Posted by Ed Copp (OH) on July 02, 2003 at 13:06:56:
and you can bet that I spend considerable time on my own due dilligence as a result of some very expensive lessons that I have learned. Blaming someone else will not ever solve the problem.
Dishonest Broker - JHyre, any advice? - Posted by Roy_FL
Posted by Roy_FL on June 30, 2003 at 22:04:48:
Almost a year ago, I bought a small, low-income duplex which was owner financed. Here are the particulars: Owner is a real estate broker, I bought it for 45k with 5k down- 2k at close, 1.5k in 6 mo and 1.5k at 12 mo. The balance of 40k is paid at 8.25% 30 yr amort with 5 yr balloon. The property itself is old, ugly and will only attract low-income tenants. I’m not complaining about the cashflow, but my worry is this- I bought it for 45k BEFORE I discovered this website. I’ve since realized that the value of other properties in the area are only going for around 30k. Am I screwed or do I have any recourse because this owner-broker (emphasis on broker) gouged me for over 50% on the sale price?
The positive side is that he’s not reporting the payments to any credit bureaus, and as part of the counter-offer, he wanted a quit-claim deed to hold until payoff. What would be the ramifications of deed in lieu of forclosure when the balloon comes due? Should I sue for misrepresentation because he- as a broker- took advantage of my ignorance (not stupidity) of property values?
I’m baring my soul here, but for the small investment, I’m not too worried. Just really irritated. Any advice would be greatly appreciated
Re: Dishonest Broker - JHyre, any advice? - Posted by JHyre in Ohio
Posted by JHyre in Ohio on July 02, 2003 at 18:37:56:
I gotta agree with the others. You’ve learned a pricey lesson - that’s human, we all learn at the school of hard knocks. Second, I would stick to a deal that I made - the only way I wouldn’t is if my family were about to go on the street. I’ve made some dumb deals at took my multi-thousand dollar medicine. I didn’t like it one bit, but in my view, a deal’s a deal.
John Hyre
Re: Dishonest Broker - JHyre, any advice? - Posted by Roy_FL
Posted by Roy_FL on July 02, 2003 at 18:13:05:
Ok I got burned and apparently, that’s ok. Caveat Emptor. I will do a better job of due diligence next time. Mr Copp, my issue with you is questioning MY integrity. I’ll defer to my previous posts concerning your advice.
This is one of those rare occasions… - Posted by Ben (NJ)
Posted by Ben (NJ) on July 02, 2003 at 17:50:37:
where I completely agree with Ed. You dropped the ball
plain and simple. How can you possibly blame the seller for accepting what the market will bear for his property?
Ben(NJ) (not a broker).
Re: You are way off base here. - Posted by Ed Copp
Posted by Ed Copp on July 01, 2003 at 19:46:03:
The simple fact that you were not aware of property values in your area does not make the broker dishonest. Property values are a matter of public record in most places, and can easily be determined by shopping around. We call this “due dilligence”. The fact that you did not do a proper job on your due dilligence is no reflection on the honesty of the seller, who happens to also be a broker.
Your mention of giving the property back rather than pay for it (as you have agreed), says volumes about your own honesty and personal integrety.
May I suggest a little “due dilligence”, next time.
Re: Dishonest Broker - JHyre, any advice? - Posted by Roy_FL
Posted by Roy_FL on July 02, 2003 at 21:32:06:
Mr Hyre, thank you for the honest opinion. Mr Copp, my apologies. I guess a little salve in the wounds hurts a lot less than a little salt. I shall live up to my end of the bargain. Just chalking it up to a not-too-expensive lesson learned.
Re: You are way off base here. - Posted by Roy_FL
Posted by Roy_FL on July 01, 2003 at 21:58:48:
Mr Copp,
You know nothing of my personal integrity or honesty. I agree that I didn’t do the due diligence. However, as a broker, I think the owner/seller has a higher standard of responsibility when dealing with a person who is not involved in real estate on a professional basis.
As for the due diligence, yes- you can bet next time I will.
It sounds like you may have taken advantage of an unsuspecting buyer or two and needed to admonish me to assuage your own guilt.
If you don’t have anything constructive to say concerning the issue, please refrain from posting.