I-Team: House Flipping CEO: Mold Problems Not Our Fault
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- Опубликовано: 13 ноя 2018
- By: Randy Travis
Aired: Nov 09 2018
AUSTELL, Ga. - A house-flipping company called Jar House sells homes "as is," much like you might buy a used car.
Potential buyers are encouraged to get a home inspector to look over the property. But is that really enough to protect you?
The company CEO is Zareh Najarian, a 35-year-old Henry County native who began buying cheap foreclosures at the start of the Great Recession. By his estimate the company has now bought and sold thousands of properties.
"Buying a home is supposed to be the happiest time, one of the happiest times in your life," Kayla Bhatt said fighting back tears. "And unfortunately, this has been the worst time of our life."
She and her husband Jimmy would love to give you a tour of their new Austell home. They suggest you bring your own mask, though. We had to borrow ours.
"We have mold everywhere," Kayla pointed out as we walked through their unfinished basement. "We have mold in the walls. On the ceilings."
They're the latest unhappy customers who bought a home from Jar House. The Sandy Springs real estate company says it buys an average of 75 properties every month, sometimes fixes them and then flips them to a new homeowner. All houses sold "as is."
"Basically, assume the worst," Jar House CEO Zareh Najarian explained. "We don't want to mislead you. Hire an inspector."
But a Newnan homebuyer says Jar House never warned him the septic tank system was not functioning properly, even though his lawsuit says Jar House was given just that warning from the previous owner.
"They knew it," complained Matt Thompson.
Meanwhile, a Senoia family has to live in the driveway of their new house, squeezed into an RV, because they discovered mold and termite damage hidden in the "just been renovated home."
They're also suing Jar House, accusing the company of "chosing to conceal" the damage.
"They put brand new sheetrock over mold that could not have grown that fast," protested Shelley Hoppaugh.
But Najarian denies it all.
FULL STORY: www.fox5atlanta.com/news/i-tea...
I used to work for JarHouse and Najarian Capital and left. As a licensed real estate agent, this company is a scam and should be shut down. They are well aware of every issue and have lies to cover everything
Would you mind reaching out to Randy.Travis@foxtv.com? He'd like to hear more from you - Thanks!
Chelsea Horan sounds like they don’t care about anything but the Benjamin’s. I cannot wait to see this company get shut down, and the CEO thrown in jail. I don’t know for sure, but isn’t selling a home to someone while trying to cover of the fact that it has toxic mold in it considered criminal? Since toxic mold is called toxic for a reason. ☠️
100% Nothing Happens
You should report what you know to the family's lawyer. They need all the help they can get this company to buy the houses back.
@@fox5atlanta renovations need construction permits. Why not go to the city to see if there were permits taken out?
Jar house guy: "Hire an inspector."
Don't hide the damage, you sneaky little punk.
He knows inspectors are incompetent anyways. Hes safe either way
They knew exactly what to cover up to pass inspection. If you saw the other video, you could see their put nails in rotten wood, and if I could see that, I know professionals can, so they intentionally hid the true damage.
@Donald Duck so far i know the inspectors take samples. so far i know what they do in europe
As a home buyer you are supposed to do your own due diligence especially if the home is listed as is
@@cool-yt1zq Some of that damage is hidden in a way you'd have to damage the house to find it.
Honestly, who is stupid enough to buy any house handled by JAR after these incidents.
They'll just make a new company name and continue with their actions. Also when you are looking at a home advertised all you see is the real estate agents name.
myopinions46, my understanding from the different reports about this issue is that people signed contract saying they buy the house as is. This should be alarming to people. The problem is people like to buy houses that r ready to move and not invest in putting their own touch on house. Also, you can google search houses and look at extra information about the house in consideration. You will find a lot of info available about house, purchase dates, prices etc...when people are making such a big purchase, they have to be extra careful.
All houses are bought as is actually once the contract and escrow is complete. But someone purposely covering over mold should be punishable that's willful intent to decsiev.
These buyers hired inspectors to inspect the house. But even the inspectors couldn’t find the mold because the houses were newly renovated and all the problems were purposely concealed. So how is it the buyers’ fault?
They'll just change their name of the business.
That's what corruption does.
You can just tell the CEO can't look someone in the eyes when he lies.
yeah I noticed that too. Clear pathological lying.
Flipped homes are so risky. Better to buy an outdated home and fix it up yourself.
Well done Teacher. You called it.
Yep, doing that now. I just don’t trust others.
CEO is full of crap, he knew those homes were bad. Inspectors dont tear down drywall to check for mold. I hope both families win, POS.
When you flip a house you usually make updates to the floor plan to match current trends, unless your just cheap and lazy, so yeah you cut into the walls and you see what’s going on. So to answer your question Jar, you are expected to know what’s going on behind the walls. If I was the home owner, I would ask my layer to do a discovery and ask for a list of renovation cost and materials. This should give them a rough idea of what was replace, with just the list of items on the manifest. Then I would talk to the contractors that did the work.
When a person buys a house, nobody ever tells them or gives them warnings that there is mold behind the walls and how dangerous it is.
Our home inspector would jam a screw drive into walls, supports, stair, siding causing damage to see how it would take it. He broke two windows which were stuck shut. It all saved us from a few bad homes and to add info to lower the price to REAL value
Get Off Your Bass And Lets Fish you realize that it’s illegal to cause damage to a home during inspection? This is a total lie lol
My home inspector would use 25 lbs of dynamite and then inspect the ash for traces of mold. If all clear, then I'd consider buying.
Sit down
He is not even apologizing
I work around a few real estate investors in Atlanta and you should NEVER buy a house that has been renovated. 95% of them cover up and mold, spray a little Kilz, put new paint, drywall and sell you a 30 year loan. Turd with a tuxedo or Lip stick on a pig they call it. Example, they save $45 by buying cheaper nails and after a few years the cheap nails will start coming out of the drywall looking like warts. They don't waterproof basements, and when your stairs start squeaking you know they went cheap on the 2x4s etc. It's a sad thing. Never buy a house that's even close to being on a flood plain i.e. at the bottom of a hill etc. When you're buying a home to put yourself and family in, please pay attention and beware before selecting a house.
Do not buy newly renovated homes! Unless you were involved in the renovation.
body language... he looks away when he answers the questions. This is a scam and should be shut down. It’s honestly like buying a mystery item without knowing what it is
So his reasoning was why didn’t the buyers do their research. So basically why didn’t the buyers make sure I wasn’t ripping them off. Scum bag.
Is a home inspector enough to protect you? Hell no... half of them don’t know jack and don’t bother looking in/under/around anything even where they should
They don't have to. It cost extra and some does nothing anyhow.
100% true. Hometeam inspectors did my house were they ever incomperent. They took the cover off the fuse box and didnt know the box was overloaded with double taps
I have to admit... you shouldn't trust them unless they have a great history. My brother took 3wks to train/study for inspections before he tagged along. Within a couple months of starting his study, he was inspecting alone (and with a partner). that doesn't sound like a lot of time to me.
What's the point of an inspector if they can't really inspect it.
I want to make a company called:
BUY OUR POLISHED TURDS
Or
OTHERS DO THE WORK DONT BLAME US
Free paint can mask the smell of mold. yes. Inspectors can't and won't open walls to see if there is mold. yes. But that doesn't stop them from getting an air quality test for mold in the house, esp. when they are aware such issue may exist (leaky pipes = mold). This company seems like a scam, and the owner is obviously lying about what he did or didn't know but I'd say some of the blame is on the homeowner(s) for not a) doing their due diligence and b) assuring the work is fixed prior to moving in. In the case of the septic system, well, you can only really fault JAR if the homeowner can prove that the issue was pre-existing and that JAR KNEW about it yet didn't disclose the issue.
Lock this guy up!
Most foreclosed homes are not well maintained. Those contractors have no business in this profession. Tragic
An excellent report, and thank you Fox 5, for the followup. Keep up the good work!
I almost went into the business of house flipping after doing rehab construction for a couple years. I would NEVER pull this kind of crap. Then again, I'd likely avoid buying a house that bad to even flip. I'd be too afraid it would fall apart. But I have repaired a lot of damage of this type - mainly the termite damage.
It depends on the design of the house as to how easily an inspector can spot symptoms that point to this sort of damage. Saging spots in floors. Inspecting any place where water is likely to seep (water walls such as those where sinks and toilets are). Chimneys are also a common place for termites to hit.
scam company?....do not buy from them!
Bad when whole county is on on it
I wouldn’t be surprised if this guy ended up missing honestly. If they manipulate the law to work for them flawlessly and being this remorseless on television I really wouldn’t be surprised if society takes this into their own hands getting justice.
I almost bought a flipped house home inspection showed the entire plumbing system was defective saved my life
Sometimes first time buyers expect things like this go away by themselves, if you see a lemon coming your way stay away.
This guy again??
"here at Jarhouse we belive in 'out of sight out of mind' as in we will cover our eyes and paint mold because we are out of our minds"
I'm shocked their realtor didn't suggest getting a termite and mold inspection.
Moco Ono Even the septic system could have been checked and certified. First, forget about flippers and then be very suspicious about realtors unless you know enough about them to be totally comfy.
Pay attention during the interview 6:41 where you can tell that the Flipper does not even believe his own BS. His eyes give him away; it can no longer make I contact any longer and looks to the ground while figuring out how dishonest his BS sounds, even to him.
This is the second instant I seen this company do this to another family !!! This is unreal ! 😢
Man that guy is a crook! Hopefully the justice system actually does something instead of letting him continue to get away with this. May he burn in hell!
My inspector finds molds in walls even if there is no smell. He's a beast and checks water moisture levels in areas where there are water (directly underneath bath tubs if it's 2 story house). Choose your inspector wisely.
"I think that's a fair statement"
I think it's incredibly disgraceful to hand problems to a new owner and then say not my problem. Be honest with your customers and take steps to remedy problems. The termite damaged house should've been torn down and sold as a lot, that's incredibly unfair to not only put workers through conclement of known issues bt to knowing sell it misleadingly. I hope both families sue and win, while making the company JAR house pay for the repairs and lose their buisness license
Don't buy a flipped house EVER!
I run a septic truck and this is very common. It is ridiculous that a septic inspection isn't a requirement for buying a house. I deal with sad stories all the time. I recommend that guy talk to other septic companies about the price. Only systems that cost 60k are drip systems.
That’s like selling a weapon used in a murder, as is, with all the consequences that can come from it. Jar house should give their money back and it would cost less than litigation and court. Don’t buy from Jar House!! Boycott Jar House!
Welp it seems Jar House wanted to settle it with buying back the home and paying $10k over it, but owners seems to think that is too little of a compensation for what they have gone through. Idk, maybe they got greedy or maybe they really do think $10k compensation is too little. Hope it won't blow back at their faces in the court or they can be stuck with the house and broke after all the legal fees. These companies can hire expensive lawyers that know how to weasel their way out of stuff...
This why you always get a professional Home inspection including Mold, Radon, Water, Lead,and Septic
This company needs to be closed down.
Anybody else notice how shady the eyes are of the jar CEO???? You notice how is barely making eye contact?😞
These should be made to pay the money back then sent to jail SCAMING BASTARDS!!!!!!
This guy is full of it and knows exactly what's going on! He probably tells his contractors just do what you can to conceal what you can and make it look like it's brand new. Garbage! He's putting families lives at risk with little children! What a disgusting human being!!!
so did they win their lawsuit? I googled and can't find it. Fox?
These issues are very rare in Europe and in my country. The way of building houses is quite different, mostly concrete, bricks, stones, wood only for floors and roof. Basements everywhere (and real basements). Indeed, with the new fashion of wood structures and add ons for private houses, cheaper, and more "ecological", wait and see.
how about thermal imaging??
It would have been SO easy for him to admit and say "yeah, we messed up let's make it right" but he chose not to until he was exposed. Three people having issues out of "75 houses per month" would have been a drop in his profit bucket had he reacted promptly.
“Basically assume the worst” Who says that about their own company also an inspector can’t find mold in the wall unless they break the walls and they’re not going to do that
it is if your company hired to remodel! you were aware of any issues during that process!
The CEO is a total jerk, he lies straight until the end, so faking annoying
we just bought a new house 260k here in las vegas..ofcourse we got a inspector that mdfcker use a fckin drone and some infared sht to inspect the roof and some water leaking inside the walls..the house is so good theres no major problems
What a smart weasel
Throw the book at that JAR Head CEO. He's a crook.
Always, always get a FULL home inspection. A house is the most expensive thing you will ever buy. It is remiss not to do so.
Do your due diligence! Houses are a lot of money!
What about home insurance?
Lol.. blame the victim. I bet this guy has a lot of skeletons in his closet.
this is why I would check with the bank that forclosed on the house and check with other people who bought from that flipping company !
Reminds me of lemon law for cars
He need to pay them and others who were scammed
That “CEO” knows he’s getting rich ripping off everyone he sells to, he just does not care.
He blames the buyer, the buyers blame the company. The CEO seems like a smartass, he's smirking during the interview, he doesn't care about those people. You can't open up the walls during a home inspection to see mold, the company just put a fresh coat of paint on the walls and called it *fixed".
The US for ya, everyone is able to pass of the blame to 3rd party until it was nobody's.. like a oils spill, or other economic mishap its always a 3rd or 3rd of a 3rd party and 2 LLCs fold up the profiteers don't lose.
Finger pointing ,the ultimate scapegoat.
Seems like Jar house is buying any property they come across without evaluating the necessary rehab.
The company agreed to buy back the house and give them 10k. That's not nearly enough given all the hardships they've gone through
Class action suit y’all!! Get together and sue these assholes. They need to be put out of business.
This man is clearly a crook!!!
He's lying he can't even look the interviewer in the eye. Body language speaks volumes GREED WILL CATCH UP JAR CEO
That's why you get an inspector before !
Lol at 4:17 depends but yeah if you can look around plumbing entrances or utility spaces, eg go look around after specifcially taking a look at the paprwork for any potential isses for why you would not want the house (safety related/structural or other physical damage) ie if it is potentially acm or if the wiring is one of any or ,ore of the at least 9 infamous for either being unsafe or just so far out of date that they are a few decades beyond there expected usefil lisespan of electrical panels, or if the home was in the 1980s and 90s built with plastic plu,bing if its polybutylene or if it is insulated with Zonolite brand insulation, mainly also go check the outlets presumably each and every light switch and receptacle to certify the construction is legally been done as allowed by code etc or that it is an inhabitabke space andn ot a fire or electrocution or other trap, crawlspace where appliccable, or attic, even a basement if an unfinished one is present and if not check in other places just also check by testing using expected equipment for radon etc if an applicable risk able to be present in such a situation etc.
When they put the house as is u better know what u are doing. As is mean consider every is garbage, if a new renovated house sale as is that is a red flag
He should be sued for attempted murder...mold
OMG! How scary sad and tragic! It's like buying a vehicle "as is" no warranty! Your pretty much buying a Lemon of an American Dream!
I hope they get him to fix it.
The buyer doesn’t have to know anything about the house but if the agent knows they must disclose the information. Someone needs to lose their license.
They are still responsible, makes me sick. This guy lies so bad.
Right that right. Y’all got him on video admitting to his crime.
His body language and eye contact says it all. doesnt take an expert psychologist to tell you he might be hiding something.
Don't buy a flipped house. End of story. Flippers are concerned about their profit, not the living conditions of the home. Get a home inspection by a very good inspector. So sad those folks were taken.
I think its stupid that they declined the money plus more I mean why keep dealing with the home you just wasting money which you could be using to get the hell out of there and buy a real home
Because they are probably suing for a lot more than they were offered.
@@ConsciousnessisRough They were suing for punitive damages.
This obviously a fault of the third party. They did a lazy job and just winged mold removal by painting over it.
The CEO doesn't care because that's not his problem, it's the third party contractors.
Sounds like they could have been sued for attempted murder with that mold.
If people go to jail.... would stop doing these dirty business
A new remodeled home could last 25 years or more to start molding this house's already had molding
didnt i just watch another video of the SAME COMPANY scamming people by selling them shitty properties? wth
This is very unfortunate very dishonest work from the flippers. A local termite inspector(termite/wood rot/fungus) should have been used along with a home inspector.
Lets all pray that the corporate criminal slime gets gutted in an alley : )
Mr. Najarian obviously cares about money, not people.
What a piece of work. 👎🏽
Typical Realtor and home flippers. Buy cheap and fix cheap is their motto.
I wish buying a moldy house was the worst time of my life lol
The money pits ..... to be continued
they should just get the money and buy a proper house, no reason to be greedy and wait who knows how long for a lawsuit to come trough
Well call someone like me who works for servpro. We deal with stuff like this all the time.
If he offered to buy back the house and give them $10k, I would not give them anything but their money back if it went to a jury trial. Greed on all sides.
Well people use your company for the reason to not have to do everything there self wait didn't you guys replace the walls
Dude smirk at 3:50 like he got away with offloading these piece of sht homes...
He concealed known damage and will get sued out his pants. I wonder if he lost his license and everything
So they expected a family to live in a molded house and get health problems. So they could flip a house for $120K.
pure guilt.
Jar house sleazy af