Flippin’ US Real Estate Agents

Are curious about why home prices / values haven’t dropped “at least 30% from their peak” here in NZ, but have in other countries?

Other countries, whom I have read it said that “cough…and we here in NZ sneeze” then perhaps you may find reading this expose interesting when comparing the NZ situation to that of the USA.

How fortunate we are in this part of the world that the loan situation didn’t get so far out of tune with reality. Against this sort of activity then its logical and no wonder at all why values there have dropped so much, and why there are so many foreclosures. (repossessions in Kiwi talk)

One might think the transactions on the above property were just a tad suspicious?

This week the Sarasota Herald Tribune has been telling the results of what they say is a 12 month investigation and on the surface the reporting looks quite well researched. In the land of litigation they would want to be.

This week they are currently midway through publishing their findings/revelations in regard to the devastating ramifications of what was once a very popular hobby in Florida “flipping homes.”

Amid interesting snippets like….

“More than 100 properties from Palmetto to North Port doubled in price in a single day during the recent real estate boom”

…the Sarasota Herald Tribune goes on to state that they believe the toll to “Gulf properties” so far stands at half a billion dollars.

In researching the series the paper examined more than 3,000 property “flips” since 2000 in the Florida regions of Sarasota and Manatee counties.

The photo and caption below appeared in the paper yesterday. The Realtor chap mentioned was also featured in another article just recently too.

The paper reports “Based on interviews with more than 100 investors and real estate professionals and a review of thousands of pages of deeds, mortgages, foreclosure filings and other public records, the Herald-Tribune found…”   heaps!

You may ask yourself, did they get any warning that it would be this bad, well it turns out yes, in this paper from none other than the Dept of Law Enforcement Commissioner himself. Obviously in a “still, what would he know” moment it appears practically no one took any notice of this sobering document at the time?

Here’s the articles so far published….

‘Flip that house’ fraud cost billions

The King of the Sarasota flip

Flippers’ toll: On Gulf Coast, half a billion in defaults

Flipping fraud ignored by police and prosecutors

fabulous series of Interactive charts and graphs they have put together to compliment the series too

and they still have more reports to be published so here is the home landing page or the series home to keep up to date.

** “what not to do” is probably a bit past tense because hopefully with the new stricter banking codes we should never see anything like this again.

SOURCE – Sarasota Herald Tribune Special Investigation on Flipping

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0 thoughts on “Flippin’ US Real Estate Agents

  1. avatarRussell

    Plenty of flipping been going on in Kiwi land too!

    That article reads just like the flippers in Auckland in this item:

    http://www.nzherald.co.nz/fraud/news/article.cfm?c_id=213&objectid=10539840

    I quote ” They bought the properties or sold them to friends at inflated prices. That technique tricked banks into granting more mortgage finance than the properties were worth. The agents then on-sold the houses for huge gains, pocketing the profits.

    Bank of New Zealand, ANZ and Westpac were all named as easy and sometimes “familiar” sources of finance for the agents and associates.”

    Read more at http://www.google.co.nz/search?hl=en&q=barfoots+fraud&btnG=Search&meta=cr%3DcountryNZ

  2. avatarDavid Leggott

    Russell
    Actually I am aware of this episode in Auckland. Just so happened I was up there at a Seminar with many Barfoots staff when the news broke (or was it the rumour mill started churning?)
    Barfoot & Thompson are our regional partners in the NZ Realtors Network, and have over 900 agents and 60 offices from memory.
    At the seminars next scheduled break it was the topic of conversation, and collectively we all agreed “how stupid” and if proven guilty, to throw the book at them.
    Still the sheer scale and as the caption in the photo above shows, the sheer speed with which some of these properties changed hands makes you wonder why alarm bells weren’t ringing.