Riverbed Ruling

[crustyx]

So what does this mean for the pre-sale "industry" and flippers?

http://www.cbc.ca/canada/british-columb ... rbend.html

B.C. judge rules against pre-sale buyers
Last Updated: Friday, June 15, 2007 | 9:41 AM PT
CBC News

Thirty-two pre-sale buyers of a Lower Mainland housing development have lost their court fight to keep the homes they had made deposits on over the past two years.

A B.C. Supreme Court judge has ruled that the Riverbend development in Coquitlam should be finished and the homes then sold at current market prices.

CB Developments had sent letters to the buyers in April saying its lender was no longer willing to provide more money to finish construction, unless the houses were sold at the latest market prices.

The buyers then went to court in an effort to protect their contracts, which would allow them to complete their purchase at pre-construction prices established a couple of years ago.

They buyers already have their deposits back. But they have each lost on average about $80,000 of equity since they signed their pre-sale contracts — the difference between the price they agreed to pay and the current value.

They were very disappointed with the judge's decision.

"Right now I have to pay $100,000 more," said Uma Seetharaman. "I've completely lost faith in the pre-sale contract, and it is a total nightmare for us, to say the least."

"I can honestly say I am very close to tears. I know I am not getting my house at the end of the day, that has been my dream for the last year and a half," said Sunita Chand.

However, the judge also ordered that any profit made on the homes over and above what the buyers would have paid in the pre-sale agreements be held in trust until the courts decide if that money should go to the original purchasers or to the creditors.

The Riverbend development is now being run by a receiver, who is hoping that Carevest, the lender that pulled the plug, will be prepared to put another $3.8 million into the project to finish it. Carevest will lose even more money if it doesn't.

It has to pay back wages to construction workers, the home warranty provider has pulled out and the provincial government is preventing any further sales until up-to-date disclosure statements are filed.

[scoop]

It means don't think that having a contract is the same thing as owning real estate.

It does make me wonder what would happen in a similar situation if a buyer had assigned or "flipped" the contract to another purchaser for an increased price. Hopefully the assignment agreement would require a return of the assignment fee.

[tapioca]

THose poor barstards.

[abby_girl]

I wonder how many people, then, will lose faith in a pre-sale contract.

I have, after hearing of this.

[propertyxchanger]

There's another scenario on the Horizon as well!

OK, you buy a pre-sale now (top of the market), and by the time the project is finished and you're about to flip it (for a profit of course) -- that property is now worth 30% less!

Guess who gets screwed?

Hint .......

Not the Developer -- YOU DO!

This also a very possibilty for people who are still 1 - 2 years away from their project being completed!

VERY DANGEROUS TERRITORY!

If people only knew the real estate cycles, then they would have padding -- lots of it -- to make a killing!

The time to buy a pre-sale is when you're JUST coming out of a recession -- NOT when you're in a HOT market!

If ANYONE listened to Oz a couple of years ago to sell off their pre-sales a year ago, then you would be laughing today!

But, to try and pawn them of now, well, as Oz would say, who's the
Greater Fool Now?

He warned us all --- well before the shit will hit the fan (especially for pre-sale owners in Downtown Vancouver)!

Man, you are in for a gut-wrenching rollercoaster ride. Well, not all of ya's, just some of ya's!

May the 2nd best fool win!

[Mac]

"If ANYONE listened to Oz a couple of years ago to sell off their pre-sales a year ago, then you would be laughing today!

But, to try and pawn them of now, well, as Oz would say, who's the
Greater Fool Now?

He warned us all --- well before the shit will hit the fan (especially for pre-sale owners in Downtown Vancouver)! "


Presale assignments are selling for much more today than a year ago. If you listened to Oz you left money on the table and lots of it. That may change in the next while, but as of today the prices have never been higher and assignments easier to sell. Just check out Craig's list. People have wanted adds posted for assignments. Rennie has even sold some of the Woodwards assignments at a profit from the ridiculous selling prices last year.

[propertyxchanger]

Actually, the Woodwards came onto the market AFTER Oz gave us his inside info!

However, it will be interesting how it will all play out when people move into those units!

I'm sure, once they've had a taste of that lifestyle on the streets, EVERYONE will realize what a BIG mistake they all made!

Sure, it may seem like a good idea at first, but when things go South (and they will, and when they do, it will happen so fast that you can't save yourself let alone your best friend), GOD HELP YOU! I see foreclosure in anyone's future who bought into this "marketing ploy"!

You got to give it to Rennie. He is the King! and you will ALWAYS be his servants -- for LIFE!

[propertyxchanger]

If ANYONE listened to Oz a couple of years ago to sell off their pre-sales a year ago, then you would be laughing today!

But, to try and pawn them of now, well, as Oz would say, who's the Greater Fool Now?

He warned us all --- well before the shit will hit the fan (especially for pre-sale owners in Downtown Vancouver)! "


Presale assignments are selling for much more today than a year ago. If you listened to Oz you left money on the table and lots of it. That may change in the next while, but as of today the prices have never been higher and assignments easier to sell. Just check out Craig's list. People have wanted adds posted for assignments. Rennie has even sold some of the Woodwards assignments at a profit from the ridiculous selling prices last year.[/quote]

Oh, I forgot to mention one VERY important little deail to being a SUCCESSFUL investor!

You buy low, sell high, but ALWAYS leave enough on the table for the next guy to make some money too! This is the formula to your business! So, a succssful investor knows when to buy and sell with good conscious! Why do you think the Oz is so successful! He bought low and sold higher, but made sure that there was enough money on the table for the next guy, which in essence has helped others along the way. He was not greedy! He bought at the right time and sold at the right time that helped the next guy make money!

I can tell you with my experience that it's not the way of immigrant investors. They buy low and want to sell you at a price that is WAY over market value. (Example, they bought for $250,000 and then 1 year later they want to sell it me me for $600,000). They've been doing that for years to me now! What they don't realize is that I work with a Realtor who can tell me when they bought and what they actually paid for the property. Stupid & Greedy bastards. The curtain will fall on them soon! And, I can't wait until it does!

[IKnow]

I can tell you with my experience that it's not the way of immigrant investors. They buy low and want to sell you at a price that is WAY over market value. (Example, they bought for $250,000 and then 1 year later they want to sell it me me for $600,000). They've been doing that for years to me now! What they don't realize is that I work with a Realtor who can tell me when they bought and what they actually paid for the property. Stupid & Greedy bastards. The curtain will fall on them soon! And, I can't wait until it does!

Should this guy be banned?

[propertyxchanger]

Who Me? Just because I used the word "immigrant'?

I don't think so! This is my real life story and THE truth! (Not a racist remark)!

If that's the case, then why should I be banned from stating MY ACTUAL EXPERIENCE?

What's your prob?

You KNOW Nothing! Unless, you've out in the trenches for the past 4 years! I KNOW that you've been here on this board for a very short time. Therfore, YOU KNOW Nothing compared to what I actually KNOW and have gone through!

You want proof / evidence? I'm sure I could conjure up a lot of people on my team that I've met through Ozzie's course to prove it! Oh, I forgot, they're all white too! Sorry about that! I guess that makes us all racist! Be banned? Yah right!

(Did you know that Oz is an immigrant? But, he's an ethicial business person! Someone who know how to do biz- how to make money and help other along the way!)

I highly doubt what I have written that he will take offense to. Why? Because, he's not one of them!

[IKnow]

"the way of immigrant investors" - what kind of generalization is that?

And back to topic, this Riverbend thing, who's screwing whom?
Some white seventh generation anglo-saxon immigrants screwing first generation Indo immigrants?

[propertyxchanger]

"the way of immigrant investors" - what kind of generalization is that?

And back to topic, this Riverbend thing, who's screwing whom?
Some white seventh generation anglo-saxon immigrants screwing first generation Indo immigrants?

Some white seventh generation anglo-saxon immigrants screwing first generation Indo immigrants?

Umm, I think it's the other way around, based on MY experience!

[Mac]

Property Exchanger you seem very bitter?

I guess those immigrants who have been making money on real estate while you are paying for high priced seminars and continue renting has got you riled up. By any chance is your landlord an immigrant?

[Doggystyle]

Sour grapes. I doubt your mental health.

If you want to play real estate, then try the interior of BC, few immigrants are out there hunting. May be you will find your ethical local guy, who will give your needed 25% break and throw in a sunk boat for free.

Where is this guy from?

[hari]