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I don't know why people make a big deal about whether it's done in a month or a year. Some people think it's better for people to "lovingly" and "slowly" renovate a house. I think these people have a fantasy of what renovation is all about.
Actually, if it's two years, as a neighbor I'd be pissed about all the construction and the eyesore from all traffic from the workers and the possible dumpster for the demo and the noise etc. I'd be happy/ecstatic if work finished in a month.
Also, one of the major motivations of Lease-Option scammers is to inflate the price because they don't expect their clients to get an appraisal until they go to finance the home late in the lease.
Then the client finds out that the $135,000 home they were making payments on is really a $115,000 home, and they are moving and losing their deposit.
Mike, I may have missed something that you were responding to regarding lease-options, but I would not characterize lease-option opportunities as such motivated by a *******. I know a person who has written a book on the subject, Andy Heller, who has made a living on lease-options, but has not done so through unethical or morally questionable means. I've met him in person, and would never characterize him as a *******.
However, in the real estate industry, one will find scammers abusing the system for their personal gain. Always the case in just about every profession and industry. Lease-options are good for some, but not for all. Certainly, the owner providing the lease-option is taking the place of the bank (in a sense and for a period of time), but that person will obviously try to make a profit. Why not? And no one can accurately gauge what the market will bear after the term period (1, 2, 3 year option). Hopefully, they aren't overly inflating the price so much that scares the potential buyer off, but not under inflating it where the seller is being taken either in the end.
Nonetheless, in the rising market we've experienced on the west, a lot of lease-option holders made out like bandits simply because the seller committed to a number that was well under the estimate that property would rise over the period of time during the option. I'm sure those sellers would have loved for the buyer to NOT execute that option. It goes both ways and both the seller and buyer must not ever passively enter into a real estate agreement, for personal or business purposes.
After reading your post, Mike, I doubt you were implying that ALL owners who offer lease-option were scammers. Sort of read that way, at first, though.
Anyway, having read a lot of posts, I will say that the main thing I've NOT liked about some "flippers" is the lack of quality placed into the renovation. Cheap flooring, kitchen cabinets and vinyl windows/siding have been my biggest disgust (especially when done in old or historical homes).
"After reading your post, Mike, I doubt you were implying that ALL owners who offer lease-option were scammers. Sort of read that way, at first, though."
You are right, Caliboy. ....Never use absolutes, unless...
Some L/O operators are honorable.
Unfortunately, some use the dream as a smokescreen to abuse their clients. And brag about how they keep deposits on homes that can't be financed. Or how they are collecting a 10 to 15% premium over market rent monthly from someone who will never be able to get a loan.
These things happen.
There are attorneys who will not write L/O agreements due to the preponderance of scammers.
That may not be fair to those who do honorable business, but I can see why an attorney may not want to be involved in a business with such a high degree of disreputable operation.
Most of all, I am really curious what you had censored "*******?"
Most of all, I am really curious what you had censored "*******?"
I think all I used was the term, "*******." Let's see... Scamm-er, Scam-mer, *******, Scammers. That's really odd. No profanity used whatsoever. Yup, after previewing my post (instead of using 'quick reply) it's the word "S C A M M E R" that gets all the stars. I wonder why???
Nonetheless, as far as absolutes, I TRY not to do the same thing since even an accidental absolute can absolutely open a person up to an unwarranted argument. However, in this case, it was all in the benefit of education, and we all must be aware of the shortcomings, pitfalls, scams, and, of course, benefits that can come from the real estate industry.
Btw, I do appreciate your constructive posts, Mike! I'm not always 100% agreeable, but a constructive and articulate post or reply is one that rarely produces a negative response or follow-up.
I don't know why people make a big deal about whether it's done in a month or a year. Some people think it's better for people to "lovingly" and "slowly" renovate a house. I think these people have a fantasy of what renovation is all about.
Actually, if it's two years, as a neighbor I'd be pissed about all the construction and the eyesore from all traffic from the workers and the possible dumpster for the demo and the noise etc. I'd be happy/ecstatic if work finished in a month.
Dumpster??? Thats a laugh, come down here to the triangle, they the builders or renovators do not need to put out a dumpster. They can just leave the garbage right on the ground on the property! Then the wind blows and wala its in YOUR YARD!!!!
Last edited by SunnyKayak; 10-04-2007 at 07:10 AM..
Reason: Rude
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Let's see... Scamm-er, Scam-mer, *******, Scammers. That's really odd. No profanity used whatsoever. Yup, after previewing my post (instead of using 'quick reply) it's the word "S C A M M E R" that gets all the stars. I wonder why??? 
