By:
Justin Gray
, Terah Boyd
ATLANTA - A booming Atlanta real estate market may make some elderly homeowners a target.
Homeowners are selling their houses for tens and even hundreds of thousands of dollars less than they are worth, a Channel 2 Action News/Atlanta Journal-Constitution investigation learned.
One elderly woman contacted Channel 2 Action News after she sold her southwest Atlanta home for more than $140,000 less than real estate site Zillow estimated it was worth.
The woman did not want to be interviewed by the news organizations, and her name is not being used in this story.
Channel 2 investigative reporter Justin Gray
spoke with the real estate broker who found the elderly woman on the
side of the road with her belongings while the wholesalers who bought
her home cleared it out.
“The wholesaler would come to her house every single day and beg her
to sell,” said Robin Andrade, who runs Sell Atlanta. “She would say no.
Then they started bringing her dinner, they started asking her if she
needed her medication picked up from the pharmacy, they befriended her.”
Andrade got a call about a woman who had just sold her home who needed help buying a condo.
“She didn’t have enough money for a condo, and she was almost 80
years old.” Andrade said she knew why wholesalers would want the home.
“It’s in the west end by the (Atlanta) Beltline. It’s the hottest,
juiciest neighborhood right now in Atlanta."
The woman’s southwest Atlanta home was purchased by Green Sky
Properties LLC on July 30 of this year for $95,000. The same day, Green
Sky Properties sold the home to Njeri Warfield for $130,000. Zillow
estimated the home was worth more than $240,000.
Atlanta Legal Aid attorney Sarah Stein told Gray wholesalers
typically shop for houses that aren’t for sale. Stein said wholesalers
buying homes for less than market value and reselling them to investors
the same day is a calculated technique.
“They’re literally doing nothing to the property … and selling it the
same day to somebody else for significantly more,” Stein said.
The wholesaler group that was involved in the purchase of the elderly
woman’s home holds weekly training sessions called “Wholesale Live” in
southwest Atlanta. A Channel 2 producer attended the event undercover.
The producer paid $35 to attend the session, where the “Wholesale
Live” crew had her cold-call owners of off-market homes around the
metro.
Their technique was not to take no for an answer and try to get
homeowners to sign a contract to sell the same day. The wholesalers even
provided a script for cold callers.
If an attendee's lead resulted in a signed contract, they would get a cut from the sale.
“It’s like a boiler-room atmosphere. Everybody is here in one room
making phone calls,” a member of the “Wholesale Live” crew said during
the session.
When Gray went to a “Wholesale Live” session to ask about the elderly
woman’s home, organizer Monique Williams said the woman approached
their team about selling her home.
“My name is not on any documents,” Williams said.
Williams is not on any of the home sale documents Channel 2
reviewed, but her Instagram account, @Mohustle_810, follows every step
of the purchase and renovation of the elderly woman’s home.
Williams and a fellow “Wholesale Live” instructor appear in a posted
testimonial video at the closing attorney’s office on the day of the
sale about the elderly woman’s experience “working with the team.”
“They’re like my children,” the elderly woman said in the video.
In other videos, Williams documents the flipping process, including
inviting Instagram followers to a “demo party” to educate them on the
renovation process.
“Of course, guys, when you acquire properties, especially directly
from the seller, and they’ve been in their house a long time, it’s
possible you may run into these types of situations,” Williams said in a
video recorded in the basement of the elderly woman’s home, explaining
that they would have to remove 47 years' worth of furniture and other
belongings.
David Blake, with Georgia’s Department of Human Services Division of
Aging Services, trains police across the state to investigate elder
abuse cases. Blake told Gray deceiving an elder to buy their home at
bargain could be a crime.
“You're not really telling that victim the facts. You're hiding the
facts, you're misstating the facts to make that sale, to make that
transition,” Blake said.
“And that’s against the law?” Gray asked.
“Yes,” Blake said. “That would be considered financial exploitation.”
Channel 2 has not found evidence that the
wholesalers have committed a crime, but an Atlanta police fraud
investigator did contact the news station with questions about the case.
The news station passed the investigator’s information on to the elderly woman's attorney.
Whether it was a crime or not, Andrade said the situation the elderly woman was put in was wrong.
“There is absolutely no doubt in my mind that they took advantage of her,” Andrade said.
Full Article & Source:
Buyer Beware: Are wholesalers taking advantage of elderly home sellers?
No comments:
Post a Comment