Flipper Turn Sucker | Arcadia Housing Blog

807 W. Camino Real #B

Asking Price	$569,900	:::	Sq-ft	1,883
Purchased Price	$481,500	:::	Lot Size	2,047 sqft
Purchased Date	01/11/2008	:::	Beds	3
Days on Redfin	4	:::	Baths	2.75
$/Sq-ft	$303	:::	Year Built	1986
20% Downpayment	$113,980	:::	Area	Near TC
Income Required	$142,475/yr	:::	Type	Att. Townhouse
Est. Payment*	$2,881/month	:::	MLS#	A08022540

*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%

Every time I think people finally see the light and realize the US housing market is going down the drain, someone always surprises me. Here we have yet another flipper who thinks he can make some money by putting in new carpet and a new coat of paint. Unless the walls were painted in pure gold, I can’t see how they can justify $88,400 in profit.

Sales History
Sept 20, 1994 $198,000
Oct 13, 2005 $539,000
Dec 20, 2006 $589,000
Jan 11, 2008 $481,500

The flipper must have thought he got a great deal at $107,500 under the previous purchase price. This property was bought just 5 weeks ago as a flip in this dying RE market. I can’t understand why or how anyone can ignore the market forces, but I didn’t drink any of the kool-aid either. It’s another classic case of greed over-powering sound financial sense.

This flip was purchased just last month so the databases still haven’t been updated with loan/lender information. Since banks aren’t making any more 100% loans, how much do you think this flipper put down? 5%? 10%? 15%+? How much will they lose when all is said and done?

This ~~flipper~~ sucker is in for a world of hurt.

Comments (6)

Zodiac · February 18, 2008 #250

Haven’t the flipper watch TV or open a newspaper? The news of the housing bubble and the possibility of a CA recession are in the news everyday. I talked to a lot of people in the San Gabriel valley, San Marino, Temple City and Arcadia area and most of them think the price of houses will hold in these area.

SavedByGrace · February 18, 2008 #251

It’s natural for people to push away things that they don’t want to deal with. Denial is the first phase of this process and they will usually not accept reality until much later. No homeowner wants to hear that their home’s value is going down. There’s always some white lie they tell themselves to justify why prices in (insert city) will hold despite the news.

Right now, I’m hearing a lot of arguments stating that prices in the SGV area have been holding well while the IE and OC are sliding. They have completely ignored that volume has fallen off a cliff. This argument will not hold for much longer.

Nick · February 18, 2008 #252

They still have shows like Flip This House on TV. Most people still seem to make a lot of money on the flips. Of course, the shows were taped a long time ago, and they leave out some crucial financial information, giving the impression that the flippers were making a lot of money, when in fact they were not.

yUSiyE · February 18, 2008 #253

hey guys. I actually live there(807 w camino real). This unit has been on sale forever, changed few agents. I didn’t even realized it got sold until last week, someone was there to change the carpet.
I can’t believe someone actually buy this, with near $300 monthly management fee.
I can’t wait to meet the new sucker, sorry I mean owner.

SavedbyGrace · February 18, 2008

Oh you live in the same complex? I think everyone is surprised that this unit sold in this dying market. If you ever get to meet the owner/flipper, ask him why he bought the place and come back to let us all know what he said.

· February 19, 2008 #258

I personally know a good number of people who truly believe that since a property is 20% off its initial list price or previous sale price, they will be purchasing that particular property for a great deal. Some actually think the new list price is low enough that they can simply turn around and put it back on the market for a 20% gain. Still amazed at how some folks are still so oblivious to this insane bubble.