Is this a SCAM... You tell me
Recently I was told about a company that was selling RE in western New York by a friend, it is called cashflowandequity.com and decided to check them out.
I first tried the search engine here on Biggerpockets and then I went to their website and saw all of these “great deals” as they called them.
I decided to pick out some properties that where fairly close by in Buffalo, NY where I live.
I started with 214 Abbott St (should be Rd) that they had listed for $64,900.00 (now sold), with income of $1050.00. Since I'm a RE agent
I then decided to look up that property on the MLS and found it was listed for $38,900.00. WOW !!! $26,000.00 markup…Sweeeet.
It also was vacant so no current income. I then checked on how it was sold, a local realtor sold it for $35,000.00… hmmm makes you think huh?
I then decided that I should not be to quick to judge and decided I should look up some more of what they had listed.
The next one was 245 Ideal St they where selling for $47,900.00, listed on the MLS for $26,900.00 , $21,000.00 markup another sweet deal for them ended up selling for $23,000.00 and was vacant not making the $925.00 a month as stated.
Next 188 Hutchinson Ave. they have listed at $44,900.00 with income of $950.00 a month. To start out a very scary neighborhood, not sure its safe in the daytime let alone at night. List price on the MLS is $7000.00 sold for $5000.00 and again vacant. A $37,000.00 markup nice.
I ended up looking up several more properties on their web site all with the same story, Huge markups and all vacant…
…..and something else, all of them where sold by the same realtor, another hmmmm…
…and most either being purchased by or unloaded by a company out of Marietta, GA called “Allied Claims Management”.
I checked their web site which happens to state that it is temporarily down for maintenance (http://www.alliedcm.net/).
Now I’m not saying that this company “Cashflowandequity.com” or Allied C.M. or the realtor (no I didn’t mention the name) are scammers….
Just an FYI …