June 12th, 2010 | 
Author: Are you tired of the look of your current bathroom layout and feel that it needs a total upgrade? If so you are one of the many people who don’t particularly like the way their bathroom looks. The bathroom is probably the most overlooked room in your home because most people do not feel that the amount of time they spend there warrants the expenditure of money or energy on undertaking a renovation project.
This is in fact quite wrong as a recent study indicates that women will, on average, spend the equivalent of 2 years and 9 months of their lives standing in front of their bathroom mirror fixing their make up and ensuring that they look ‘just right’ before venturing out of the house.
In reality the bathroom is easily the best place to start you home renovation work as you can accomplish quite a transformation with a little imagination, a splash of flair and of course a few basic building skills. If you are interested in upgrading your bathroom, but really don’t know where to start, do some research so you can consider the options that are open to you.
The ease of undertaking a bathroom renovation is due to the fact that the average bathroom is quite small in size and therefore a fairly modest remodeling program will have some marked results. Most bathroom renovation ideas are often centered on a replacement of wall and floor tiles as well as the inclusion of new fixtures and fittings. Don’t be put off attempting the project if one of your bathroom renovation ideas includes enlarging the space. The chances are that extending the area of you bathroom will not be too difficult as it could be as simple as removing an adjacent closet or a dividing wall. You will be amazed at how even a relatively small increase of the bathroom area can have a remarkable effect on the look and feel of the room.
Summon Up The Courage And Implement Your Bathroom Renovation Ideas!
Don’t be put off by the big jobs – stripping down the entire bathroom may look like a complicated job but, in all reality, it is quite simple and requires little more than some hard labor by you (and maybe a friend or two). If you are ever going to introduce some good bathroom renovation ideas then you have to get out of your comfort zone and learn some of the skills needed to undertake the work.
If you really are a novice when it comes to renovation work, then it may be in your best interest to engage a professional builder for some aspects of the job. This way you can observe how he approaches the job and you should also be able to throw a few relevant questions his way. Take time and study how to operate the particular power tools needed on the job. Quite often you can download from the internet some quite well presented instructional guides which show you how to use various power tools.
Before you start the bathroom renovation ensure that you put together a realistic costing for your bathroom renovation. Check some of the online specialty bathroom websites and put together a pricing list for the fixtures such as vanity, light and toilet fittings. We all dream about having gold taps and features in our bathrooms, however, the reality check is that the cost for most people would be prohibitive and well beyond their budget.
When deciding on the look of your bathroom just remember that for many people the bathroom is a private get-away where they like to relax and have a little solitude. If you want to create a sense of tranquility then you should consider going with a classic style that incorporates crisp colors with minimal clutter. By doing this you can create a soft feeling of light and space so that your bathroom becomes a welcoming retreat. If, however, you want to make a statement and don’t particularly want to have to queue to get into your bathroom then go crazy with your creativity and splash around as much color as you like.
Before your bathroom renovation ideas get the better of you be aware that the whole project will take some time and, unless you engage a professional or take time off from work, there may be some inconvenience while you squeeze the work in at night or during the weekends.
A Word Of Caution
Try to adopt a patient approach and don’t be put off if you initially make a few small mistakes. Even the experts make mistakes at times and even the best bathroom renovation ideas have some inherent problems that will need some corrective action at a later date. Be patient and most importantly, be happy with the thought you’re your workable bathroom renovation ideas are not so difficult after all. With a little forward planning and creativity your new look private oasis can transform before your eyes.
For more details on Bathroom Renovation Ideas and other home improvement tips visit DIY Home Remodeling Tips
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Posted in bathroom renovation | 
Tags: Bathroom, Ideas, Inspired, Prepared, Renovation | 
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We were taken for a ride by a property manager we had in Toronto. His services were cheap (5% of the rent and no charge for new tenants except advertising costs). That’s real cheap, if you don’t count the fact that he was stealing rent money from us!
Before hiring him to manage our tri-plex in Toronto, I researched him a bit and learned that he was a Mom & Pop-type shop and was registered with the Better Business Bureau, but I didn’t check references or dig much deeper than that. His scam? He collected $950/month from our tenants but only told us we were getting $890!
The only reason we caught onto his scam was because we moved into the house and the tenants started paying us the rent instead of him. Imagine our surprise when the cheque was for $950, and we were expecting $890!
Looking back, we could have easily protected ourselves. Now, we want to help you prevent it. Here’s some tips:
* When ads are placed for your unit(s), get copies of the ads. Also, ask where the ads are being placed and check for the ads yourself (looking back, I had noticed an ad for our unit for $50 more than we had agreed to rent it for. I wrote him to change it, and he said he would, but now I think it was a red flag that I should have recognized).
* Ask for copies of the signed leases.
* Ask for proof of expenses incurred (always get receipts, but for larger repairs or purchases get pictures or visit the property yourself).
This may not save you completely, but had we been able to get copies of the leases or asked to see the ads, our property manager would have had a harder time stealing from us.
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Posted in property management |
Tags: Best, find, Manager, Money, Property, Robbed, Were |
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Owning a place called home is a dream that everyone harbors and wishes for it to come true. This is especially true for Americans who spend a large part of their lives hoping to have a place of their own that can give them a sense of warmth, protection and belongingness. However, every American is acutely aware of the hassles involving house purchases in America which makes property one of the most expensive things in the country. Not only the commercial cities and towns but even the remote areas have seen a huge increase in property prices and rentals in the past several years.
The ever increasing property prices and land ownership costs have put a huge burden on the average American looking for a house. It has also meant that the owned house is extremely special and needs to be taken care of. Hence, apart from focusing on getting the appropriate mortgaging financing source, property owners have to also look for a reasonably priced home insurance cover that can protect their house from any potential damage in the event of a natural calamity or disaster.
Getting the right home insurance leads is the first and foremost step towards getting hold of a suitable house insurance policy. By having these home insurance leads in place, property owners can secure the most appropriate home insurance cover and heave a huge sigh of relief.
While there are several insurance agents and companies specializing in home insurance, availability of multiple choices may not always mean that house owners are in a win-win situation. These home insurance leads differ on the basis of several factors and it often becomes quite difficult for house owners to decide which insurance cover will be most suited to their needs.
For this, it goes without saying that accessing all relevant information pertaining to home insurance leads is not just important but also highly beneficial. A number of house owners are seen to be well aware of the mortgage policies but when it comes to home insurance leads they have a very vague idea. This can prove to be extremely problematic in the long run, particularly in the event of a natural calamity that cannot be estimated or anticipated prior to its occurrence.
For house owners with adequate information on home insurance leads, the next step should be on opting for the right insurance policy and notifying the mortgage company on time. Providing this information is crucial to ensure that that financing contract includes all relevant details. It must be remembered that thorough paper work and complete documentation are imperative when you are buying a house and any lapse on these two accounts can turn your dream to own a house into a nightmare.
The rule of the thumb for home owners of existing houses is a little different. While buying a home insurance policy for an existing property, house owners must avoid buying insurance coverage every year from the same insurance company. It has been found that many house owners due to their lack of understanding of the market trends end up paying higher insurance sums to their insurance companies. This happens mostly due to the fact once acquiring a home insurance policy, people tend to get complacent and stop gathering information on the home insurance leads. This has to be avoided and proper information on home insurance leads should be procured on a regular basis.
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Our life has become easy and smooth with the introduction of various useful and innovative systems and devices. Thanks to the technological and scientific advancements. It has become easy to do work easily and more conveniently. When it comes to preparing food, we often feel little disturbed as it is a time-consuming task. Most of us remain busy with our professional life. We find it difficult to do the time –management.
To make things easy, many improved and useful kitchen equipment and tools are designed. Preparing breakfast may become difficult, especially when you have to go out for office early in the morning. To ease your workload, toasters, great kitchen equipment, is invented. With this tool, you can toast the breads easily and quickly.
Toaster is one of the useful kitchen devices. It helps to prepare breakfast easily. A toast with jam or butter is a great food for the morning. There are various types of toasters to choose from. Considering your requirements, you need to select one from a long list. To get rid of the experience of preparing breakfast without the hassle of shorting wires and burning bread, you can select the new and useful kitchen equipment Dualit Toasters. It is one of the most useful equipments of the kitchen. You can have a great breakfast experience with this toaster.
These equipments are created by some great technicians. Toaster is the product of their innovation and technical creativity. This kitchen tool is not only a smart kitchen centerpiece, but also efficient. When it comes to selecting a toaster from a long list, you may get confused as there are so many options. , including Dualit Six Slot Toaster, Dualit Contact Toaster, Dualit Conveyor Turbo Toaster, Four Slice Toasters and The Duality Two toasters.
Select the tool that you require for your kitchen. As far as the kitchen décor is co0ncerned, these equipments are attractive and smart in appearance. They come in varieties of designs, patterns and colors, from the red to the customized petal pink to traditional silver and black. It has the ability to hold up six slices of breads. With the help of this kitchen tool, you can get 195 slices of bread in just an hour. The temperature and time setting are comprehensive. Before using the device you need to instruction on the packet carefully. It will make things easy. You can operate the device and prepare great breakfast with bread and butter.
Dualit Contact Toasters are designed to make it easy for the consumers to prepare toast easily and quickly. They are attractive and stylish enough to compliment any type of kitchen décor. It seals and divides breads to five inches sandwiches squares. Within a very short span of time, you can prepare sandwiches with the help of this toaster. This tool is easy to use and thus anyone can try his/her hand on it to prepare tasty sandwiches within a minute.
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Every time the computer industry tries to make inroads into the home entertainment center by offering products that are designed to use the home TV screen as a computer screen, consumers offer a lot of resistance. Yet, the computer industry persists as evidenced by Intel’s Viiv technology and the fact that the media center version of Microsoft’s Windows XP operating system and several versions of the Vista operating system are designed to make computers a part of the home entertainment center.
While consumers have been busy resisting the incursion of the home computer into the home entertainment center, computer equipment has been sneaking in anyway. This covert incursion can be seen in the form of newer forms of TV technology. DVD players, digital TV converters, satellite receivers, DVR’s, and video gaming systems are all computers in some form or another.
One of the side effects of having all of this new technology so thoroughly computerizes is that there is an unprecedented level of compatibility between computers and the Internet, and the home entertainment center. For example, there are a variety of devices that take advantage of Internet connections to provide their users with more options. The TiVo is a good example of this. TiVos download their program guide information from the Internet and are even capable of being programmed to record specific TV shows from another location over the Internet. Some of the newer TiVos are even capable of downloading movies from the Internet to be shown on TV sets. Other devices that can do this include some versions of Sony HDTV sets, the Vudu, the Slingbox, Microsoft’s Xbox 360, and several others. The Apple TV can fetch video from the home computer(which can get the video from the Internet or from a digital video camera), and the ability to download movies directly from the Internet is expected to be coming soon to the Play Station 3 from Sony.
Another interesting result of the overlap between computers and TV is the introduction of portable video devices. A portable video device is a hand held, battery powered portable device that can store video on a built in data storage system and then display it on a TV screen or its built in screen. These devices come in a variety of sizes and capacities. For example, there are versions with only two gigabytes of storage space and such small screens that you have to wonder why anyone gave them the capacity to play video. At the other end of the extreme are devices that have amply sized screens, the ability to store over a hundred hours of video, access the web over a WiFi connection, and even record video that’s being played off of other devices and store it on their own hard disks. The data storage systems use either flash memory or more conventional hard disks, and the screens can either be conventional LCD technology or energy saving OLED screens. Some of these devices can even download video from some Digital Video Recorders if all of the compatibility issues are taken care of.
All of these devices show the benefits that computer technology can have when applied to home entertainment.
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Posted in improvements home |
Tags: Computer, Entertainment, Home, Improves, Technology |
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People do not buy home furniture all the time. This is the kind of purchase that you may probably make a few times in your life. Since the purchase of home furniture is likely to involve high outlay, it is important that you avoid some of the common problems that most people make with regards to purchasing home furniture. Take proper measurements Before you go out to look for home furniture, make sure that you have the entire measurements of your room. It is also essential that you know where the pillars come in so that you can decide on the specific piece that you want to buy if you like something. The last thing that you would want is to find that the lovely sofa that you purchased does not fit properly into your living room because of the dimensions. Giving in to fads Just as in clothing, there are certain fads for home furniture that come and go. Making your decision based on what is in vogue at the moment is something that you should do only if you are sure that the home furniture will not look out of place after a few years. Missing out on the utility Buying home furniture just because it looks good is not the idea. While there are some pieces of home furniture that you may buy because of their aesthetic value, those should be limited to the ones in the living room. You should also be aware of how you are likely to use each of the home furniture pieces at home.
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Bathrooms
When getting into a bathroom renovation, it is always better to start from scratch! Newer homes are easy if the builders did everything right. Older homes is another story.
In this chapter we will be referring to older homes that are in serious need of help. The reason is if you can do a bathroom renovation in and older home, you can do any home with a lot less work.
First thing you should do is always access the situation. This is a process that can apply to every renovation project that you decide to take on.
Keep in you mind to remember the first rule it is better to start from Scratch. I always tell people they should gut the Bathroom completely.
You probably already knew I would say that so get the hammer, pry bar if you even know what they are, if not stay away from the local hardware store and go straight to the nearest Home Depot or Lowes store.
You bought this book to renovations in your home so you need good tools that you will need for this job and the next.
Take your hammer and start smashing a straight line down the middle of the back walls first, be careful there is wiring and copper pipes behind those walls. Do not even bring a hammer close to a pipe or wire. Use a little pry bar for those area’s.
Then if you should replace the tube so disconnect the drain and the vent cap. If it is a really old tub that is made of cast iron. Buy a Sludge Hammer and smash away and make sure you were your safety goggles.
Don’t leave anything that you can trip over, you will thank me latter for that.
Now that you have a bare naked bathroom. You can check to see if the wiring is old and the plumbing is leaking. If the plumbing looks old change it! If the wiring is old change it! It is always better to start from scratch! Make sure all drains are vented trough the roof because the smell is toxic and you will not be able to live in that house.
99% of the time when a drain has a really bad smell it is because it is not vented or the pipes are old. Older homes didn’t put vents in back more than 25 years ago. Use PVC drain pipe instead of iron our cooper. It lasts forever. Don’t forget the glue!
Wen soldering cooper water lines make sure you use new pipe, not the you got from a friend. Lead free paste and solder, no 50-50 here you are asking for trouble, and it is against code. You solder all pipes to the shower taps and shower head before you can put anything back together.
I always put in shut-off valves on every tap and line. Lets say you have a leak somewhere. The store is closed and you have to shut the water off to the hole house to fix it. Think first, if there is a shut off on every tap they you can isolate the problem area and still have plenty of water. Sounds better does it not.
Wiring is easy if you can remember a few things. Shut power off to any lines you are working on. Run all wires first before you put up the gypsum board. Make sure all wires have merited ends and all have a proper ground, ground the box too. Why not drywall in the bathroom or the green drywall that they say is water proof. Gypsum board is the blue stuff, just in case somebody tells you different. It is water and mildew resistant.
For the shower tile area use Denishield Boards. They are more expensive but they are water resistant and mildew resistant. Better than cement board that falls apart after 10 years. Cement produces moisture.
Make sure that every joint is taped and adhesive.
Now you can start putting the tub first after running the boards all the way to the floor. The tub should always be anchored to the wall. Hook up drains and use plumbers putty, even if it has a gasket! Now it will never leak. Always check tapes and joints for any leaks before you close up the walls. Sometimes it may drip just a little, redo the job. At least you have a shut off valve this time.
No leaks you are on your way to freedom now! Drains don’t leak taps don’t leak what are you going to fix? TV remote!
If your going to install a standing shower use the kerdi system. It will be the best 600 after tax you ever spent. I personally use this system all the time. Shower boards should be on top of it, not behind like the tub.
Install a water proof membrane for the floor. If the subfloor needs replacing do this before you do anything you heard before. The membrane should be adhesive to the subfloor and allow 24 hours to dry.
Now the hole bathroom is safe and waterproof.
Choose a tile you wish and tile from the tub to the ceiling. Let dry for 24 hrs. Same thing for shower tiles. If you are using heavy tiles use a product that is made for it. When using marble tiles always use white adhesive. Grey adhesive will change the color of the marble!
If you can tile the floor the same day, if you wish but it is always better to do one area first. If you do the floor at the same time do not walk on the floor for 48-72 hrs.
After installing tiles, grout every joint and push the grout all the way to the wall backing board. This will last forever, if you seal the tiles and grout the next day. You can find different types of sealer and cleaners at the home depot store. For marble the adhesive and the sealer should say right on the bottle for marble. If it doesn’t go somewhere else.
After grouting wait about 20-30 minutes and use a lot of clean water, changing it every time it gets really dirty. You should see a light film on the tiles. Before sealing take a dry towel and dust it off, then seal. For marble seal before and after you grout.
Hey that bathroom is starting to look like something special. 24 hrs after that you can install the vanity and toilet, pot lights, vanity lights, mirror. Make sure all pot lights in the bathroom are waterproof pot lights. Yes you can pot them in the shower too. For a tub install a whirlpool tub for two if you can more room the better. Silicone the grout lines at the lowest joints and everywhere you think water might get in and cause damage.
Congratulations! You now have a spa bathroom remember to install glass shower doors at the end. If This feels like to much work for you feel free to email us and we will give you a free estimate by clicking here or you can visit are home renovations web site.
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A huge issue for professional landlords as they grow their portfolio is staying organised, according to an experienced property investor.
Amer Siddiq, founder of property management software firm Property Portfolio Software (PPS), believes an essential step for serious landlords is to invest in property management software.
PPS’s software products are specifically designed to handle the major challenges faced by landlords.
But according to Amer, many landlords fail to ask the right questions before purchasing their software.
He said: “Becoming a serious investor brings new problems you won’t have experienced before. The answers are provided by clever landlord software solutions. The next challenge is to pick the right solution.”
Amer believes landlords should ask:
1. How long has the property management software been on the market? This might seem obvious but if the software is from a new start-up company, then it’s natural to be sceptical at first. Because the property market has boomed over the last few years, a number of different landlord software vendors have come to the market and disappeared within a couple of years.
2. How many sales have been achieved to date? Don’t be afraid to ask this vital question as it will give you a good indication as to how popular property management software solution is.
3. What kind of support is provided? The support service that sits behind the product is more important than the product itself. It will determine how successful the product is. It’s inevitable you will need to speak to someone at some point and the speed and manner in which your query is dealt with will either make you a fan or put you off totally!
Who has designed the software? Steer clear from software that has been designed by ‘computer techies’. What you want is software that has been designed by experienced landlords.
What is the refund policy? It is important that you look into any refund policy that is made available and definitely read the small print.
Who is the software recommended by? Check out testimonials and make sure the software is approved and or recognised by the two main landlords associations in the UK, National Landlords Association (NLA) and the Residential Landlords Association (RLA).
How often is the software updated? Property management software will always need to be fixed and developed on a regular basis. In the best packages the software can automatically update itself.
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Posted in property management |
Tags: Before, Management, Property, Purchasing, Questions, Software |
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I’m nearly sick to death of hearing it, but matter where you go when you bring up the fact you’re a real estate investor who flips properties, someone says “that’s illegal!”
1st part of the problem I think is we investors have our own lingo we use that means something to us, yet may imply something entirely different to an “outsider”.
The “outsider” immediately thinks about negative press about illegal property flipping scams. Yes, there are illegal ways to flip property, but when we investors refer to a flip we mean a legal, morally ethical way of doing it.
Examples of a “flip” the right way.
Wholesale Flip: You find a smokin’ good deal, that deal that has enough margin for a “buy and sell” profit for a retailer. Typically it’s a junker and the owner will take a discounted price for a quick, “As-Is” sale. The wholesaler (you in this example) ties it up and offers it (either the house or the contract to buy the house) to another buyer who wants to actually do the fix up, rehab, and get it ready to sell on the retail market and then does so. The wholesaler makes a profit by finding a good deal another investor wants.
Retail Flip: Same as above without the wholesaler in the middle. You are now a retailer. You find a smokin’ good deal and this time, you buy it as is, below market value and instead of “flipping” as-is to someone else, you fix it up and sell it in top retail condition yourself (meaning you hire a top agent to sell it).
Terms Flip: You find a situation where you can structure terms to meet a seller’s need and you then assign or sell your deal to someone else, either an investor or end-user/owner occupant.
Terms Flip+: You find a situation where you can structure terms to meet a seller’s need and then, instead of just assigning it, you create another terms deal for someone else and you stay involved. For instance you create price and payment (rate) spread, so now you flip it with terms and continue to be involved with each party till the end user pays you off in full or refinances.
So what about the “flipping” scams we hear about in the media?
To put it simply, it becomes illegal when loan fraud is involved. Typically this is because the resale relies on over-inflated appraisals, fake documents, “straw” buyers, or “silent” second loans. These fraudulent activities have been named by the media as “flipping” which, in their terms is synonomous with loan fraud. NOT how we as ethical investors refer to it. Kind of like football in the states, vs pretty much any other country. In America we think of big dudes in lots of padding running and passing the ball down the field. An oblong ball. Everywhere else, what they call football, we call soccer. Different sport altogether.
And loan fraud scams and ethical real estate flipping are two entirely different sports.
The people who defraud lenders should go to prison and often do, but their “sport” often reflects negatively on ours.
Real estate investors who operate a legitimate business of flipping houses as wholesalers or fix-and-flip rehab/retail investors are actually playing a vital role in our economy, and shouldn\’t be lumped into the category of “unethical” or “illegal” just because they invest in real estate.
Ultimately, if you buy ugly houses at a below-market value, sell them higher for a profit, and do so honestly, ethically and without committing loan fraud, then you’re not doing anything illegal.
Below I posted some information about loan fraud taken directly from the FBI’s website. It describes, in detail, the various scams and cases that have resulted.
******************************************************************************
Below is an article from the FBI’s website describing illegal activities. It is reproduced in it’s entirety at: http://www.fbi.gov/page2/dec05/operationquickflip121405.htm I don’t see any copyright information on that page to”recite” but I did not write the below information it was created and posted on the FBI’s site – see link above.
OPERATION QUICK FLIP
* Operation Quick Flip is designed to show that federal law enforcement recognizes the mortgage fraud threat. The Federal Bureau of Investigation Criminal Investigative Division (CID), the Department of Housing and Urban Development (HUD) Office of the Inspector General (OIG), the United States Postal Inspection Service (USPS), the Internal Revenue Service (IRS), and the Department of Justice (DOJ) have participated in this case round-up to provide information to the public regarding the federal government\’s efforts to combat mortgage fraud. The federal agencies involved are targeting mortgage fraud groups in order to disrupt and dismantle them permanently.
* Mortgage Fraud is one of the fastest growing white collar crimes in the United States. Mortgage Fraud is defined as a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan.
* There are two types of Mortgage Fraud: fraud for property and fraud for profit. Fraud for Property, also known as Fraud for Housing, usually involves the borrower as the perpetrator on a single loan. The borrower makes a few misrepresentations, usually regarding income, personal debt, and property value or there are down payment problems. The borrower wants the property and intends to repay the loan. Sometimes industry professionals are involved in coaching the borrower so that they qualify. Fraud for Property/Housing accounts for 20 percent of all fraud.
* Fraud for Profit involves industry professionals. There are generally multiple loan transactions with several financial institutions involved. These frauds include numerous gross misrepresentations including: income is overstated, assets are overstated, collateral is overstated, the length of employment is overstated or fictitious employment is reported, and employment is backstopped by co-conspirators. The borrower\’s debts are not fully disclosed, nor is the borrower\’s credit history, which is often altered. Often, the borrower assumes the identity of another person (straw buyer). The borrower states he intends to use the property for occupancy when he/she intends to use the property for rental income, or is purchasing the property for another party (nominee). Appraisals almost always list the property as owner-occupied. Down payments do not exist or are borrowed and disguised with a fraudulent gift letter. The property value is inflated (faulty appraisal) to increase the sales value to make up for no down payment and to generate cash proceeds in fraud for profit.
* Typical fraud schemes:
o Backward Applications: After identifying a property to purchase, a borrower customizes his/her income to meet the loan criteria.
o Air Loans: These are non-existent property loans where there is usually no collateral. An example would be where a broker invents borrowers and properties, establishes accounts for payments and maintains custodial accounts for escrows. They may set up an office with a bank of telephones, each one used as the employer, appraiser, credit agency, etc. for verification purposes.
o Silent Seconds: The buyer of a property borrows the down payment from the seller through the issuance of a non-disclosed second mortgage. The primary lender believes the borrower has invested his own money in the down payment, when in fact, it is borrowed. The second mortgage may not be recorded to further conceal its status from the primary lender.
o Nominee Loans: The identity of the borrower is concealed through the use of a nominee who allows the borrower to use the nominee\’s name and credit history to apply for a loan.
o Property Flips: Property is purchased, falsely appraised at a higher value, and then quickly sold. What makes property flipping illegal is that the appraisal information is fraudulent. The schemes typically involve fraudulent appraisals, doctored loan documents, and inflation of the buyer’s income.
o Foreclosure schemes: The subject identifies homeowners who are at risk of defaulting on loans or whose houses are already in foreclosure. Subjects mislead the homeowners into believing that they can save their homes in exchange for a transfer of the deed and up-front fees. The subject profits from these schemes by re-mortgaging the property or pocketing the fees paid by the homeowner.
o Equity Skimming: An investor may use a straw buyer, false income documents, and false credit reports to obtain a mortgage loan in the straw buyer\’s name. Subsequent to closing, the straw buyer signs the property over to the investor in a quit claim deed which relinquishes all rights to the property and provides no guaranty to title. The investor does not make any mortgage payments and rents the property until foreclosure takes place several months later.
* Federal law enforcement is working with state and local law enforcement, regulators, and the financial institution industry to combat the problem.
o OFHEO (Office of Federal Housing Enterprise Oversight) has passed a regulation requiring Freddie Mac and Fannie Mae to report suspicious mortgage fraud activity on a Mortgage Incident Notice (MFIN).
o FBI, OFHEO, and FinCEN (Financial Crimes Enforcement Network) are working to establish a reporting device similar to the banking industry\’s Suspicious Activity Report. This is in progress, but will likely take some time as regulations and possibly legislation will have to be passed.
o The FBI, HUD-OIG, USPS, and IRS conduct criminal investigations into Mortgage Fraud Activity with a goal of disrupting and dismantling mortgage fraud rings. We strongly support joint investigations to effectively utilize all of our limited resources while strengthening investigations by tapping into everyone\’s expertise.
* From July 5, 2005, until October 27, 2005, the FBI, HUD-OIG, USPS, IRS, in coordination with the DOJ, indicted 156 mortgage fraud subjects. A total of 81 arrests were made. A total of 89 convictions were obtained, and 60 subjects were sentenced during this time frame.
o The combined loss to the industry by the above-subjects is $606,830,604.
* In fiscal year 2005, the following stats are available:
o 21,994 SARs were filed (up from 17,127 in Fiscal Year 2004).
o 721 pending FBI Mortgage Fraud cases (up from 534 in Fiscal Year 2004).
o 1,020 pending HUD-OIG Mortgage Fraud cases (up from 920 in Fiscal Year 2004).
o 206 FBI indictments/informations (down from 241 in Fiscal Year 2004).
o 170 FBI convictions (consistent with 172 convictions in Fiscal Year 2004)
o $1,014,000,000 (FBI) reported loss (up from $429,000,000 in Fiscal Year 2004).
* Top ten hot spots for Mortgage Fraud activity in 2003 (per capita): California, Nevada, Utah, Colorado, Missouri, Illinois, Michigan, South Carolina, Georgia, and Florida.
* Top ten hot spots for Mortgage Fraud activity in 2004 (per capita): California, Nevada, Utah, Arizona, Colorado, Missouri, Illinois, Maryland, Georgia, and Florida.
CASES:
* OPERATION BROKEN LOAN (Detroit): On 10/18/2005, an undercover operation targeting five criminal mortgage fraud organizations culminated in the execution of 18 arrest warrants, seven search warrants, eight seizure warrants for subjects\’ bank accounts, and two vehicle seizures. Among those charged were several mortgage brokers in the Detroit metropolitan area who allegedly defrauded mortgage lenders through inflated appraisals and straw purchases. Subjects were charged with violation of Title 18, United States Code, Sections 1344 (bank fraud) and 1343 (wire fraud). On 10/06/2005, six individuals were indicted and six complaints were filed. On 10/07/2005, seven complaints were filed against subjects in this case, and on 10/13/2005, an additional complaint was filed.
Operation Broken Loan was initiated to target widespread fraud in the home mortgage industry in the Detroit metropolitan area. Detroit successfully utilized a Title III in this investigation and made controlled purchases of real estate. The investigation confirmed that dishonest mortgage brokers were creating fraudulent W-2s, paycheck stubs, and employment verifications in order to qualify straw buyers for real estate purchases. The victim lenders relied on inflated appraisals and borrower certifications arranged by subjects.
* CHALANA MCFARLAND (Atlanta): This case involves a mortgage fraud property flip scheme which operated from the summer of 1999 through March 2004. This case was worked by the FBI, HUD-OIG, and USPIS.
Chalana McFarland was an attorney who operated her own law firm. She acted as a title agent for title insurance companies as well as the closing attorney for various lenders.
McFarland used the stolen identity of numerous victims to submit false fraudulent loan applications. Appraisals were inflated and straw buyers were used to complete the fraudulent sales of over 100 properties. McFarland paid her identity thief $10,000 per stolen identity, as well as paying the appraiser who inflated property values over $400,000. Fraudulently obtained mortgages valued in excess of $20 million with losses in excess of $12 million.
McFarland and 16 other subjects were indicted. Fifteen have been sentenced, with McFarland receiving 30 years in prison-the largest sentence ever for Mortgage Fraud.
* THOMAS FAUNTLEROY/DAVID BOWIE (Newark): This case involves the subjects\’ alleged inducement of the FHA to insure mortgage loans valued over $1 million, made by Neighborhood Mortgage (owned by Bowie) to unqualified buyers. In support of the FHA loan applications, the defendants allegedly created and submitted false and fictitious bank statements, leases, IRS Forms W-2, verifications of past mortgage payments, pay stubs, attorney escrow letters, gift letters, verifications of employment, deposit checks, and fraudulent property appraisals.
To date, the following have occurred: one complaint, three informations, two indictments, three arrests, four federal convictions, and one state conviction.
* MARK YOUNG (Nevada): This case involves a former Nevada First Residential Mortgage Company branch manager (Young) who directed loan officers and processors in the origination of 233 fraudulent FHA loans valued at over $25 million. Young conspired with other mortgage company employees and with employees of General Realty to manufacture and submit false employment and income documentation for borrowers. Most of the borrowers were illegal immigrants from Mexico. To date, 58 loans with a total value of $6.2 million have gone into default, with a loss to HUD of over $1.9 million. The Nevada First Residential Mortgage Company is no longer in business.
On 09/01/2005, Mark Young was found guilty on 32 counts of submitting false information to HUD, and one count of conspiracy. This case was jointly investigated by FBI, HUD-OIG, and the Nevada Mortgage Fraud Task Force.
* RANDALL DAVIDSON ET AL (Cincinnati): Randall Davidson used his companies Knab Mortgage and Capital Properties to commit Mortgage Fraud. He used unsuspecting buyers from Pittsburgh, Pennsylvania, for the purchase of depressed properties in the Dayton, Ohio, area. These properties were purchased at an inflated rate using falsified documents to secure the loans. Davidson maintained a business office in both Pittsburgh as well as Dayton. The closing agent would disburse funds prior to receiving the down payment checks in order to provide Davidson and other co-schemers with money. The closing agent was aware that many of the documents used in order to secure the loans were falsified, but continued to close the loans. Davidson would inevitably receive a large cash profit during the disbursement of funds. Currently the known loss is over $8 million. This case was jointly investigated by FBI and IRS-CID.
* ROBERT A. AMICO ET AL (Buffalo): Robert A. Amico and his sons Robert J. Amico and Richard Amico engaged in a large conspiracy with loan brokers, appraisers, and buyers to submit over 100 fraudulent mortgage applications that overstated the value of all houses so that no down payment was made and so that the buyers could qualify for loans that they could not otherwise afford. All of the conspirators plead guilty, with the exception of the Amicos. Some of these conspirators were sentenced to probation and testified at the Amicos trial. Others were sentenced to jail terms of up to five years. After a six month jury trial the Amico sons were convicted and the father died of cancer. Fraudulently obtained mortgage applications were valued at $58 million with losses totaling $14.7 million. Robert J. Amico was sentenced to 17 years in prison and Richard N. Amico was sentenced to 9 years in prison. This case was joint investigation with IRS/CID.
* OPERATION CLEAN DEED (Charlotte): Promoters and other industry professionals obtained/brokered loans based on inflated property values and false application information for recruited buyer/investors. Participating attorneys falsified closing documents showing non-existent down-payments and closed the sales as “primary residence” purchases rather than as investments. The excess amount of the inflated loan was diverted to the promoters and other co-conspirators with a payment typically made to the buyer/investor following the closing. Loan payments were not made and houses eventually went into foreclosure. Fraudulently obtained loans valued in excess of $71 million with losses in excess of $9.5 million. To date, 14 subjects have been convicted, including promoters, attorneys, mortgage brokers, and builders.
AMERIFUNDING (Denver): This joint investigation with IRS/CID involved kiting of mortgage loans by utilizing stolen identities to facilitate the scheme. Further investigation determined that the scheme involved over $200 million in fraudulent loans over a 24 month period. One of the subjects obtained fraudulent identities by placing “help wanted” advertisements in a local newspaper. Information from the victims applications were used to apply for mortgage loans between $300,000 and $500,000. The proceeds of the scheme were used to pay personal expenses of the defendants. In a related fraud scheme, the lead defendant paid prior loans and purchased defective properties that were then resold for a substantial profit with inflated appraisals. To date, six subjects have been indicted. Losses totaled $37.5 million and approximately $16 million in assets were seized.
* DOTTY PIERRE ET AL (Boston) : Four individuals were indicted with Bank Fraud and Aggravated Identity Theft in connection with a scheme involving the use of stolen identities to obtain mortgage loans. The subjects used stolen identity information to obtain, or attempt to obtain, mortgages worth over $800,000. This case was a joint investigation with the Postal Inspection Service, and Massachusetts State Police.
