Posted by JoeB(Atlanta) on March 17, 2000 at 09:25:21:
Hi Steve, I wanted to clarify some of my points and your response to above post. BTW, I have lots of respect for the way you run your business, we also have an excellent reputation for honesty and integrity.
Re: we always have emergency fund-private lenders that we can use (and have used) to purchase the house when buyer or lender falls through. I guess for the sake of simplicity I assumed the best with Kelly (I don’t know whether or not she does). But I do feel that ‘all cash’ is a valid term, if you have access to emergency cash as we do.
The second clarification was re: the ‘fraudulent investors’ I referred to. In Atlanta we’ve been told by many lenders (and faced this accusation ourselves) that the ‘fraud’ they’re guarding against is when an investor has an appraisor and an attorney in ‘his pocket’ and they all artifically inflate the price of a house and fool the lender into loaning too much money.
We’ve been accused of this because we buy them cheap and sell them with nice assignment fees to other renovators. I was assuming Kelly was doing the same (and wasn’t falsely jacking everything up).
Hope this clarifies some things,
Best of success,