Congratulations on the first $1,000,000 harvested from Maricopa County this year

We are continuing to follow our "coincidental duo" of Associate Vice President at Fannie Mae Lea France and happy California investor known here as Orchard Terrace Estates LLC. In our posts before we've talked how our lucky investor "coincidently" happens to closely follow Lea France career with her unique sales management style and became extremely successful at acquiring Fannie Mae properties at a great discount and flipping them for an incredible profit. Check out our previous posts for details.

Today we've run our analysis one more time can finally report the good news - the first $1,000,000 harvested from Maricopa County alone this year. How do we know this? We just check our county records from time to time using the following this link. So can you.

https://recorder.maricopa.gov/recdocdata/GetRecDataPaging.aspx?biz1=ORCHARD+TERRACE+ESTATES+LLC&biz2=&fn1=&mn1=&ln1=&fn2=&mn2=&ln2=&begdt=01/01/1947&enddt=7/31/2011&doc1=&doc2=&doc3=&doc4=&doc5=

But wait, $1,000,000 is not the end of this story. With half of the flips still in progress our sweet duo is well on their way to collect second million before the year end. We will keep you updated.

As always, we would like to hear your opinion. The blog is anonymous and you do not need to leave your name if you would not like to. We would really like to hear from other real estate agents in our and other states who's business was affected by the Lea France's unconventional management style or if you are just concerned how this may affect you.

By the way, does anybody knows which area of the country Associate Vice President of Fannie Mae Lea France manages now and how our lucky investor Orchard Terrace Estates LLC is doing there?

What about Fannie Mae?

Fannie Mae declares its mission as something like "stabilize community values" and "promote home ownership". We also know Fannie Mae really likes to keep friendly investors happy. Lets see how our "coincidental" duo of Fannie Mae Associate Vice President Lea France and happy California investor Orchard Terrace Estates LLC helps Fannie Mae to achieve these goals.

"Stabilize Community Values". I would grade it as D, I really do not see how such sales can help stabilize community values.

"Promote Home Ownership". Still D in this area. I do not see a lot of moving trucks coming here from California.  Did I miss anything? I guess  I just do not understand how selling a property to an investor at half the price can "promote home ownership". Somebody, please educate me.

"Keeping friendly investor happy". We know it is not declared on the Fannie Mae web site but this is the only area we can give Sales Manager and Associate Vice President at Fannie Mae Lea France an A after looking at these records. She really knows how to make dreams come true. Sorry, I keep forgetting this is just a coincidence.

Of course, this is just our opinion and we do not pretend to know the whole  truth but this is what we see going on around us and we do not like it. Whether you agree or disagree I would like to hear your opinion, the blog and all comments are anonymous and you do not need to leave your name if you do not feel so.

Why should I care? (part 2)

Say, you do not live in the same neighbor as the house we've talked about last time. You actually live on a different side of town or in a different county or state. Should you still care? Lets see… When Fannie Mae acquired the loan for the house we've talked about last time it actually paid $100,000 or so and financed it through a debt instrument guaranteed by the Federal Government. What do you think happens when a creative Sales Manager and Associate Vice President at Fannie Mae Lea France decides to sell it for $60,000? Does anybody need to pay the difference? Who is the lucky winner? You've guessed it right, the Federal Government which guaranteed the loan. Every month the Federal Government writes a big fat check to Fannie Mae so Fannie Mae can continue on its mission of stabilizing community values, promoting home ownership and making friendly investors richer.

Next year your taxes will go up. When you will be writing a bigger check to the IRS do not forget, our lucky investor from California is happy you are fulfilling your obligations so the Federal Government can continue writing checks to Fannie Mae and Fannie in turn will be able to continue on its mission of keeping the friendly investors happy.  Send a nice letter to the investor and his Fannie Mae sponsor, I am sure they would love to hear your story. You know their names. Sorry, I keep forgetting this is just a coincidence.

Also do not forget to send a nice letter to your Congressmen who just approved the higher debt ceiling. Now you know why Feds need to print more money and you need to deal with the inflation. Its all about keeping the big boys happy.

And after all, how do you know your state and your county is not on the list of our sweet duo to hit next, coincidently of course?

Why should I care?

I got a legitimate question yesterday. So what, an investor bought a bunch of properties, Fannie Mae should be happy it get rid of them. Why do you think it is bad?

Lets say you a live in a nice $100,000 house somewhere in the suburbs of Phoenix, AZ. So far so good. Then one of your neighbors with a house similar to yours run into financial troubles, Fannie Mae foreclosed on it and our investor decided it will be a smart investment. Long story short, Fannie Mae is selling it to him at $60,000 and few months later our brave investor flips the property for $80,000 earning 30% profit. Everybody is happy, even the new owner got a great deal. Do you think your house is still worth $100,000? Nope, with a market sale next door at $80,000 your house price is $80,000 or even less now - remember the $60,000 investor sale from earlier? Say you need to move and want to sell your house now. Even if you find a buyer willing to give you full $100,000 his appraisal will come back at $80,000 or less and his bank will not give him a loan for more than this. Congratulations, you just lost $20,000 without even moving a finger. So you still need to sell your house but you bought it with 3% down and still owe $97,000. What are your options? Not much at this point, you can pay $17,000 plus sales costs out of pocket to cover the difference, you can try to do a short sell or go into foreclosure yourself.  The last two options will trash your credit history and you will not be able to buy a new house for many years. Send a nice letter to the investor and his Fannie Mae sponsor, I am sure they would love to hear your story, you know their names.

Sweet duo

So lets take a peek at a life of an ordinary real estate investor from California who "coincidently" closely follows the career of our "favorite" Sales Manager and Associate Vice President at Fannie Mae Lea France. Here are just a few random transactions from the county sales records.  Here, boys and girls, you can see how the big guys are doing it.

69xx W McLellan Rd, Glendale AZ 85303
Sold by Fannie Mae to Orchard Terrace Estates LLC on 2/17/2011 for $55,650, flipped a few months later on 7/14/2011 for $84,000. 51% profit in short five months. Not bad for a property investment in a falling market.

36xx W Sierra St Phoenix, AZ 85029
Sold by Fannie Mae to Orchard Terrace Estates LLC on 3/23/2011 for $47,500, flipped three months later on 7/8/2011 for $75,000. 58% profit in three months. Sweet deal.

16xx N Alta Mesa Dr #75, Mesa AZ 85205
Sold by Fannie Mae to Orchard Terrace Estates LLC on 3/28/2011 for $61,950, flipped three months later on 6/28/2011 for $96,500. 56% profit in three months. You know, at this rate our sweet duo can quadruple their investments in one year, no risks attached.

13xx W Sack Dr, Phoenix AZ 85027
Sold by Fannie Mae to Orchard Terrace Estates LLC on 3/17/2011 for $63,000, flipped less than three months later on 6/7/2011 for $104,900. That is 67% profit in less than 3 months. Did anybody notice there was a 3 months deed restriction on the original sale? But, who cares when big boys are playing.

53xx W Poinsettia Dr, Glendale AZ 85304
Sold by Fannie Mae to Orchard Terrace Estates LLC on 3/30/2011 for $73,500, flipped four months later on 4/14/2011 for $115,000. That is 56% profit in four months. Not bad at all.

Of course sometimes mistakes happen:

150xx W Bottle Tree, Surprise, AZ 85374
Sold by Fannie Mae to Orchard Terrace Estates LLC on 4/15/2011 for $73,500, flipped less than three months later on 7/12/2011 for $85,000. Just 16% profit in 3 months. Guys, with such strong support from the management you can really do better than this.

Over the years we worked with a lot of real estate investors and to be honest this is the first time we have seen such a lucky guy. But again, coincidences happen.

Please tell me it is a coincidence

Today we continue to follow the career of our "favorite" Sales Manager and Associate Vice President at Fannie Mae Lea France. For a while now we were wondering how a person with such poor management skills, an abusive personality and below the market sales record managed to become an Associate Vice President at Fannie Mae and succeeded at this position for many years? Why would they let her manage sales in different parts of the country and give her control over a significant inventory? We started to doubt it is just the job performance and decided to check out our state sales records. Please tell me it is a pure coincidence that when she started to manage sales in our area last year an out of state investor - California based Orchard Terrace Estates LLC all of a sudden became extremely lucky in acquiring Fannie Mae properties at a great discount just to flip them few months later. Check out these public records:

https://recorder.maricopa.gov/recdocdata/GetRecDataPaging.aspx?biz1=ORCHARD+TERRACE+ESTATES+LLC&biz2=&fn1=&mn1=&ln1=&fn2=&mn2=&ln2=&begdt=01/01/1947&enddt=7/31/2011&doc1=&doc2=&doc3=&doc4=&doc5=

The good news for our state - Lea France stopped managing sales here earlier this year and we do not see a lot of shady sales to this investor any more. You know, coincidences happen.

Lea France @ Fannie Mae

We are a team of real estate agents and our team was totally abused by Lea France from Fannie Mae. With her unstable personality (constant mood swings, etc.) she has made the work environment completely impossible. She makes conflicting demands and it is impossible to meet the timeframes she outlines unless you are a favorite agent of hers.

We lost a lot of business and were afraid to talk for months. I know a lot of agents found themselves in the same situation. For most of us Fannie Mae is the biggest client and we are afraid to lose their business so we just learned to give up our inventories upfront and wait for her to leave the state. But she keeps coming back. We realized the only way to protect ourselves is to tell Fannie Mae our stories - even anonymously.

If you had the same experience please share it here. This blog is completely anonymous. You do not need to share your name if you do not want to but we do want to hear your story.