What's the purpose of buy at 1.77m, sell at 0.88m and flip to 3.68m

As some of you might know, we have some big names over certain areas. Not only agent, but some flippers.

So, I notice one funny thing in the property history. Why do they sell the house again for 0.88 in between?

11/01/17 Listing removed 3,688,000 Source: U16818 Financial Services /sqft: $980
08/30/17 Listed for sale 3,688,000+316% Source: U16818 Financial Services /sqft: $980
03/25/16 Sold 887,500-50% Source: Public Record /sqft: $235
12/29/15 Sold 1,775,000+18.5% Robert Yu Source: Public Record /sqft: $471
Seller’s Agent:
Robert Yu
(408) 252-9800
10/27/15 Listed for sale 1,498,000 Source: RE/MAX Real Estate Services /sqft: $398

Come on, I am pretty sure you knew that community only allows one story house, and Chinese people really like two-story house.

Those $900K lost in 3-25-2016 seem suspicious to me.

But I am not going to accuse anybody of anything wrong since I am not familiar with sales among relatives, but it may be a way to take off some taxes off your back if you gift a property. I forgot all I learned in real estate regarding that issue.

Really? I like single story ranchers…

When I say Chinese people. I mean those hot money from mainland. Personally, I like one story as well. :):grin:

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It’s likely to be a financing transaction (construction loan). Someone on here has easy access to more info could look it up, but doubtful it’s anything funny or tax avoidance.

Good, that means they are going to need a 1031 because the capital gains are going to be delicious.

Thanks for the info, I may give them a visit to promote my deferral of capital gains program.

Oh… by looking at some pictures, dang it!

Is it me, but I see the house painted all white? That is not a rental!

Of couse not a rental. U saw a rental listed for 3.68m before?


I was implying that you don’t paint a home all white looking like a rental. :smile::smile::smile:

good taste for fliper…

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Redfin history is not reliable when there is no MLS sales

am I the only one noticing that 887,500 is exactly half of the previous price?

I would say 2 parties bought the property initially together each 50% “tenants in common”, and after 4 months, one of them bought the other one out.

In other words, it was not a “full value” transfer, but only 50%.


Possibly a divorce?

IMO, not divorce with the names of transfers happened. I guess ptiemann statement is right. The transfer in 2016 happened from a person to Trustee, and then Trust sold the home finally.

Let’s say that’s the case, 2 parties initially, then 1 party brought out.

Doesn’t it bring more disadvantage to the other party? Since the other party pay more tax for the final sale? (although long term, but tax of this amount is not a small number: 365-88 = 280)

it’s not 365-88.
It’s now 365-88-88.

His basis is not ‘88’, but ‘88’ from the 1st purchase when he bought his initial 50%, PLUS another ‘88’ when he bought the remaining 50%.

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lol, that’s actually a good idea. Isn’t it.

Yes PT, I noticed that 50%, it’s right there in the record. I just rounded the number.

It doesn’t matter how or when, there’s somebody there that is going to need help with the capital gains.

Again, I am not good at math, but there’s a juicy $2 difference from the last price base. Right?

What kind of help do they need? Can you share some details.

But give them a visit if they need some help. .:joy:

You add the price base to what tax deductions you are going to get from the sale. The rest is what you are going to be paying in capital gains. I bet most RE investors have a property in the pipeline ready to buy within 45 days via 1031.

So, there’s a program that allows you to defer the payment of the capital gains for 30 years. You don’t need to be in a hurry to buy another property. This program is good for those high end flippers or people leaving the landlord scenario. The deal goes through an unsecured loan, and the process is the same as buying or selling any property or asset, through escrow. Nothing changes, except there’s a third party involved. Both seller and buyer get the property and the $.

I am helping a RE investor right now, 20+ properties being sold one by one. After the last sale, he will use 100% of the proceeds to buy himself and other partners a mall somewhere.

At the same time, I am setting him up with an IUL to take advantage of that money being spent. He will retire with a $1M tax free income a year 25 years from now.

People just need to be open minded. That’s all.