Thursday, July 9, 2009
Community - South County
Comment

Drawing for $50 house postponed a second time

Published 01/02/09

If you've been waiting to win the Edgewater house that's being raffled off for charity, hold on tight to your ticket.

Joshua McKerrow — The Capital Tom Walters is raffling off his historic Edgewater home along Solomons Island Road for charity, at $50 a ticket. The drawing date for the home at 1 Poplar Point Road has been pushed back to Jan. 23, and the last day to buy tickets is Jan. 21.
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The drawing, which was supposed to be held Wednesday, has been pushed to Jan. 23 to allow time to sell the necessary number of $50 tickets. It was the second time organizers had to bump the event. Originally, it was supposed to be held in September.

"We unfortunately had to extend it," said Tom Walters, the house's owner. He added that the ticket sales target has been lowered from the original goal of 31,500 down to 27,000. As of Wednesday, about 22,000 tickets had been sold.

The last 5,000 tickets are necessary to cover the sales price and closing and other costs, he said. But hopefully, with the holidays over and the appearance of some last-minute buyers, it'll happen, Mr. Walters said.

"It's looking really good right now," he said. The last day to buy tickets is Jan. 21.

Mr. Walters and his wife decided over the summer to raffle off their home, a 4,400-square-foot house dating to the 1840s, and give the proceeds to a charity.

They picked We Care and Friends, a local nonprofit organization that helps rehabilitate drug addicts and alcoholics. The organization should receive$150,000 from the raffle - money that founder Larry Griffin said is needed this year more than ever.

"This family is like angels to us," Mr. Griffin said. "We don't know what's going to happen in 2009. There's a lot of folks out on the street."

The drawing was also pushed back partly because the project has been a learning experience for everyone involved, said Delores Hawkins, administrative assistant for We Care. Small snafus have cropped up and been solved over the past few months, like figuring out how to process credit cards and checks and getting government approval. A problem with getting valid e-mail addresses from every buyer was finally solved last week, Mr. Walters said.

"This has been a way, way bigger job than I imagined," he said.

As it evolved, the project took on a life of its own. It has been profiled on CNN, ABC and "Inside Edition" and in newspapers including The New York Times. Mr. Walters was interviewed by a morning television show in Australia and by reporters in Germany and Switzerland. People in those countries actually bought tickets in the raffle, he said.

And as the economy unraveled, stories started coming in from people who are putting their faith in their chance to win. One woman who bought a ticket had lost her house in Hurricane Katrina; another family had suffered a string of illnesses, Mr. Walters said.

"What we didn't expect was the hope they've been getting (from the raffle) in a tough time," he said.

Everyone who bought a ticket was notified of the new drawing date, which will be held at Westfield Annapolis mall. The winner will receive the house free of mortgage or liens and will not be required to pay any closing costs.

To purchase tickets, visit www.fiftydollarhouse.com, or call 443-758-5164.

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Is this legal? - January 23, 2009

How is this raffle (occurring today at the Annapolis Mall at 5:00pm) even legal? The Anne Arundel County Criminal Code on raffles states, "Title 13 - Section 405. Raffles. (a) In general.- A bona fide fraternal, civic, war veterans', or charitable organization, or a volunteer fire company may conduct a raffle in the county for the benefit of charity if: (1) the raffle is conducted to further the purposes of the organization; and (2) no individual or group of individuals financially benefits from the holding of the raffle or receives any of the proceeds from the raffle for personal use. " Seems to me, all the proceeds will not go to the charity and the current owners will benefit greatly...??

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Rob C. - Riva, MD - Karma: Bad


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Not really a scam.... - January 21, 2009

I'd be happy to take a $400,000 mortgage on a home worth at least twice that much. The problem is that the organizers only mention tax liability in the small print on their website. Many people who can afford a $50 raffle ticket can't afford a $400,000 mortgage to cover the taxes and haven't considered how that will affect them, so hopefully the winner won't have to forfeit the prize because they can't afford it. Just because you win the house free and clear doesn't mean Uncle Sam doesn't get a piece of the pie. This is a smart way to unload a house in this market when you're in over your head. I just hope that the winner knows what they will be held liable for.

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Ben P. - Upper Marlboro, MD - Karma: Bad


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A SCAM IS A SCAM - January 5, 2009

The Capital needs to call this what it is - a scam! These people are trying to flip a house after the market turned sour using charity as a poor excuse to turn a tidy profit. Donate the $50 to a worthy cause instead.

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Charles J. - St Johnsbury, VT - Karma: Bad


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More tax man info... - January 5, 2009

And if you get a "mortgage" to cover your tax burden, because you don't happen to have $400k lying around, that mortgage will cost you about $2400 per month based on going rates and terms; thereby saddling this "win" with a loan that you the "winner" has to pay to the banks ready to give you a mortgage. So who "wins", well that would be the seller, the realtor, the IRS, The state, the bank...the "losers", YOU, and the would be beneficary of this scam; the charity!!!

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Robert R. - Harwood, MD - Karma: Bad


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SCAM! - January 3, 2009

I'll bet fifty bucks they postpone again!

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Jean R. - Annapolis, MD - Karma: Neutral


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The Tax Man... yeah... - January 3, 2009

Don't forget that when you buy a ticket for $50 and win, say... $1,000,050 worth of anything, you now owe taxes on $1,000,000 of income. Between the State & Fed, expect 40%. You may get the property free of liens buy you will certainly owe $400,000 in taxes if you "WIN". Kevin A. (Recovering Accountant)

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Kevin A - Washington, DC - Karma: Bad


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And more math... - January 3, 2009

In comments from a previous article on this raffle, Mr. Walters states: "We as the owners, receive the appraised value and We Care and Friends receives the rest." So sadly, after all of the "expenses" to hold this raffle the charity may get even less than anticipated. I'm sure the appraised value is from earlier in 2008 before the housing market tanked. I really hope The Capital will do a follow-up story on the winner and how the proceeds were distributed.

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MD Native - Knoxville, TN - Karma: Bad


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What a JOKE - January 3, 2009

GREED disguised as a charitable cause--how nice during this economic crisis our country is facing. The "winner" of this scam gets what they deserve. GIVE the MONEY *DIRECTLY* to the charity of your choice and stop these scammers from making a huge profit on their untimely flip. THEY are FLIPPERS and have likely realized they probably owe more than their house is worth or can afford (like many people these days!) While it looks like a good cause the charity gets a mere pittance in comparison to their windfall. WAKE UP LEMMINGS!

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MD Native - Knoxville, TN - Karma: Bad


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Do the math... - January 2, 2009

Per the State of Maryland Land Records website the owners owe about $808,000 and they have sold/pledged roughly 24,100 tickets which equates to a total of $1,205,000. After 10% donation to charity (percentage based on information from prior Capital article) of $120,500 that gives the owners an estimated $276,500 profit after paying off existing liens. It seems to me that they keep pushing the drawing back in order to put more money in their pocket.

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Concerned Citizen - Annapolis, MD - Karma: Bad


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Snakes.... - January 2, 2009

This is an outrage and folks are being lined up like fish, hook-line-sinker. If you are taking this chance to win a house under the pretense of helping needy folks you have been taken. You should be ashamed of yourselves wanting to "help" others if there is a benefit in it for yourselves. This is one of the greatest examples of greed and selfishness I have ever witnessed. I am truly appalled at this story and it's perpetrators.

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Robert R. - Harwood, MD - Karma: Bad

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