200k Flip in 1 month

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Mcdonna1980_IHB

Mcdonna1980_IHB

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I put an offer for 21 Grape Arbor back in June when it was listed as a short sale for $525,000. The house disapeared from the market shortly after it was listed. I assumed they must of got multiple offers on the house and we had no chance of getting it. Months passed and every now and then I would check to see what it sold for but I nothing every appeared in the records until now. Funny thing is... in August I was out for a walk and saw people installing expensive hardscape and landscaping. But the records say the house was sold for $600,000 on October 22. Does this seem odd? One, I'm surprised at that it didn't sell for more than $600k given a recent comp sold for $800k. And two, how could this flipper do upgrades on the house before they actual owned it? Lastly, $200k in 1 month? WTF



Anyone have any info and or theories?

<a href="http://www.redfin.com/CA/Irvine/21-Grape-Arbor-92620/home/5931550">View Listing Here</a>
 
This is how flipping is done now in Irvine. Buy an REO, hope you get a good price, and try to sell it quickly before the prices drop further. Risky, but it works if you buy it cheap enough. I suspect a bunch of these people will get caught with properties they cannot sell when prices take another drop.
 
[quote author="IrvineRenter" date=1227181021]This is how flipping is done now in Irvine. Buy an REO, hope you get a good price, and try to sell it quickly before the prices drop further. Risky, but it works if you buy it cheap enough. I suspect a bunch of these people will get caught with properties they cannot sell when prices take another drop.</blockquote>


How can you tell if it was sold as a REO or not? What do you think about the remodeling that took place before it was sold? Do you think the bank or owner would have invested tens of thousands of dollars before selling? It is very weird.
 
Wishing price isn't sold price. Just do a search on Redfin for Northwood, 3Bds, minimum sf 1500, max price $700,000 returns 16 properties.



They are nearly $200K over market and $100/sf too high.



<a href="http://www.redfin.com/search#uipt=1&status=1&max_price=700000&num_beds=3&min_listing_approx_size=1500&v=4&lat=33.711846034976624&long;=-117.76082038879394&zoomLevel=13&region_id=10473&region_type=1&market=socal">Northwood Search</a>
 
[quote author="Mcdonna1980" date=1227181742][quote author="IrvineRenter" date=1227181021]This is how flipping is done now in Irvine. Buy an REO, hope you get a good price, and try to sell it quickly before the prices drop further. Risky, but it works if you buy it cheap enough. I suspect a bunch of these people will get caught with properties they cannot sell when prices take another drop.</blockquote>


How can you tell if it was sold as a REO or not? What do you think about the remodeling that took place before it was sold? Do you think the bank or owner would have invested tens of thousands of dollars before selling? It is very weird.</blockquote>


I could look in the property records to tell for sure, but the first sign of it being a flip rather than REO is the price increase. Lenders want to dispose of their REOs quickly, so they price it near their auction purchase price. Flippers want to make a huge profit, so they price it accordingly. Banks will spend some money fixing up a property, but not very much. Also, a lender would not brag about bringing in an interior designer. The flipper's wife is probably an interior designer, and I imagine they think their work is the greatest improvement the property could have.
 
[quote author="No_Such_Reality" date=1227185093]Wishing price isn't sold price. Just do a search on Redfin for Northwood, 3Bds, minimum sf 1500, max price $700,000 returns 16 properties.



They are nearly $200K over market and $100/sf too high.



<a href="http://www.redfin.com/search#uipt=1&status=1&max_price=700000&num_beds=3&min_listing_approx_size=1500&v=4&lat=33.711846034976624&long;=-117.76082038879394&zoomLevel=13&region_id=10473&region_type=1&market=socal">Northwood Search</a></blockquote>


You crazy Vas. The same model in NWII in a worse locaiton on Secret Garden (32) just closed two days ago for $730K. $200K over market? This Grape Arbor pad will nab a sucker at $725-750K and do so probably pretty easily.
 
[quote author="Mcdonna1980" date=1227177086]I put an offer for 21 Grape Arbor back in June when it was listed as a short sale for $525,000. The house disapeared from the market shortly after it was listed. I assumed they must of got multiple offers on the house and we had no chance of getting it. Months passed and every now and then I would check to see what it sold for but I nothing every appeared in the records until now. Funny thing is... in August I was out for a walk and saw people installing expensive hardscape and landscaping. But the records say the house was sold for $600,000 on October 22. Does this seem odd? One, I'm surprised at that it didn't sell for more than $600k given a recent comp sold for $800k. And two, how could this flipper do upgrades on the house before they actual owned it? Lastly, $200k in 1 month? WTF



Anyone have any info and or theories?

<a href="http://www.redfin.com/CA/Irvine/21-Grape-Arbor-92620/home/5931550">View Listing Here</a></blockquote>


Looks like a fishy transaction. The listing agent is a <a href="http://saveonfunding.com.rwslive.com/">mortgage company</a>. I checked for NODs and auction activity on the home and didn't find any. Maybe a walk-away? Maybe the house was bought the owner of the mortgage company and he sold it to his company in October for some reason and now the company is selling it? Maybe vice versa?
 
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