Advertising a rehab for sale at retail QUESTION - Posted by Brandon-PA

import · December 13, 2002, 7:33am

Posted by David (OH) on December 14, 2002 at 10:00:17:

Actually, she does include the interest rate. It’s in the small print at the bottom of her flyer.

I know who you’re talking about - Robyn Thompson. I’ve met her. Nice lady. She’s made a TON of money. Over $1 million a year! Nice!

import · December 13, 2002, 7:33am

Advertising a rehab for sale at retail QUESTION - Posted by Brandon-PA

Posted by Brandon-PA on December 13, 2002 at 08:33:22:

I have a rehab I’m going to be selling.

around 72K completed.

I was told by a rehabber and shown HER advertisements…(she does over 50 rehabs a year with 1 administrative person).
She puts on her ads…
Principal XXX
Interest XXX
Taxes XXX
Insurance XXX (approx)
PMI XXX
Total XXX

She put this info on her advertisements so people know what their total monthly payment will be. She trys to sell on monthly payments, not sales price.

A mortgage broker told me that’s illegal and you need to abide by all sorts of regs to do that.

I called my pre-paid legal attorneys. Spoke with one yesterday.
She told me it was illegal and that I could put on the advertisement this instead
“Are you paying rent of approximately $550 - $600 per month ?”
“Then why not own this home ?”

What is everyone’s experiences with this ?
How do YOU advertise ?

Inquiring Minds Want to Learn !
Brandon

import · December 17, 2002, 9:12am

Regulation Z - Posted by rm

Posted by rm on December 17, 2002 at 10:12:59:

They’re referring to federal law that governs financing info in advertising.

I’ve got a copy of the actual law- most of what you hear about it is false, from people who’ve never read it.

If you want a copy, let me know.

However, it will take a few weeks for me to locate it, as it will not be at the top of my priority list.

For optimal safety without having to read the reg, your ad with a general payment range is a good idea.

Good investing!

import · December 13, 2002, 10:37am

the newspaper here won’t accept ads that… - Posted by David Krulac

Posted by David Krulac on December 13, 2002 at 11:37:17:

don’t fully disclose APR, for example and fully comply with the law.

import · December 13, 2002, 9:33am

Re: Advertising … retail QUESTION - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on December 13, 2002 at 10:33:19:

Could it be possible that she is advertising this as her personal sales where she might be exempt? She is quoting prices, and not interest rates, so that also may make a difference in the legalities.

import · December 13, 2002, 9:22am

I am not an attorney and I am not rendering… - Posted by Shawn J. Dostie

Posted by Shawn J. Dostie on December 13, 2002 at 10:22:04:

legal advise. My understanding of the Consumer Sales Practices Act (in Ohio) considers any lack of disclosure in advertising to be deceptive. She seems to be doing it backwards, but she might be OK if she listed the selling price somewhere in the ad. She is definitely missing the interest rate (even though she has a monthly amount) and the term. If the States Attorney General got a complaint or even took notice of it, your friend could be in serious trouble. Again, that is in Ohio.
Good Luck,
Shawn(OH)

import · December 13, 2002, 8:43am

Reg Z - Posted by Glen FL

Posted by Glen FL on December 13, 2002 at 09:43:09:

http://www.bankersonline.com/regs/226/226-24.html

http://www.bankersonline.com/regs/226/226.html

http://www.federalreserve.gov/boarddocs/press/boardacts/2002/20020403/

import · December 13, 2002, 9:42am

Re: Advertising … retail QUESTION - Posted by Shawn J. Dostie

Posted by Shawn J. Dostie on December 13, 2002 at 10:42:31:

Did I misread? I thought her ads didn’t have the Sale price… Only Payment info with no rate or term disclosure.

Regards,
Shawn(OH)

import · December 13, 2002, 9:31am

Re: Reg Z - Posted by Brandon

Posted by Brandon on December 13, 2002 at 10:31:30:

Ok Glen,
I’ve reviewed the document.

I just want to make sure I’m reading it right.

It seems to be that I am able to advertise (according to 226.24(c)1(iii) the amount of the payment, as long as I do according to (c)2
1)amount of % of Down Payment
2)terms
3)annual percentage rate

Now, I will not be the creditor in this case…I’m getting a bank to do the credit…but I just need to make that clear on the advertisement I guess.

Am I reading this right ?

Thanks,
Brandon

import · December 13, 2002, 9:16am

Re: Reg Z - Posted by Brandon

Posted by Brandon on December 13, 2002 at 10:16:00:

Glen,

Thanks ! Just what the doctor ordered !

import · December 13, 2002, 7:52pm

Re: Advertising … retail QUESTION - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on December 13, 2002 at 20:52:28:

It’s been a while since looking at the law about this area, but I was alluding that homeowners are sometimes exempt from certain federal guidelines. Since the newspaper did not catch on to any problem and allowed the ad, it may be possible that she is getting by the law based on content or rules pertaining to individuals.

I suppose I am thinking that there may be something in the law that makes what she is doing legal, just as a homeowner can advertise for a single white female tenant for their single family home; yet in most cases can’t do this when owning more than 4 units and the owner will be classified differently.

import · December 13, 2002, 9:57am

Re: Advertising … retail QUESTION - Posted by Brandon

Posted by Brandon on December 13, 2002 at 10:57:52:

Actually,

It DOES include the sales price on the ad. She doesn’t mention APR as far as I know.