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Author Topic: Interesting Local REI story  (Read 1963 times)

Offline WOLFDENPROP

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Interesting Local REI story
« on: February 27, 2007, 09:57:49 pm »
Check out this story that I found in my local paper.  Seems pretty interesting to me.  What do you all think about it???

http://www.fortwayne.com/mld/journalgazette/16781854.htm

Offline propertymanager

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Re: Interesting Local REI story
« Reply #1 on: February 28, 2007, 06:43:49 am »
I'd say that the main character in the story is in trouble.  Everything will depend on the paperwork.  If there is full disclosure of what is being charged and who is receiving the money, it shouldn't be fraud.  Regardless of the final outcome, this will be a big problem for all involved.  That's why it is absolutely necessary to to things correctly with FULL DISCLOSURE.   

Now, about that $45,000 property that I'm going to buy today for $18,000...  Of course, I don't "flip" my properties, I keep them. 

Mike
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline TMCG

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Re: Interesting Local REI story
« Reply #2 on: February 28, 2007, 06:57:59 am »
it sounds like the main character is splitting the money he makes with the other investors - it sure doesn't sound like things are on the up and up. 

on the settlement statement - somewhere in there it has to state where the money is going. it sounds like this paper is saying that on alot of these documents - it says the sales price is higher than what the sellers are reporting to them.

there's a few possibilities -

maybe the sellers didn't read the statement correctly.

maybe these guys are committing fraud.

if seller is getting 20,000 - on the settlement statement - it should say:

Contract Sales Price:    20,000

then later down the line - it spells out the rest:
Assignment                 to  Name of third party       19,000

now as far as the house prices being inflated based on bad appraisals etc. - that's a whole other issue.  and that's bad too.  if it's worth 20k but you get some goofy appraisals and get some title company who's not on the up and up to cover it so the bank will lend the money - that's real bad.

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http://tomsresource.com/ - Tons of Links and Cheap Books.

Offline 71tr

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Re: Interesting Local REI story
« Reply #3 on: February 28, 2007, 08:43:31 am »
My favorite quote from one of the sham buyers:

“They were purchased as investment properties and any money received back was for the downpayment,” Shubert said. “I received my down payment back, just like on TV.”



Offline christopher w

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Re: Interesting Local REI story
« Reply #4 on: February 28, 2007, 12:42:19 pm »
I went to grade school with Jeff Radabaugh. Talk about a small world.
Christopher W
C-214.923.5781

 




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