Investment Info:

Other other investment in Cedar Falls.

Purchase price: $350,000

Cash invested: $100,000

Sale price: $5,000,000

This was a Real Estate holding and building company that I invested...

Is this dishonest?

No, not being intentionally dishonest, just stretching outside your comfort zone.

IMO the seller then thinks to themselves they can get more if they look for their own end buyer (which is true)I am not saying you should be dishonest about it.

Just as important, never pay a contractor upfront for anything until after the first week of work is performed (at least for major jobs, some jobs are only a few days).Some dishonest people will ask for some ridiculous 50% upfront, that should be a red flag. never pay that kind of money upfront and if they want money for materials to start, have them give you the item list and then go pay for it at the store where the items will be purchased.Also, Kevin pointed out that you should receive a lien release from your general and any and all subs.

If you don't make it clear to the buyer (especially if out of state) that the property is located in a low income, high crime area, you are being a dishonest scumbag.

Don't you think that is a little dishonest and somewhat ridiculous?

Annette,I am a commercial principal broker.I don't think you should feel guilty.I would feel guilty if you were dishonest upfront and drew them in under false pretenses and expectations.150,000 is not that low of a price point.In Atlanta there are trash properties for 10,000 where the commission is 600 bucks to 1,000 and that's if you are the broker owner and do not have to pay franchise fees and broker splits.I only do commercial and do not waste my time with those low pay properties.So you are an investor.Did you and the agent talk about how you were going to finance these properties?

The one that we were going to choose we found out was dishonest and I'm not sure of who to choose now.

Unfortunately, there are some dishonest people in our business.