David ThiuParticipant@david-thiuJoin Date: 2017Post Count: 75
Just doing a bit of Suburb research and stumbled onto the following:
Just wondering why this property has been sold for so cheap?
Is it a sale for a family member? Did the owners default on their loan?
Where can I find out more info?
DavidDavid ThiuParticipant@david-thiuJoin Date: 2017Post Count: 75JaxonParticipant@jaxonaJoin Date: 2014Post Count: 282
Trashed, structure or flood, bank resale, etc etc etcEthan TimorParticipant@ethantimorJoin Date: 2016Post Count: 282
As Jaxon said, many options. You could always call the REA and ask? 😎BenParticipant@benmstarlinesecurityJoin Date: 2015Post Count: 14
Properties are sold cheap for many reasons but this is one possible dreadfully corrupt but, as far as I know, still legal scenario. Maybe there are some legal eagles out there who can put the Jonny Badboy’s of this world in jail for me.
So we have this business owner. Let’s call him “Jonny Badboy”. The business is earning money and is going along fine. Jonny is close to retirement and has been trying to sell his business for the last few years but unfortunately he’s been unable to sell it.
The business has always paid suppliers on time but recently has been running up a lot of dept with trade creditors and is stretching them all out to 90 days. They accept and extend the credit terms. After all, Jonny Badboy has always paid their account and the suppliers don’t want to loose the business.
As Jonny Badboy is close to retirement and decides to pays himself a “well deserved” but huge bonus that year. The bonus is so handsome that now the business cannot hope pay any of it’s accounts. Jonny Badboy uses the huge bonus to pay off the mortgages on all IP’s instead of using the businesses money to pay it’s suppliers. Jonny Badboy then transfers all the now debt free IP’s into his spouses name at crazy cheap prices (as you see here) and even avoids paying much in stamp duty. Then, because he hasn’t paid his suppliers, they force him into receivership and he declares personal bankruptcy. As none of the IP’s are in his name and he’s now a bankruptee the trade creditors can’t touch him and he sails away into the sunset, spouse by his side, with all his suppliers money.
As he’s close to retirement he doesn’t give a rats that he’s declared himself bankrupt and he knew that he was never going to be able to sell the business for anywhere near 90 days worth or trade credit so he justifies to himself that this was his “only option”. He did it for his kids.
Dirty rotten scoundrel.JaxonParticipant@jaxonaJoin Date: 2014Post Count: 282
Ben unrelated, but yeah you’ve pointed out something I have heard a few times.
Surprising still today it seems this can be done.Luke TaylorParticipant@world-changerJoin Date: 2005Post Count: 415
You must be logged in to reply to this topic.