How are Asians so rich in Bay Area?

Lam Research gurukool
Apr 9 88 Comments

I see these guys putting 50 % down to all cash in buying 1.2 million plus homes. How old are these people? How do they do it? All TC from FAANG?

I got beaten by somebody today on a home I badly wanted to buy. Son of a gun . Heard he was Asian .

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TOP 88 Comments
  • Amgen yiXR75
    Mainland Chinese are 90% likely to be fu er dai or rich second generation: in short if you see a 20 year old in a Mercedes mommy and daddy paid for it and also bought his or her house to prevent the Chinese government from taxing their wealth.
    Apr 9 3
    • Intuit jirababy
      Seriously, 22 years old fresh grad with their first job in faang would easily afford a Mercedes
      Apr 9
    • Amgen yiXR75
      If you have a million dollar home and a benz straight out of college where’s the down payment coming from? 他们的妈妈爸爸. Do you really think they’re all engineers?
      Apr 9
    • Uber
      2muchblind

      Uber

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      Apple, Microsoft
      2muchblindmore
      I don’t know what Amgen said in Chinese but I’m pretty sure I agree
      Apr 9
  • Amazon kdkcjs
    I am asian. when we were buying house in Seattle, we kept being outbid by foreign Chinese “investors”. So no, many Asians are being outbid by foreign $ as well. so frustrating. we ended up buying a really old house that has appreciated very well(m (doubled value) since we bought it.
    Apr 9 0
  • Amazon yhgk
    You are not a Superman. Everyone can beat you at the right time and offer. Nothing related to Asian.
    Apr 9 0
  • Uber gRtV35
    They don’t necessarily have to be rich ... families will pool their funds together and live frugally together until the house is paid off or enough to equity for another place. Something American values don’t promote.
    Apr 9 2
    • Lam Research gurukool
      OP
      Haha I’ve heard that too. But not in my case
      Apr 9
    • Clover Health / Ops trollin
      Do you really know that though?
      Apr 9
  • Pandora snuggles
    Asians are such a large group. Be specific before you stereotype millions of people bro.
    Apr 9 1
  • Amazon / Eng
    zsLQ30

    Amazon Eng

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    Amazon
    zsLQ30more
    Well if it makes you feel better, his parents may be rich so it helps.
    Apr 9 0
  • Lam Research gurukool
    OP
    It’s no joke I lost a dream home today because the guy was willing to pay 500 K cash as down payment
    Apr 9 15
    • Lam Research gurukool
      OP
      Exactly but some sellers want more cash upfront . Escrow will eventually give them but more down payment means more liquid cash in sellers hands upfront
      Apr 10
    • Uber buckk
      Still not getting it. It’s not like you give a seller a bag full of cash. It still goes though the same escrow.
      Apr 10
    • Lam Research gurukool
      OP
      Escrow pays them promised down payment cash upfront .
      Apr 10
    • Lam Research gurukool
      OP
      Think of it like stocks. RSU grant of 400 K for 4 years. You get 100 k per year . Vs what if company gave you 400 k in the first year itself and 0 for next 3 years?? You would have more cash in hand right soon ? Though in a span of 4 years U still have same cash
      Apr 10
    • Google 1234-/:;(
      A larger downpay means that the transaction is more likely to go through escrow. 20% is just the avg minimum in the bay and not always guaranteed to go through
      Apr 10
    • Apple checknoche
      Larger down payment hedge the appraisal. Incase of appraisal is lower than sell price bank will not pay difference, while larger down payment will safeguard this .
      Apr 10
    • Apple is right. The seller doesn’t get any money (down payment or earnest money) before closing. But generally speaking there is less risk of delays with a larger down payment.
      Apr 10
    • Just to make it clear, the seller does not get a single penny from escrow before closing.
      Apr 10
    • Lam Research gurukool
      OP
      Yes I’m talking post closing
      Apr 10
    • Samsung koreanbum
      Duh! Also got to do with the fact that it is easy to finance the loan with a huge down payment. So the risk of not getting a loan is very low. It is important for a seller.
      Apr 10
  • Facebook shamrock
    Many Asians in finance, medicine, law - not just tech which makes $$$

    Also lots of Asians with family money (bit of sampling bias here as you have to be of a certain level of wealth to immigrate here)
    Apr 9 0
  • Tesla / Eng jinjin09
    Damnnn “crazy rich asians”
    Apr 9 0
  • Airbnb YdSR51
    As a seller, what’s the incentive to take an offer with a larger down payment?
    Apr 9 5
    • Amazon yhgk
      Solid proof that you have the wealth and can close fast
      Apr 9
    • Lam Research gurukool
      OP
      Well I was going with 22% down and had all my paperwork in place. Just my bad luck .
      Apr 9
    • Airbnb YdSR51
      There’s going to be a earnest money deposit and a loan contingency either way. Are there really that many sales that don’t go through at the loan stage? Don’t people get pre approvals?
      Apr 9
    • Lam Research gurukool
      OP
      I went with all non contingent . So did he .. we were on equal terms except he was throwing more cash at sellers
      Apr 9
    • Amazon yhgk
      I don’t think so. They may just use all cash to close if the seller prefers your offer. Let’s just say Bay Area is open enough for the international competition.
      Apr 9
  • Facebook tantan85
    China money. It’s mostly corrupt and they need to get it out of mainland, so usually purchase foreign property in all cash.
    Apr 10 7
    • Amazon dndn3j2b
      Where do you think they get that "corrupt" money? You never heard how the US literally buys itself to death like a teenager with his first joint credit card?

      Americans are lazy and dont realize there is a price to pay.

      This is on top of China giving you an exchange advantage by devaluing the yuan, making it cheaper for the US to pay off with fewer dollars but entitled Americans still lose.

      Pathetic. And with a head start as the world's #1 colonizer.
      Apr 10
    • Oracle
      degenr8

      Oracle

      PRE
      Stealth Worker
      BIO
      Control over your own life is an illusion.
      degenr8more
      ^spotted the Chinese guy
      Apr 10
    • Uber GavinB
      Colonize the colonizer!
      Apr 10
    • Google zzzyyxxx
      Lol Amazon guy got hurt. Cute.
      Apr 10
    • Amazon dndn3j2b
      Yall showed how butthurt you really were when you picked Trump. Now the whole world is laughing at you and you can see your ruined country falling apart in the face of the entire international community
      Apr 10
    • Amazon dndn3j2b
      American dollars have no value. The world has already caught onto this and people are abandoning the dollar for the yuan since America is useless.

      I'm already moving out all my assets and in the process of moving elsewhere
      Apr 10
    • Facebook tantan85
      Don’t complain. People from China find loopholes like crazy in the US system. They’re ruining it for everyone.
      Apr 10
  • Facebook public2
    Won a bid once from an older seller who specifically did not want to sell to an Asian couple. It can go both ways.
    Apr 9 7
    • Facebook shamrock
      1. Have your Asian friends sue the seller (massive massive fines per fair housing laws)
      2. Asian friends buy property with lawsuit winnings
      3. You buy the property at a discount from asian friends
      Apr 9
    • Facebook public2
      No fair housing laws for selling a house. Sellers make decisions based on feelings (even if sexist, racist etc) all the time. That's why letter writing is such a big deal.
      Apr 9
    • Facebook shamrock
      TIL
      Apr 9
    • Facebook public2
      Not to mention how impossible it is to prove.
      Apr 9
    • Guardian Analytics
      xcqq35

      Guardian Analytics

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      Google, Amazon, Apple
      xcqq35more
      I included an emotional letter in my offer for a dream house, included a family picture. Lost the bid(mine was 10k+) to someone paying all cash. May be the seller was one of those who did not want to sell the house to a non-white person?!
      Apr 18
    • Facebook public2
      Maybe or they could be one of the very few rational sellers that sell based on price. The fact that letter writing even exists in the first place though highlights how much bias exists in the process.
      Apr 18
  • Amazon dndn3j2b
    Why are white countries so rich? Damn colonists.
    Apr 9 3
    • BlackRock xis
      Korea, Japan, Singapore, Israel, Saudi, UAE and Kuwait and other middle east countries.
      Apr 9
    • Amazon dndn3j2b
      Who do you think props them up? US created South Korea and builds up Japan and SG against China.

      We know Israel is basically a US colony of land stolen from Palestine propped up by US nukes.

      SA, UAE, Kuwait same situation. We prop them up to control oil and maintain control in the ME region. Along with Russia containment.

      Try again.
      Apr 10
    • BlackRock xis
      I think your knowledge of history is self aggrandizing. as history progresses some countries go through a boom and bust cycle.
      US was not even involved in World politics before 1950s. Let me know how much US is “investing” to ‘prop them up’. US only partakes in politics to gain trading rights.
      Let us also know why Latin American countries and Iraq, Afghanistan are still not rich and how can the US make them rich.
      Apr 10
  • Amazon dndn3j2b
    Lmao at the racists in here. Nobody blinks twice when we see a wealthy white person, one directly descended from colonizers. Fuck yall and your racism. Keep talking and expose yourselves you putrid pieces of hate. Some rich Asian will buy out blind for $100m, and then good luck trying to get your data wiped.
    Apr 10 2
  • Symantec Rejikevidu
    Rich parents who watch every penny in their day-to-day lives but will drop several hundred thousand dollars to help their kid buy a place.
    Apr 9 0
  • Uber hfrigdsb
    It might help if your write a touchy cover letter. It worked for me.
    Apr 9 5
    • BlackRock xis
      Owner must be afraid to touch that!!!
      Apr 9
    • Lam Research gurukool
      OP
      I did that too . My agent told me they loved it and loved us. But it’s all BS. They only love money . I’m still in shock as to how someone puts 500 K cash down that too in Newark CA
      Apr 9
    • Facebook / Eng TCYOE
      Lol in Newark? Is this Ardenwood?
      Apr 10
    • Lam Research gurukool
      OP
      Yes
      Apr 10
    • Guardian Analytics
      xcqq35

      Guardian Analytics

      PRE
      Google, Amazon, Apple
      xcqq35more
      what was this dream home like in Newark? I assumed you were talking about West San Jose/Campbell/Saratoga Area.
      Apr 18
  • Nvidia CBsO18
    Instead of getting jealous and trying to come up with some stereotypical explanations, stop and wonder if what you are competing over is even worth it. Is your dream in a house? Maybe youd be better off leaving the bay area then, I'm sure you'd qualify for a mansion in most of the county.
    Apr 10 2
    • Google 1234-/:;(
      If it was dream house he should have offered more 🤣
      Apr 10
    • Lam Research gurukool
      OP
      I did please read entire thread to get details
      Apr 10
  • eBay / Eng
    mDBW53

    eBay Eng

    PRE
    NVIDIA
    mDBW53more
    I’m just a regular white person and am debating whether to just pay all cash on my $1M+ condo or do a 5 year mortgage. And I had a negative net worth 7 years ago.
    Apr 9 2
    • Lam Research gurukool
      OP
      Care to elaborate your success story
      Apr 9
    • eBay / Eng
      mDBW53

      eBay Eng

      PRE
      NVIDIA
      mDBW53more
      I got a job. Made more money outside my job. Didn’t waste it.
      Apr 10
  • NIO SGNK32
    Asian, especially chinese, their parents are willing to pay the downpay for their kids. Thats more like a culture thing. The family concept is a bit different. On the other hand, their kids are going to take care of them when they become old.
    Apr 10 1
    • Amgen yiXR75
      It’s true I’m talking from experience: Chinese parents helped me out and I’m going to pay it forward by eventually getting a house with a spare bedroom on the ground floor or a mother in law cottage to pay them back if they move here. They hate the US (boring compared to nightlife there) but want their daughter to have a good life.
      Apr 10
  • Pure Storage / Eng D4&#r?
    Money from parents
    Apr 10 0
  • Uber
    2muchblind

    Uber

    PRE
    Apple, Microsoft
    2muchblindmore
    Leetcode.
    Apr 9 0
  • BlackRock xis
    There is no data to support the claim, but I think OP is right. A lot of affluent Chinese in the 25-40 age group are new homeowners in expensive areas of east coast and west coast. Indians even though in the same wealth bracket as Chinese counterparts will always try to get more bang for the buck and move to inner suburbs. Rest others are scattered.

    The official homeownership data from Census bureau only distinguishes between White , Hispanic and Others categories.

    https://www.census.gov/housing/hvs/index.html
    Apr 9 0
  • Amazon / Eng meditat3
    Crazy Rich Asians
    Apr 9 0
  • Lam Research gurukool
    OP
    Nope I did my research and I also had cash to bridge the gap
    Apr 9 6
    • Akamai Technologies blad
      But how do you know the guy closed with 50% down? He could have structured the loan any way he wants. He just showed liquid cash of UpTo 50% of the value, is that accurate? How much did you show?
      Apr 9
    • Lam Research gurukool
      OP
      Yes that’s correct. The house value is 1.25 million. His bank account probably showed value up to 500K mine was 350K
      Apr 10
    • Lam Research gurukool
      OP
      Loan structuring is not a big deal here
      Apr 10
    • Akamai Technologies blad
      It makes sense now. Let's say the home appraises for 1.15 then 20% down and 100k to cover the gap you barely scrape through while the other guy is in the clear. I am assuming everything else on your offer is the same then as a seller even you would go with the other offer
      Apr 10
    • Lam Research gurukool
      OP
      I agree but the home appraise would be 1.2 minimum based on comp sales. I did my research .
      Apr 10
    • Google 1234-/:;(
      If all u needed were comp sales they wouldnt need to hire an appraiser. More goes into it than that and the seller wanted someone who is more guaranteed to close escrow. Next time up your cash portion of offer
      Apr 10
  • Salesforce wilywanker
    I don’t know to many Asians but from the few I know - in Asian culture parents trying to help out kids as much as possible in everything, even in buying their first home. So many young adults get a significant help with downpayment from their parents
    Apr 10 0
  • Salesforce namehere1
    Yeah i knowwww! it’s all them Filipinos
    Apr 9 0
  • Akamai Technologies blad
    I think you are missing the point. Even though he/she showed 50% down, he may have structured the loan with only 10% down. As people mentioned if the home doesn't appraise at the selling price then the gap can be paid by the cash and still close on time. As compared to your offer with only 22% down funds
    Apr 9 0

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