I just bought two Powerball tickets and if I win, I will be happy to become an investor!
CB - what are the pool fence laws in California? I grew up in NY where you have to have a separate locking fence around your pool and a paved area around the perimeter. I was completely shocked the first time I saw a pool in a big open yard with grass coming right up to the edge. That was in Connecticut.
Personally, I would tend to prefer a larger, usable lot to a view on a tiny lot. But then, I am not your typical San Diego buyer, I think. 
I would not discount the appeal of more space and trees, but then you know your market.
It sounded to me as if #7 would be ideal, but I gather it is still hanging fire.
Personally, I’m not all that fond of views either. I much rather have more useful house and larger lot, but I’m not your potential customer. H would never relocate.
cb, all you can do is what you can do. And you’re doing it. Something will happen, one way or another, but in the meantime, keep looking. It may be the case that neither of these two options works out.
Remember how stressed you were with your last flip, when it didn’t sell as quickly as you had hoped? You were getting ready to drop the price again when you finally got The Offer.
Sit tight. Things are happening that you can’t see.
Very Happy… you are on target. What a day!!!
13 Mt Helix
My agent and I were scrambling to get out to La Mesa in extremely heavy traffic. I wanted her to see the property and give me a 2nd opinion. She made it out to the property first and went inside. I was still stuck on the 8 fwy trying to inch my way out to meet her. She called me and said that that she could not see it having a future asking price of more than $700k. The ‘Mid Century Modern’ architecture was not really strong enough. Kitchen and living area are broken up with a staircase in the middle that cannot be modified. Kitchen cannot be ‘opened up’. She just did not feel it was special enough to warrant any higher value. In addition, we did a lot of research and the house next door, with same large lot, took over 60 days to sell at $625k with 800 more sf. But, it was in original condition. A bank appraiser will not add more than $75k value for a full renovation against a strong comparable next door, even though this property has superior views.
I had to pull off the freeway and madly call the listing agent… no answer. I composed a WITHDRAW OFFER email quickly because I know she is presenting offers tonight.
12 Pt Loma
Right in the middle of trying to compose the email, the Pt Loma agent called. The Sellers submitted a Counter Offer. He started reading off a bunch of terms that were perfectly fine (extension of escrow so Son can move out). Then the big hammer dropped. They are countering back at full price $995,000. They are not budging on their asking price.
We had a long talk and I said I just cannot even get close. He feels my offer is very reasonable for the condition of the property but he cannot convince the Sellers because some ‘friend of a friend’ told them the house is worth $1.2 million. Yes, it’s worth 1.2 mil in perfect excellent condition - not falling off cliff with sewage running under the house!! I told him that I cannot accept that price. He said that we have 3 days to work on it, but I have given up at this point. He seemed to think that they could work some kind of magic. The other offer is ‘higher’ than mine (he won’t reveal). I am assuming they received the same counter offer - but they haven’t even inspected the house. Wait until they get under the covers
I did challenge him to work through every comparable and come back with a definitive answer on what the future value would be. If he comes up with some kind of magic number, AND I’m convinced… I might reconsider.
Back to the drawing board. I think I need to get a little more aggressive with the adorable #7 little old lady house.
7 sounds more and more like it deserves some love and attention. I think you just dodged two BIG bullets that would have taken a LOT of time and resources for little return.
Hi Coralbrook! Long time lurker here.
Now that you’ve noted the issues with the Pt. Loma property to the sellers, do they have to make full disclosure on any listing paperwork of the problems found? Here in New York State buyers have to complete a property condition disclosure form basically saying that the buyer is not aware of any deficiencies or issues with the property. So, lets just say the sellers were previously unaware about the issues you’ve found, now that they’ve been told they should be telling any potential buyers about those issues. At this point, wouldn’t it be illegal for them not to disclose?
I have found that sellers always blatantly lie on those disclosure forms.
It’s best to do YOUR OWN due diligence because sellers can keep their fingers crossed that they successful buyer will be so happy with the new purchase s/he won’t want to sue, with all the hassles, expense, and extra stress that goes with lawsuits. Sellers likely try to claim ignorance.
In California, Sellers and their Listing Agents can get into big trouble for not disclosing a known item.
At this point it is ‘hearsay’ regarding my inspection. The Sellers have not received a written Home Inspection Report. However, the listing agents have been verbally informed, and the issues were specifically pointed out to them in person. It will be the Listing Agent who will probably insist that these items are disclosed. The Sellers can hide behind the 'Never Lived in Property, cannot make any disclosures" and there are forms they can sign to avoid disclosure.
I agree with HImom that you dodged bullets and are better off forgetting those properties. Here’s hoping a better prospect comes along soon.
@Coralbrook, I think there is someone looking out for you because you have such a good heart and you will find the right place and keep on doing great flips, rehabilitating properties to bring them to their full potential and help them find loving buyers. Hang in there and know that there are lots of properties waiting for your loving attention. If we could afford you, our house could use your love too!
THe winning powerball ticket was sold in Chino Hills (near San Bernadino). Are you a winner???
^^^That would be funny. Coralbrook disappears and we never hear from her again.
@coralbrook: I admire your realism and ability to not get carried away with romantic ideas of how beautiful a property could be. You are remaining logical and business-minded and keeping “profit” at the top of your priority list. That’s why you’re successful!
CB - the right property is out there waiting for you. Maybe it is the #7 little old lady property. I love following your flips!
I came very close to getting emotional about the Pt Loma property. It has a lot of original 1937 character, but unfortunately it hasn’t been maintained since about 1960!!
I know two investors in the area who will try to snap it up. One investor might actually pay the price for it but they will scrape the house right off the lot and build a modern 2 story McMansion. They have deep pockets - I don’t.
I did not win the Powerball… so back on the hunt today. Searching the auction and checking to see if anything coming up for sale this week.
I am going to go back and give two more properties in Pt Loma a 2nd look.
You can do and have done better!
Is there any chance the other parties interested in the Pt Loma property might start backpedaling or negotiating strongly downward once they see how much infrastructure etc is needed? Even though your offer expired, is it possible you could still get called back if your offer starts looking more appealing after all?
12 Pt Loma
Technincally, I am sitting on an active Counter Offer. I am assuming that the other buyers are sitting on an active Counter Offer at same high price. They may come back and do a more thorough inspection. However, I have heard rumors from inside the real estate office that the other buyers are wishy washy (and boy will they be wishy washy when they actually start looking under the covers and get an estimate for retaining wall). So, I am probably the only offer they have in hand at this moment. That can all change once word gets out and it gets listed.
The retaining wall professional called me this morning. He did have a chance to look at the slope issue. He says that the wall cannot be built to the standard City of San Diego retaining wall plan/permit. It is so steep that it will require a structural engineer and huge footings. He gave me an estimate of $40,000. I cannot budge an inch off my price.
I have notified the listing agent, but I did not provide details of their findings or estimate - just described that it was going to involve extensive structural engineering and be much higher than my original estimate. The reason I don’t share actual details and cost with the agent is because I want other buyers to be aware… but I don’t want them to know my estimate. Most buyers will call in ABC Company who will give them a really big scare story and come up with something like $50k to $75k. I want others to have higher estimates.
And, like an idiot… I am going to go back through the house one more time at 3pm today. I want to carefully analyze which walls have to be removed and moved and then stand and try to analyze view potential from different angles inside the house. It can make a big difference in future selling cost.