Real Estate Ontario Fraud in Real Estate, Are You Being Victimized? - Part II - Real-Estate London, Toronto, Montreal, Vancouver, Canada buy house, sell house , rent a house

The phone range and Peter was on the other end of the line. "Willard, I have a friend of mine that has a real estate problem." I said, "Send him over." Two hours later, Jerry sat in front of me terribly upset. Three years earlier, he had been talked into buying a 4 unit building in partnership with Smooth Talker, a knowledgeable, smooth talking real estate salesman. Smooth Talker offered to find the property, arrange the financing, manage the building and even put up the down payment. Jerry was told that all he had to do was use his perfect credit to qualify for the loan and then sit back, wait seven years and the money would come rolling in.

Smooth Talker also promised that the two of them would do more deals and Jerry would make over $100,000. What Jerry did not know and he would not figure out until 3 years later was that Smooth Talker had no intention of splitting anything and Jerry could kiss his perfect credit goodbye. 3 years ago, Smooth Talker had Jerry and two other buyers, buy three buildings, located on one street. The buildings cost $150,000 each. Smooth Talker put up $1,500 down payment for each property, while at the same time, telling the buyers that he was putting in $12,000.00 for each. There was an unexplained difference of $10,500 each.

Smooth Talker also collected a $9,000 Real Estate commission on each. Smooth Talker also agreed to take the building in as-is condition, with no inspections and without requiring the seller to make any repairs. There were, unknown to Jerry $10,000 worth of air-conditioning as well as other work. Smooth Talker had those other two buyers borrow from the Federal Government a remodeling loan of $48,000 to make the needed repairs. When those other two buyers each got their loans, Smooth Talker took all the money and said he spent it on Jerry's building. Let me clarify that. Smooth Talker stole the money from the other two investors, telling them he used it on Jerry's building. That is still stealing. My research later showed that he did almost no repairs to any of the buildings, and what little repairs he did have done, were not even paid for.

Smooth Talker cheated the poor workers out of their pay. No one could ever understand what he was doing. He even collected rent, pocketing any cash. When the buyers wanted an accounting. Smooth Talker wouldn't even supply it. When I came on the scene and demanded, as a matter of law, an accounting of what was received and spent. Smooth Talker didn't have any proof of what happen to all the money.

Jerry wanted out of the partnership but Smooth Talker didn't want the building sold; but he did want to make sure he got his due, if it was. He gave me a statement showing that he had put in $34,000 (which was not true) into the building and wanted that before any split of profits. This would of left Jerry receiving $5,000 and Smooth Talker making $46,400 on the whole deal.

To avoid being in this kind of a situation, I advice the following, before doing any sort of real estate deal; a) Evaluate your risk. What is your downside? Have a real estate expert study the deal. b) Set up operating and reporting guidelines with your partners. Put everything in clear English. c) Have everything reviewed by an attorney or an accountant. d) Choose your people partners with care.

Willard Michlin is an Investor, Business Broker, California Real Estate Broker, Accountant, Financial Distress Consultant, Well known Public speaker and Administrative/Business Consultant. He can be contacted at his Ventura, California office by calling 805-529-9854 or by e-mail at kismetrei@earthlink.net

London Ontario Real Estate Information

TORONTO , May 17, 2012 /CNW/ - The Ontario Real Estate Association (OREA) applauds proposed legislation introduced today at Queen's Park that, if passed, would facilitate the use of electronic agreements ...

BTB Real Estate Investment Trust announces the acquisition of an office building in Ottawa, Ontario

TORONTO, ONTARIO-- - Allied Properties REIT announced today that the Trustees of the REIT have declared a distribution of $0.11 per unit for the month of May, 2012, representing $1.32 per unit on an annualized basis. The distribution will be payable on June 15, 2012, to unitholders of record as at May ...

Pure Industrial Real Estate Trust Announces Agreement to Acquire Two Fully Leased Industrial Properties for $19.5 Million and Closing of Previously Announced $7.28 Million Transaction

TORONTO, ONTARIO-- - Allied Properties REIT announced today that it has entered into an agreement to purchase the following property for $61.75 million: Address Total Office Retail Parking GLA GLA GLA Spaces ---------------------------------------------------------------------------- Lang Tannery ...

TORONTO, ONTARIO-- - Canadian Real Estate Investment Trust today announced its May 2012 monthly distribution in the amount of 12.42 cents per unit . The May distribution will be payable on June 14, 2012 to Unitholders of record May 31, 2012.CREIT is a real estate investment trust focused on accumulating ...

TORONTO, ONTARIO-- - Calloway Real Estate Investment Trust is pleased to report strong results for the first quarter ended March 31, 2012.Highlights:-- Maintained portfolio occupancy rate at the 99.0% level for the ninth sequential quarter. -- Funds from operations increased by 14.4% to $54.6 million and 5.1% to $0.434 on a per unit basis compared to the same period in 2011 ...

TORONTO, ONTARIO-- - RioCan Real Estate Investment Trust today announced a distribution of 11.5 cents per unit for the month of May. The distribution will be payable on June 7, 2012 to unitholders of record ...

TORONTO, ONTARIO-- - Canadian Real Estate Investment Trust announced it has acquired an additional 25% interest in certain components of Dartmouth Crossing Shopping Centre located in Dartmouth, Nova Scotia, ...

TORONTO, ONTARIO-- - InnVest Real Estate Investment Trust announced today that a distribution of $0.0333 per stapled unit, payable on June 15, 2012, has been declared to the holders of record as at the close of business May 31, 2012. The distribution is $0.0333 per unit of InnVest Real Estate Investment ...

Real Estate Information | Canada Foreclosure Listings | How To Buy Middle-class Homes Starting Below $100 Each | Real Estate & Tax Deed Investing | Easily And Quickly Become A Successful Real Estate Agent | Best Selling Real Estate Program | Mortgage Secrets | Avoid Foreclosure | London Jobs

Fraud in Real Estate, Are You Being Victimized? - Part II

London Ontario Real Estate Information