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David's Macro Blog

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Category: Real Estate

Richard Davis - Flip This House

Richard Davis - Flip This House

Reality TV is entertainment.

Remember the halcyon days in the mid 2000’s when everyone thought they could make money flipping real estate for profit after watching shows like Property Ladder and Flip This House?

Richard Davis, host and inventor of real estate reality television series Flip This House, sued distributor A&E Television Networks for his share of the profits from the TV show. He claimed to have an oral agreement with an A&E representative to split profits from the show 50/50.

One reason for the profit split was because flipping houses for television wasn’t a profitable business.

The Post and Courier reported: Ginger Alexander, Richard Davis’ partner, “testified that the firm’s normal business took longer because of the series and that, overall, the company lost money creating episodes of the show because it still holds a few unsold properties.”

Also from the Charleston Post and Courier: A federal jury awarded Richard Davis $4 million in his lawsuit for his share of the profits from the successful television show.

A&E disputed that any agreement existed. Its lawyers declined to provide immediate comment on the ruling, which came after more than five hours of deliberation.

“I’m very pleased with the verdict,” said Mount Pleasant attorney Frank M. Cisa, who represented Davis. “These cases are very tough to prove.”

Excellent coverage of the whole story is available at Flip This Lawsuit

Real estate and mortgage fraud ran rampant during the 2000’s great housing bubble. We’ve all heard the stories but there have been few prosecutions, so it’s good to see some in progress.

David Crisp and Carl Cole were arrested by federal agents on mortgage fraud charges. They ran a prominent real estate brokerage in Bakersfield and apparently created straw buyers and manufactured false loan documents in order to sell homes and inflate housing prices.

Ten people, including Realtors, loan officers, and a notary, were arrested on 56 different indictments. It looks like these people will move from their private gated neighborhoods to a public gated high-density community of inmates.

Low interest rates and easy lending standards created an environment primed for mortgage fraud. It is good to see arrests that will likely result in jail time for the most prolific perpetrators. Unfortunately, this investigation took five years.

Rapidly rising home prices are not usually a good thing because they cause new buyers to pay high prices that are not supported by market fundamentals or their ability to pay back the debt.

Also check out the local news coverage of Crisp and Cole’s arrest at KGET.

Ever wonder how the real estate boom and bust occurred? Why is the foreclosure process such a mess and causing problems across the country?

The system was set up for failure.

Watch both videos of the deposition of alleged robosigner Dhurata Doko of Nationwide Title Clearing. The deposition was taken by attorney Christopher Forrest of The Forrest Law Firm.

This is not about the actions of a few lower-level employees but the system created by those in power.

Part 1

Part 2

Again, this is not about the people performing tasks on a daily basis — they were NOT the ones in power or control. They were just following orders from above.

Other robosigner deposition videos:

Ever wonder how the real estate boom and bust occurred? Why is the foreclosure process such a mess and causing problems across the country?

The system was set up for failure.

Watch all three videos of the deposition of alleged robosigner Brian Bly of Nationwide Title Clearing. The deposition was taken by attorney Christopher Forrest of The Forrest Law Firm.

This is not about the actions of a few lower-level employees but the system created by those in power.

Part 1

Part 2

Part 3

Again, this is not about the people performing the tasks on a daily basis — they were NOT the ones in power or control. They were just following orders from above.

Other robosigner deposition videos:

Ever wonder how the real estate boom and bust occurred? Why is the foreclosure process such a mess and causing problems across the country?

The system was set up for failure.

Watch all four videos of the deposition of Crystal Moore, alleged robosigner of Nationwide Title Clearing. The deposition was taken by attorney Christopher Forrest of The Forrest Law Firm.

The main issue is not the actions of a few low-level employees but the system created by those in power.

Part 1

Part 2

Part 3

Part 4

Again, this is not about the people performing the tasks on a daily basis — they were NOT the ones in power or control. They were just following orders from above.

Other robosigner deposition videos: