Around Labor Day last year MBC noted not one, but two, "foreclosure flips" that were on the market. Savvy investors had bought properties from the bank and were looking to make a nice little profit on the resales. (See "2nd Foreclosure Flip in a Week.")
Here's an update on one of them: It didn't work.
801 11th…
Around Labor Day last year MBC noted not one, but two, "foreclosure flips" that were on the market. Savvy investors had bought properties from the bank and were looking to make a nice little profit on the resales. (See "2nd Foreclosure Flip in a Week.")
Here's an update on one of them: It didn't work.
801 11th (4br/3ba, 3025 sq. ft.) is a newer (2004) custom Caliterranean in a compromised location. (The home runs along somewhat busy Pacific and backs up to a commercial property, 50 yards from MBB.)
This one's been on the radar multiple times. It was offered for sale from May-August 2006 at $2.495m (pre-MBC), and again from June-August 2007 for $1.995m. (See "Figuring Out a Location Discount" from June 2007.)
No deals.
In April 2010 it came back as a short sale at $1.6m, with the listing touting that price as "approved" by the lender. After a couple sips of short-sale kool-aid, apparently, even MBC called it "a veritable steal for a fairly large Hill Section house."
No deal.
801 11th foreclosed last July, with an investor grabbing it for $1.320m.
Back to market it was for 11th, with the would-be flipper asking $1.590m (+$270k/+20%). After a couple of months, the price was down to $1.499m, still a little markup.
Well, we already told you this whole flip didn't work. The resale price, just posted: $1.380m.
So, yes, the market was right to reject the home at $2.5m and $2.0m in the late bubble years, and last year's short-sale opportunity at $1.6m doesn't look so hot, either.
The would-be flipper would break even at this price with about 4.5% costs of sale (ignoring holding costs since last July), but this was basically a flip that flopped.
As to the other "foreclosure flip" at 2612 Poinsettia, it ran 60 days last year and was supposed to come back in January this year. (See "Sketchy Speckie Returns" and "Sunday Opens (9/5)" for a review.) Hey, it's February, time to see how that one plays out, isn't it?
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Based on information from California Regional Multiple Listing Service, Inc. as of March 18th, 2024 at 9:25pm PDT. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.