San Marcos flippers need lessons in flipping!
This home has been on the market 3 times since 2005. It was sold new on 3/30/2005 for $498,724. This flipper quickly sold it for $480,000 on 4/17/2006, taking a $48,000 hit in the process. Now this flipper is grasping reality as he is going to get an even bigger shaft.
The purpose of flipping is to make money, otherwise stay at home and watch Dancing with the Stars or something. This is a tough lesson to learn.
4 comments:
Price Increased: 05/24/06 -- $479,500 to $480,000
Price Increased: 06/23/06 -- $480,000 to $485,000
Price Reduced: 07/30/06 -- $465,000 to $425,000
Price Reduced: 10/02/06 -- $425,000 to $397,500
Current “owner” puts it on the market less than a month after purchasing on 4/17/06? Insane.
You would think that these flippers would need some lessons on how to lose their shirts, so I am glad to see that they are getting such a 'good' education.
Now here is the extra credit question for this particular flipper:
How long can you make payments on that Option ARM of yours??
how long can you make payments on that option ARM?
hahaha!!!
try not paying a single payment at all since escrow closed.
try 9% interest rate on the loans.
try falsely claiming owner occupancy.
try this is one of the four properties she and her husband bought within 1 month, total value of $2.1 million, all zero down.
try continuing to collect rent despite non-payment of a single mortgage payment, aka rent skimming.
current owner signed a contract with her realtor, with an agreement to split the carrying cost on the 4 properties, part of the agreement thus call for a 50/50 split of the potential profit. guess who got all the liability and the ruined credit if the 4 properties go sour? the owner alone.
this property just got its notice of default 10/30/06.
What is amazing is the bozo banks which are lending to these people ! Just 5 years ago banks were very cautious questioning 500k townhome valuations in Mountain View (Bay area) which is a lot more expensive than here. Maybe this is the new paradigm in banking.
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