Interest of Conflict?

Posted August 3rd, 2007 by Joe Kaiser

By telling sellers I've cheated them, the county knows a dispute will erupt, tying up those profits.

Dear Rob,

Jerry seemed like a decent guy, and I’m sure he was, until he got a call from the county telling him he’d been scammed.

He was handling his son’s properties, a couple unbuildable lots scheduled to be foreclosed on by the county prosecutor for unpaid property taxes.

We contacted him and paid his asking price, $500.00. That seemed about right to both of us.


More than the listed price

We listed the lots with a local real estate agent and for months they sat there on the MLS with zero interest.

Eventually, we decided the best possible play was to let the properties continue on to the tax sale and take our chances. Sure enough, a bidding war took shape and investors at the auction actually bid MORE than our listed price in the MLS.

Crazy?

Not at all.

Sure, they could have paid our asking price a day earlier and come out ahead, but they were rolling the dice themselves.

Investors do those kinds of things.

It’s half the fun.


“make the call”

We, of course, were delighted it played out the way it did with a nice profit coming our way, and we would have banked that profit except for one thing . . .

Jerry got the call.

Someone from the county called to let him know he’d been scammed and that “the law says it’s your money,” and from that moment on Jerry made a stink.

He knew it was a fair deal and that we’d done nothing at all deceptive or unfair, so we thought he’d come around in time and maybe we partner up and split the money him, or something like that.


Jerry gets nothing

We did come to an agreement with him, eventually, but by then it was too late.

He’d dragged his feet for three years and by the time our joint application was submitted, the time to collect had expired.

And all that profit?

You can probably guess where it went.


in the interest of conflict

Getting sellers riled up, convincing them they’ve been cheated and putting our profits at risk by intentionally creating conflict among the parties of interest is a play.

It’s in their book.

By telling sellers I’ve cheated them, the county knows a dispute will erupt, tying up those profits.

And if it’s not resolved after three years?

We can stop arguing about it because right about then all that overage money escheats to the county, as did the funds in this deal.


the call plays

Do you realize, Rob, what this means?

It is to the county’s benefit to incite disputes among my sellers and me. The county knows that if they can tie up the money for three short years by creating an ongoing dispute, my overage profits become theirs.

And they know inciting a dispute takes exactly ONE phone call, because, as we all know, the call plays.

Respectfully,

Joe Kaiser


One Response to: “Interest of Conflict?”

  1. DaveD responds:
    Posted: August 3rd, 2007 at 12:24 pm

    Nice play – for the county!

    Which brings us to the old saying “where there’s smoke, there’s fire.”

    Kinda makes you wonder WHAT OTHER GAMES the county is running where they make up the rules, ignore the Constitution, and misdirect in order to throw the unwashed masses off track.

    Looks like they are addicted to the “free money” even if they have to lie, cheat and steal to get their hands on the goodies.

    Makes you wonder what else routinely escheats to the county? I wonder how well they would stand up under that spotlight? Hmmm.

    You are systematically laying down a straight flush, where the state and county gang continues to bet the farm on a six-high. Amazing.


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