In nearly every real estate purchase contract, the seller will require that the buyer deposit earnest money—a sum of money that the buyer puts into trust during the transaction to demonstrate good faith. The earnest money amount is often dictated by the seller, and can be a flat price or a percentage of the purchase price. Remember, the purchase contract and the earnest money deposit don’t guarantee a sale, but it does ensure that the house is off the market during the home inspection and appraisal. These are the reasons the buyer of your house will be able to get their earnest money back in a typical real estate contract: 1. Issues that arise during due diligence. Investments with DCI are backed by hard real estate assets, generally the most frequent and consistent long-term investment available. There is more money invested in real estate than in the stock market in the US. DCI offers private real estate assets, an experienced team and a proven track record. Loan Secured By Real Estate in Indiana $28,000-$16,000,000 or more 1 Fill out one free real estate loan application safely and securely. Your Social Security Number is not required. Finish your loan application in 2-3 minutes. A hard money loan is a short-term loan that secured with collateral. In the case of a fix and flip loans, it’s secured by real estate. Every hard money loan is funded by a private investor or a group of private investors. Most of these loans are short-term and last about twelve months. You can ask for a longer repayment time frame, but even.

Notorious Property Deals and Why They Failed

Bad real estate investments are a given. Even pros make errors and encounter unforeseen circumstances. Here are 8 of some of the most public, bizarre and plain raw real estate investment deals:

1. Bad Investment Decision Combined with Market Slump Bodes the End for High Profile Developer

In the late 1980s Olympia and York was arguably one of the most powerful private real estate developers in the world. The company was divided in its trophy properties: half in North America, half in London. The London half of the company's holdings was in the developing Canary Wharf district, a high profile and costly public-private renovation project.

Canary Wharf was originally one of the most vital ports in Europe and key to early Canary Islands trade, thus the name of the wharf. Prior to the 20 th century ships were smaller, more nimble and had no problem negotiating the Canary Wharf. The port became completely unsuitable for modern ships.
During the mid 20 th century, Canary Wharf became a maritime ghost town, left to ruin, a huge bust for the London economy and business landscape.

London docklands intended boom:

In the late 80s a partnership between London government and private investors signaled a plan to revitalize the London Docklands, or Canary Wharf. The goal: remake it into one of the most powerful business districts in the world. Enter Olympia and York: the company would be a key mover and shaker in the district, and help attract and net other powerful developers with notoriety and cash to invest.

What in theory was a great real estate investment for Olympia and York, as well as hundreds of others, was undone by a one-two industry punch: the slump in the U.S. real estate market followed by a hard slump in the London market.

First the U.S. real estate market slumped, when that happened Olympia and York was reportedly immediately crunched for cash between its New York and Canadian holdings and the unnerving costs for construction on its Canary Wharf project.

Real Estate Hard Money Loan

In a strategic and hush-hush move the company unloaded a surprising number of its New York and Canadian properties in the early 90s. Why? The company needed to put all its assets into the Canary Wharf project in order to survive the market gyrations. The deal was not a wise one: by 1992 Olympia and York had collapsed and ultimately declared bankruptcy.

What went wrong for Olympia and York?

In hindsight Olympia and York placed huge bets on multiple high dollar real estate investments in two rapidly falling markets without imagining the fall-out from such sudden dives.

2. The One Great Worst Las Vegas Real Estate Deal

Las Vegas is symbolic of one of the most innovative land uses in history: a plot of desert in the middle of hot and arid Nevada devoted exclusively to high stakes gambling and no-expenses-spared resort casinos. Who could lose in that game? From our perspective now it's obvious that Las Vegas property on any scale was an absolute great investment. Even small time homeowners own a real estate gem. But for one particular high profile Las Vegas investor, a real estate deal turned deadly:

As a thug, Bugsy Siegel excelled. He was one of the Mafia's most notorious and violent gangsters; very effective at his job. As a real estate developer he failed miserably due to a variety of factors:

Bugsy Siegel assumed development on a floundering hotel construction in the new Las Vegas territory during the 1940s.

He sunk millions of dollars into the project, much of it borrowed directly from the Mob.

One of his biggest mistakes was his assumption that he was capable of managing a construction development project, protecting the assets. According to his records he never would have ended up in the hole for nearly the amount of money had he the skills needed of a good developer.

At that time the hotel, named the Flamingo, was such a design departure from the other hotels in the area. Consequently his mob partners doubted the venture's success from the start.

The Flamingo's eagerly anticipated grand opening failed to net the return on investment needed to repay Siegel's Mob debts.

Ultimately his bad business dealings cost him his life not long after the Flamingo had debuted.

The real irony in the Bugsy Siegel real estate investment saga: Siegel was right on with his high-end, no-expenses-spared Havana-inspired casino resort concept. His general concept is that upon which all of Las Vegas's success is based today.

3. The Bizarre Oak Island Money Pit – Negative Cash Flow Over and Over

The famous Oak Island real estate deal is cloaked in pirate tales and buried treasure, big incentives for rich investors with wild imaginations and money to burn, but not very practical. Truth is many a real estate investment in history has been struck over the shear possibility of riches, be it treasure, lost mines, or mineral deposits.

For over 200 years the legendary acreage known as Oak Island off the coast of Nova Scotia has been bought and sold and bought and sold many times over. The alleged treasure continues to sit far under the earth in a purported maze of traps and shafts that apparently are so ingenious even the most savvy and wealthy of investors is stumped. 3 Each sale symbolizes bankruptcy and failure and each purchase portends of financial riches.

What makes Oak Island one of the worst investments?

So far any investor who's put cash into Oak Island has lost a fortune. The property has been the reverse of most ideal real estate investments: a loser, a negative cash flow from the very first shovel-full of dirt. Most successful real estate investors look for holdings with a predictable cash flow upward.

Should Oak Island ever surrender its reported riches the investor holding this stake will make a killing. In the meantime this property deal remains one of the most infamous and bizarre real estate losers in history.

4. Rockefeller Center: Trojan Horse Deal

In the late 80s most of the investment holdings in Rockefeller Center in New York were sold to Mitsubishi Estate Company. The sale was recorded at $1.4 billion, twice what a competing Japanese bidder was willing to pay. The price was paid only because the bid was for the world renowned Rockefeller Center.

Details of the raw Rockefeller Center deal:

The sale was in reality a way for the Rockefeller family to save their family namesake from the real estate dumper. Manhattan office space was in a hard real esta

Money Goes Hard In A Real Esate