Posted by Brent_IL on August 23, 2003 at 12:03:10:
It sounds like your brother-in-law knows value and is a good negotiator. He does what we all aspire to do.
fraud or not - Posted by concerned wife
Posted by concerned wife on August 23, 2003 at 11:42:31:
My brother in law just purchased an investment property not even a month ago and wants to sell it to my husband. problem is, my brother in law did not put any work into the property and advised my husband as the buyer he will make 20k off the deal. My brother in law is a real estate appraiser and he purchased 2 other investment property’s and obtained 20k also from both investment property’s. All properties were purchased for sale by owner. does this sound like fraud or what.
Re: fraud or not - Posted by Jim FL
Posted by Jim FL on August 23, 2003 at 15:40:58:
Dear Concerned,
I’m curious and frankly cannot beleive no one else asked this.
Why do you think this seems like fraud?
Because the low price the brother inlaw is getting the place for and selling to your husband with some meat left on the bone?
As others said, done all the time.
It is called, buy low, sell low, or wholesale deals.
Sadly, many people see the potential profit for an investor in a deal, and just assume, because they cannot get deals like this, there must be something wrong.
It sounds to me, with the limited info you provided, that your brother inlaw, being an appraiser, simply has a good line on some good deals.
nothing more, nothing less.
Tell us why YOU think there is fraud involved, and perhaps we can help you better.
If it is the reasons stated above, then you are probably wrong.
Take care,
Jim FL
Re: fraud or not - Posted by Brad
Posted by Brad on August 23, 2003 at 12:28:24:
Here is the definition of Fraud I found online:
1 a : DECEIT, TRICKERY; specifically : intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right b : an act of deceiving or misrepresenting : TRICK
So, if the brother-in-law is being up front and honest about everything and just got a good deal, then there is probably no fraud.
Re: fraud or not - Posted by Tom-FL
Posted by Tom-FL on August 23, 2003 at 12:18:27:
Buy low, sell high is fraud? Sorry, but no. Well, no more fraud than K-Mart, Sears, Wendy’s, your local Chevy dealer, 7-11, Kroger, or basically anyone else in business does. How about your doctor, lawyer, plumber, accountant, electrician or other professionals? If they don’t take in more than they expend, they can’t put food on the dinner table, make house payments, put kids through college, or anything else really.
Now, all that said, there CAN be fraud involved. Say the brother-in-law offers to sell a house with a retail value of $150k to your hub for $160k, saying he can profit $20k by selling at $180k, and he says this in his official capacity as an appraiser, knowing it’s a lie, there could be a problem.
Always do your homework when buying a house, even from family. Don’t take anyone’s word blindly vis-a-vis value.