Opinion poll. Long scenario. Please please read.

[Steve]

Never had any drug dealers as friends, I take it, Oboe.

Eric is not a drug dealer, Liz.

[Steve]

If it goes to court, it'll be your word against his

What would he sue for? We scammed him?  Unfortunately, the entire scenario was Eric's idea.
Eric had a hand in dealing w/ all involved parties because he brow beat them over the phone to hurry up every time one of them got involved. This includes the loan officer, the appraiser, and the title company.  All of these parties, were aware that the deal was of Eric's making so I'm not really sure how he could sue.  Additionally, every real estate purchase in AZ has a 10 day rescind clause where either party can nix the deal for no reason.  After that, the title is recorded and the transaction is final.*


*Per an attorney and a realtor.

but the fact is the neighbor is losing big $$

Eric did not lose big money.  He was paid full market value for the home at the time we purchased it. In fact, he beat up the appraiser(verbally) to over-value his home by $2500.00 even though the comps in the area didn't support it.  

I remember the 10k deal... after having to think about it for a while. When I first told him it was a stupid idea and that it was too risky for me since he was an addicted gambler( blackjack at $300.00 to $500.00 a hand), he persisted..... several times a day in calling me and asking me to buy the house.  Finally, he offered the !0k to me as a way to ensure I wouldn't lose my shirt if he flaked on the mortgage. Ultimately half of the money went to Ron since I couldn't qualify at the time. After closing costs and impounds we both netted around $3700.00

[Lizking]

What other cash business leads to jail?  Is he a pimp, a smuggler or a dealer?  Maybe he is a thief or a hitman?

[oboe]

Oh he probably won't sue.   Though I'm sure if he got a lawyer, his story would be that the whole thing was all your idea, but as you say, the whole deal is probably legal and binding.    I'm in over my head with the devil's advocate business; I apologize for suggesting you were out to scam him.  I was out of line.

But still, if he had fallen victim to one of these scams, how would the result for him be any different?   The only thing I can think of is that it would be the unethical real estate loan office holding the profits and not a trusted neighbor/friend.

btw, I just did a Google search on the nation's hottest real estate markets, and Las Vegas came up as the top market in the report, with an annual appreciation rate of 52.4%, which according to the report, is unheard of.   Yet by your figures, Eric's house in Surprise, AZ appreciated at an annual rate of more than 150%.
Just another thing that looks awfully suspicious to me.   How was the market valuation done on Eric's house when he sold it to you?

Report calls Las Vegas hottest real estate market it’s ever seen

[vorticon]

" To entice me, Eric offered 10k(or maybe I demanded, can't remember) up front to offset the risk of having a renter in a house I owned. "


pay him back the 10k minus one months rent, and a certain amount for breaking the contract. a owner is only entitled to one months rent up front, and a certain amount to cover damages, last i heard. everything else is just a dirty bribe


or not, i'm just making an bellybutton of myself.

[Roscoroo]

the housing market can be wierd sometimes ..

A friend of mine  just bought a new place and while he was in the process of listing his old house 380k value at this time was told to wait a week for the house to close 1/2 block away ... well it just closed at 460k so his house shot up in value over night to 440k  ... thats a nice hunk of change for waiting a week .  

Just thought id throw that in ...

[Flit]

so he already made 25k on the deal and he's crying?
 He's got sour oats from making a bad decision.
 I say find a renter and keep it for a year, then sell and make an extra 100k

[NUKE]

Originally posted by oboe

btw, I just did a Google search on the nation's hottest real estate markets, and Las Vegas came up as the top market in the report, with an annual appreciation rate of 52.4%, which according to the report, is unheard of.   Yet by your figures, Eric's house in Surprise, AZ appreciated at an annual rate of more than 150%.
Just another thing that looks awfully suspicious to me.   How was the market valuation done on Eric's house when he sold it to you?

 

The real estate market started going through the roof here around September of last year. The house was appraised at market value when we bought it for 187k. We havn't had it appraised again, but other houses on the same block have sold for 299k and 350k recently. Our house is in-between those inm size and upgrades.

The day we put a temp. for sale sign up in the lawn ( not even listed), we had two people look at the house. We have had four people in the next few days getting prequalified before they even look at it.

There are a backlog of people waiting to get houses built here. They can't build them fast enough.

Agents call me every few days telling me they have a list of people who would like to buy my other house.

The main reason Eric is pissed is that the house went up in value so fast, and he knows he shouldn't have sold it. If we had lost money on the value of the house, Eric would still have broken his lease and left us holding the bag, no problem or questions asked.

I'm inclined to give Eric a fair payment when we sell the house anyway, because I picture what I would feel like in his place.

[Gunslinger]

Originally posted by NUKE
The real estate market started going through the roof here around September of last year. The house was appraised at market value when we bought it for 187k. We havn't had it appraised again, but other houses on the same block have sold for 299k and 350k recently. Our house is in-between those inm size and upgrades.

The day we put a temp. for sale sign up in the lawn ( not even listed), we had two people look at the house. We have had four people in the next few days getting prequalified before they even look at it.

There are a backlog of people waiting to get houses built here. They can't build them fast enough.

Agents call me every few days telling me they have a list of people who would like to buy my other house.

The main reason Eric is pissed is that the house went up in value so fast, and he knows he shouldn't have sold it. If we had lost money on the value of the house, Eric would still have broken his lease and left us holding the bag, no problem or questions asked.

I'm inclined to give Eric a fair payment when we sell the house anyway, because I picture what I would feel like in his place.

Good for you Nuke.  I'm not at all saying that you are obligated but that's genuinly nice of you.  

Myself I could give a dam about Eric or some of the habbitat buyers mentioned earlier that got scammed.  If they don't have the knowledge to know that you shouldnt do what they did they shouldnt be owning a house in the first place..

Eric to me sounds like a moron.  A house is, for the most part, a long term investment.  Real Estate can be volitile and he (and both Nuke and Steve) are lucky they made money.

Advantage of giving him money...

clearer concious
He can't ask you for anything ever again

Disadvantages of giving him money....

your out money your not legally required to give to him
He'll probably gamble it away from what it sounds like
you probably wont get rid of him
pissibly a guilty consious


just my .02 guys.  I'd give him a little just to shut him up personally.  It's just money, silence is pricless.

[oboe]

Originally posted by NUKE
...I'm inclined to give Eric a fair payment when we sell the house anyway, because I picture what I would feel like in his place.

Maybe doing something like that for a guy who doesn't legally deserve anything is the mark between a good spirit and a greedy, selfish one.  And you never know who might be watching.

Do you guys think the real estate bubble can continue for much longer?    I mean wages are flat, health care costs are skyrocketing, fuel costs are going up (and thus the prices of all products and most services go up), and good paying manufacturing and service sector jobs are headed overseas.

How can a real estate market with 150%/yr appreciation be sustained?

[Lizking]

It will last as long as the handsomehunkes are willing to pay for it, not a day longer.

[oboe]

I hate to think where I might stand, being not sharp enough to figure out what the handsomehunkes are going to do.

[john9001]

Originally posted by oboe

How can a real estate market with 150%/yr appreciation be sustained?

have to agree with oboe, the speculaters are driving up the market, when they bail, some people are going to be hurt

[Lizking]

It is simple-buy a house to live in.

[Steve]

have to agree with oboe, the speculaters are driving up the market, when they bail, some people are going to be hurt

The main reaosn for the sudden and hardly believable spike is because many investors are flooding the market.  most of them come from Vegas and California.  as it happens, I'm now an investor too, but not by design.  I intend to take my profits and buy another house or three now that my credit is in order.


another tidbit for what it's worth:  I told Eric if he stayed in the house as agreed and after 2 years he still couldn't qaulify, he could pick out a new house, I'd buy it, and we'd split the equity 50-50 when he sold it or he could buy it from me one day for half of the appreciation once he did qualify.  Unfortunately, this guy has NO sense of long term.

Liz, Eric runs an outcall escort service.