Check out this story that I found in my local paper. Seems pretty interesting to me. What do you all think about it???
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.
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.
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.”
I went to grade school with Jeff Radabaugh. Talk about a small world.