I was approached by my friend and partner, in june. He had been involved through previous land purchased through ginn properties and had a very high opinion for integrity and value in purchasing land for investment from the ginn company.
After that i did what i thought was my own investigation to confirmed his assurances. Further discussion and investigations we went out to look at bella collina and to talk with his agent, brent campbell;and drive around the property. A look at the property was quite impressive. Everything seemed to be of highest quality and excellence in workmanship. Nothing seemed lacking.
At that time brent told us of property that was available. That needed to be sold because they were over extended and could be purchased at a discount. Allowing us to believe we could purchase this land at a $100,000 discount from the going price because of the situation and his relationship with us and the future opportunity to resell (flip) or possible build.
He led us to believe that purchasing would allow us the advantage that by early jan we would be able to flip the land or at least the land appreciation enough so it would allow us to get a loan, by using equity in the land, then build a house, we talked to approved arcitechs and builders, all seemed in order.
Then we could put up for sale at the "street of dreams" nov. After checking comps provided by ginn (why should we doubt these&this was ginn properties) we proceeded with purchase of the lot # for $750,000; putting down payment of $30,000 and a interest only loan costing us $2054 / month a piece. Setting up in our llc for the purpose of this purchase.
Well none of this came to pass except we have paying $2054 mortgage, out of our retirement each month $2000 in annual assesment and another $7000 in property taxes.
We later found out that the co for water and sewage had not been properly attained and the none of the houses that were built could be occupied and none others could go forward. No one's living in these $4-5,000, 000 homes?
Thus making what was a bad situation in property valves impossible or even a chance to break even or limit losses.
This has caused bankrupcies and forclosues.
We now understand that a class action suit is being structured and formed in michigan by 96 investors who were duped as were we! What a sad state affair to treat his investors so shamelessly.
0 comments