People can be stupid with odds, and they’re frequently known to take bets with horrible odds if the payoff seems big enough (you know, the lottery).
But why should the state be the only party that gets to take advantage of this? It shouldn’t. And indeed some desperate home-sellers are taking a “raffle” approach, selling tickets for $50 a pop, with the winner getting the home itself. Pretty nice.
Not surprisingly, the scheme is popular in Florida, ground zero of both the housing bubble and every get-rich-quick, corner-cutting scheme that man has ever invented.
Miami Herald: Frustrated by futile attempts to sell his three-bedroom, 2 ½-bath townhouse for the listing price of $330,000, owner James Cardiello decided to raffle it off.
As housing prices have slumped, dozens of similar raffles have sprouted up nationwide — each offering a shot at the American dream for as low as $10 a ticket.
Websites like USAhomeraffle.com, which advertise the raffles and put homeowners in contact with willing nonprofits, have sprouted up.
”We have a lot of action from Florida,” said Ser Greene, who launched the website in July. “I think a lot of people have vacation homes they’re trying to get rid of.”
Cardiello is not the only South Floridian trying to shed property — and a mortgage — by way of raffle. A $10 ticket will get you a shot at winning Miles Brannan’s six-bedroom, six-bath waterfront estate in Fort Lauderdale. He purchased the home in 2005 for $2.4 million; it is now valued at $1.4 million, according to property records.
Now the next step is buying a pool of these raffle tickets and somehow packaging them together as an attractiv einvestment.