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Monday, Nov 04 2013 11:06 AM

Inside Crisp & Cole: How one flip worked

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    By Gretchen Wenner

    This recently foreclosed home at 12716 Crown Crest Drive in southwest Bakersfield was "flipped" through Crisp & Cole's team last year prior to being "sold" to David Crisp's mother, who ultimately defaulted on the loan.

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By The Bakersfield Californian

Numerous Crisp & Cole-related defaults in The Californian’s database were shuttled among employees, family members and the principals’ companies, Crisp, Cole & Associates and Aiden, Logan & Associates Inc.

Each swap typically fetched a higher price; most were paid with 100 percent financing.

While reselling a property is legal, such deals can spell trouble if they involved inflated appraisals or falsified loan applications.

Here’s how one “flip” in the Seven Oaks at Grand Island neighborhood went down — all the way to foreclosure.

12716 Crown Crest Drive

July 12, 2006

Price: $620,000

Crisp and Cole sales agent Jeriel Salinas buys from builder Rodney R. Brown’s company, RRB Inc.

Salinas gets 100 percent financing with a first loan of about $496,000 and a concurrent “piggyback” second of almost $124,000.

Aug. 21, 2006

Free The following month, Salinas “gifts” 99 percent interest to Aiden, Logan & Associates Inc.

Salinas keeps 1 percent interest. The grant deed is notarized in-house by employee Sneha Mohammadi.

Aug. 22, 2006

Price: $959,000

The next day, Aiden Logan and Salinas sell to David Crisp’s mother, Tu Crisp, who gets 100 percent financing. The grant deed is notarized by in-house employee Brandi Bingaman.

The sales price has gone up 55 percent in six weeks.

May 10, 2007: Tu Crisp’s loan defaults.

Sept. 17:Foreclosure

Price: $525,000

A trustee’s deed recorded Sept. 17th shows the house sold at public auction Sept. 4 to Avelo Mortgage LLC.

The day of the auction, $815,997.18 was owed on the delinquent first loan, including penalties and fees.

The second loan, worth nearly $192,000, was a total loss.

Sources: County property records, First American Real Estate Solutions, Californiananalysis

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