Seriously, What the Hell?

818 N. Doheny Dr. #806
$488,500
1 BR / 1BA
1,154 sq ft

REO Large south-facing unit with city views, designer recessed lighting and built-in sound, bamboo floors. Spacious bedroom with walk-in closet and city views. Full-service Building. HOD includes all utilities and basic cable.


Sold: 3/1/05 - $950,000

Sold: 6/28/05 - $600,000

Sold: 2/3/06 - $820,000

Have been reading several interesting stories recently about the rampant fraud that occured (not surprisingly, I suppose) during the bubble period. You know the drill ... buy a place, see the "appraised value" shoot up a few hundred grand, take out a HELOC/additional mortgage, cash in on the difference, and decide to get foreclosed on. Walk away with a nice chunk of change (and a temporary ding on your cedit rating, but who cares?)

I'm not suggesting (OK, maybe I am, subtely) that there was fraud occuring here. Maybe I just need an education on how to read the paper trail on this one. Propertyshark shows a bunch of "reconveyances" and trust deed exchanges. Not surprisingly, a number of the parties involved had defaults at one point and/or owned a number of other properties in the 2004-2006 timeframe.

So, did someone really pay $950k for this place? Or even $820k, for that matter? I guess anything was possible during the Great Era of Funny Money. The bank's price still seems too high (approx $3600/mo pre-tax) given current rent levels, but since this building is full service, a rent-equivalent in the high 2,000 range is probably in-line, which would put the price in the high $300k/low $400k range. Even if it sells at current levels, goes to show you that "prior sales", especially in the 2006 vintage, were so overinflated it's laughable.