The guy from the TV show, Flip This House, wants to show you how to do it too.
He has a seminar tomorrow to discuss how he is going to make $150,000 profit on this house at 1036 Edgemont in South Park.
The house had been purchased at the trustee sale by our favorite flipper J.Mann for $330,000 (corrected, $269,800) in March, but apparently things didn’t work out, and he sold to our new flipper for $270,000 a month ago.
The new guy has invested enough that he’s looking for $600,000+ now. Link.
Here is his website promoting the seminar, with video: Link.
Listing photos by our friend Jakob! Link.
He certainly invested enough in Photoshop. It looks like the South Park cartoon.
Thanks for the shout out!
We do work with a number of flippers, some less prolific than this group, some more. I can’t help but get suspicious when someone is selling courses and doing seminars, but JD is the real deal, we shoot around one of his a month. Most are much cheaper homes than this one.
That’s one way to keep solicitors out…have them hike through weeds and brush and enter your front sidewalk from a canyon. Or am I seeing those pictures all wrong???
Jim,
John Mann didn’t pay 330k He paid $269,800.
He has $330,000 on the tax rolls, but those are known to be manipulated by some.
On foreclosurearadar they didn’t have a final price, the $269,800 was the estimated bid. Did you see it confirmed elsewhere?
Ya, I called the trustee(cal western recon) and they confirmed a $269,800 sale he probably picked it up “a penny over”. I noticed he records like this on almost all of his properties lately.
Here’s another J Mann “Flip” that makes it look like he is taking a loss.
http://www.redfin.com/CA/San-Diego/808-810-Yarmouth-Ct-92109/home/5176670
Currently $640k and it looks like he paid $660k back in FEB. I know he’s too shrewd to be losing anything on these sales.
On that one it is clear, because on FR it shows he paid $521,616.
When they go to record the deed and the clerk asks how much they paid, they are putting high numbers so the retail buyer doesn’t mind.
He marked $660,000, and that’s what is on the tax rolls.
On the Edgemont above he listed it for sale on the MLS for $299,000 as-is, without repairs, so either his crew was buried at the time, or they decided to dump?
I would bet edgemont needed a lot more work than he thought and he didn’t want to do a major renovation and be into a deal for 8-12 months.
Well, that’s, uh… interesting. Is this common? And is this generally understood by everyone looking at the tax rolls that the numbers are fudged?
$600K in 92102? (cough) It better have kevlar siding… It is cute though.
They record the purchase price higher than what they actually paid for it for two reasons. Mainly, it’s so they can sell to an FHA buyer without exceeding the 20% gross profit restrictions as mandated by the FHA. FHA won’t finance a flip property that’s held less than 90 days and where the gross profit exceeds 20%. It’s bank fraud – plain and simple and many of these flippers are so short sighted they don’t think of the future consequences once the banks catch on and audit these sales. It’s also material misrepresentation to the buyers of these properties as many buyers likely wouldn’t submit offers if they knew the true profit the flippers were actually making. Sounds like the making for more lawsuits in the future!
This guy’s a fool. I know the area well, having lived in South Park for 15 years prior to moving out. This isn’t the gentrified area. Indeed, it’s still an area “in transition” with its share of drive-by’s, canyon predators (no, not the coyotes) and drop/flop houses (oh, I meant affordable living units). Matter-of-fact, the police rally point for this beat is known as ground-zero for petty crime in this turf, “Miller’s Market”. Not exactly Harvest Ranch.
This property isn’t in South Park, it’s in Golden Hill. It is right beneath the flight path – you will hear the planes all day and late into the night. Also it is right next to a busy freeway – noisy. Also it is right next to a canyon open space that is still sketchy. Anyone who buys at this price will have a rude awakening once they have lived there a week. You could do much better for the same price elsewhere.
@ewhac regarding JTR #8; I had been wondering WTF myself, but now this makes some sense. My house sold on Mar 7 for $182,200. The “official” sale is listed as 21 Mar for $240,000. It was for sale for a week (sign in the front yard) at $279,000. When hit the MLS it went up to $299,000. It is currently pending so I don’t know what the final price was just yet.
Isn’t this illegal? I wonder if this was one of the “tips” he gives out in the seminar.