"Flip this House" in Pacific Beach

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Submitted by jpinpb on October 24, 2008 - 8:36am

Let me apologize in advance for my hysteria.

I resisted buying while the bubble was filling with air. Someone watching over me, b/c I made low offers that were rejected.

I've been tracking listings, watching them go on and off the market. I've been tracking NODs and foreclosures. I have seen properties sell for considerably less. I'm understanding the concept of land tsunami and how it eventually will hit the coast. I see declines in condo values there, the weakest link, so I'm hopeful.

I'm watching the stock market crash. Stocks like Apple has lost half it's value in a year's time. I watched the Nouriel Roubini interview posted on this board. I hear what Mr. Mortgage is saying. I'm watching unemployment rise. What am I doing wrong? Am I getting the wrong memos? Is the coast really immune?

Ok. Please let me explain my rant. I've been following many properties and this particular one has been on my radar, 1076 Diamond in P.B. for over the past 3 years. It's 2 units, each 2/1. It's on a smaller than usual lot for P.B., I think 4,000 or 5,000 sf.

Don't know how they got it zoned multiple, as usually it needs to be 6,300 sf. In any case, zoned multiple.

This property when I first noticed it was on the market in 2005 for over a year for a million. I laughed back then, of course, telling myself it is the real estate frenzy.

Even during the peak, it wasn't moving. The owner lived in Florida. It was a rental. It eventually got reduced to 950k. The downstairs unit was outdated. The upstairs unit was better, kitchen redone, but still shoddy.

I really liked the place. I made an offer after it sat for almost another year of 850k. S/O kept pressuring how we have to buy. I ran the numbers and selling my commercial property would get us in this place. They rejected the offer.

I wasn't going to go in over my head. I was already thinking I was crazy for offering 850k. In 2000 it sold for 435k. Some people were saying it would go back to 2001 levels. I didn't think it would happen on the coast, but I wasn't about to overpay either. In October 2006 it ended up selling for 940k. I was quite shocked at the time.

I found out the woman that bought it had money. Well, rather her ex was giving her money so I guess I consoled myself in the fact she had no sense of value of money. I just moved on and watch the market and other listings.

1162 Diamond sells in January for 710k. The triplex next door at 1058-64 sells for 815k in December 2007.

So I just reassure myself that she just overpaid and I'm not crazy, just the rest of the world.

In my tracking of NODs, guess what pops up again on my radar. Yes. 1076 Diamond gets a NOD in March 2008.

Reinstatement Amount: $22,409.00
Original Loan:$752,000.00
Loan Date-File#: 10/06

She was scheduled for foreclosure on 7-10.
Total Outstanding Dept ~ $790,355.00
Re-Instatement Amount: $22,409.00

Meanwhile 1211 Diamond sells in May for 715k. Then 1076 Diamond lists. It was listed for a very short period of time, something like 700k, but then removed. I'm thinking their feeble attempt at short sale. Once the bank gets it back, then there will be a real price.

I go to investigate 1076 Diamond. It appears the interior is gutted. Yep. So I find out she doesn't live there. Never did. It was a rental and some arrangement is made w/some guy who bought it from her, but didn't really buy it b/c it's still in her name and she's getting the NODs and foreclosure notice, but basically in her mind it's sold, but not really. But this guy or someone ripped the interior. Maybe it was her. They were going to rehab the place and make it like a shelter for abused women or recovering alcoholics. I don't know. The details are vague.

So w/just studs in the walls and questionable plumbing and electrical, windows ripped out and now covered w/plastic, basically uninhabitable, I'm having a good laugh wondering who the hell the bank is going to sell it to and for what price. I mean, no bank is going to lend on it now. It's going to have to be a cash offer or construction loan. The last house that sold on that street was for 715k and that was liveable and loanable.

It sits like this all summer. Every time I drive by, the weeds are growing in the yard, the plastic covering the windows, empty.

I'm trying to figure out what's the most someone will drop on it. I'm thinking it will take 100k minimum to redo both units. A flipper/investor will want to make some money.

They're not going to overpay. I'm thinking 450 to 500k, right? The market sucks now from last May. Banks are failing. Economy worldwide in turmoil.

I keep waiting for the bank to list it. Well, last night S/O informs me Diamond was on "Flip this House." They bought it and are going to put 100k in it and sell it - get this - for 1.2 million!!!

WHAT???!!! That can't be. It wasn't even listed. It hasn't sold according to my resources from county or SDLookup. I go to Redfin. Sure enough it sold for 655k 1076 Diamond on 10-3-08.

How is this possible?! I really need someone to help me understand. I'm trying very hard to do everything I can to make the best decision possible in this real estate market.

I want a house, but I'm trying to avoid mistakes. Someone please tell me I'm not crazy. I refuse to accept the coast is immune. 803 Wilbur on the corner of Mission just sold for 595k. Back in May they were asking 675k. A few months earlier, this knifecatcher bought 4878 Mission sold in March for 750k. Previously at peak sold 11/22/2004 for $810k. That means 155k drop in 7 months.

Yet "Flip this House" buys Diamond for 655k and plans to sell it for 1.2 million. What am I missing here? How can this show even continue to exist? I'm very confused and distraught.

Submitted by UCGal on August 8, 2009 - 9:45pm.

Just saw the episode today.

Looks like Paul and JD are living in it. Tax roles show it's owned by Esajian, LLC. At the end they point to another house (guessing it's 1114 Emerald) and apparently Than and his wife moved there.

You knew the whole show was a setup... It starts out with Than in a helocopter over the coast talking about how they won't be doing any projects at the beach - but other parts of the county are getting affordable... and then the project is at the beach.

Submitted by UCGal on August 8, 2009 - 10:03pm.

confirmed via online tax records that Than Merrill of Flip This House/CT Homes fame is the owner of record on 1112 Emerald.
(and that he has a very small ($130) unpaid tax bill.)

Bought in 4/2009 and back taxes (from prev owner?) were paid late at that point.

Submitted by tucker... on August 8, 2009 - 11:08pm.

Flip this House/san diego

i hope they flip a lot more houses in san diego cause i love the show its better than, ct homes on the east coast. they havent had the guy from texas (montolongos) yet this season,and rudy from la doesnt look like he knows what he is doing

Submitted by tucker... on August 15, 2009 - 10:20am.

Armando travels to San Clemente san diego

Flip This House®

“67 - Armando to the Rescue”
Rated: TVPG L
Running Time: 60 Minutes
Genre: Lifestyle
Closed Captions: Yes

Past Airings:
Saturday, August 15 @ 11am/10C

Search for other upcoming episodes

For the last ten years, Armando Montelongo has been flipping houses in San Antonio, Texas, and building a real estate empire. Now, with the real estate market tanking, Armando has turned his attention to helping homeowners in trouble. He believes when it comes to money most people create their own bad luck. It's Armando's mission to set investor-wannabes straight and tackle one real estate nightmare at a time. In this episode, Armando travels to San Clemente, California, to help Tom and Deb Finnegan. Their renovation project has spiraled out of control: a 3,000-square-foot Spanish Renaissance dream house has become a house of horrors. A series of unfortunate events, including the death of their contractor, left the Finnigans penniless. Armando first must push Tom and Deb to end their cycle of self-destruction and follow his advice or face complete financial ruin.

Submitted by Olena on September 3, 2009 - 10:46pm.

Check it out, event in San Diego with Paul, Than and JD
http://www.realwealthinvestor.com/live-e...

Submitted by waterboy on September 3, 2009 - 11:23pm.

So what are they going to share that I might not already know?

Has anyone ever been to one of these events (or similar) and actually consistantly made money afterwards...I've never known anyone

Think I would rather sit with either Than or Paul over a beer at a PB bar.

Submitted by jpinpb on September 4, 2009 - 8:46am.

Stupid question. Why host an event? I imagine this event is not free. Could they be in need of money and using their celebrity status to generate some income?

waterboy is right. What are they going to share that I might not already know?

They will tell their "success" stories and tell you how to find foreclosed properties and flip? Tell you how it's still possible in this market?

I really like to analize the psychology of all this. If their business is doing so well, why put on some event? They have a tv show which pays them, right? They are in the business of buying homes, fixing them and selling them at a profit, right? Is that not providing sufficient income?

I think maybe they want more spotlight. I think things might be dwindling for them and the luster might be dulling.

Submitted by PCinSD on September 4, 2009 - 9:10am.

Heh, I just read that ad. JP, it says the event is free. That is pretty standard for these types of events. They'll ask you to sign up for their crap after you're already there and caught up in the hype.

Also from the advertisement: "You’ll also learn the key to life mastery and the 3 elements to creating lasting change". From a couple of 30-something house flippers.

It could be a fun event just for the comic relief factor. Knowing the key to life mastery could come in handy.

Submitted by waterboy on September 4, 2009 - 9:18am.

I've noticed a trend in watching all these shows lately, and its that they are not doing any profitable flips.

Trademark Properties (South Carolina) started the series by having one of the brothers open a restaurant, next episode showed them putting $5k into a listing to sell quicker, and the last few they were remodeling a town rec center.

Flipping Out (Los Angeles) Jeff has moved to the design business and project manager for clients remodels, but no personal flips

Flip This House- Armando from TX went to San Clemente to try & help someone finish a project and work with the lender. The guy from LA (forget his name) was shown fixing up a place in TX for a family member. The CT Homes guys decided to move into the PB flip and on the most recent one they decided to help a friend open a salon and also put a few dollars into repainting & fixing up a bedroom & bathroom of a place they already owned so that it would rent for more.

When is the last time any of these shows have had an episode of a profitable flip...hope the network pays them well, and I guess that is why they are having these conferences to squeeze every penny out of their recent fame.

Submitted by Allan from Fallbrook on September 4, 2009 - 9:22am.

pabloesqobar wrote:
Heh, I just read that ad. JP, it says the event is free. That is pretty standard for these types of events. They'll ask you to sign up for their crap after you're already there and caught up in the hype.

Also from the advertisement: "You’ll also learn the key to life mastery and the 3 elements to creating lasting change". From a couple of 30-something house flippers.

It could be a fun event just for the comic relief factor. Knowing the key to life mastery could come in handy.

Pablo: I'm pretty sure that Douglas Adams' "The Hitchhiker's Guide to the Galaxy" contains the key to life mastery. Or, at the least, the meaning of life, which I think (according to the book) is 42.

Hope that helps.

On a more serious note, I did management and financial consulting for a number of years after I got out of the corporate rat race and was always mystified by the number of "gurus" and "life coaches" out there. In the main, they were wholly unqualified for the position and generally just spouted this unintelligible corporatespeak gibberish (which they had largely stolen from guys like Tom Peters and Tony Robbins).

Submitted by Olena on September 4, 2009 - 10:39am.

I have been going to a lot of seminars in the past two years, some of them are good, some of them are waste of time. I have been to Paul's tour and training of the house on Diamond street - it was fun to see what they did to the house, there were lots of tips for people who want to rehab houses.

It was free - they were promoting a paid training at the end of the event. It is probably going to be something similar to this on September 13th: free event with promotions at the end.

Submitted by ljinvestor on September 4, 2009 - 11:36am.

Olena- Are they trying to partner with investors, or what are they really selling?

Submitted by Olena on September 4, 2009 - 1:32pm.

I would like to buy 2 more rentals or so in San Diego in the next 2 years, real estate clubs and seminars are a good place to network with other investors, realtors, real estate lawyers, etc.(it is easy to make a mistake if you do it on your own).

There are 3 real estate clubs in San Diego, the biggest one is http://www.sdcia.com/.

Submitted by UCGal on September 4, 2009 - 6:04pm.

Allan from Fallbrook wrote:
pabloesqobar wrote:

(snip)

Also from the advertisement: "You’ll also learn the key to life mastery and the 3 elements to creating lasting change".
(snip)

Pablo: I'm pretty sure that Douglas Adams' "The Hitchhiker's Guide to the Galaxy" contains the key to life mastery. Or, at the least, the meaning of life, which I think (according to the book) is 42.
(snip)

But are the "masters of their domain?"
(Sorry - couldn't resist the Seinfeld reference.)

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