Thursday, January 28, 2010

Thanks for nothing, Flipper!

As I've said before, flippers are back.  My recent experience has been that they are corporations or LLCs with serious cash, and they purchase properties sight-unseen at auctions.  And then put them right back on the market.  No due diligence, no fixing, nada.

My clients just made an offer on a darling condo in the Portofino complex in Pacoima that was owned by a corporate flipper.  But we learned from the Homeowners Association management company that over 24% of the residents there are delinquent in their HOA dues.  This percentage is way too high for my buyers' lender, or any other lender, in fact. The buyers will not be able to get a conventional loan and I don't know anyone who will be able to do so.  And I was the one to tell the corporate flip agent about it.  He hadn't seen the unit and had not researched the complex  I know these folks want to make a quick buck, but c'mon, people!  This takes no time at all to figure these kinds of things out and will save us all a lot of time and trouble!

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