Lie to get the deal through?!(only a little one!?)

In QLD if an agent OR Vendor Lies to you, they are both Legally liable for any losses and or damages you incur as a result of this happening. In the instance you have supplied they would be found liable for the balance of Rent and your inability to let the property. This is why the Qld agents have to supply a CMA or comparative Market Analysis, whichstates where and how they founded their ideas on the obtainable rental for that property. I have had purchases and offers delayed by this, but it generally stops the above from happening.

Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055

Hi Luke,

I think integrity has to play a big part. I think its always good to work of the worst case numbers and if it works out better then great.
Personally i would not take to much notice of the “potential rent” .In the example you provided, there is $150 difference on what the property is currently renting for and what they claim to be the potential rent.

With every situation “integrity plays” a major role. Even wholesalers selling rehab deals i find over estimate /over quote both the resale values and the rents.

I mentioned in a previous post about building a solid foundation first. That foundation applies to this same scenario.Realistically we need to do a market analyses/due diligence etc on what similar properties are :

A- Selling for and B- renting for to be able to determine what a property is worth and what its rent is worth.
If the people you are dealing with are not of good integrity,yes they will give you ambitious numbers which may not really reflect the real situation.

To give you an example, on my trip in March/April I had a meeting with key people in the industry. The aim of the meeting was to bridge the gap between the US and Australia and the purpose of the meeting was obviously to network and see how we could help each other.

Anyway at this meeting I
met a wholesaler who basically finds houses with equity etc and he sells the houses to investors for a fee.

All the homes come with his sales price , his numbers on what it would be worth after the rehab , estimated rents etc etc.
Most of the deals on the numbers he provided had good equity/potential profit in them etc.

What i did however was get my business partner in Texas, who i trust to go through the list and see what was worth pursuing.

Anyway we did end up buying some properties of this wholesaler but for less than what he initially quoted his selling price to be .He even referred to it as his best price.
This is because my business partner did the comps and it didnt quite stack up.What this wholsealer was doing was bumping up the price for me, thinking I am an Aussie and wont know any better.
He ended up agreeing with my business partner that the sales comps were to high and reduced the selling price.
This was the difference between an ok deal and a good deal.

He quickly realised that he wont be able to play those games with me because i have my foundation set.He now sends me deals with the same numbers as he would send his US customers because he knows I have good people surrounding me who i will get to double check everything.

So yes, i do unfortunately think that many people will try and get more out of you unless you know your stuff and can show them that you know what you are talking about.

I am not suggesting that this particular wholesaler was bad, at the end of the day he was still selling me something with equity, it is just that they will over inflate the numbers in the hope that they will get away with it.

I’m sure the same thing would occurr in your own backyard as well.I know in my local paper, some agents have got redicolous prices on homes that are now where near as much as what they are asking. I bet you they know this but are just trying there luck in the hope someone will buy it.

There are good honest people that will do the right thing by you also, it just a matter of finding them and then building up the relationship with them.

On the MLS listings, I have been told to be carefull of the rents they put on their as well and to double check it to see if the comps stack up.

All the best.

Chad

Providing Turnkey Real Estate Investments In The USA.

E-mail:[email protected]
web: http://www.gr8realestateinvestments.com

Just remember when using the word “Client” & the word “Customer” A Realtors “Client” is the Vendor, YOU as the Buyer are their “Customer”. The fiduciary duty extends to their “Client”, Not the “Customer”. Now in so saying whilst they are fullfilling their duty to their client they also have an obligation to protect you the customer. How twisted is that? No – wonder so many of them are bent. And all of this whilst working for commission only!

Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055

hi all
for me your word is your bond so if you are willing to taint your word then for you the deal is ok but for me its not
I don’t work on legalities and how’s right thats for legal eagles but for me you have to feel right that you have done right by your own rules.
and if you haven’t then the legal eagles are there to back you up they are not there to tell you were to walk.
I’m not a great belever in kama but i beleave that you beleave in yourself ( and I can tell you that alot of people think I beleave in myself) and the only one thing that if you beleave in yourself that you can give is your bond and that is a very inportant thing and in the asian market that is worth more then gold.
You can open more doors because of the people you know then you can with pieces of paper and if there is one thing you must learn is you word is your bond if you say you can do it you MUST BE ABLE TO DO IT or your bond is like paper in the wind.
and for me it would cost a king ransom and a bit more to taint this.
I can bend the edges we all do but you have to look at it and say is this a deal that will reflect on me badly and if so
bye for me but if not i’m in.
in business people judge on what you do or what you have done not on what you say you can do.
my .002

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