August 12th 2024.
A group of inexperienced Black investors in Chicago are taking legal action against a New York-based lender and real estate coaching company, iFLIP Chicago, for allegedly exploiting them in order to acquire land near the future site of the Obama Presidential Center. NBC 5 has received multiple complaints from homeowners who have been negatively impacted by the company's actions. The investors, who were recruited by iFLIP Chicago, claim that they were deceived and put at significant risk by the company.
One such investor, Ameera Haamid, shared her experience with NBC 5, stating that she and others are at risk of losing over $200,000. She explains that the program offered by iFLIP Chicago included a team to guide them through the process, from finding properties to connecting them with lenders for financing. However, according to the lawsuit, once the loans were secured, the investors were hit with high default interest fees, even if they were making their payments on time. This has led to several investors facing foreclosure and feeling uncertain about their investments.
Realtor Tatianna Barnett, who lost $169,000, also spoke to the outlet about her experience. She reveals that she and other investors were forced to take out commercial loans with Roc360 Capital, which gave the lender the authority to withdraw money from their accounts to cover any late fees or defaults on other loans. The owner of iFLIP Chicago, Ramo Bey, has been accused in other lawsuits of running a Ponzi scheme and transferring his debt to investors through real estate contracts. Attorney Alex Loftus, who is representing nearly 20 iFLIP investors in the lawsuit, explains the implications of the case.
Loftus states that the contracts signed by the investors do not allow for their money to be used for someone else, and that Bey may also be a victim in this situation. He believes that the New York-based venture firm behind Roc360 is taking advantage of the "little guys" in Chicago, specifically targeting African Americans on the South Side. Loftus shares that the investors were misled and targeted based on their race and location.
In response to the lawsuit, Roc360 released a statement defending their actions and stating that they have always acted in good faith and complied with the terms of the loans. They argue that the plaintiffs should have been aware of the terms they were agreeing to and that their fees are in line with industry norms. However, the investors claim that the loan documents allowed for cross-collateralization and cross-default, which Roc360 denies.
This case highlights the unfortunate reality of minority investors being taken advantage of in the real estate industry. It serves as a reminder that systemic racism and discrimination still exist and that it can have devastating consequences for those targeted. The outcome of this lawsuit will have significant implications for both the investors and the lender, and it will hopefully bring attention to the need for stronger protections for marginalized communities in the world of real estate.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
