He buys properties in foreclosure at low-ball prices from banks, then flips them the same day for big profit-as many as 10 a month. Jurewicz says he, and the followers of his system, fill a need in a down market, but others in the industry question his booming business. They say:
- Banks are losing out on thousands of dollars on each sale at a time when the industry is receiving billions in taxpayer bailouts.
- Many distressed homeowners are unaware lenders could someday require them to pay the difference between the original mortgage and the selling price. The low-ball offer could leave them on the hook later to pay the lender the higher difference.
- A large segment of the home-buying market could be excluded. Under Jurewicz's system, cash is preferred and potential buyers with FHA loans are avoided.
Jurewicz's system is a national brand called Short Sales Riches. In June, he teamed up with real estate broker Chris McLaughlin, a lawyer and owner of four Keller Williams' realty offices in the Tampa Bay region. They developed a program that includes DVDs, a book and mentoring program that's enticing agents and investors nationwide to cash in on the housing bust.
He gets exclusive contracts to buy the properties and is able to wait until the lender agrees to the price. Once that agreement is final he sells the property for a hefty profit. The article states his system brings him in more than $100,000 per month. And apparently there have been several lawyers that say the program is legal.