A couple of weeks ago, I posted some information shared with me about the resubdivision of 1004 Camden Ave. That's the one where the owners wanted to stick in a single-family home next to the one already there that¢s broken up into three apartment units. The Planning and Zoning Commission turned them down, but not because these guys didn't jump through the right hoops.
Just so everybody's clear, Rod Flowers, who works for SunTrust Bank as a Vice President and mortgage lender, is on that property's mortgage and he is a partner with Mitchell David and Tim Jones in Captain Investments III LLC. BUT he is NOT a partner in Captain Investments LLC, although Mitchell David and Tim Jones are partners in that separate group. Also, the mortgage for that property wasn't done through SunTrust Bank.
Some people have emailed the bank regulators about this, but it seems like the message is getting garbled to mean that you're accusing Rod Flowers or SunTrust of something illegal. I don't think that's the case and, myself, I don't think that's what the message meant. But if you sent something in, you might want to explain better what you're asking so it doesn't come off as something else entirely.
The link to do that is:
https://federalreserveconsumerhelp.gov/FormComplaint.cfm
For what it's worth, I don't know of any legal reason why a banker can't be an investor outside of his livelihood. The real problem as I see it is that your City let a lot of landlords get away with converting these homes. But I can understand people being upset with the way this looks. Banks talk about how they lend to restore blighted areas, right?
Don't shoot the messenger. And I'm taking down the previous posts about this so people don't get confused and because there were some really nasty personal comments in there I shouldn't have let through. That's just not necessary, so out they go.
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The reason that bankers should not be investors is known as 'Insider Trading'! They are privy to information, and services that the average businessman is not.
ReplyDeleteThis is the very reason investment groups go after bankers to be on their 'team'.
It is as morally wrong as a Realtor buying a property from a seller at a reduced rate and then reselling it at a profit. It's legal, and encouraged, but it is wrong.
The reason it is wrong is because most people experience one real estate transaction in their lifetime. The victims of this legal and immoral crime are often older folks who have owned their home for decades, paid very little for it and don't expect that their property values have risen to prices they never imagined.
How many Realtors do you think have heard these words from a recently widowed woman in her waterfront farm house "My husband and I paid $20,000 for this 300 acres in 1957 and it was all we could do to make the payments every month, but we did, and now if I could get $100,000. I know I could cover my bills in the nursing homes" ?
Guess what happens? The realtor writes her the check and say's "You have too much to worry about, I'll just take it off your hands right now, and you won't have to worry about a thing".
It happens every day of the week, and it's legal. I'm sure they don't always get such sweetheart deals, but I guarantee they are working for their own interests.
wymzie,
ReplyDeleteAll people who belong to the National Association of Realtors abide by a code of ethics, which is very strongly enforced. The type of "predatory" behavior which you used as an example is NOT allowed under the code. Legal? I can't say. Ethical? Absolutely not, and should a Realtor do what you described in your example they would be severely sanctioned.
I can't say what bankers are allowed to do, but I do know about Realtors' Code of Ethics.
Wymzie, well said, I totally agree.
ReplyDeleteFuthermore, this country is in a self destruct mode. Financial folks
have taken over every aspect of business. Sadly,there are not many manufacturing people managing a
business. Bean counters has taken over!
Got to love all of those LLC's, dontcha? Bottom line is that even though alot of real estate, development,investing deals are "legal" they aren't RIGHT and should not happen. IF anyone truly cared about the city of Salisbury one would encourage home OWNERSHIP not rentals, Transient populations do not improve a city PERIOD. Debbie and Terry get bashed right and left for the good things that they do, you don't see them whining about it.
ReplyDeleteAll people who belong to the National Association of Realtors abide by a code of ethics, which is very strongly enforced
ReplyDeleteYou have got to be kidding, what planet do you live on?
So when did making a profit become so hideous? Most real estate salespersons are independent contractors whom are paid with a 1099. Most depend on repeat business and do that business by referral and word of mouth. Those who prey on the weak usally do not last that long. As noted in this blog both good and bad news travel fast.Most homeowners are pretty savvy and informed and subscribe to the capitalist philosophy.
ReplyDeleteAnon 8:53 and 1:57,
ReplyDeleteI couldn't dissagree with you more. I see it happen every day. As I stated most people experience an average of one real estate transaction in their lifetimes. Realtors use their inside knowledge to exploit unwitting sellers every day of the week.
I know of several local realtors who have done and are doing this right now, and when I ask their colleagues why they aren't turned into the board for this behavior their response is that that they live in a small town and they have to work with these people and the board doesn't do anything and on and on and on.
I am all for making a profit. Profits are a good thing. But using insider information to do so is wrong. Maybe that's why I'm not rich.
I think the privileged information that is given to me from a customer should be held in the strictest of confidence and that I should market the property as if it were my own, and then reap the 'profit' of an honest earned commission.
Speculation is poor form of human character, and is the least honorable of all pursuits...John Adams
With over 1000 houses to chose from in the Metro Salisbury market and the various comparables on the internet as well as Sunday real estate shows and newspaper ads surely a homeowner could get a basic idea what their house might be worth. Most sellers interview more than one agent and will be presented with information that you refer to as "confidential". You know, Salisbury and the Eastern Shore truly has some fine citizens that desire a win-win outcome. If not, why is it that so many people want to live there?
ReplyDeletewe should "spring for" an attitude study...
ReplyDeleterealt0rs regulate themselves and cover a mutlitude of sins with simple 'standard forms' they slip in to the pile of paperwork.
ReplyDeleteThe scenario Wymzie described about an agent "helping" grandma realize her dream of getting $100,000.00 is something we have seen over and over right here on the Eastern Shore.
All they have to do to make it "legal" is say "sign here this just tells you I am a licensed real estate agent buying for myself" and viola... full & complete written disclosure.
As for people "Interviewing" a large number of real estate agents.
Did you know the average American is involved in 2.76 real estate transactions in their lifetime?
The biggest realt0r method of marketing is a BIG PICTURE OF THEIR FACE and small pictures of the property...
So Grandma says I have seen their face for years & he/she looks honest...
When one crosses the hundred thousand dollar in profit milestone often times ethics is the first thing out the window.
The agent is on a "listing presentation" then is offered the "opportunity" to make a couple hundred thousand dollars... I have heard big name local agents brag about these types of deals everywhere from continuing education classes and over drinks.
So it happens.
A few years ago I put in an "offer" to purchase a large waterfront farm on the edge of Snow Hill for the full asking price of $695,000.00 with a few buddies.
The "listing agent" called two-weeks later and told me that another persons offer was accepted before ours was presented.
That "offer" which I do not believe ever exsisted fell out and the agent did not call us back, he sold it to one of his "buddies" for $615,000.00!!!
Why?
Simple greed.
One of my buddies is a licensed broker and he acted as the buyers agent so 3% would go back to our group towards the purchase price.
The "listing agent" double ended the deal meaning he collected commission for representing BOTH the buyer and seller. This is outlawed in many States but not Maryland.
By selling the property for $70,000.00 LESS THE AGENT MADE $15,000.00 MORE FOR HIMSELF
At the time he was President of the Coastal Board of Realt0rs and voted Pocomoke City "Businessman of the year"...
So take your BS about the NAR enforcing it's code of ethics and put it where the sun don't shine.
That property is worth about $5 million today even in this market!
sometimes what we dislike in other people is what we hate about ourselves.....that's the ticket.
ReplyDelete