Just to clarify. The builder sells the home to an investor group at close to asking price, but then the investor group rents that house back to the builder at 350% of the typical monthly rent? So the builder is effectively funneling the discount back to the investor group each month. Did I get that right?
If this has been going on legal action really does need to be taken. If there were a specific example that could be confirmed it would make headlines, I’m sure of it. To take this Bressi Ranch case as an example, what types of things would one look for to confirm that it is indeed a scam? EG: The homes have been vacant for a year, or all have been rented for a year? Perhaps they were all bought at list price at a time when discounts were being given, therby raising the question of why the investor group didn’t get a lower price. Even better, if the monthly rent records of the payments from the builders to the investors could be gotten a hold of…
