posted by 67ChevyRedneck

I watched a few short youtube videos on it. Neat story. The guy that had the idea made out like a bandit because at one point, all of the land had pretty much sold, but as the years and decades passed the vast majority of people never moved out there, let their taxes lapse, and now the state owns most of it. It's unreal to me how massive it is. It's the 3rd largest city in CA by land size. I did find a few nice pockets of home on google maps. Looks like Honda has a proving grounds near by and theres a few other places to work at near by.

It's funny how a lot of cities have the little pockets of nice homes. I've worked in ghetto's. Turn one corner and you don't think you're in the same city. Beautiful well kept homes. Go to the next block and it's a slum again.

I've passed that Honda place a bunch of times. I never knew it was a proving ground. Just a whole lot of solar panels. It's a nice facility but I've never seen anyone there.

[MikeB]

Originally Posted by ChevyRacefan

This is 2006-9 all over again, loans underwater, and when a person has to move to get a new job, but can't sell.

That may be true in California if businesses continue to leave. Guess we'll see what happens.

Here in Texas, by the way, home values stayed mostly flat during the sub-prime mortgage scandal. For example, the numbers below are from a house I used to own north of Dallas. (Worth around $360K today, and probably $1.5 million in some parts of CA, from what I see on Zillow.)

2011 -- $209,656(+1.6%)
2010 -- $206,445(-0.2%)
2009 -- $206,917(+2.3%)
2008 -- $202,245(-0.1%)
2007 -- $202,454(+3.9%)
2006 -- $194,894(+3.2%)

Originally Posted by ChevyRacefan

The handing out loans like candy was only 1/3rd the problem the last time. The buyers, buying at tens of thousands over asking price, and lenders handing buyers a (example) 350k loan for a home that is valued at 309k. Because the buyers credit score was great. was as big if not a bigger problem.

Conservative lenders around here rarely, if ever, finance more than appraisal value. Here's the way it worked when I sold the house above for more than the appraised value: The lender simply wanted to see 20% down + the amount over the appraisal price, which was around $20K. That was no problem for our buyer who had equity from his previous house. However, it would have been a problem for a first time buyer with not a lot of cash.

But, yes, I do know that lenders would finance more than appraised value prior to the "mortgage crisis" in CA, NV, AZ, FL, and some other states. Combine that with defaults on NINJA loans, and it was it was a disaster waiting to happen for sure.

Just found this: A 1290 sq/ft house in San Jose that we bought new for $33,450 in 1975. Current estimated value: $981K. Guess I should have kept it as a rental property!

[1976gmc20]

Originally Posted by Andy4639

We put our son's house on the market a week before Christmas 2020. The next day we sold it for $5,000 more than our asking price! We had 25 people in less than 24 hours look at it. Our realtor showed it to a guy and she had told him we had a full price offer and he offered the $5k more. He wrote us a check for it at closing!
We needed to sell it because our son & daughter-in-law had already moved to the beach and needed the money for a house here.
We have made offer on one here and waiting to here back now.

We never had an offer not above the asking price. First contract was $12K over and not the highest offer even but it was cash so we took that one. Then the guy backs out over some pissy thing, so we re-listed it at $20K higher than our original asking price, and finally sold it for $30K more than that!

This was last August and September. I talked to our realtor around Christmas and she said the big problem was that there weren't enough houses on the market for her to show and sell.

My understanding is that there are some other areas that are just the opposite.

[MikeB]

Originally Posted by 1976gmc20

We never had an offer not above the asking price. First contract was $12K over and not the highest offer even but it was cash so we took that one. Then the guy backs out over some pissy thing, so we re-listed it at $20K higher than our original asking price, and finally sold it for $30K more than that!

That's awesome! We listed ours at around $20K above appraisal and got 21 showings and 7 offers between Friday and Sunday.

Ended up getting around $11K over asking price from buyer with around 40% down. Like you, we had an even higher offer, but it was a bit shaky.

We did have one offer that was well below asking. Our agent said good luck to them finding anything!

[1976gmc20]

Originally Posted by MikeB

That's awesome! We listed ours at around $20K above appraisal and got 21 showings and 7 offers between Friday and Sunday.

Ended up getting around $11K over asking price from buyer with around 40% down. Like you, we had an even higher offer, but it was a bit shaky.

We did have one offer that was well below asking. Our agent said good luck to them finding anything!

Once in a great while something actually works out well for us.

I don't know if the feds are going to try to claim capital gains between March and September? We sold it as fast as we possibly could considering all the China Virus crap and getting it cleaned and fixed and listed.

[1976gmc20]

Lots of people moved out of New York and California in 2020. Here's where they went

https://www.ktvq.com/news/coronaviru...here-they-went