Why such fast turnaround?
I've been updating my inventory records and am trying to figure this one out. A property sold on Calle Mayor for $625,000 December 14, 2006. This is a condominium built in 1977. The prior sale date for which there is history is April 3, 1981, for $55,000. So this wasn't a new property sold by a builder.
Now this property has popped up for sale again in the listings, in late January. It is priced at $700,000.
How can this be? What gives? Is this a quick flip? Did somebody change their mind about home ownership? (I've heard of such things!) Did somebody already have trouble making the first payment? Anybody out there have any knowledge of this?
posted by bearmaster at 6:11 AM
9 Comments:
Yes, it appears he is a flipper. He bought the home using an 80/20 loan from First Franklin...big in sub primes. He uses a PO BOX as his contact address.
Hey thx for the info, and welcome to the blog. Even if he manages to sell it at that price right now, I wonder how much he's going to be able to walk away with, after commissions, closing costs, etc. Maybe $40K? If he's very lucky?
I didn't know anyone was flipping anymore!
the $625k purchase might have included cash back to the buyer
if he/she is a realtor, they'll pay only buyer's agent commissions, $17,500 on the $700k dream price
So there's room to see at $50k+ profit, not bad for a month of holding. If you can get it.
Any sense of whether this place was undervalued at $625?
Hi wannasell,
I seriously doubt anything is undervalued at this point. I think this flipper is relying entirely on a Greater Fool to unload on. Didn't Aretha Franklin sing something about a "Chain of Fools"?
The description for this flip is:
"Complete rehab. Freshly painted, tile, new parquet wood flooring and wall to wall carpeting throughout. Turn key unit that is modestly price in comparison to units of the same size. Best value in complex!! Spacious 2-level townhome at a very attractive price. Large great room with vaulted ceilings with an exceptional fireplace. This lahaina style townhome does afford you some ocean views. This breezy end unit has windows on three sides and only a small portion is attached to the next unit to give you complete privacy and tranquility. The two bedrooms both have their own full bathrooms and walk in closets. Features you will appreciate don't miss out!"
From the way it is worded I gather that the carpeting is all new. New paint, carpet, flooring. All worth an extra $75K!
I didn't know anyone was flipping anymore! Oh... I have coworkers still at it. Buying or holding that is...
I seriously doubt anything is undervalued at this point.
Oh... I so agree!
We'll have to track this one. ;)
Got popcorn?
Neil
Gobig, if you happen to be an insider who has access to data, here's another one I'm scratching my head about:
1913 Ernest, sold 12/15/2006 for $985,000, in the sales records it says it sold again for $979,000 on 01/12/2007.
This kind of stuff going on makes record keeping a problem, to say the least!
The house on Ernest was sold by an Llc. The Llc took a loss on the deal. The people that bought it live in it and put down a good down payment. That's all I know about it.
GoBig, maybe you ought to be doing the blogging! You definitely know the stuff that people want to read. Enquiring minds want to know! :)
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