Real Estate fraud in the city of Buffalo has gotten so bad that the mayor has created an anti-flipping task force. Or the possibility that in this dying city that is so dependent on government jobs, it is another boondoggle that will supply lots of nieces and nephews safe employment and good benefits.
With housing prices so low in Buffalo speculators are always lurking about. The disreputable con artists do thrive in settings like this, soliciting out of state buyers who want to take a swag at owning a 40 thousand dollar property that is rentable.
But to create an anti-flipping task force? And the name. Flipping houses is not illegal or disrespectable. The folks who flip homes correctly tend to bring a great deal of value to a community by taking homes that are in disrepair and bringing them up a level. Now if you were to call the task force a Real Estate Fraud Task Force, that would make sense. But the Mayor of Buffalo or whatever minion that came up with this idea decided to create a title that would play to the media and create a false sense of flipping.
For a city that is so desperate for investment and revitalization as Buffalo is, this course of action is probably not the smartest way to proceed. To vilify those that could help the properties in Buffalo probably explains why the city is in the dire straights that it is in.
Buffalo Mayor Byron Brown said, “With the combined efforts of the Anti-Flipping Task Force and Attorney General Andrew Cuomo’s office, another flipping scheme has been averted. We have seen in the past the devastating effect that fraudulent flipping has had on Buffalo, and now we are catching people before they have the opportunity to cause similar damage. Also, the public has been tremendous in helping the AFTF in our efforts to stop fraudulent flipping. I am confident this momentum will continue, and that together we can put an end to fraudulent flipping in Western New York and continue the work of rebuilding our neighborhoods into safe and livable environments for our residents.” All American Patriots.
Michael Radjavitch, a top housing court lawyer in Buffalo says that these homes are mostly vacant and the services that stop the flipping issues are of great benefit to the community.
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{ 6 comments… read them below or add one }
The flippers here in Buffalo do nothing for "investment and revitalization" of the area.
They buy houses on eBay sight unseen, for, say $1,000; thinking they can't possibly go wrong.
Then, they put the house on the market for $20,000.
The truth is – the house is worth less than $1,000.
Meanwhile, they don't pay taxes, the house stays abandoned, and three years later the City takes it back, again! Eventually, the property turns into a stripped crack house and the city has to pay to demo it.
Take a look at the amount of vacant parcels in this aerial, and you'll see what I mean:
http://maps.google.com/maps?f=q&hl=en&geo…
Is it illegal to flip? Of course not?
Inmoral? Nah.
But it's doing absolutely no good for anybody.
The City is doing what they can to try to contol it.
By the way – I make my living investing in Real Estate.
Sauvanderlay
I have a dumb question, if the home is worth less than a grand, why are people not stripping them for the copper and other accessories.
If the prices have plummeted that low then we should be looking at housing like cars, chop them up for parts and clear the land. I bet that could be done with a profit. Their is a trend for older fixtures that are going for a bundle.
You are correct:
http://buffaloreuse.org/
Sayvanderlay
I read your site with great interest. We have a "Flipping Scam" going on right here in (Grand Island) Buffalo with a junk, formerly condemned property being peddled for $400,000. (!!)
This flip scam involves a house at 837 West River, Grand Island NY which has holes in the roof, a collapsed foundation, much of the plumbing and electrical stripped, and absolutely no sewer or septic available! This house is only half completed, with a tar paper wall, rats and broken windows galore. This eyesore sat for four (4) years with several feet of water festering in a dark carpeted, finished basement. The property spent a lengthy period of time covered with Federal "SKULL and CROSSBONE" signs because of black mold infestation.
The current bank (yes BANK) owner is now listing the property for $400,000.00 (FOUR HUNDRED THOUSAND DOLLARS), and, by county health law, this property cannot even be legally transfered because it has no sanitary facilities!
This bank got "stuck" with the property, after the last owners bought it at auction for $185,000. and then the Bank mortgaged it for $740,000.00 sight unseen. (Yes, you read right!). Last owner took the $600,000. profit, defaulted immediately, and ran! Now the bank is looking for a sucker. Oughta be a law.
Unbelievable scam !!!!
Pretty crazy stuff indeed. Shouldn't they be looking for more investment instead of less. Even if everything doesn't go perfectly(when does it ever?) it would seem in this economy that capturing capital in up-state NY…would be more important, not less.
That's a tough one! Especially when those who are providing value and a positive change to your community begin to be placed in a negative light. My business partner just recently rehabbed 2 blocks worth of shell properties over the last few years, and this has had a tremendous impact on the community, crime, and overall apperance of our city. Before that point, nobody wanted to even touch those houses or have anything to do with the particular street. Hopefully those in power will begin to reconsider the implications this could have on Buffalo.