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Investors: A Necessary Evil

By
Services for Real Estate Pros with Parker Holdings of Tampa Bay, LLC

 

I heard someone say that the other day and laughed a little at first trying to understand why anyone would think investors are evil. Maybe because we profit from the loss of others on a regular basis? Perhaps its since we frequently use methodologies in our business dealings that others don’t understand, we’re considered con men or unethical. Or it may simply be because we’re all greedy lol! While the first two are questionable in some if not most cases, there’s probably no denying the last. There is also the small fraction that really are unethical, unlawful, and that take advantage of those already experiencing a hardship that give all of us a bad name.

 

The average investor, however, believes in providing a service that is beneficial not only to the individual but the institutions as well. While it is true that many times the properties we find at a discount have been foreclosed on or about to be, we are not the ones that created these circumstances. In fact, we attempt to alleviate the burden of such situations. If it were not for us “evil” investors, many more bank owned homes that are in a state of disrepair, continuing to degrade in value, appearance and habitability would exist. We also help many homeowners save their credit through means of a short sale which may allow them to purchase another home some time in the future. In some cases we are able to help keep them in their homes through a loan modification.

 

Another valuable service provided by the investor is restoration and beautification. We’re the ones that come in and buy up all those ugly houses and fix them up. We turn those run down neighborhoods into a flourishing place for families to be raised or a nice community for a couple to retire. Investors are like any one in any profession. Some are self-serving while others believe that the true meaning of success is helping others be successful. Investors are a necessary good.

 

Bradley Giles
The Heger Company - Los Angeles, CA

Buyers are better than no buyers...  And no one ever forces anyone to sign on the line.  Investors are a very important part in the industry, and if you think about it anyone that buys real estate is an investor.  No one buys property hoping for the value to decrease (unless one is looking for write offs.)  I'm not going to get started on unethical/unlawful persons, save that for another time.

Jan 20, 2009 04:30 PM
Chris Martin
Holly Springs, NC

Regarding "...If it were not for us “evil” investors, many more bank owned homes that are in a state of disrepair, continuing to degrade in value, appearance and habitability would exist...." Indeed, with the banks shutting out investors (limit of 4 mortgages, etc.) more banks retain their inventory... and tighten lending standards further...  and down we spiral.

 

Jan 20, 2009 11:34 PM
Karen Parker
Parker Holdings of Tampa Bay, LLC - Brandon, FL

Maybe I'll sound mean by saying this but I've never really cared if the truth was mean but I have found banks to brainless entities that exist in a state of chaos. And although it is quite painful to see our economy in the state it is in, they deserve what they are getting. They created this situation themselves and they deserve to fail.

Jan 20, 2009 11:48 PM
Charles Fischer
Housing Market Realty - Merritt Island, FL
Professional Real Estate Services

It is a shame that we as investors have to defend what we do.  There are unscrupulous people in every industry.  Most investor-bashers are just looking to blame someone else for their problems (or mistakes).  I am not ashamed of being a professional investor and as you pointed out, I provide a vital service in my community.  If we all just took a little more personal responsilbity, we could enjoy a much higher quality of life and a better world to live in.   Get involved in a local investor association, preferably a non-profit, and volunteer in your community.  Check out www.cfri.net .  Stand up and be proud!

Jan 23, 2009 05:02 AM
Keith & Shannon French
www.KeithandShannonFrench.com - Catonsville, MD
Baltimore's Best for Rent To Own Homes

Love the post, Karen.  Thank you.

I don't think the shows like "Flip This House" etc. help at all with the negative stereotype of investors. either.  I haven't watched those types of shows in a long while, but when I did it saddened and maddened me how misleading they were.

I can understand the average person letting the bitterness/envy/whatever get the better of them when they see someone making the equivalent of their entire annual salary or more in a 3 month flip.  The average lay person (which we all used to be once) doesn't know how to wrap their brain around that kind of "fast money". 

But if they only REALLY knew all the training, the "I've-got-bigger-cahunas-than-any-man-I-know" kind of risk you put on the line, and the crazy insane work that goes into rehabbing a property for a profit.  Several little mishaps or just one big mishap and there goes your entire profit!

Our property manager just bought a foreclosed house and beautifully spray painted on the vinyl was "F*#k you whoever took my mama's house.  Hope you like it A$%hole".  Amazing how we are so villianized.

What is wrong with making money off of buying low and selling high, especially if you put a lot of work into it to sell high?  Only thing I can conclude is that any profit over several thousand dollars in less than a year's time frame just blows people's minds, especially when they don't have a single clue about the actual time investment, the risk investment, the tax ramifications, etc. that the investor deals with on a daily basis.

May 17, 2009 04:30 PM