Wednesday, May 20, 2009

Teetering on the bring of insanity

It's always fun to play developer/investor until someone gets screwed., based out of Knoxville, featured just such a story on the evening news, Wednesday.

Mr. Sterling Webb at Sterling Springs in Sevierville, TN, would pay unwary owners huge amounts of rent (regardless of how much - or not much - the unit actually rented) during their first months of ownership. The owners would be so impressed, they couldn't wait to buy another three-bedroom cabin... Good thing, too, because Mr. Webb needed that money to pay the other owners the huge rents. And he would need more lot/cabin sales to pay the new owners.

Apparently, Mountain National Bank happily went along with all of this, funding construction loans for units that might not be built for a while.

Fast forward a couple of years into the future ~ 2009 to be precise: Times are hard, sales are down, owners aren't getting very much money ~ and now the owners are finding out about things.

...wonder how much Sterling Webb has in his escrow account, today. Gee, i also wonder if Mr. Webb has a VLS license, as required by the State of Tennessee? Gosh, i wish the State would give a damn.