Sunday, July 01, 2007

Crisp & Cole Associates defaults now at over $24 million

What a surprise, these real estate geninuses have now left defaults of over $24 million in their wake, burned out lawns, investigations into their lending company, investigations into their real estate company, IRS tax liens and word is more to come.

It needs to be noted that this Seven Oaks mansion was featured
Here in August 2006 as a flip or flop.



Here is the latest from the Bakersfield Californian:

Crisp defaults pile up

Latest notice on $1.75 million loan for Seven Oaks mansion

BY GRETCHEN WENNER AND VANESSA GREGORY

It's impossible to know what state regulators are looking for as they examine files of the former Crisp & Cole Real Estate company.

Two former staffers recently told The Californian that investigators from the state Department of Real Estate have been asking questions and requesting files.

Meanwhile, default notices continue to pile up for properties related to Crisp & Cole.

The latest default notice sent to 27-year-old David Crisp last month concerns a $1.75 million loan for a stately Seven Oaks mansion.

Three homes are scheduled for auction this week alone.

Nearly 40 others -- most in southwest Bakersfield -- are in some stage of foreclosure.

Californian research has uncovered a pattern of property turnover among Crisp & Cole associates, steep price increases and 100 percent financing by subprime lenders in many of the properties now defaulting.

For example, a southwest property on Via Bonita Drive initially sold for $342,000 in October 2005. Five months later, after some deed shuffling with a business associate of Crisp & Cole, a Crisp family member bought the home with 100 percent financing for $549,000.

The new price showed an increase of $207,000, or more than 60 percent, in less than six months.

The property defaulted in May.

In the latest crop of Crisp-related defaults, it appears homes were purchased in clusters in some neighborhoods.

Near the $1.75 million default mansion on New Quay Court, which now sits empty, at least eight other defaulted properties tied to the Crisp network are also vacant. Lawns have turned brown in front of some.

16 comments:

Rob Dawg said...

Stay on this BB. I sure hope the university hasn't spent their anticipated donations. That's where I think this goes next. I'm willing to bet that the high rise complex and school involvement and favorable city treatment are all tied up together.

Tehachapi said...

This slime ball will still have his big ego and smug attitude to the bitter end. Thanks Crisp and Cole for f**king up this market...may you rot in hell!

Positive Cash Flow said...

Welcome to the party Bakersfield California...better late than never.

I look foward to reading CSUB's damage control statement pertaining to their advocacy of Crisp as the best developer for their on campus projects. CSUB certainly has some egg on their face.

Jim in San Marcos said...

It's really amazing how much damage you can do with just one ball-point-pen.

xs10shell said...

I thought he had $1.8 billion in credit?

Bakersfield Bubble said...

I am also waiting for a comment from the University on this mess.

$1.8 billion Letter of Credit - LMFAO!!!!

Perfect Storm said...

burn baby burn

Perfect Storm said...

The new price showed an increase of $207,000, or more than 60 percent, in less than six months.

So if the price increase was really that much he could have sold the property and pocketed the cash, but instead he borrowed against it. Anybody that does business with this moron is asking for nothing but trouble with a capital T.

Housing/Mortgage Doom 2007.

Were right on track for a 50% decline by 2009.

-Fifty7- said...

-To all those who read this blog-

I want to correct myself and apologize for sticking up for David Crisp in previous posts.........saying that you guys are are being too rough on him, etc.. blah, blah, blah. Well, let me retort! It is apparent to me now that this guy is a COMPLETE IDIOT NOTHING MORE!!! Sorry it took me longer to realize this than it should have......... now proceed with the bashing! : )

JiM

Bakersfield Bubble said...

Thanks Jim!

There are thousands who read this, most don't post, but most feel like you now do (via emails to me). Mostly for what they have done to homes in our town. The neighborhoods with the excessive flipping will suffer with foreclosures and decreased values.

subsonic22 said...

It looks like Casey Serin wasn't the only one in Lender Ignore Mode.

Bakersfield Bubble said...

subsonic22-

This is the house you looked up in a previous post that was financed by X Bancorp.

subsonic22 said...

I see they didn't mention the second mortgage for $250k. That is with X Bancorp too. I thought I read somewhere Crisp said he was on the verge of closing some real estate deal and that would make everyone whole. I hope it wasn't the CSUB project.

xs10shell said...

I googled X Bancorp and it is in Woodland Hills. It shares an address with a company called Trinity MAC. I'm wondering if there are more Crisp related properties in other areas like maybe where X Bancorp is or Las Vegas where he liked to jet off to.

subsonic22 said...

Here's another thing I thought of. Did C&C get RE commissions on these properties they bought? I saw a similar situation for a realtor/mortgage broker in South Florida. She bought 10 properties in a 3 month period. It was my theory that she did so in order to invent sales comparables for her other properties she was selling in order to keep up the appearances that the market was still going strong. When the state does their investigation, they may want to check any property sold by C&C to make sure the purchase prices weren't influenced by these sales. After looking at a few of the deals, why would a "saavy" real estate investor want to buy a property that had just appreciated 100% in a 1-2 year period? You would think the older partner would have reminded young Crisp that RE goes in cycles and that 20-30% appreciation rates could never sustain itself long term.

Raynor said...

Gee David

No one else has EVER thought of inflating loan amts with 2nds and complicit crooked appraisers, loan officers, and taking cash out at close before.....

A veritable boy genius!

Hope Club Fed has Armani jumpsuits.....