John Hoff’s House: 3016 6th St. N – Sale Data Uncovered

UPDATE:   To read the blog that was created for the purpose of documenting the mis-adventures of John Hoff aka Johnny Northside, click the following link:
http://johnnynorthside.net

W ith no thanks to John Hoff AKA Johnny Northside or Hawthorne Housing Director Jeff Skrenes for not disclosing any information after they were asked… It was only a matter of time before I would find the information (which was supposed to be released to the public) anyway. Lets take a look at the details of the shady deal John orchestrated with his pal Jeff Skrenes and the Minneapolis City Council.

April 2008: John Hoff buys 3016 6th St. N for $8,500. John announces on his blog that he intended to fix it up and live in it. The house was NOT a boarded property and John claimed a rehab had begun before he bought it.
After he bought it, he was asked how he was going to bring the electric and plumbing up to code before he would be able to sell the property. John said in an email that he was on a first name basis with city inspectors and the city was keenly aware of his plans for the house. He never moved into the house.
July 2008: 3016 6th St. N was added to a list of houses the city of Minneapolis would buy and demolish.
August 2008: City of Minneapolis buys 3016 6th St. N from John Hoff but, sale information was not made available to the public and John Hoff refused to answer any questions about the sale.
September 2008: Tax assessed value for the property from July 2008 and September 2008, revealed the overall value jumped from $48,400 to $128,000 yet the county site listed the current tax value was as of January 2007… More than a year before John Hoff bought the house.
November 2008: Sale information is found on Zillow.com.

Source: Zillow.com

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Transaction Not Included in Zestimate

This transaction was not used in computing the Zestimate for this house due to anomalies we detected with this transaction. These anomalies can include unusual document or transaction types, sales between possibly related parties, unusually high or low transaction prices, or other data irregularities that might indicate the transaction is not a full-value, arms-length transaction.

Sale History
08/05/2008:	$17,000 *
04/21/2008:	$8,500 *
05/16/2006:	$195,000
10/01/2003:	$120,000
11/14/1997:	$56,504
Show all sale history See less sale history
* Transaction not included in Zestimate. More info

I am not the only person who would like to know how John Hoff was allowed to sell his house without making any repairs. No explanation was offered as to how the house (not previously boarded) went from “livable” to needing to be demolished in less than 4 months.
In a four month period, John Hoff doubled his money when he sold his house to the city for $17,000 WITHOUT improving it. That is a profit of $8,500 for doing nothing other than make friends with inspectors, council members and neighborhood leaders.

The entire transaction reeks of under the table, shady dealings. I would ask this question directly to John but, he avoids anything that could make him look like a criminal that he claims he is not.
My question: Did John pay Capital Gains tax on the transaction? I doubt he did a 1033 Exchange when he sold the house.

N Minneapolis Buys Dirt-Cheap & Raises Values

The city of Minneapolis has screamed “fraud” several times in the past year and a half. Every time they have accused an individual or a company of committing fraud, they always go out of their way to make sure they let the public know that fraudulent behavior will “not be tolerated.” What they don’t let the public know about is how they have recently been buying boarded up houses slated to be demolished for pennies on the dollar and then increasing the value after the sale is complete.

The Mis-Adventures of Johnny Northside Blog has a post written by Jim Watkins, that uncovered the details for one such property located at 3016 6th Street North, Minneapolis, MN. Here is a quick summary of what has happened with it in 2008:

April 2008:  John Hoff buys 3016 6th St N for $8,500.
July 2008:  3016 6th St N is added to a list of houses to be purchased by the City of Minneapolis by the Minneapolis City Council. According to Hennepin County the tax value of the property is listed on their website at $48,000.
August 2008: City of Minneapolis buys 3016 6th St N from John Hoff but, no information about the sale is made available to the public.
September 2008: Hennepin County has updated their website to show the City of Minneapolis as the owner of record but, recent sale information is not available. The tax value of 3016 6th St N is listed at $128,000, not $48,000 as it was just two months earlier. Further, the County website states that the value was established by Assessor as of January 2, 2007. Even though John Hoff bought the house in 2008 for a mere $8,500 and the site showed a value of $48,000 in July, 2008.
Sept/Oct. 2008:Several emails with questions regarding the sale of 3016 6th St N were sent to the previous owner, John Hoff and to Hawthorne Housing Director Jeff Skrenes (who previously worked for ACORN, the organization that was recently exposed for engaging in fraud). Those emails went un-answered. John Hoff, also known as Johnny Northside, is close friends with Jeff Skrenes, who plays a key role with the City Council in determining which houses will be bought by the city.

Click the link to read about the shady deal on 3016 6th St N.
http://misadventuresofjohnnynorthside.blogspot.com/2008/10/minneapolis-buys-property-wrongfully.html