The new Historic Neighborhood "investor"

[uptowngirl]

House flipping is alive and well, and may be even more detrimental to our historic homes!

Now instead of buying a house, working on it and trying to sell it for a profit, investors are buying cheap foreclosures doing nothing to the home and trying to sell it for a profit. As we are all well aware the majority of these homes will sit for a while waiting for a buyer while the roof continues to leak and termites continue to do damage. At least while the investor was DOING something like a new roof/termite treatment) the houses had a chance of one day landing with a true owner occupant.

I have been watching some of these houses, and calling the FBSO sign numbers popping up trying to see what is going on. There are two here on Ionia I am waiting for the return call on (some 888 #, $500 down and $275/mo the signs say) there is one @ 6th and Liberty a Watson realtor bought for 20K about a week ago and is now selling for 60K, but will take 55K (gracious), it needs a new roof and has been leaking for a couple of years now. I don't think this house ever had a chance for a owner occupant as I believe the realtor already had a contract on it when it hit the MLS. I am thinking about picking this house up, but just can't bring myself to give this realtor 40K in profit for nothing other than the fact he knew the listing was coming up and got a jump on everyone else. 

I am not begrudging investors making some cash, but I am very worried about what is going to happen to these houses while they sit and continue their slow demolition by neglect.

Not sure there is any way to combat this new wave of investors, but knowledge is power-so sharing with you all.

[Springfield Chicken]

I'm as curious and suspicious as you are on this one.  I'll let you know what I find out.

[CS Foltz]

I'm as curious and suspicious as you are on this one.  I'll let you know what I find out.

I am curious also.............look forward to what you find out!

[Springfielder]

I'd love to know the name of this agent and investor

[sean]

BUMP? I would like to know what really happened. A property search for the house says that it is still in the banks name.

[CS Foltz]

uptowngirl...........there is a house on Walnut, the owner will take alot less than $40K........asking price is $17k as is! About 3 or 4 down from Three Layers and it does have possibilities! Will need some work, but does not look too bad at all! Tried to convince the missus but to no avail! Next time your in that area........go past 3 Layers about the 4th down on the right, don't remember the exact address but it is mothballed and missing the front porch, kinda hard to miss!

[uptowngirl]

Hey CS I know that house well, I posted it's restored sister house! I will definately check that one out as it has a lot of potential.

[uptowngirl]

BUMP? I would like to know what really happened. A property search for the house says that it is still in the banks name.

I am afraid unless reported we might not ever know. I was told the house closed for 30K, but no other offers were entertained and the listing agent was the seeling agent, and it was sold to another Watson agent (so keeping it in the firm). I am considering turning this transaction in, as it seems very fishy AND I am tired of our historic homes payign the price for these flippers.

[CS Foltz]

uptowngirl.........Watson is no different than SRG! Infact, if you do very little checking, you will find out that Watson took over selling the SRG Homes and some of the bulldozed lots...........not all of the lots, but some! House right across from Three Layers is for sale via Watson! Makes me wonder just what kinda deal they and SRG worked out?

[KuroiKetsunoHana]

my understanding is that the SRG->watson thing was nothing fancy--the 'gentleman' from SRG was goïng under and sold to watson, cheap.

[CS Foltz]

my understanding is that the SRG->watson thing was nothing fancy--the 'gentleman' from SRG was goïng under and sold to watson, cheap.

Actually, that would confirm some rumors that I had heard and does make alot of sense! Either way, SRG is no longer viable and in full operation in Springfield. I have seen an SRG truck and box trailer going by Three Layers but they don't have the presence that they used too! But they still have lots for sale with the SRG Lettering........I know of probably 4 within a 3 block radius of 3 Layers and I am sure there are many more!

[Springfield Chicken]

My Watson office has the remaining SRG homes for sale and a number of lots, including some commercial ones.  In the current market the prices just don't make sense for SRG to try to build at what market prices are right now and still be able to make a profit.  Watson doesn't own any of the SRG properties.

Neither I, nor any agent in my office, is connected in any way to the home that was bought and listed by another Watson agent.  Don't know him.  Can only go by the sales records.  The home was listed by an agent with another company, and the first day I saw it on the MLS it was already a pending sale.  It was listed for $20,000 as a foreclosure.  I know of at least one written offer and one verbal offer of the list price or higher.  It sold for $30,000 and now it's being flipped for a higher price.

I would love to know the whole story of how this went down because I still think there is something amiss here regarding the original low list price and the quick sale to the listing agent's buyer.  Makes ya' wonder.....

[CS Foltz]

I would love to know the whole story of how this went down because I still think there is something amiss here regarding the original low list price and the quick sale to the listing agent's buyer.  Makes ya' wonder.....

Springfield Chicken ...........I concur! Something is just not right here......thought people would have learned about the flip game but who knows?

[Springfielder]

There's now a sign on the property 59, 500 cash only. Nothing like wanting to flip it and make 20-30 grand for doing absolutely NOTHING 

[floridaforester]

Don't worry guys, Springfield isn't the only historic neighborhood in which this is occurring.  1864 Challen Ave in Avondale, 2 doors from the river, sold in July '10 for $250k by a group of investors and it went back on the market immediately for $350k.   Its since been reduced to $329k.   Granted it needs at least $200k in renovations, but it would probably be worth $600k+ after.

At the end of the day it just might come back to bite the speculators in the ass.  Just to break even they'll probably have to get at least $285k for it after figuring carrying costs + closing costs.  As always, cash is king and the few folks that still have it in this economy will come out even better off as the economy slowly recovers.