Now, this is something you don’t see every day.
Picture this: A music icon runs smack into some hard times and loses his plush New York City crib to foreclosure. A foreclosure investor into flipping houses snatches up the pricey palace and tries to sell – with no luck. He takes it off the market, only to relist it with a different price in an attempt to sell it.
That’s pretty standard. But this time, the new price is actually higher than it was the first time!
If you are into hip hop, this story probably sounds familiar – it’s exactly what’s happening with the duplex formerly owned by Damon Dash. Dash co-founded Roc-A-Fella Records back in the day with Jay-Z and went on to dabble in art, fashion and clothing, and movies – even directing and starring in a forgettable flick called State Property.
Since then, though, Dash has fallen on hard times. He was hit up earlier this year for $3 million in back taxes by the IRS, and was sued in 2004 for $15 million in damages by a former lover. Oh, in addition to other lawsuits, he got in trouble for allegedly selling liquor without a licence, and his famed studio was bought and sold.
It’s no wonder Dash lost his home to foreclosure.
The duplex on 25 North Moore St. was one of many in this country that have fallen victim to foreclosure auctions back in summer of 2010 for $5.5 million. The buyer tried to sell it a few months later for $7.995 million – a profit of $2.495 million, not too shabby for a few months of work. Unfortunately, no one bought it, so the buyer pulled it and put it back up just now for $8.25 million after some renovations to the 3.5 bed, 4 bath, two-floor home.
That is a new profit of $2.75 million – an increase of $300,000. All for a duplex that didn’t sell the first time. Talk about reverse psychology.
Today’s market is full of foreclosures that are selling to make a profit, so who knows? Maybe this time around the timing is right – timing, after all, plays a big role in moving real estate. Plus, at that level of high-end luxury real estate, the rules of real estate become more like guidelines and suggestions. If someone can afford to pay $7.995 million, they can probably squeeze out another $300,000.
They just have to make sure they pay the bills to avoid the same fate as Mr. Dash.
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