Re: NJ Flipping Article- PART TWO - Posted by B.L.Renfrow
Posted by B.L.Renfrow on May 22, 2001 at 22:29:44:
While it’s clear this guy was a rogue, it’s not mentioned until nearly the END of the article that the real issue is the bogus appraisals. It clearly would leave the average reader with the distinct impression that selling at a higher price than the purchase price in a short period of time is illegal.
That impression – the writer drones on quoting some moron who uses the term “conspiracy” in reference to buying low-selling high – is becoming more widespread, as more of these stories appear nationwide.
What really gets me is that NOWHERE in this article, or for that matter, any of the others I’ve seen, does it place ANY responsibility on the buyer. Were these buyers forced at gunpoint to sign these notes they could barely afford? Did they not know enough to turn on the light switches BEFORE they signed the closing documents?
All of us who have done a few deals probably know how quickly buyers “forget” what they’ve been told, and often, even what they’ve signed. Now, I am NOT defending this investor, if the report is accurate. If he truly used bogus appraisals and promised repairs which were never done, he deserves to be sent up the river. But we’ve seen only one side of the story, and none of those sources quoted struck me as very objective. They’ve ALL got an ax to grind or a point to make.
The bigger issue, as I see it, is the lazy reporters and editors who don’t explore the issue enough to determine the difference between legal, for-profit transactions and illegal fraudulent deals. It’s not that difficult to understand. There seems to be a rush to label any transaction in which “excessive” profit is made as illegal, or fraud. What’s excessive? Who knows? I guess to this writer, $100k.
I think there truly is a bias among many members of the media against business-people, and especially investors. The portrayal of investors and landlords as rich, greedy, profiteering and self-centered is common, while the poor, average slob who doesn’t pay his rent or mortgage is always the innocent victim.
Funny thing is, when I was a reporter (a LONG time ago) I’d dismiss those comments about the “liberal media” with a wave of my hand and say, “Naaahhh…it’s not like that…”
Brian (NY)