tv Bob Massi Is the Property Man FOX News April 30, 2016 9:00am-9:31am PDT
george w. bush was one of your best. >> i'm entering the race for president of the united states of america. the field of republicans out there is so messed up, i figured it makes you miss me, doesn't it? >> have a agregreat weekend, everybody. . rece nt real-estate crisis. lives were destroyed from coast to coast as the economy tanked. now, well, it's a different story. the american dream is back. and nowhere is that more clear than the sunshine state of florida. so we headed from the strip to the beach to showyouhow to live the american dream. i'm gonna meet real people who are facing serious problems, take you behind the gates of properties you have to see to believe and give you the tips that everyone needs to navigate the new landscape. because information is power. and the property man has got you covered. [ woman vocalizing ]
thanks for joining us. i'm bob massi. in just a few minutes, i'm going to show you how crowdfunding is changing the game for people who want to flip and fix properties. but first, the one topic i seem to get the most e-mails about -- time-shares and what you do once you no longer want to use them. >> the majority of time-shares in the u.s. are perpetually deeded, which means for life. but that also means your kids' life. if you're done using it, you can't just stop paying for it. you have to find a legitimate way out of the time-share. >> as many people have found, selling your time-share, it's not easy. and there are a lot of scam artists out there. the better business bureau has listed the time-share resale market as one of the top 10 scams in the country. at magical realty in orlando, time-share resells is all they do. and they've seen every scam in the book. >> if anybody's trying to charge you more than $100 to advertise your time-share,
already it's a huge red flag. there's a lot of companies that they'll ask for $600, $800, $1,000, $2,000 to advertise your time-share. waste of money. >> marketing companies will take your money to list your time-share on their website, where it will sit forever. or worse, some other scammer will see the listing and call you pretending they have a buyer. >> they'll tell you, "i have a buyer for your time-share for $27,000. all you have to do is pay an upfront title fee or an upfront closing cost." >> "send me $1,000 for taxes or appraisals." >> and as soon as you pay them that money, guess what. there never was a buyer. >> send them $1,000 and never hear from them again. >> the bottom line, bob, all of these cases -- if something sounds too good to be true, it usually is. >> always beware of any telemarketer who calls out of the blue saying your property is in a hot area or they have a buyer who's interested. >> if you get cold-called, that's a pretty good indication that it's a scam. the scam artists will just buy
a list of time-share owners and just dial all day long. >> in vacation states like florida and nevada, state officials spend a lot of time prosecuting time-share fraud. >> we've passed the time-share accountability resale act. we have put out of business approximately 41 fraudulent businesses. >> you're not saying time-shares are bad. you're just saying beware when you get a time-share. >> bob, we actually worked with the time-share industry to pass this legislation. we brought them in and they were thrilled because we're helping all of our great, legitimate time-shares. >> do not allow someone to pressure you into anything. take your time and investigate any company you're going to work with. >> magical realty or licensed timeshare resale brokers association has a list of approved brokers that can help people sell their time-shares. these are realtors that only specialize in time-shares. >> check with the better business bureau and the state attorney general's office, again, for the state
the company is listed in. >> timeshare specialists is a full time-share company that takes time-shares through liquidation. >> a lot of our options are guaranteed. if we take on your ownership, you won't ever pay another fee. >> the sad reality is that the resale value of a time-share is not going to be anything close to what you paid for it. >> if a person selling a time-share tells you it's a great investment, that's a huge red flag. >> the majority of time-shares resold on the resale market have a resale value of less than 10% of what the developer charges for them. >> sadly, sometimes a time-share is in such low demand that it's nearly worthless. >> unfortunately, there are some that we are unable to sell as well. >> if it's something i might not be able to sell for them, i tell them, "look, have you spoken to friends and family about giving it to them as a gift? have you thought about contacting the developer?" >> try calling the resort or developer to see if they would accept a quit claim
deed to take the property back. >> some developers will actually take it back. all you have to do is, like, pay them the closing costs of like $400 and you're done with it. there are people who say, "can you sell my time-share for me?" their time-share might only sell for $1,000 but they still owe $20,000 on a loan. that's where they might consider googling and contacting cancellation attorneys that all they do is they get people out of the time-share. they get the developer to forgive the debt, and it just goes away. it doesn't affect their credit. those attorneys are a little pricy, but they do work. >> if worst comes to worst, guys, you could always just stop paying. >> i don't recommend doing this, but another option that some people have done is just walked away from their time-shares. >> but, just like with a house, your credit could be damaged. you need to get advice about that before you do it. >> walking away is really hurting the industry because what that causes to happen is the resorts have to go through a foreclosure process. it increases the maintanence fees for the remaining owners at the resort. >> time-shares are great, but it only works for people
who actually use them. >> time-shares get a bad rap in the press, which is unfortunate. but the majority of people who own time-shares are very happy with them. at some point you'll need an end game on how to get rid of it. >> i've got lots more information on unloading time-shares on our website -- foxnews.com/propertyman. and we've got even more tips coming up at the end of the show in the massi memo. but up next -- i've told you about crowdfunding and the impact it's having on real estate. now flippers are using it to buy, fix, and flip properties. we'll meet some next. [ woman vocalizing ] you don't let anything keep you sidelined. that's why you drink ensure. with 9 grams of protein and 26 vitamins and minerals. for the strength and energy to get back to doing... ...what you love. ensure. always be you.
i'm spending too muchs for time hiringnter. and not enough time in my kitchen. (announcer) need to hire fast? go to ziprecruiter.com and post your job to over 100 of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. (announcer) over 400,000 businesses have already used ziprecruiter. and now you can use ziprecruiter for free. go to ziprecruiter.com/offer6 ...one of many pieces in my i havlife.hma... so when my asthma symptoms kept coming back on my long-term control medicine. i talked to mypiece in my asthma treatment with breo. once-daily breo prevents asthma symptoms. breo is for adults with asthma not well controlled on a long-term asthma control medicine, like an inhaled corticosteroid.
breo won't replace a rescue inhaler for sudden breathing problems. breo opens up airways to help improve breathing for a full 24 hours. breo contains a type of medicine that increases the risk of death from asthma problems and may increase the risk of hospitalization in children and adolescents. breo is not for people whose asthma is well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. once your asthma is well controlled, your doctor will decide if you can stop breo and prescribe a different asthma control medicine, like an inhaled corticosteroid. do not take breo more than prescribed. see your doctor if your asthma does not improve or gets worse. ask your doctor if 24-hour breo could be a missing piece for you. see if you're eligible for 12 months free at mybreo.com. >> welcome back. i'm bob massi, the property man. >> we're gonna remove casing. we're gonna do all new lighting, new tub, new flooring, and new paint. >> doug lyon flips houses. he's buys distressed properties,
fixes them up, sells them for a profit. >> what this was was an open doorway, and it was a lot of wasted space. so what we found is one way to add value is literally by adding bedrooms and bathrooms. >> sayam ibrahim does the same thing, and they're good at it. >> we look for undervalued properties, right? so we're looking for properties selling at a discount, properties in need of repair. >> properties that need somebody to come in, rehab them. not only bring up the value in this property, but we help the property values in the neighborhoods. >> but like most flippers, they had trouble getting loans from banks. >> we don't have steady income, steady paychecks every other week. also, a lot of these properties we're buying require a lot of repairs -- new roof, might need windows -- and traditional banks won't finance those. >> this is a tough business. it's a dollars and cents. you purchase a property for so much. you have realtor costs, closing costs, title companies, insurance, and you have the rehab budget. and you have to still make a profit. >> so they turn to crowdfunding.
we've talked before in this program about real-estate crowdfunding websites, where investors, they pool their money together to fund projects. >> we raise capital from the crowd. we raise capital from thousands of unrelated investors. and we can do it online. >> we allow investors to come online and buy shares of real-estate properties. and it's as simple as buying stocks or bonds on the internet. >> we have capital like a bank, but we don't operate like a bank. >> the crowdfunding explosion had a major impact on flippers, whose lack of a steady, consistent income makes them not very good candidates for traditional loans. >> they might be doing two, three, maybe even 10 projects a year. but they want to level up. they want to take their business to the next level. but they can't get funding or they're getting charged really high rates on the other side. >> on the investor side, for most projects, you still have to be "accredited." what that means -- you have to have a lot of money. >> accredited investors who have a net worth over
$1 million or an annual income above $250,000. >> but for borrowers, anyone can participate. >> you don't have to be the person with $1 million in the bank to borrow from us. >> it gets the little guy in the game now to be able to invest in projects like this. we can come in, take a distressed property, fix it up, put somebody else in this home that will be here for the next 30, 40, 50 years, raise their family and kids. >> i'm really proud, actually, of the fact that we're lending to a lot of people doing amazing work in local communities and creating jobs and just really making a huge difference in their area. and hopefully with our help, they can get to the point where their next project is gonna be a retail center or some large, multi-family. we really get excited when our borrowers succeed. >> anyone can fill out a quick application, have their project vetted, and request funding.
>> we've built technology to allow them to do their entire application process online. they can get a term sheet or a letter of intent directly from us on the internet without ever talking to someone. we're gonna make sure that we have an appraisal. we're gonna go and make sure we have a physical inspection of the property so that we know what we're lending against. and the technology allows us to auto-trigger those vendors around the country and really speed up the process. >> what the sites do is they evaluate both the borrower and the project to ensure the investors won't lose any money. >> we go through a very stringent process to make sure myself, as the developer on the deal, that we are solid. >> these platforms like ours, we're very careful about who we lend money to. we do a lot of background checks. one of the things about technology and the data is that we have access to it and we use it. so we're making a full 360-degree determination of whether that borrower can get it done, whether they're fraudulent or not.
>> we'll present them with the deal. they go and they get a broker to give them an estimate of what the value's gonna be with the property being repaired based on my rehab plan. >> we always ask for skin in the game. so that's a risk mitigant for our investors. so we always make sure that they have at least 20% down. >> the crowdfunding site realty mogul lists many fix-and-flip projects available for investors to fund. potential investors can review the project online before deciding to put their money behind it. the technology has completely transformed how these guys do business. and it seems to be having a major impact. >> what crowdfunding has allowed us to do is literally do deals that we would have never had an opportunity to look at. >> sayam is a repeat borrower at realtymogul.com. and when he first came to us, he had done a handful of fix-and-flips. but he was cash-constrained. he couldn't invest in any more properties. and he couldn't expand his own business because he just didn't have enough money. so we lent to him on the first project. and we were watching
his progress every single month. and after we'd done our first transaction, we got really comfortable that he was a professional. he could balance doing multiple transactions at once. >> the investors that invest in crowdfunding platforms, they get paid on a monthly basis, all right? then they get their principal back when the property's sold or refinanced. >> if it's my job to raise capital, it's no longer their job to raise capital. they don't have to worry about it anymore, and they can really focus on what they love to do, what they're really good at doing, finding the properties and fixing them up. >> not only that, but the money we're putting into these homes is all spent locally. so we're actually impacting the local economy, vendors, trades, workers, as you can see. we're paying a lot of people's bills while we're raising the values. >> it's really impressive to see what happens to homes and the pride of home ownership when these flippers go in and work their magic. >> still to come when "the property man" continues -- i'll take you on a trip to italy without
ever leaving the sunshine state, inside this unbelievable property, up next. [ woman vocalizing ] you're driving through the woods when a majestic beast runs into view. then you run into a tree. but your totaled new car isn't totally replaced. with new car replacement, we'll replace the full value of your car plus depreciation. liberty mutual insurance.
>> welcome back. i'm bob massi. i'm going to take you inside another truly unique property located within the isleworth luxury community. if you're talking about luxury real estate in central florida, well, chances are you're talking to mark hayes. mark hayes is the president of isleworth and stockworth realty. ♪ you know, each one you go through, they all have their unique features. >> this is what we call an iconic residence in isleworth. what you're gonna have here is a
tuscan estate with materials from all over the world. when you stand in front of this home, you can obviously see the amazing detail that went into the stonework, the faux painting, the windows, the lines, the roof, the landscaping. >> it is reminiscent of an old italian villa and sits on the banks of hourglass lake. >> this floor was brought in from the vatican. >> i'm gonna around that, buddy. >> actually, also, before we go in there, look up at the ceilings. >> yeah. >> how many foyers do you see that in at? >> yeah. it's just -- again, the detail all around the pillars. beautiful cross over here. when you first enter the home, you are really struck by the central living space. the great room reflects a truly elegant yet functional space for the entire family. and you can't help but find yourself staring at the ceilings. hand-painted and sandblasted cypress planks and beams are anchored by iron ties
for a truly original look. it's amazing. >> every room the attention to detail. the columns. >> the large fireplace mantel and flanking columns are hand-carved of mexican limestone marble. to get to the master suite, you have to pass through an ornately designed iron gate. this is a different entrance to a master bedroom, isn't it? >> you don't normally see mid-century iron gates. >> that's really good. ♪ >> wow. >> and just look at the hand-painted wall. look at the attention to detail. >> you know, it's interesting because when you see these kinds of homes -- and there's not many like them, by the way... >> no. >> ...you can't even imagine the amount of time it took to get the perfect home that they were looking for. we take it for granted because we're seeing it after the fact. >> right, right. >> but the thought that went into it.
>> well, this family looked for the perfect plot of land -- you know, where it faced with the sun and with the water. >> this magnificent home has five bedrooms, six bathrooms, and more than 9,800 square feet. >> these coffers are inspired from a chateau in versailles. just... >> and look at the tapestry on the wall. >> again, just very european-inspired, old world. >> what really blows you away is that every detail on this property is handcrafted and inspired by something from around the world. >> how often do you see seasonal closets? spring, summer, winter and fall. it's just, you know -- hand-painted closets. again, look at the stonework. >> yeah. >> just very thoughtful. ♪ >> the home comes with a detached guest house that is nicer than most people's homes, a half basketball court,
and 20-foot-deep lap pool with a diving board. so let's take a walk outside from this room here. >> oh, bob, you're in for a treat. this house has a lot of outdoor living space. as you can see, very spacious. the outdoor patio goes all the way across. >> a lot of boating out here? >> boating, yes. but i will tell you this particular lake is filled with prime bass. >> out back, on the banks of the hourglass lake, well, you're gonna find an english garden, pool and a sitting area. >> just look at the landscape, ♪ and again, all european-inspired. >> what a beautiful, beautiful setting. up next, the massi memo, with more information on unloading time-shares that you can't afford to miss. [ woman vocalizing ]
>> time now for the massi memo. we talked earlier about how to sell or get rid of your time-share without getting ripped off. the truth is it's just not easy. there are lots of scammers out there hoping to trick you into paying them upfront fees to basically do nothing at all but rip you off. never pay an upfront fee to anyone. and don't talk to anyone who contacts you about time-share resales. you should be contactingthem, not the other way around. and before you contact them, do
some research on the person and company you're gonna contact. beware of time-share-listing services. these companies will charge you money to list your time-share for sale on their website. then what happens? nothing. it sits there and your money goes away. or worse, other companies will see the listing and call you pretending they have a buyer who wants it right away. you just have to pay some fees up front. run away right now. so how do you do it the right way? only deal with a licensed real-estate broker. you can check the website arello.com -- that is arello.com -- to see if they hold a valid real-estate license. check the better business bureau for their state and the state the time-share is located in. you might even want to check with the attorney general's office for that state as well. now, you could go to licensedtimeshareresalebrokers .org to find which brokers specialize in these listings, because time-share really is a specialty.
but again, don't pay anything up front for a time-share, just like you wouldn't when you're selling your home. i have to tell you this, folks. you will probably not like hearing what your time-share is worth on the resale market, because time-shares can be great if you're gonna use them. but they are not an investment. some have a decent amount of value and some don't. an honest broker will let you know the truth. if your time-share has little value, you can try contacting the developer or the resort. tell them that you no longer can afford the payments and you want to transfer the property back to them. and sometimes they'll go for this, and most of the time, they probably won't. but it never hurts to try. here's a sad story -- dependent upon your time-share, you may have to spend some money to literally get rid of it. just be sure you're spending it wisely and not getting ripped off. that's it for today. there's much more info on our website at foxnews.com/propertyman. and be sure to send me your