Hook, Line, & Sinker - Posted by JPiper
Posted by JPiper on May 05, 1999 at 21:39:30:
I would imagine that most people regard “honesty and integrity” as important topics, worthy of our consideration. I also happen to value personal courage. In connection with that I notice you have used an anonymous email address?.and for that reason I almost didn’t respond. But you bring up a subject which I think is important, and which I think you have misconstrued.
I took a look at the url that you provided, and read the article. You seem to believe that what this article describes is what is being discussed on this site. In other words, if someone on this site mentions the word “lease/option” that this is comparable to what the author is discussing in his article. If an investor has sold a property to someone else with “poor credit” that the investor MUST have taken advantage somehow. If an investor buys a property for $50K and flips it (heaven forbid) that somehow it must then follow that the appraiser was crooked, that the investor is taking advantage, and that the mortgage broker is in cahoots.
I’ve seen all the tactics discussed in the article, and then some. Unfortunately, the same thing is true in the field of real estate investment as is true in the police department, health organizations, and the world at large. Just as we have had police officers and other trusted officials involved in corruption, health organizations guilty of filing false medical claims, we’ve got some bad apples in the real estate investment business. But no one issues blanket indictments such as yours regarding ALL police departments or ALL health organizations. Yes, there are some unethical and illegal happenings in the real estate business?.but this is not a blanket indictment of all real estate investors, or of this website or the vast majority of it’s participants.
A real estate investor’s life need not revolve around “the almighty dollar”. Even real estate investors need and want many things in their lives?.not just a buck. But one thing the investor’s life as an investor better be about is making a profit. With no profit you’re out of business?.quite simple. If by “greed” you meant the “profit motive” then call me guilty. I’m not going to do any deal in which I don’t profit in one sense or another. That’s what business is about. Making a profit doesn’t mean you have to do illegal or unethical things?..but it does mean that you have to set certain standards of what you will pay for a property, and what you will sell it for. Not all people will necessarily like those standards, but for those that have a need to sell, or a need to buy, they will benefit from your business.
Finally, people without knowledge will always fare poorly when compared with people WITH knowledge. This is evident in EVERY walk of life. I can go to one bank here in town and make 2% in a savings account. Right across the street is a bank that pays 4.5%. The bank that pays 2% is one of the largest banks in the city?..and certainly has no lack of depositors. Does this bank make you sick?? Are they unethical?? I don’t think so. People without sufficient knowledge make deposits there?..and because these people didn’t take the time, or make the effort, to determine the possible alternatives for their savings, they then don’t earn the most that they could earn.
Coming back to “people with bad credit”?.certainly they started off the same as everyone else?.with no credit. They made certain choices in their life?.choices to handle their financial affairs irresponsibly. Whose fault is that? At a certain point they may decide they want a house?the American dream. Perhaps you, or someone else, should tell them that they can’t have it, that they should wait, clear their credit up, that they can get better terms if they do. Do you think they’ll listen? My phone rings off the hook with people with credit problems, financially irresponsible people because of their choices. What they want is a house?..and they’re willing to pay a high price with stiff terms for it. That’s reality?.whether you’re sickened by it or not. But when it comes down to it?.I have to take a risk with this person. I’m willing to let them live in my house?.I take a chance with them, a chance that no one else in this system will take?.but I do so under terms that will compensate me for the risks that are presented to me by their financial irresponsibility. While you may be “sickened” I can assure you that most of these people are thrilled to have an opportunity. I’ve been hugged, kissed, referred, etc by these people because they’re thankful for the opportunity. Some of these people fail, because they don’t learn their lessons?.but others succeed, and ultimately build themselves into a better situation.
In my view this article has presented quite a limited picture?.and you took the bait?.hook, line, and sinker.
JPiper