Brentwood - Northpark Back to Back - UPDATE #1
Originally posted October 5, 2006
Address: 27 Maywood, Irvine, CA 92602 (Northpark)
Plan: 3250 sq ft - 5/3
MLS: P513737 DOM: 139
Sale History: 4/22/2005: $1,250,000
3/19/2001: $578,500
Price Reduced: 06/25/06 -- $1,359,900 to $1,329,000
Price Reduced: 08/05/06 -- $1,329,000 to $1,299,900
Current Price: $1,299,000
Here's a Plan 2 in the Brentwood tract built by Warmington Homes in 2001. The flipper bought it in April 2005 and listed it in May 2006 hoping to make around $100,000. It looks like the flipper has loans totaling $1,200,000 on his $1,250,000 purchase! If sold at the current asking price and factoring in 6% in selling costs, he is facing a loss of about $29,000. I just noticed the property is listed as vacant so once you account for carrying costs, the pain is even greater!
UPDATE #1 - January 30, 2007
First of all, I want to mention that this flip was first uncovered by OC Fliptrack. I can't believe I didn't realize that when I featured this flip here in October (especially given that I commented on the original thread at OC Fliptrack!). All I can say is that I apologize and that it wasn't done intentionally. Are we still cool OC Fliptrack?
Now to the update. This home finally closed escrow on January 25, 2007 (241 DOM) at a price of $1,175,000. Assuming 6% in selling costs, the seller probably lost around $145,000! And that does NOT include the carrying costs for having a vacant $1.25mil place for 8 months.
Comments have been purged and reopened. Play nice this time! 
Specuvestor? Or cash-back at closing rent-skimmer? I would have to think that even the dimmest of specuvestors wouldn’t chance it in this market.
I’d watch this one very closely for first-payment default. When will the buyer’s financing details become available?
Linky:
http://firstteam.com/homes/propertydetails.asp?id=64797595&db=1&MLS=S474087
It looks like a specuvestor bought it. It just showed up as a rental.
We live in the neighborhood and are wondering if the new purchaser is a flipper/realtor. There were several people fixing up the house after it sold. Then, no one moved in. There has been a car there that we suspect to be a realtor (because of the license plate). And today there appears to be showings. Maybe you’ll have to keep a continued eye on this one.
PS—The house next door (29 Maywood) has been for sale just as long. We suspect the owners are also realtors because it was empty for a long time before someone with a “consult a realtor” license plate moved in. It is now under contract as well. They had more room to negotiate because according to zillow it was purchased for $900K, but it will be interesting to see what it sells for.
Thanks for all your great work!
WTF is this nonsense!
No one in their right mind is going to pay this price for this house ... when are the mother#ucking sellers going to realize IT’S OVER! OVER, OVER OVER ... DONE WITH!
$360/sq ft is a lot better than the $660/sq ft for the Watermarke 1 br/1b residence. I’m just wondering if the flipper will make this loss up with volume?
Someone on the forums wanted to see a sale 10% below asking. This very nearly qualifies.
“Are we still cool OC Fliptrack?”
Are you kidding? The more exposure the Orange County Real Estate moron-a-thon gets, the happier I am. I don’t need no stinkin’ credit.
(oh lookee! e-mail comment notifications!)
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