Huge Flip in MM?

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Submitted by EmilyHicks on January 26, 2011 - 6:10pm

Submitted by UCGal on January 26, 2011 - 8:06pm.

Here's an article about the guys who did it.

http://www.nctimes.com/business/article_...

and their website(s)
http://wemitigateloss.myproptrackr.com/
http://www.problemsolved.us/
http://www.kucanandclark.com/

I got their names from the property tax records, then looked at the grant deed search to verify they'd sold a house on the date this house sold (1/6/2011)

What's interesting is the sales history.
The house was purchased in 2001 for $267k
The short sale (I assume it was a short sale) was for $225... lower than the 2001 price, but if there were issues with the house - still in the realm of possibility.
Not sure if they put any money in between when they bought it and sold it... but they made some money.

Submitted by briansd1 on January 26, 2011 - 9:25pm.

Intesting UCGal. Thanks for sharing.

Submitted by surveyor on January 26, 2011 - 9:39pm.

If you look at the google street view, you can have an idea of its previous condition, although that may have been during construction, depending on the street view date.

Looks like a decent amount of work put into the property.

Submitted by SD Realtor on January 26, 2011 - 9:45pm.

If you really want to check things out then you can check the permit status with the city to see if any new permits were pulled. If there was serious work done, then they probably pulled permits.

The flippers did very well on this one.

Submitted by EmilyHicks on January 26, 2011 - 9:59pm.

The question is, why buy at $425k and then immediately sell it at a loss?

Submitted by UCGal on January 27, 2011 - 9:53am.

EmilyHicks wrote:
The question is, why buy at $425k and then immediately sell it at a loss?

I'm not sure this happened.

Redfin's sales history shows a sale on 11/30 for $405k. Sdlookup shows it as $425k. It had been listed at $425k.
http://www.redfin.com/CA/San-Diego/8990-...

What's interesting is I looked at the grant deed recordings and found the following.

Kucan & Clark purchased the property on Sept 30th. The previous owners had had an NOD filed against them in May 2009, and NOT in June 2010. In other words they were headed towards foreclosure. It also appears they were going through divorce according to court records. That is probably the cause of some of their financial distress. (Divorce is expensive.)

I do not show any grant deed transfers for the 11/30/2010 date from K&C. Since redfin shows the same $405 price, I don't know what is going on with that sale. I did not go looking at Clark or Kukan's grant recordings... just the partnership.

I show a grant deed recorded on 1/6/2011 from K&C to (presumeably) the new owner.

I would take that $425k price on 11/30 and disregard it. It appears to be an error. Maybe one of the realtors can weigh in and explain it.

Submitted by SD Realtor on January 27, 2011 - 10:26am.

I dont understand what you guys are confused about. Property was listed in summer of 2010 for 250k. Property was purchased for cash 225k and closed in September. It was a short sale. Property was rehabbed and put on the market in November of 2010 for 405k. Property closed escrow for 425k. From the pics it looks like they fixed it up nicely, at least the cosmetic stuff.

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