bubbleinfo.com

From the wsj.com – hat tip AL and MB!

SCOTTSDALE, Ariz. — Four years after the collapse of the U.S. housing bubble, flipping homes is back in fashion.

Jon Mirmelli, a Phoenix real-estate investor, learned late in the morning of Sept. 28 that a never-occupied custom house on the northern fringes of this Phoenix suburb was going up for auction around noon the same day. The six-bedroom home, built on a three-acre desert plot, has a kitchen with two dishwashers, four ovens, “antibacterial” copper sinks, and a master “spa” bathroom with space for a flat-screen TV visible from the tub.
 
The minimum bid, as set by a unit of Citigroup Inc., which had a $1.3 million mortgage on the home, was $379,900. After several minutes of bidding among investors and their representatives, some wearing shorts and flip-flops, Mr. Mirmelli won the home for $486,300. A week later, he agreed to sell it for $690,000 to a woman who moved in this month.
 
During the housing boom, millions of Americans tried to make money by buying and then quickly reselling new houses and condominiums. That kind of flipping stopped several years ago as home sales stalled amid a surge in foreclosures and curtailed lending.
 
Now, a different breed of flipper is proliferating: one who seeks bargains at foreclosure auctions. Unlike the boom-time flippers, the latest generation needs cold cash, lots of local-market knowledge and strong nerves.

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Back in September we featured the same floor plan a block down the street - it listed for $144,900, and was purchased for $177,000 by flippers.

They have since put it back on the market for $277,000 and found a buyer within 27 days – it’s now pending: http://www.youtube.com/watch?v=cWqFEvlB4BA

Two weeks ago this one hit the open market:

Here’s a flipper who was foiled in the act.

A realtor had listed this house in June, noting that it was a short-sale flip in progress. They had arranged (conspired) with the seller to submit to the existing lender a short sale package at a lower price, and then listed it on the MLS for $598,321 before the short sale was approved – intending to pocket the difference.

Instead, the bank foreclosed on them:

Adam has been gracious in sharing his time and experience about buying at the court house steps, and flipping properties for profit, the least we can do is keep an eye out for him.

It’ll be easy to dismiss this one because of location, but this is where you’ll see the first signs of flips turning to flops – with the outliers:

The final installment of our three-part series with Adam Rappoport, talking about buying properties for cash at the trustee sales on the court house steps:

Here’s a guy who had poured his heart out for years on the blogs without obligation, just trying to help people. He deserves to be recognized as a team player first, then as a flipper showing the way:

Most of you know Adam as ‘SD Realtor’ from Piggington’s blog where he has been a valuable contributor for years.

He has been flipping properties this year, ones that he purchased at the court house steps.  He was nice enough to share some of his thoughts and what he’s learned along the way.

Here’s Part 1:

Remember this fixer near the Back Gate in Oceanside?

One of our blog readers ended up buying it, unrelated to this video’s appearance here on July 1st:

In the meantime, other flippers have been busy in the area buying REOs and fixing them up to sell – here are other recent examples nearby:

*Flips by Joella and John, from the Nightline show (see RE VIDEOS in right column)

Here’s how the latest flip turned out:

Some depth to our story – even when making all-cash offers, it’s not easy:

In April, 2009, the ABC News Nightline show followed as we looked at buying some fixers in Oceanside (links are in the right column under REAL ESTATE VIDEOS).  Here is a follow-up: