Silverado – Another 2006 Flip in Northwood Pointe

Address: 2 Bramblewood, Irvine, CA 92620 (Northwood Pointe)

Plan: 3000 sq ft – 4/4

MLS: S472587 DOM: 45

Sale History: 07/05/2006: $1,150,000

Current Price: $1,289,000

Just a quick glance at the numbers above will tell you that this flip isn’t a flop quite yet. The featured home is a Plan 3? in the Silverado tract built by California Pacific Homes in the village of Northwood Pointe. The sellers purchased this home on 7/5/2006 for $1,150,000. It was originally listed by the previous seller at $1,245,000 so it seems like the current owners tried to catch a falling knife last summer. Bad timing…

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Looking at title information, I’ve found one loan for $920k (80%), so they may have put 20% down. It’s interesting how the home is priced HIGHER than it was when it didn’t sell last year. The description on MLS says “MOTIVATED SELLERS!!!”. If they are motivated, then why are they still hoping for a nice profit here? Assuming 6% in selling costs, they are looking at a $61,000 profit if they get their asking price! I think they ARE motivated because the place looks empty on the pictures and MLS states it is vacant. 7.6% on a $920,000 loan is a lot of money going down the drain each month.

15 thoughts on “Silverado – Another 2006 Flip in Northwood Pointe

  1. IrvineRenter

    Zovall,

    Thanks for posting a flip. The natives were getting restless…

    I have to agree, these people don’t look very motivated. I suppose in current owner/flipper psychology, if you are only making about 5%, you must be giving it away. When this sits on the market all summer and they lower their price down to where they just cover their 80% loan, then they will be truly motivated.
    —–

  2. IrvineResident

    OC is full of this of kind “motivated seller” and wondering why inventory keep growing. Soon they will realize home appreciation can not outpace income growth. Time will teach them a hard yet repeated lesson

  3. Carmichael

    Zovall,

    Where do you find the mortgage outstanding data? I am looking at a few OC props. Can get some details from Zillow, but not outstanding mortgages against the property.

    Love your site!

    CM

  4. IrvineMom

    Zovall,
    Hm, sold on 7/5/2006 for $1,150,000 and now priced at $1,289,000. This time period is considered price peaked. Should the list price be same or lowered than $1,150,000? Maybe the listing agent is out of the area.

  5. NanoWest

    Gee Whizz…….

    That is the same floor plan that I sold in August 2005 (divorce sale) for $1,160,000. The house was paid off so my ex and I each got about $550K after the sale. She went and bought a townhouse in Irive for $700K and I have the money in the bank, CD’s at 5.5%…….interest pays my rent.

    Any suggestions………..should I sit on the $550,000 or buy?

  6. NanoWest

    Oh yea, so that I would have something to fix(I owned houses for about 20 years and enjoyed saturday morning tool sessions) I purchased an old 30′ cabin cruiser……Name on the boat…..NanoWest. Anyone want to go fishing?

  7. zovall

    Carmichael,
    The mortgage information comes from the database of a title company that I have access to (Land America Title). The title reps give out accounts to their database to real estate agents. The information is accurate but not necessarily complete.

    IrvineMom,
    It sure seems like they bought at the peak. There are a couple other similar homes nearby that are also listed around the same price. But if these guys were truly motivated, they would lower the price and get it sold rather than leave it vacant and on the market for 45 days. I believe the listing agent is local. My guess is that the seller is refusing to lower the price – they’re waiting for all the demand to show up this spring.

    NanoWest,
    Good to see you still around! I don’t know if you’ve been to the forums (Click the Forums link near the top left) but I’m sure you’ll get some more responses there about what to do with the $550k 🙂
    Boat? Very cool! I wish I knew more about fishing.

  8. IrvineMom

    NanoWest,
    Such a dilema! Most of us do not have the kind of money that you have so I am at lost of suggestions. My husband would tell you to buy a pot of gold. My husband bought some gold andI laughed at him but he said, “If all hell breaks loose, he is covered”. Happy fishing! Relaxation is good for the mind. I say buy one of the short sales.

  9. mah

    1.289M is simply not going to happen. The pigs stopped flying in 2005 … somebody need to call this “motivated seller” and inform him that the music has stopped, and he’s holding the bag.

    Most of the 20% down payment is G.O.N.E! As in bye-bye!

  10. sarahfan

    Hey Nano,

    The Northwood tract was only about 8 years old in 2005, how did you pay off your house so soon?

  11. NanoWest

    Sarahfan,
    In 2001 I sold a house in Silicon Valley for a large profit. I used the proceeds from that sale to pay for the house in Irvine………basically, I got lucky.

    The house originally cost about $600K in 2001. At that time the RE Agent was advising me that this was way too much money to spend on a house in Northwood.

  12. IrvineRenter

    Zovall,

    Check to see if this same owner also has a property at 6 Plumeria, Irvine, CA 92620. If so, this is clearly a flip attempt. It would be a shame if he lost both properties.

  13. zovall

    Well what do you know.. 6 Plumeria is owned by the same guy. It looks like the couple bought 6 Plumeria from Standard Pacific on 12/30/1998 for $733k.

    I also found that they bought 17 Varesa on 6/16/2004 for $537k and sold it on 5/3/2006 for $588k.

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