DaleRussell's Blog

I just wanted to know whether or not Angie was under investigation, because of her being the Realtor that claimed to have found the properties and sold them to the buyers?

Not so fast ab...we go to air with the facts that we can prove. I am fully aware of the "cash-out refinancing" game and in fact did some of the first stories in the Atlanta market on the mortgage fraud scam you write about. Sam never sold these homes. He never owned them. This is a little different. These owners are desperate to sell and cut their losses. You are right about the mortage problem in Atlanta. It is a huge nigthmare.

We hope to talk with Angie soon. As soon as we do we'll let you know. Keep your eye on the blog - I'll keep you up to date.

ab,
Seems like we need to talk. Why don't you email me at dale.russell@foxtv.com
I can keep it confidential.

I know Angie both personally and professionally, and all I can say are positive things about her. She is a hard worker, is extremely communicative, and remember that the real estate agent has nothing to do with the whole matter... the rule of "buyer beware" serves as the primary rule in real estate transactions; the buyer ultimately bears the liability.

Angie's houses haven't sold either...Cherokee st house still for sale,listed with a different realtor.
As for Sam...he's right.It's a TV show and the producers were as responsible if not more for the way the show turned out.Complicit would be the word.
The producers knew exactly what was going on,and betcha they even had a hand in how things were done.
I watched all the FTH Atlanta shows,and never once thought there was anything resembling quality work.
I will say though,Sam and his cast were entertaining,which was the whole point of the show....not to advise,endorse,or teach real estate.Saying they sold a house,made money,or did work....never once in the show do they swear,sign affidavits or even say that it's all true.
The production company has no obligation to present the "truth"....only present a show that draws viewers.
No laws were broken by presenting fake sales,transactions or repairs.Doesn't mean that all the deals were legit,but as far as the show's presentation....."it's a tv show"
Sam should get a shirt with that on the front!
All in all though,it's a great look at what is presented as "reality" when in fact those shows....all of them...are heavily scripted.After all,why is a producer hiring landscapers if it's "real"?
Nice story Dale....now go solve the Jake Horton case. :)

Tvshooter,

I don't have a problem with 'scripted' to an extent. But not when it includes the buy, renovation, and sell price. Potential and current real estate 'flippers' watch these shows and we've been duped in this instance

Great piece, Dale! We need to get you down to San Antonio, STAT! ; )

Coz,
Anyone investing in real estate that watches this show,these "flippers" and thinks,"oh this is what I should do" is in for a little of what I call "thinning the herd".
Real estate is not a field for broke people,and this is not a show that purports to show how flipping is done.
It's a character driven show,designed to get eyeballs to stare at the train wreck developing on screen,then at the last minute,victory is snatched from the jaws of defeat.
For that matter,they could have used actors(and looks as if at one point they did) to do the whole show.

Ab,
can you expand on the mortgage fraud aspect, i find that way more interesting than the reality tv angle. how is it working if Sam is never actually owning the property?

Tvshooter,

I get what you're saying, yes, it's entertainment. But it's also about making money. I'm not a house 'flipper' but I'm in a similar business and there's an old adage...Never take financial advice from someone that makes less than you. Savvy? ; )

Coz I understand completely....follow the same adage.
Ultimately Departure Films has a lot to do with the presentations of the flips,and while Ol' Sam may be shady,Departure was right ther next to him.

Dale,

One of the San Antonio episodes was about buying five houses (from renters), renovating them, and selling them back to the prior renters. They sold three to the prior renters and an 'investor' (cough) 'bought' the other two. I'd start there
; )

Come on everybody...of course everyone involved knows exactly what was going on. Sam, the Agent, the Lender and most certainly the show. Whenever you have to pull people off of the street and asked them to help you complete a scene that you shooting - you tell me; is that REALITY??!! Everything is a set up, take a close look at the people in the show, you'll find many friends and family taking part to make everything look real. I know this for a FACT!!

Quote: The production company has no obligation to present the "truth"....only present a show that draws viewers.

Well, in my opinion, when they *present* the program as *truth*, they should actually...tell the truth! The thing is, they know people wouldn't watch it if it were "fake" - what the heck would be the point? So they make fake and dress it up with "reality" tags - and once again, the media makes dopes out of the public.

I've watched the show since last year for the entertainment value. Seeing this report makes much more sense on why contractors like Sergio keep coming back after they been fired for one thing or another on the last show they were on.

I watched Saturdays flip (Angie on May St) and was seriously wondering why the investors (the two guys from Atlanta City Mag) had "come back" to invest on a previous show (last nights said it was the first time they invested with her) after everything that happened. In the previous show, they almost got into a fist fight with the contractors, and last night, they seemed pretty fed-up with all the problems and budget overages.

On a side note: were my husband and I the only ones smiling on the inside when Armando had to go to thearpy for the Cat House?

Karen Rice wrote:
Well, in my opinion, when they *present* the program as *truth*, they should actually...tell the truth.

You think everyone on American Idol sees Simon and Paula?Or that the judges are actually in the room for the performances you see during the auditions?
Nope.
Producers audition the hopefuls and then forward on (after about 3 days) the ones they want you to see with the judges.The show relies on editing,camera placement and "creative" storytelling.
Randy Paula and Simon see about 2% of the actual people that show up....and comments used for one singer have actually been edited in as to look like another contestant was there.
So-why would the producers of FTH not do the same?Obviously America does NOT want Reality tv....witness the ratings success of AI,and of FTH.
Another thing-all those "phone calls" you see on FTH?They are all staged...the caller is shot talking into the phone as if they are on a call,then the other half of the conversation is done,then edited to look as if they have cameras with each person.
And as others have pointed out-everyone is in on the deal....they have to sign a very long release form,which includes (or precludes) them from discussing or revealing any of the production information.
Sam could be in even more of a legal quagmire if he had discussed it with Dale,and I would bet that point was re-iterated to him after Departure and A&E received phone calls from the I Team.
The call probably went out like this..."Sam,don't talk about anything with the show...remember you signed a very detailed and long agreement that pr

From A&E's web site....

"Behind Flip This House

Tackling one of the most exciting aspects of today's high-stakes real estate market - the transformation of an eyesore into a profit-making beauty - A&E's hour-long "docu-soap" follows the travails of two real-estate developers in the hot housing markets of San Antonio and Atlanta, where each boasts a team of characters that buys homes, renovates them, then flips them for a profit. It sounds simple, but sparks fly and tempers are high before the fixer-uppers sell to happy buyers. Tell us what you dream about doing for your house!"

Well there you go. I can't believe all the straw man arguments I'm seeing here to try and justify what Sam AND Angie did.

Clue: 'The Sopranos' isn't reality TV either but they have a ...drum roll...'disclaimer' that it's fiction

The bigger picture is that several people look to this show "FTH" for information and inspiration to actually go out and create wealth through real estate. When you have a show that knowingly display untruths about "how easy", and how "profitable" it is to flip houses, just to line the pockets of everyone involved; while innocent people entrust their dreams and hard earned money into these so called "experts" one word "UNETHICAL"! Yeah right! - Sure.... it only takes two weeks to rehab and flip a house.

Come on people stop fooling everyone, be not only truthful to yourselves, but to everyone else. You know what they say "the truth always comes out" in the end. This is not "American Idol" reality TV, the money these investors are losing are REAL; some people's life savings!! It's not right!!

Sam, save yourself, don't be the scape goat and take all of the blame while everyone else stands around claiming to be innocent and not know what's going on. Tell it all Sam; we all want to know the truth.

I believe...When a ship sinks...everyone goes down with the Captain".

And to A&E; Did you not know how the Atlanta real estate market is foreseen before you ventured into this sham of a show?? Did you not do your research of the individuals as well as how "FTH" operates before airing on your network? I guess it's worth your reputation...huh? Hello?? Hello??...A&E??...(cricket....cricket...cricket...) Oh well, maybe we'll hear from somebody involved eventually that has the guts to come forward; because everything will be revealed...in time. Looks who's on the c

I am in no way justifying anything Sam or the FTH cast says/does/did.
I am only pointing out that FTH is,as A&E puts it...a "docu-soap".
Watching the shows,I kinda wondered who in thier right mind would buy a doghouse from any of these people,much less a home.The repairs were all shoddy,the legality questionable(never once do you see anyone wasting hours trying to get a permit)and nothing really looked nice with these houses.

TV shooter,

You bring up a good point. We don't have time to get everything into our stories - but I can tell you, to date, we haven't been able to find any permits for any of Sam's Flip This House - houses. That sure does save time.

LisaYH,

Yes, the house on Venetian Way is still for sale. During the open house, the words the woman chose to use were misleading at first. However, then I continued watching the show and read what the house was listed for and the potential profit. We all can infer what happened. There was no sale. At the end of the May Ave. episode, it was said to be sold and sure enought it was. These people are not Sam Leccima.

Lisa,

You look great!

and Cozumel thanks. I was half asleep, but it was worth it. I'm an old radio reporter from back in the dark ages (WGST) - still love those radio guys. And they don't have to wear ties or shave.

Dale,
I agree with AB, the mortgage fraud behind has been overlooked. I don't know as much he does in details. However, realtors are aware of the fraud and what they can get away with. That is why realtors jump from one L.O. to another because they know that they will not get caught. Realtors know that at the end L.O. are the ones that get introuble and investigated. Angie, has no more than 1-2 years of experience on real estate. Do you really think she is qualified to be in a show that can do flipping. Please, flipping and real estate investing is harder than what think it is. Angie makes her money on the AE show not real estate sales. There is a BIG difference, it bothers me that so many realtors and loan officers have really ruined the mortgage/real estate industry with all of the foreclosure and fraud that have been committed. Dale, I gurantee you that if you pick up a real estate book and ask a realtor indirectly about fraud and they will find you a L.O. and a home in 24 hours, GUARANTEED ! Especially with the hispanic community and I am hispanic so I am not being racist.

Loved the story Dale! Was a fan of the show, but no more. I was suspicious of Sam and the whole crew from the start. Including Angie and her husband, and I dont even want to get into Lamont's story. Being from the ATL, it was funny seeing them try and "sell" the neighborhoods to the viewers or better yet sell those house for those trumped up prices. Esp. the house on Cherokee Rd. (done by Angie)..I knew it wouldnt tell, and as I saw a few weeks ago, its still on the market. Im really sorry for the "investors" who bought into Sam's lies. I really would sue him for the 500serie BMW and the penthouse.

Believe me I can speak for the many who has been duped by Sam Leccima when I say they would love to sue him...but he doesn't own anything!

I am really appreciative to Dale for airing this because I know first hand that the authorities have really kicked in the after burners to bring him to justice now.

I have first hand knowledge that additional resources have been allocated making sure that he was brought to justice.

I tell you that while my heart goes out to all who have loss tons of money, there is some solice in knowing that something good will come out of this and hopefully this will be the start of Atlanta turning around its image and refusing to accept this behavior from our real estate investor community.

I am personally doing my part by reaching out to as many media sources as possible to expose this story. I personally went through a Google search today and sent the link to the show to each Internet media that is list him. I have also spread the word verbally and will continue to reach out to whoever listens until he and others like him are brought to justice.

Thanks again Dale because you have added confidence back to some of those victims.

Who knows maybe some good will come of out that $100,000.00 lost after all.

* On a funny note it was really weird seeing all those zeros from that check on the tv. That money coulda brought Sam's BMW and had some money left over...Sorry guys I had to make light of it...somebody had to. *

outside of the a&e tv show fth sam and shani aka bonnie and clyde collectively are scamming people.I have complaint on files with the bbb, and under advise of counsel I can not say no more but this is bigger than ENTERTAINMENT.

I have always been suspect of the house flipper shows for a practical business reason. When these shows give the final financial tally I have never seen them list in the expense column any real estate agent fees, building permit fees, bridge loan interest fees and/or real estate property taxes and title transfer fees.

In addition any true business person would look at comp sales in the area, get renovation quotes first and then do the math to see if there is a legit potential for a profit, all BEFORE acquiring the property. And since when does an investor these days not get a professional home inspection done to know the majority of things wrong prior to getting the property.

So when it comes to these flipper shows, let not only the buyer beware but also let the viewer beware.


Dale: You and the rest of the I-team deserve praise for the good work you do. How about some of you coming up to Alpharetta and doing an investigation into the Alpharetta City Council and why they refuse to curb 18 wheeler truck traffic on certain residential streets while they make sure to curb it on streets where there is a direct benefit to the Council members.

I'm not convinced that this is a mortgage fraud issue. Bluefields is a hard-money lender, and I find it hard to believe that they would knowingly jeopardize what is likely a profitable "investors-only" operation so that they could retail a few houses for more than they are worth. Hard-money lending can be a very lucrative business (low LTV, high points, and high interest rates), and they are in seven states (according to their Web site).

Anything is possible, though, I suppose. It would be easy enough to trace the path of some of their properties and find out.

As for Leccima, there's no doubt at this point that much of his A&E shows were staged, misleading, and/or false. He doesn't seem to be overly interested in showing anyone that they have the story wrong. ("It's a television show.")

I disagree with those who think it's OK to present so much fiction as fact just because it's a TV show. I think most people understand that scenes often need to be edited or even recreated, but none of that should change the overall accuracy or truthful nature of the show. "Flip This House" is being sold to viewers as a realistic, "how the pros do it" show that we are presumably supposed to learn from.

I've always had an issue with the fact these shows leave out the "three Cs" of the business from the bottom line profit (closing costs, carrying costs, and commissions), but I accepted this gross error. I was a little less forgiving when I learned that houses that were "sold" were in fact not (I researched this myself), but sometimes contracts don't go through for various reasons.

When I did the landscaping for one of the houses, I was promised airtime for the uniform shirts (they have the company name) and a spot in the credits in exchange for my part of the work. Shani told me that since the show is watched by over 100k viewers in the Atlanta area, it'd be a boon for my company. The only airtime I got was--cumulatively--less than 30 seconds, and you'd have to pause the show to read the shirt from across the yard. The buyer paid us directly, so at least the vendors and labor were paid, but I never made a penny out of the deal, and got no advertising either. Thankfully it was not as expensive of a lesson for me as it was for many others.

I called and emailed them after I'd watched the episode to ask them if they'd mind sharing some of that 5-figure profit they touted with they guy who drove a total of 8 hours (to meet the buyer, then Shani, then back with the materials) and planned a no-maintenance landscape on shoestring budget. (They originally gave me a $500 budget--including labor--to clean it up and plant new plants that would make a dramatic impact on-camera. Yeah, right.) I never heard back from them. Now I know why.

And the definitive answer is that, as one "cast member" said, "What goes on behind the camera is different than what goes on in front of it." (i.e., "Reality" is a subjective term in television parlance.

And yet we are surprised that a hands-free get-rich-quick salesman is crooked...

Thanks, Dale. It's good to know that somebody is keeping an eye on things.

LandscaperChuck
I made a few notes while watching these shows.
Are you S&W Landscape?

Email me charlied@*spam*bellsouth.net
remove the *spam*

All of the trickery and deception is starting to come together. Angela and her husband are a part of this charade as well the guy from the Atlanta magazine. He was aware of this also but it was an opportunity for advertisement for his magazine. All of the participants should be put on blast for their almost successful attempt at deceiving the public.

Dale,

Like I said before, I am making it my mission to expose deception. I am now hard at work personally investigating what happens when a real estate agent inflates the cost of a house, an appraiser matches their inflated values with a questionable appraisal and then a poor unsuspecting buyer ends up stuck with a home that they grossly overpaid for? Let me know if their is any assistance or recourse for this scenerio.

What about the rest of the cast of characters, such as Lamont Martin? Do they actually work for Sam? Lamont is a cool dude, but dumb as mud.

As far as Angie, would you want to have a realtor represent your interest with such questionable ethics? I wouldn't.

As far as San Antonio is concerned, I wonder how much of the same thing is going on. Armondo is such a butt, I would not be surprised he too is crooked. I do notice on their signs that it say "financed by Montelongo properties."

Good piece overall, Dale. I look forward to more follow-up investigations.

“I’ll tell you one thing, Davis said. My show is never scripted and never will be.

http://www.kansascity.com/entertainment/performing_arts
/story/93534.html

TOTY,

Thank you for your comments, but just in case you haven't noticed... this is a blog that you're reading and replying to. I choose to use this blog as an outlet for my OPINIONS... I don't have to be factual. I very well may be wrong, but that's my opinion.. which by the way.. I am entitled to. It's good to know that according to you Peter is not involved in this charade; however he must be more careful being the "extremely well-respected businessman " that he is, to not associate himself with people that he evidently does not know very well. He was actually putting Mrs. Clown Angela Wilford on the cover of his magazine. This is not Court TV... it's a blog.. relax a little. Thanks again for your insight!!

Now back to the matter at hand... Angela and Harris Wilford need to be publicly held accountable for their attempt at deception.

Sorry for the typo's. That should read, "that SAM was a fraud. Trying to type too fast.

Whats funny is that Angie is on the front cover of I believe the Atlanta Magazine. I saw it on the news stand at Boders Books.

Mr. Duda released a statement saying that Departure Films contracted him to stage that home...

Why then did they release a statement stating that it was Angie who hired them?

All these people are trying to do is cover their own BLEEP, but it's pretty pathetic to tell a lie that can be proven as such with information on the same page as the lie.


June 30, 2006 -- Homes Designed To Sell featured in Houston Real News

Houston Real News, a publication for real estate investors in Houston, Texas, featured an article this week on the second season of A&E's phenomenally successful show "Flip This House" http://www.houstonrealnews.com/news/contentview.asp?c=1
80867 Homes Designed To Sell was chosen to stage the home and decorate it by Angela Wilford with Keller Williams Intown. Ms. Wilford recruited home stager Mr. Duda, because "he makes homes more marketable…making the home feel livable and appealing," she explained.

"Homes Designed to Sell specializes in decorating services to insure homes sell for top dollar and at least 30% faster than homes not staged…We were thrilled when Angie… asked us to participate with her team of local contractors to insure the home would show to its best advantage...,"Mr. Duda wrote.

***sorry I got cut off***

***side note*** I never trust anything that anyone in Atlanta has to say when it comes investing money without checking it out with several sources, especially if it's a fast talking man in a luxury car and Photoshop business cards. Hell, anyone with a half a brain can buy a fancy car. I would only be impressed if they could provide a legitimate financial portfolio and references....not their friends/family

Cozumel,
It could be...that's why I said "accusations" of welfare fraud...after all, we don't know if any of this stuff is true since it's still being investigated by the proper authorities. What I do KNOW for sure is there are a lot of shifty folks in the real estate investment business and Sam has been found to be unethical in his practices and this true fact alone, is going to bring a scrutinizing eye to all those that has done business with him. I don't know anything about any of these people but based on what I've seen and read, either Angie and her husband have been hood winked like the rest of the folks that have dealt with Sam or they are involved in their own shifty ways not matter what, something is not right. ????? Who knows??? Either way it's all a hot mess and hardworking folks are losing out.

Artichawk.
Your comment ,"after all, we don't know if any of this stuff is true since it's still being investigated by the proper authorities" sort of bothers me. You watched the segment where it was verified that the homes featured on FTH were neither bought nor sold by Mr. Leccima. The victims on the show had legal, actual documents...present company included. What do you mean you don't know if any of this is true. I guess Dale just did a whole bunch of work based on allegations! Give me a break.

arctichawk

Just got back into town. Sorry about your parents. I hate to hear about anyone losing their money to a "con." There are so many con games in town, sometimes, the I wish we could shut them all down. We can't - but we do try.

The other flip method is to buy the house with a nothing down loan,do the renovation quickly and sell it before having to make the 1st payment.
That's why you see Armando,Sam,Richard and all the show flippers trying to get the construction done so fast.Otherwise payments,interest and such eats up the profits.
So if you close on the 15th,you can structure the 1st payment for 45 days after closing.
Trick is to find a property that needs cosmetic work,in an area that's moving houses and getting it sold.In this case the flipper may never show up as an owner of the property since he's sold the house before ever finishing the loan process,in some cases.

Angie really needs to talk.....her new broker (since she's not with KW anymore and from "rumors" they are supposedly suing her) needs to get that "AS SEEN ON A&E's 'FLIP THIS HOUSE'" off their website. As a HONEST Realtor, I am ashamed for all of them. I've been an agent for just as long as she has and I would NEVER think of flipping houses-laws, rules/regulations, loan programs, etc change all the time.....I learn something new on each and every transaction. And in that process, I keep my dealings in the most ETHICAL manner imaginable. I deal with investors.....the legit ones. The REAL investors are actually having a positive impact on the community. Unfortunately there seems to be more bad than good at this time. It's changing though.

Mortgage fraud, transaction fraud, etc. is the most vial Real Estate issue. It hurts everyone involved directly and indirectly-including the community surrounding.

Hopefully.....Realtors and legit Investors will have their POSITIVE day in the media soon....

Angie...if you're not too busy "flipping" houses to read these blogs....start talking. We all need to hear your side of the story.

Dale, John here all the way here in CA. Love the work. Everyone is posting it around the CA real estate blogs. I cliped the video on stuck it on youtube and now has thousands of viewers. Tell that boss of yours to give you a raise and some more FREEDOM so you can do more of thee stories!


Sites Linking to This Video:
451 clicks from http://www.mortgagenewsdaily.com/video/embed.asp?id=234

340 clicks from http://housingdoom.com/
191 clicks from http://housingdoom.com/2007/05/25/bad-and-badder-vid...

19 clicks from http://nychousingbubble.blogspot.com/
6 clicks from http://www.signaturehouston.com/blog-2.htm

http://www.youtube.com/watch?v=3aG5G38GzhU

John67elco,
Can you also put the second segment on youtube? I'm not as computer savvy. Thanks

John,

Thanks for the update. I forwarded the raise info to my bosses. No word yet.

In St. Louis MO, and saw this story on Yahoo, AP news. WOW... OK, again... WOW! I watched the show, loved getting inspired with the "work" that the flippers were doing, and almost talked my husband into me quitting my "real" job to start flipping homes.

I started my Real Estate classes, and looked at these TV Flippers as role models. OH YUCK! NOT only the Atlanta crew, but those weirdo's in Texas probably have a few skeleton's too.

I am glad that this story broke nationally, and I am glad that at the very least it removes the rose colored glasses from the rest of us.
I know that there are reputable flippers out there in this big country of ours. Men and Women that are honest realtors, investors, and contractors, just maybe not as "pretty" as what A&E put on TV.

Maybe Fox 5 should focus less on exposing "reality" TV shows (and patting themselves on the back for it) and more on accurate local news reporting.

Last night and this morning Fox 5 aired a report in which their reporter completely misstated that homicides in East Atlanta were up 150% in 2006 when the fact is that no homicides occurred in East Atlanta last year. To this point the reporter and station officials have not responded to a request for clarification, nor has the station run any corrections.

http://community.myfoxatlanta.com/blogs/capnken