Mafia Houses, the Gas Tax, and buying a home…

In the early to mid 1980’s Michael Franzese of the Colombo crime family made millions of dollars selling gasoline.  He and his associates would buy gas stations under shell companies and sell gas at lower prices than their legitimate competition.   Thy could do this because they would collect the state and federal taxes due from the consumer, but never forward it to the government.  When the heat from the government got to be too much, they would simply close out the shell companies and walk away leaving the government with an uncollectible debt.  They made hundreds of millions.

What’s this have to do with Mafia Houses?

The Colombo’s had no regard for the future of their assets as they knew they were eventually going to just walk away from them.  From the outside these establishments looked like legitimate business enterprises, but in reality they never invested any money to make anything other than a cosmetic improvement.

Many homes on the market are owned by people who address the maintenance, upkeep, and improvement of their homes with the same lack of care for the future.

On the surface, these home look great – new paint, new trim, high-level finishes, bright lights, etc…  But upon a closer look, these homes may have older windows, ancient and inefficient heating systems, hidden damage, and even worse.  A mafia house is one with a broken A/C unit that is put up for sale in the late fall, or a poorly insulated, drafty home that is place on the market in late spring.  A mafia house is one with a self-maintained pool that gets listed right after it is closed for the fall.  A mafia house is one where new wood work prevents inspection of structural areas.  And a flip, where the goal of the investor is to make as much money as possible by investing the least amount possible is very likely to be a mafia house.  Essentially anytime you see something that doesn’t make sense or is either un-inspectable or difficult to inspect, think the worst.

The majority of agents showing a home will not point these possibilities out.  The majority of agents showing a home will simply ask you how many bedrooms, how many bathrooms, what town, and what’s your price range.  They want you to buy.  EVERYBODY wants you to buy.

EVERY SINGLE PERSON YOU MEET DURING THE HOME BUYING PROCESS WILL MAKE MONEY OFF YOUR DECISION TO BUY.

again,

EVERY SINGLE PERSON YOU MEET DURING THE HOME BUYING PROCESS WILL MAKE MONEY OFF YOUR DECISION TO BUY.

When you go to buy a house, you need to make sure that your agent has your best interests at heart.  All will say that they are bound by ethics, but if they are faced with the choice of helping you buy a home, or missing their mortgage payment, I’m fairly confident which path they will take…

When interviewing potential Realtors, ask them these five questions.

If they pass the muster, explain to them what a mafia home is, and ask them how they would protect you.  I know how to do it.  I make my living serving very few clients at a time impeccably well.  Call me and we can discuss.

Jeff

413-564-9468

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