Comments on: Flipping Woes on Camino http://www.arcadiahousingblog.com/2008/02/07/flipping-woes-on-camino/ Tracking the Arcadia and San Gabriel Valley Housing Market Sat, 04 Feb 2012 08:44:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: SavedByGrace http://www.arcadiahousingblog.com/2008/02/07/flipping-woes-on-camino/comment-page-1/#comment-72 SavedByGrace Thu, 07 Feb 2008 21:36:58 +0000 http://www.arcadiahousingblog.com/2008/02/07/flipping-woes-on-camino/#comment-72 The July 1996 sale could very well be a foreclosure. With the current asking price (assuming 6% commission), the owner has only $10k left of wiggle room left before they start to eat into their $101,000 downpayment. The bank is in a good spot this time because these folks actually put down 20% last summer. If they slash the price quickly to maybe $499k, they may find a knife catcher to bail them out with just a $35k loss. A drop back to summer 2005 prices will wipe out their entire downpayment altogether. If they hold out even longer, there's no telling how much they'll lose when it's all said and done. The July 1996 sale could very well be a foreclosure.

With the current asking price (assuming 6% commission), the owner has only $10k left of wiggle room left before they start to eat into their $101,000 downpayment. The bank is in a good spot this time because these folks actually put down 20% last summer.

If they slash the price quickly to maybe $499k, they may find a knife catcher to bail them out with just a $35k loss. A drop back to summer 2005 prices will wipe out their entire downpayment altogether.

If they hold out even longer, there’s no telling how much they’ll lose when it’s all said and done.

]]> By: SavedByGrace http://www.arcadiahousingblog.com/2008/02/07/flipping-woes-on-camino/comment-page-1/#comment-71 SavedByGrace Thu, 07 Feb 2008 21:23:01 +0000 http://www.arcadiahousingblog.com/2008/02/07/flipping-woes-on-camino/#comment-71 I made a brief comment about the Asian effect (or lack thereof) in my "Load of Bull" post. Asians didn't save the SGV in the 80s & 90s and I have no reason to believe they will or can save the market this time around. There will be knife-catchers, but not nearly enough to keep the marketing from failing. As for 130 W. Longden. I don't see the 9/07 transaction you mentioned and don't know how gifting transfers work. This property is current also for rent on Craigslist for $3900/month. Using GRM values 160, 180 and 200 puts this property at $624k, $702k and $780k, respectively. It's asking price puts the monthly cost to own at about DOUBLE it's rental value. DOUBLE. I made a brief comment about the Asian effect (or lack thereof) in my “Load of Bull” post. Asians didn’t save the SGV in the 80s & 90s and I have no reason to believe they will or can save the market this time around. There will be knife-catchers, but not nearly enough to keep the marketing from failing.

As for 130 W. Longden. I don’t see the 9/07 transaction you mentioned and don’t know how gifting transfers work. This property is current also for rent on Craigslist for $3900/month. Using GRM values 160, 180 and 200 puts this property at $624k, $702k and $780k, respectively. It’s asking price puts the monthly cost to own at about DOUBLE it’s rental value. DOUBLE.

]]> By: Mark http://www.arcadiahousingblog.com/2008/02/07/flipping-woes-on-camino/comment-page-1/#comment-69 Mark Thu, 07 Feb 2008 18:49:50 +0000 http://www.arcadiahousingblog.com/2008/02/07/flipping-woes-on-camino/#comment-69 # Dec 30, 1996 $163,000 # July 16, 1996 $114,885 This looks like a foreclosure in 1996, where the bank bought the property for 114,885 and sold it for 163,000 a couple of months later. I bet banks wish they could sell a property 42% above what they pay for it at a foreclosure auction today! BTW...I love that new garage door...it's worth every penny of that $73k premium. # Dec 30, 1996 $163,000
# July 16, 1996 $114,885

This looks like a foreclosure in 1996, where the bank bought the property for 114,885 and sold it for 163,000 a couple of months later. I bet banks wish they could sell a property 42% above what they pay for it at a foreclosure auction today!

BTW…I love that new garage door…it’s worth every penny of that $73k premium.

]]> By: phantom600rr http://www.arcadiahousingblog.com/2008/02/07/flipping-woes-on-camino/comment-page-1/#comment-68 phantom600rr Thu, 07 Feb 2008 17:04:26 +0000 http://www.arcadiahousingblog.com/2008/02/07/flipping-woes-on-camino/#comment-68 I have often heard that "desirable" cities such as Arcadia and San Marino will not see significant price declines due to the Asian money effect, excellent school systems, and their proximity to the local Asian economy. Can anyone comment on how much truth is there to this statement? On a specfic note, I see the following property (130 W. Longden Ave, Arcadia 91007, http://www.redfin.com/stingray/do/printable-listing?listing-id=1328089) with a recent price drop to 1.328M. What's interesting is the fact that according to ziprealty, the last transfer date was 09/18/07 with a price of $40k. Did the bank take this property back? Or is this simply a gifting transfer? I have often heard that “desirable” cities such as Arcadia and San Marino will not see significant price declines due to the Asian money effect, excellent school systems, and their proximity to the local Asian economy. Can anyone comment on how much truth is there to this statement?

On a specfic note, I see the following property (130 W. Longden Ave, Arcadia 91007, http://www.redfin.com/stingray/do/printable-listing?listing-id=1328089) with a recent price drop to 1.328M. What’s interesting is the fact that according to ziprealty, the last transfer date was 09/18/07 with a price of $40k. Did the bank take this property back? Or is this simply a gifting transfer?

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