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Thank Goodness I Googled This "Buyer/Investor"!!

By
Real Estate Broker/Owner with Summit Home Consultants

Thank Goodness I Googled This "Buyer/Investor"!!

This blog will show you the importance of doing a Google Search of potential buyer/seller clients in the Arizona pre foreclosure market.

The other day, an AR Blog of mine was featured.  The title of the blog is "Attn Distressed Homeowners & Listing Agents-BEWARE OF THE NEGOTIATOR/INVESTOR!!"

In the blog, I discuss the importance of staying away from shady negotiator/investors who demand to negotiate on behalf of your clients to get a ridiculously low price, in order to flip the home for a handsome profit.

In the blog, I stress the dangers of "handing off" your responsibility to guys like this.  

In the past month, another Phoenix Realtor has sent me 3 offers on one of my listings.  I will not disclose her name (lucky for her), but I wanted to share our story.  The first time she sent me an offer, she sent it without ever visiting the home, and without contacting me.  Her offer included the usual CYA language that all of these scam-artists, and it forced my clients to sign a document that allowed her buyer to negotiate on behalf of my client.  Hah!  Thanks, but no thanks.  I sent her a very professional email, rejecting her offer (after discussing with my client, of course).

Three days later, she emails me another offer, at the same price, same conditions, etc.  I emailed her back, reminding her that my sellers had just turned down her offer.  Oops, she said she forgot.

This is no joke...  Three days later, guess what?  Yep, same realtor, same buyer, same offer.  This time, I sent her an email, telling her to stop emailing me offers, for the 3rd TIME!  Her response..."I'm so sorry, I send so many of these out everyday, I can't keep track of all of them.  You can't blame me for trying, can you?"

I couldn't take it anymore.  I sent her an email back saying the following:  "I googled your "buyer's" name, and would like you to see the video that he recently produced, showing other investors how to "handle" realtors.  Please tell your client that we do not do business with clowns like him".  After sending her the link to this video, she finally quit sending me offers.

Folks, this is no joke.  The video below is the guy that tried to swindle us into allowing him to negotiate on behalf of my sellers.  Please watch how he "handles" this clueless real estate agent.

 

How about that?  After I posted this blog, he made his video "private" on youtube.  I think this speaks volumes as to his character.  He must not be too proud of his work after all.

I found him because he advertises to other investors, showing them ways to "play the game".  He tried to buy our deal using an LLC (which will go un-named).  A simple search at the AZ Corporation Commission gave me his name, I Googled it, and here he is...

I thought this was a great "Part 2" to the blog titled "Attn Distressed Homeowners & Listing Agents-BEWARE OF THE NEGOTIATOR/INVESTOR!!"on 7/30/2010.  Doesn't this guy know that Realtors are looking at the same videos as his investor buddies?  Enjoy!

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Bob Hertzog 

Summit Home Consultants

www.forsalephoenixhomes.com

Copyright © By Bob Hertzog 2010 *Thank Goodness I Googled This "Buyer/Investor"!!*


 


 

 

 

Comments (72)

Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Bob, thanks for pointing this guy out.  I thought that the 'powers yo be' were cracking down on this type of operation. 

Aug 15, 2010 12:16 AM
Marney Kirk
Cummings & Co. Realtors - Towson, MD
Towson, Maryland Real Estate

Bob, this is just incredible. I am glad you googled the guy! I hope she is no longer working with him!

Aug 15, 2010 01:41 AM
Jeffrey Smith
Author of 'Realtors Guide To Short Sale Success - Eustis, FL
Short Sale Education

I got offers on all my unpended listings the same day from the same company for 30k less than list price on all of them. Same deal. "We will work the negotiating for you" Just shows a realtor with not enough shortsale knowledge and a little bit of greed plays right into their hands.

Aug 15, 2010 01:43 AM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

How anyone could have their buyer be an authorized 3rd party negotiator on the seller's mortgage is beyond me. 

How anyone could be dumb enough to post this on Youtube also amazes me. 

Aug 15, 2010 02:38 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It is a red flag when any buyer wants to negotiate on behalf of the seller. You can find a legitimate negotiator who will work on the sellers behalf and look out for the sellers best interests.

After all even in a short sale, teh seller still owns the property. They have to sign the pourchase and sales agrement and should not be pushed or forced into anything that will hurt them more in the long run.

 

Aug 15, 2010 03:17 AM
Real Estate Investing |Real Estate Investment
| Real Estate Radio USA - Fort Lauderdale, FL
Hey bob...if you want to make things personal...let me know. It's typical. Realtor BS which is why a lot of people outside of the "rain" don't bother visiting or commenting here. It's not "coming out from under a rock" it's more like stepping down to the playpen. Trust me, there is so much business out there...non fraudulent business I might add, that it's a bit tiresome to comment on the dribble from a few who find things to be some sort of scheme. I don't try to convince liberals to be conservatives, muslims to like jews, or red sox fans to like the yankees. That is just a waste of time. Those who actually have an open mind have been seeking out the truth...despite your efforts to paint things as being illegal or bad... Like I said, I don't know the guy in the video and could care less how he conducts his business...nor how you conduct yours. Nuff said
Aug 15, 2010 03:18 AM
Denise Pudim
Kear Realty, Inc. - Chillicothe, OH

If it sounds to good to be true??? Sometimes it amazes me that people are sucked into something like this, but they certainly sound smooth!

Aug 15, 2010 03:52 AM
Ralph Janisch ABR CRS Broker
Janisch & Co. - Conroe, TX
Selling Northwest Houston to good people like you!

Right up their with "Prince" Faisel Waheed Schmucky Duck that's gonna send me $50M this week for being kind enough to help him "invest" money that 17 of his dead relatives left him after they stole it from Gambadiddywa and hid it in an unmarked Sudanese bank.  I love these guys....

Aug 15, 2010 04:08 AM
Kerry Lucasse
eXp Realty - Urban Nest Real Estate Group - Atlanta, GA
Your Urban Nest Atlanta Real Estate Consultant

I remember when this started happening a few years ago -- even though I didn't know much about it (at the time), all of my instincts said RUN, RUN, RUN!

Aug 15, 2010 04:16 AM
Bob Hertzog
Summit Home Consultants - Phoenix, AZ
Designated Broker

Michael, I beg to differ.  Allowing a negotiator/investor, whose sole purpose is to convince the lender to sell the property to them at the lowest possible level to increase their profit margin, thereby increasing the amount of the potential deficiency to your client, is wrought with problems.

Sure, they can guarantee "no deficiency" and allow the seller to walk, as you said.  What happens, however, to the Seller who is now even closer to the foreclosure auction, with no time to find a legitimate buyer?

Personally, I would never let a buyer/investor/negotiator get between me and my clients.

Aug 15, 2010 04:28 AM
Kai Degner
Rocktown Realty (Harrisonburg) - Harrisonburg, VA

Thanks for the reminder to be on the look out and do due diligence.

Aug 15, 2010 05:05 AM
Roseanne Campagna
John L. Scott RE Maple Valley, WA - Maple Valley, WA
Kent/DesMoines/Blk Diamond/Renton/Maple Valley, WA

Yikes!!! Humanity gone twisted...

Aug 15, 2010 05:29 AM
Stephen Turner
House Broker Realty - York, PA
The BIG Guy of NEW HOME SALES
Thanks for posting. Stuff like this is good to be shared so that others can prepare as this happens all over. It should also be a learning expericence for agents. I always encourage agents to research how to buy a home by reading the same books and videos that buyers see. This way they will be prepared for what schemes are being promoted today!
Aug 15, 2010 05:45 AM
Brent Wells
The LivingWell Team - Prosper, TX
Dallas - Fort Worth

Bob - If it smells like a duck and walks like a duck...

Aug 15, 2010 05:46 AM
Janna Scharf
Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID
Coeur d'Alene Idaho Real Estate Expert

As some of these commenters have already said, it just isn't worth the risk.  My heart goes out to the sellers who end up in the middle of a mess like this.

Aug 15, 2010 06:56 AM
Bob Hertzog
Summit Home Consultants - Phoenix, AZ
Designated Broker

Brent & Deb, this one also quacks like a duck...:)

Aug 15, 2010 09:25 AM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Is this agent looking thru dollar signs only? WOW. The whole thing is screaming "shady deal". I'm sure there are ABC deals somewhere, but I'd make sure they were boyond legit.

PS. The guy in the video... I don't understand why he's video taping himself and the call? It almost looks like he's trying to get the agent in trouble, like undercover or something. Very odd.

Aug 15, 2010 01:34 PM
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Hey Bob. Although i can't speak for this guy, short sale flips can be totally legal and ethical. A lot of agents scream "fraud" beccause they are ignorant on this subject. However, I witnessed and participated in short sale flips and I consider myself a guru in doing them. I even expanded the concept to licensed real estate agents who do something along the same lines. If you notice, the latest trend in short sale negotiations is that they are now done for free. I can claim that I am one of the founders of the strategy to accomplish this.

Aug 16, 2010 04:04 PM
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal

Bob,  This guy isn't the prettiest looking guy but there's no need to accuse him of fraud because of his looks.  I think most of the commenters didn't take the time to watch the video. 

You use the word "swindle".  What do you mean by that?

Many commenters are throwing out the word fraud.  Most say that not all ABC deals are frauds but many others seem to think they are all bad.  Can you explain what part of this guy's scheme is a fraud and is illegal.  I just want to know based on facts, not based on someone's looks.

Aug 17, 2010 07:59 AM
Bob Hertzog
Summit Home Consultants - Phoenix, AZ
Designated Broker

Tim, maybe you should go back and read the blog.  Please tell me where I discussed anything about "his looks".  I could care less what he looks like.

While you're at it, also tell me where I've said that "all ABC deals are frauds".  Again, nowhere in the blog.

Next, please go back and tell me where I used the words "fraud" or "illegal".  What?  Not in there?  That's what I thought.

Now, if you feel that getting a new listing and only showing it to this guy (and not allowing the market to determine the price), then letting him negotiate on behalf of the clients that have placed their trust in you, give him a call and let him handle your short sales from now on.

Just make sure that you have your E&O Insurance Company and lawyer on speed-dial.

Aug 17, 2010 09:10 AM