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Updated over 10 years ago on . Most recent reply

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Micah Brown
  • Real Estate Investor
  • Charlotte, NC
4
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14
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Is this a matter of ethics?

Micah Brown
  • Real Estate Investor
  • Charlotte, NC
Posted

So I have a neighbor who knows I am beginning to become very interested in and taking action to acquire real estate.  We were having a conversation last week and she mentioned she works for a large financial institution calling home owners who are 30, 60, 90 days late on their mortgages and potentially facing foreclosure.  My partner and I are ethical and want to keep our business straight-line but is this a connection I should take advantage of?  If not, I'm cool with that but I have to admit, asking her for assistance is tempting.  Please help?

Most Popular Reply

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Tom Mole
  • Investor
  • Sunland, CA
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Tom Mole
  • Investor
  • Sunland, CA
Replied

@Micah Brown, the determination of how ethical something is, is what they call the "smell test". In this case, you're talking about people about to start the foreclosure process. Given the current political climate I'd be very careful about getting the "smell" on me of taking advantage off people who've fallen on hard times. You could end up explaining to a judge how what you did was ethical and in the best interests of the homeowner.

I'd like to know more about why your neighbor is so interested in providing you sensitive information like that. Does she hope to profit in some way? Perhaps she's figuring that you could buy some of these owners out and get them off her companies books. Maybe it would be better for her to put you in contact with someone in financial institution that would be able to let you purchase some of the NPN (nonperforming notes) stock at a discount. THAT would be ethical. In fact, I'd like to have someone like that living next door to me and I'd reward her generously.

As of this post, IMHO, it would be unethical to take her help until you know more about what's in it for her. Your ethic sense is protecting you. Respect it! You feel uncomfortable with this as it is, so resolve it until you are comfortable. You need to know that what you're doing is ethical, then you'll be at ease. Ask more questions, don't just give up. This could be a blessing or a curse, but you won't know until you ask more questions. Here's the biggest question to resolve honestly:

  • Would contacting the people she offers you help them more than it helps you, your neighbor or her company?

When you get the answer to that you'll know whether it's ethical or not.

Happy New Year!!

  • Tom Mole
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