On the last month I've noticed a lot of new flips hitting the market. There seems to be a ton of money being made by these guys. The new flipper is a far cry from the ones we saw on TV a couple of years ago. Those guys would buy a wreck, fix it up and make a healthy profit. The new breed are not having to put nearly as much effort into it. They buy house that's a few years old at the trustee sale, replace the carpet, paint the walls and put down some sod and list the place for $100k to $200k more than they paid. It's quite a scheme.
16967 Hazelwood in Riverside. This house is only 2 years old. They paid $369k on Feb 4th. It gets paint and carpet and is listed Feb 10th for $462k! Will they get it? I dunno, the price seems a little high but I ca see this easily selling for $420k-$440k. Even at the low end that's a good paycheck for a few days work.
17229 Bluff Vista, Riverside. This house is 6 years old. It was picked up for $330k in Feb and listed 2 days before the sale even posted for $426k. This one doesn't even look like it got carpet or paint. It's looks like grass and a good cleaning was all this got and they are looking to make nearly $100k (before selling costs). Again the asking price is probably a wee bit high. These have been selling in the high $300s but they still stand to make a very healthy profit.
3241 Crestview in Norco. This one was picked up for $501k Feb 22nd. It's now listed for $570k. This one isn't a no brainer. At $570k this might be a tough sell. The house is nicer than most in this tract and that might save it but at $501k there isn't much room on tis one. I'm not totally confidnet these guys will make any money on this one. There's been a couple sell in the mid $500s but those were on the highest street in the tract and that's a serious lot premium. This one does not have a view it looks at the nieghbors house across the street. I'm thinking low $500s and at that price they lose money.
Here's another one that isn't looking good to me. 18410 Lakepoint Dr up in Lake Hills Riverside. This is right at the top of the hill so you better have stock in an auto repair shop because you will be going through brakes and gear boxes living up there. The big homes in Lake Hills have been selling for around $100 sq/ft give ro take $10 s/f. The really big ones are often selling in the high $90s s/f. This house is 4576 s/f and they bought it for $415k or about $90 s/f. That's a pretty good deal but not "flipping" good. They listed it a week later after slapping on some paint and laying down some sod for a mind numbing $675K! Now that's reaching for the moon. They've have several price reductions but are still WAY overpriced at $624k. There are two identical comp sales in the last 2 months of $450k and $500k. Are they going to make any money? That depends on them they could propbably sell this fairly quickly at $450k but that's a break even price or close to it. They might get $500k if they are lucky but every month it lingers it's eats at that profit. It's already been on the market 3 month, they are slow to reduce so they could lose some money on this deal if they don't snap out of their delusion of making $200k.
This is just a small sample of the many flips I'm running across. Most of them are going to make a very healthy profit for a few days work.
Short sales made easy
Check this article out
Wachovia, a Wells Fargo company, is among the first major lenders to create an aggressive, proactive short-sale program. While the company continues to process borrower-directed short-sale offers, it has also launched a pre-approved, lender-directed approach that results in greater file velocity.
As a portfolio lender, Wachovia is not hamstrung by investors or others making the decisions on short-sale approvals on its World Savings and Golden West Financial portfolios, which are the focus of this pilot program. Wachovia does not pre-select or direct any particular listing agent to work with borrowers for obvious liability-associated reasons. The company encourages its borrowers to interview at least three agents and select the one with whom they feel the most comfortable.
Pivotal differences of the Wachovia pilot program include the following:
•No hardship letter, pay stubs or financial statements are required.
•Negotiators approve or counter offers within seven to 10 days after the offer is received.
•There is no requirement for delinquent borrowers to have experienced a hardship.
•Generous cash-for-keys payments are used to gain borrowers’ cooperation.
•The listing agent is involved to develop a pre-approved strike price at which the property would likely be sold (much like the REO process). If a property doesn’t sell at the pre-approved price, reductions may be requested until offers are received.
•The amount of the outstanding loan is not a factor in determining the list price. Unlike many lenders, Wachovia is focused solely on the economic benefit of short sales.
Other major lenders, including GMAC, have implemented or are about to implement more aggressive short-sale programs, as well. Some companies are far better at managing short sales than others, but all of them should focus on proactive communication, adequate staffing and training in order to streamline the short-sale process for both borrower-requested and lender-directed short sales.
GMAC has a special unit called “The Counsel to Sell Team” within its short-sale department that proactively contacts borrowers who have been denied loan modifications. The unit conducts outbound calling and mail campaigns to entice borrowers to consider a short sale, and GMAC reports a higher rate of success through this proactive approach
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Best Post Ever
Ok, so I am looking at the recent sold comps in Bridle Creek when I run across 17771 Chalk Creek. It posted a sold amount of $452k which I thought was a little high for that particular floorplan. The highest sales price so far of that floorplan is $440k and that was a pretty nice house. I figure this must be a back to bene (trustee sale with no takers). So I do a search and sure enough I find it as a REO, sale date Jan 13th 2010. I start my usual search to see if it was ever listed. Nope, this guy just went down with the ship. HOWEVER, I did run across this unusual ad for the house! What's this a HUGE Mansion Event on Jan 16th?? I bet the neighbors loved this!
Oh yea, I can just imagine what this place is going to look like when it hits the market! $ VIP rooms?? You might want to wear a hazmat suit if you look at this one. Hey you gotta give the young fellas some props, that's a better description than most realtors can write. I especially like the 0% Tolerance, Armed Security.....YIKES! (They did get the zip code wrong but there were directions on the website right to the house in Bridle Creek).
Oh yea, I can just imagine what this place is going to look like when it hits the market! $ VIP rooms?? You might want to wear a hazmat suit if you look at this one. Hey you gotta give the young fellas some props, that's a better description than most realtors can write. I especially like the 0% Tolerance, Armed Security.....YIKES! (They did get the zip code wrong but there were directions on the website right to the house in Bridle Creek).
WTF is up with Congress?
Why does congress have it's priorities so F'd up? Is it just me, am I the only person in America that is wondering why NOTHING is being done about the biggest financial fiasco since the 1930s. Sure we've thrown trillions of dollars at the problem, bailed out everyone from the Taco Bell employee next door to AIG. But bailouts are not a cure for the disease. They only treating a symptom.
Congress has done squat about the system that allowed this to happen. No regulations, no controls, no oversight, no nothing so far. They sit around arguing about a health care package that 60% of America doesn't want and 30% don't understand. The other 10% are all for it because they may actually benefit from it. Why is Congress so hell bent on health care reform. Has health care brought down the economy? Are millions of people dying in the streets? No, people are living longer than ever, and contrary to popular belief we have one of the best health care systems in the world. For christ's sake, rich people from Europe come over here when they get seriously sick. I'm not suggesting for one second it cannot be improved. Cost is insane (primarily due to litigation) and most government run programs are rife with fraud. But it should hardly be the number one priority. Lets fix the freaking financial system that is still running amok. Wall street isn't investing anymore. It's like Las Vegas for the Mega Rich. Shorts and hedges and every other manor of financial black magic should not be legal. How the hell can a company buy and sell a bunch of crap they know is going to go bad then make a killing by hedging against it.
I understand perfectly that Wall St. owns the government (and vice versa). But why aren't the American people and the media shouting out for reform. Lobbyists can be persuasive but a few hundred million angry voters should be able to overcome that obstacle. It pisses me off that the media is covering this health care BS like it's the biggest thing since man walked on the moon, and the only people yelling for reform are whack jobs like Glen Beck. I hope that doesn't make me a whack job.......
Congress has done squat about the system that allowed this to happen. No regulations, no controls, no oversight, no nothing so far. They sit around arguing about a health care package that 60% of America doesn't want and 30% don't understand. The other 10% are all for it because they may actually benefit from it. Why is Congress so hell bent on health care reform. Has health care brought down the economy? Are millions of people dying in the streets? No, people are living longer than ever, and contrary to popular belief we have one of the best health care systems in the world. For christ's sake, rich people from Europe come over here when they get seriously sick. I'm not suggesting for one second it cannot be improved. Cost is insane (primarily due to litigation) and most government run programs are rife with fraud. But it should hardly be the number one priority. Lets fix the freaking financial system that is still running amok. Wall street isn't investing anymore. It's like Las Vegas for the Mega Rich. Shorts and hedges and every other manor of financial black magic should not be legal. How the hell can a company buy and sell a bunch of crap they know is going to go bad then make a killing by hedging against it.
I understand perfectly that Wall St. owns the government (and vice versa). But why aren't the American people and the media shouting out for reform. Lobbyists can be persuasive but a few hundred million angry voters should be able to overcome that obstacle. It pisses me off that the media is covering this health care BS like it's the biggest thing since man walked on the moon, and the only people yelling for reform are whack jobs like Glen Beck. I hope that doesn't make me a whack job.......
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