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Cramer's Front Man, Lenny "Large" Dykstra, Massacres Gretzky's Home

Guest ValueCarl

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Guest ValueCarl

Talk about stealing trophy real estate, however. The second mortgagor has to be in cahoots with the first lien holder, Chase, throughout this whole deal. They really put it to Lenny!


The lender who Dykstra hates, Index Investors, will be "all in" for a little more than $1 million including their usury fees on the original loan(290K minus 80K), and the relatively small amount of repairs required to restore the property into pristine condition. 


You know Chase told the Index investor from Oregon what they're going to accept-less than 13.5 million-based upon the final sale price they expect this property to realize according to today's market value.


Otherwise, why would "Index" pour more good money down the drain including ongoing "expenses" before the sale, from which their break even is now $14.5 million(13.5 plus 1) plus ongoing operating expenses before "reselling" it?


Why didn't the first mortgagor, Chase, foreclose and take possession at the auction steps? 


This is "INSIDE REAL ESTATE" because no way in hell would any 2nd lien holder go to the " auction steps" with that mammoth first loan in front of them, unless an agreement had already been reached on the current market value and acceptance terms by the first once this new owner fixes the property for the flip!


I have found real estate to be as crooked as the stock market over the years, with the rich and famous who will do anything to keep their "zip codes" from being inhabited by what they might view as undesirables. imo   



<Dykstra took out more than $18 million in loans to purchase the property and on Wednesday it was auctioned for $760,712.


The winning bidder was the Oregon-based private equity firm Index Investors, a junior lienholder. J.P. Morgan Chase & Co. holds the senior lien that’s about $13.5 million, said Jeff Smith, a managing member with Index. Index is negotiating with J.P. Morgan to deal with that debt.


Smith said Index did everything by the book when it loaned Dykstra $290,000 with $80,000 in fees in 2008.


Smith said he was the lone bidder at the Ventura County courthouse last week.


“Everybody probably didn’t want to come, knowing there was a senior mortgage of $13.5 million,” he said.>




Read more: http://www.vcstar.com/news/2010/nov/20/dykstra-home-is-sold-at-auction/?partner=yahoo_feeds#ixzz15xqoCtAF

- vcstar.com   

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