Their risk, his reward

  • Article by: JAMES ELI SHIFFER , Star Tribune
  • Updated: June 1, 2011 - 9:09 AM

Longtime landlord finds a way to make money at bottom of city's real estate market.

  • 18
  • Comments

  • Results per page:
nichole1957May. 28, 1111:25 PM

I am so sick of any time that people get themselves in a jam the politicians are right there to say someone is exploiting them like they are some kind of crook. The only people exploiting any situation are the politicians.

17
11
cks1950May. 29, 11 9:36 AM

nichole1957: "I am so sick of any time that people get themselves in a jam the politicians are right threre to say someone is exploiting them......" __________Amen, I like the way you think.

9
11
puppbMay. 29, 11 9:57 AM

Another pathetic socialist front page article by the Star Tribune. No where does it state that the investor got any "insider" deals on the properties or that he coerced or swindled anyone. Nice to learn that making a profit is exploitation and front page news.

13
10
mccorkeMay. 29, 1110:53 AM

What a terribly misleading article. It makes everything sound so nefarious. I love how it says Anderson is "entitled" to collect $22,000 a month. How much is Wells Fargo "entitled" to collect on their loans? Especially misleading is the closing section which implies that the people he is selling houses to don't "own" them. They own their houses just as much as anyone who is paying a mortgage. If you don't pay your mortgage, you lose your down payment and all other payments. It's true the rules are a different for contract for deed deals, but it's pretty similar to a regular mortgage, only instead of paying a bank, you are paying the person who sold you the house.

13
4
basia2186May. 29, 1112:21 PM

The contract for deed method of buying property has been around longer than the traditional mortgage. When I started selling real estate the interest rates were 16%. My first 2 years every sale was a contract for deed, first time buyers could not afford a bank loan. I sold many houses to non-english speaking buyers.

10
2
basia2186May. 29, 1112:23 PM

I got cut off on the C/D comment. Everyone that can read and write knows what they are signing. The guy is making a profit, he had capital, many of his buyers were not educated. Somehow that is the seller's fault? I think not! There is a sucker born evrey minute. I wouldn't buy a cell phone contract without reading the fine print. Maybe we should require being "literate" to sign any contract in the state. That would be a start instead of this "oh woe is them" drivel.

10
8
basia2186May. 29, 1112:25 PM

Good for him! He is taking huge risks, and put up his own capital in a questionable neighborhood. He would have been in a less intolerant time been called "doing business'. Now making money is sinful. Giving things away to those that put in no effort is the new Minnesota way! I long for the days of personal responsibility.

11
9
thisisinsaneMay. 29, 11 1:22 PM

Nice socialist totally biased rant here James Shiffer. This story belonged not on the front page but in an opinion column. Let's review: "Little-known financial instrument known as a contract for deed." Umm, C/Ds have been around forever, far longer than mortgages. My folks bought their house in the 60s this way, as did many others then. I have purchased land this way. It is an amazingly simple and straigt-forward way to purchase property. "The terms of Anderson's deals are troubling." How so? You can pay a bit more monthly vs. a 30 yr. mortgage payment, and own your home in 5 years vs. 30. Sounds good to me! "Buyers are woefully uninformed...have exploited vulnerable residents...people..will be taken advantage of by these predatory actors...most people who enter into contracts don't understand the risks...these people don't understand what they're doing." Oh pa-leeeaasse! And whose fault is this? Yes, that's right, the buyers. Because if you have no clue whatsoever as to what you're doing, well, you have no business entering into a contract. No one forced a gun to any of these people's heads and forced them to sign on the dotted line. But noooo, our socialist state government politicians always have to butt in and protect, coddle, and make whole these people. And nice job implying that he bought the homes for $775,000 and flipped them with no added investment for $2.3 million. Umm, no, that's not how it worked. If someone does not make their housing payment, whether it is a rental, C/D, or a mortgage, why shouldn't they be asked to leave? Whey should they get 6 months to a year to vacate when they're not making payments (and in the case of mortgage foreclosures, they get to squat for even longer...?) Sixty days sounds pretty generous to me. And no, Anderson is not any more "Entitled" to collect his payments than is any other landlord or mortgage holder. As far as I'm concerned, this guy is providing a much needed and valuable service to the community, as are other non-profits in town who do the exact same thing.

10
8
minn55410May. 29, 11 2:49 PM

Here, here to all the comments above rightly calling out the socialist bent to this article. Give me a break, Star Trib! And isn't it interesting that this premium content seems to be accessible only by conservative thinkers - people who are willing to pay for a service provided by a business. Everyone else seems to think people spending money to run a business, such as this real estate investor and this newspaper, ought to provide services and products for free for the good of the community.

11
7
mglovettMay. 29, 11 9:54 PM

"Buyer's risk, investors reward". Wasn't Anderson the buyer? Didn't he take the initial risk, buying homes in foreclosure in a distressed neighborhood? It also appears that when he resells them he has a risk of having to take them back in who knows what condidition. One could have written this piece to praise a man for taking foreclosures off the market and allowing residents with some credit isues the opportunity to own. Or as a new business model. Neighborhood revitalization. Or the evil retired cop screwing the ignorant.

7
5

Comment on this story   |  

ADVERTISEMENT

Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT