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Curious, can someone explain this?

 
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amother




OP
 

Post Tue, Apr 20 2021, 9:52 pm
I saw an ad for a tzedakah raffle for a house in Toms River (https://oheltorah.dlstudio.co/home/campaign for the curious - hope it's okay to post).

How on earth does this make sense?

They are selling 1000 tickets at $1000 each, which should bring in $1 million, minus transaction fees.

Every 100 tickets they sell they are having a raffle for $10,000. That is $100,000.

Then they are raffling off a house (or a cash prize of $500,000).

So if the winner takes the cash option they walk away with less than $400,000.

The house is probably worth $700,000 or so.

Either they have the house (I.e. someone donated) or else they're buying it with the raffle proceeds.

If the former, why didn't they just sell the house and they'll walk away with $700,000 (more than the raffle brings in) and no raffle needed?

If the latter, they'll end up with what, $200,000? They're driving themselves crazy to raise a million dollars to keep under 1/5?

I'm just befuddled. Or am I missing something?
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cnc




 
 
 
 

Post Tue, Apr 20 2021, 9:58 pm
That house is tiny for Toms River standards and is not worth anything near 700k.
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amother




OP
 

Post Tue, Apr 20 2021, 10:02 pm
2700 sq ft with volleyball courts and heated pool is tiny? Cool!

https://www.zillow.com/homedet.....zpid/ You're right though, it says estimated worth is $550,000.

Still seems like an awful lot of effort for a relatively small return.
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amother




Olive
 

Post Tue, Apr 20 2021, 10:35 pm
I assume the house is already owned by them or a donor wants to give it for a tax deduction
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amother




OP
 

Post Tue, Apr 20 2021, 11:13 pm
amother [ Olive ] wrote:
I assume the house is already owned by them or a donor wants to give it for a tax deduction

So why wouldn't they sell it? $550,000 is more than the under $350,000 they would (seem to) stand to gain.
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amother




Olive
 

Post Tue, Apr 20 2021, 11:35 pm
amother [ OP ] wrote:
So why wouldn't they sell it? $550,000 is more than the under $350,000 they would (seem to) stand to gain.

If I buy a house for 100,000 and sell it for 550 I pay taxes on the profit.
If it was bought for 100 and donated, no taxes and it’s actually a deduction.
(And I assume it’s with a lot less than they are valuing it at)
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boysrus




 
 
 
 

Post Tue, Apr 20 2021, 11:42 pm
just looking at the house out of great curiosity, because I have never been to Toms River and couldn't imagine a house that size being considered a small house!

.... it is clear that the house is not being donated, it is clearly not currently owned by a Jew. If you look at the pictures, you will see that there is a big cross on a wall and plenty of little figurines in one of the pictures.
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Notsobusy




 
 
 
 

Post Tue, Apr 20 2021, 11:43 pm
boysrus wrote:
just looking at the house out of great curiosity, because I have never been to Toms River and couldn't imagine a house that size being considered a small house!

.... it is clear that the house is not being donated, it is clearly not currently owned by a Jew. If you look at the pictures, you will see that there is a big cross on a wall and plenty of little figurines in one of the pictures.


It could very possibly be owned by a Jew and rented to a non-Jew.
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amother




Scarlet
 

Post Wed, Apr 21 2021, 12:26 am
Maybe the owner of the house is planning to sell it to the Yeshiva at below market price - not donate it outright.
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amother




Olive
 

Post Wed, Apr 21 2021, 9:28 am
Notsobusy wrote:
It could very possibly be owned by a Jew and rented to a non-Jew.

You made me curious so I checked up the owner. It's owned by a frum person who works in real estate. I assume he is donating or giving it at reduced price.
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Ema of 4




 
 
 
 

Post Wed, Apr 21 2021, 9:33 am
But what does the kitchen look like????
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amother




Dodgerblue
 

Post Wed, Apr 21 2021, 9:33 am
If you own a house and sell it, you don’t make all the money that the buyer pays. How much do you owe on the house? Usually people take out a mortgage.
So if they own it and are raffling it off, they make more money than flipping it and donating the proceeds
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amother




Pumpkin
 

Post Wed, Apr 21 2021, 9:49 am
The 2 rooms shown are nice and the property is beautiful, but I was so surprised that no bathrooms are shown, no kitchen/living/dining room, or the 2 other bedrooms.
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