TV show. Million Dollar Listing
I don't know if any of you saw the episode last night. The LA based tv show follows a few agents around who deal with million dollar+ listings. Here's the scenario. Two agents co-broker a listing for 5mil. They know it is over priced. The owner thinks differently. We've all been there at some point. One of the brokers brings an offer from a investment group for 3mil but not to purchase out right. They want to be on title of the property with the current owner. They are hoping to share profits in the future sale of the property. When the market recovers. This scenario instantly sounded sketchy.
1. If the investors have that much money to throw down in cash. Why share title and hold for the market to recover.
2. Why not just make a 3mil offer, get it shot down by the unreasonable owner and move on. It's LA. There's got to be other deals that will come along with a quicker turn around.
Here's my cynical opinion. 1. Investors take 3mil control of the property. The original owner loses interest and finally sells his share to the invstors for little or nothing just to get off the title.
Which is what the investors planned all along. 2. Smells of dirty money.
Or, they are just testing out the owner to see how desperate he is to sell. Could be just creative genious at work.
What do you all think?