Thursday, August 21, 2008

A flip to a flop


8631 PINA CORTE, Corona, CA 92883


This home was featured on the BMIT website back in Sept 07. It was an attempted flip. Here's the text from the BMIT post,

House #3 is 8613 Pina Corte. This is also a 3,629 sqft model that was previously featured by BMIT back in July of '06. At the time, the home was on sale as a REO after the prior owner defaulted on his zero down, 100% financed $735,000 purchase. Perhaps inspired by the impressive sale price from 8650 Pina Corte, a flipper decided he couldn't pass up this home at the bargain basement price of $635,000 in March of '07 (afterall, $215,000 instant equity, right?). The flipper added front and back yard landscaping, a balcony, as well as bamboo flooring, new carpet, and a painted driveway. The flip has been on the MLS since July and after a single price drop it looks like the flipper is sticking to his $825,000 asking price.

So a flipper picked up this place for $635k last year. Dropped another wad of cash upgrading the place and tried to get $850k for it. As you can well imagine that didn't quite work out for our fliptard.

It listed this week (again) at a more reasonable price. It's now listed as a short sale at $399k! Now that is a FLOP!!

7 comments:

ocrenter said...

nice =)

alex said...

So 635+~100 for the upgrades and carry cost. Hey, its only a 300k loss!

And WTF is a painted driveway, and how does that add value?


FreedomCM

ButterMonkey said...

Anyone been over to Riverwalk Vista lately? I stopped by there a few years ago and they had starting prices of $800,000 or so. I drove by today and the sign said, "From the high 300's."

That made me smile!

ButterMonkey said...

Oh blah. Never mind. The husband and I went over there for a look today and they're now trying to sell these cramped little 1500 sq.ft. homes for $399,000. Give me a break!

golfer_X said...

I would not be surprised at all to see that development go belly up in the next few months. They must have spent a fortune grading that. They were at it for years. I stopped in when the models first opened and the prices were laughable.

Santa Ana River Rat said...

while surfing, found this link. Very sobering read.
http://www.weeklystandard.com/Content/Public/Articles/000/000/015/170jdcim.asp?pg=1

ButterMonkey said...

X, they're still trying to unload the bigs ones for over $600k. They were nice and big at 4000 sq. ft., but where do they think they are going to find buyers for those things? That's a $5000/month house payment with mello roos, insurance, and HOA fees tacked onto the rest of the payment and it ain't like it's some great location right there overlooking the 91 freeway.

The place was a ghost town. I'll bet you're right about them going belly up soon.