Who here thinks it’s immoral to make an excessive profit on a deal?
Let’s suppose you’re negotiating with a homeowner and you find out they have over 100K in equity in their $200K house. They are under extreme time constraints to move across country… and they try negotiating for you to buy the house at what would be a profit to you of only $25K.
Do you think it’s moral (or ethical?) to push for the additional $75K equity… just because you know that you can?
What if it’s an old lady, and she’s moving to an assisted living environment and she has no other income? Does this change the scenario for you?
This is a pretty tricky question, but I think I can answer for myself and say that my motives are to make money in any deal, but I am not so involved in the money that I have to get every dime I can sqeeze out of the deal. I usually look for a 10k to a 20 k spread in my Lease Purchase deals and this has faired me well. Win/Win/Win is the answer my friend, so if you can’t get the three w’s then you aren’t in the right situation.
Cruz
I would offer a net equity split 50/50 after I take out all expenses & carrying costs. I wouldn’t want to leave the door open for any future legal action asserting that I took advantage of a desparate elderly person or anyone for that matter. It would be hard to prove if I split the net equity 50/50.
I have met and talked to Sanjosee so I know that he is not just blowing smoke. He truly seems like a honest and moral person. He could have pushed me to sell him some of my properties as I am having a really hard time this month. No matter how bad off we are there are others worse off. I am dropping almost everything I am doing right now to visit my best friend in the hospital. Heart failure at 42 years old. May need new heart in a few days. Could be really touch and go. I know there are some vulture investors out there that would con and lie and cheat your own mother out of her $100,000 equity and would not admit it. My friend needs a heart but he can not use yours because you do not have one. Any donations to help with his living expenses and Christmas would be appreciated
Happy Holidays and Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
Very sorry to hear about your friend… hopefully we can all take a moment to hope that his family and him get through this holiday season, and that if he does need a new heart that he isn’t on the waiting list for very long. My mother had the first combined transplant in Texas, Kidney and liver, over 12 years ago. When we thought all was lost, she got a second chance at life… and being she had the last name Chance… the newspapers had a field day with that. We were just very grateful to have our mother able to still be here.
I know what you and your friends family are going through, and my heart goes out to them. Feel free to email me if you feel the need to talk to someone.
Remember this…you’ll never see a hearse followed by a U-Haul…because you can’t take it with you. If you don’t believe that what goes around comes around, then you haven’t been around long enough.
Before you start passing judgement on other people (me in this case) you need to re-read the original post and see that this is only a post designed to spur discussion and an examination of investor ethics.
I did not mean yours. I meant the cons etc who would cheat their mothers out of $100,000 equity. Sorry about that dude. Even if I were to think something like that, which I do not. I would never say something like that. I am just going along with what you are saying that there are investors that would not care young, old, dying, that would take the equity and laugh about it. Terribly sorry you read what I said and thought I was talking about you. I do not even know you that well. I love the post and am glad you posted it
What’s fair? Difficult to say or figure, so I do neither.
I present a proposal based on what I can do. If it works and it’s the best proposal on the table, they generally take it. If not, they don’t.
It’s not up to me to decide what’s fair or what isn’t . . . it’s 100% up to them. Since I don’t twist arms or hold guns to seller’s heads, I assume they’ll consider what I have to offer and make their own decision.
If they believe it’s fair and I can buy their $200k house for $100k, you won’t find me questioning their decision.