Real Estate Investing Tips, Strategies, and Insider Information for Making Money Investing In Today's Real Estate Market.
Some movies just make you tick giving you that needed nudge to go out and do something.
Here are some clips of some of my favorite movies of all time.
I have to warn you though, some of these clips contain very strong language. So, if you’re easily offended, then I urge you not to watch. Otherwise, enjoy:
My all time favorite- The Boiler Room Interview:
Wall Street
Glengarry Glen Ross
Any Given Sunday- Al Pacino
Howdy folks,
Welcome to my first ever Free Question Friday where I answer your questions. This will be an ongoing segment to the Success REI blog published every Friday with either a video or a podcast.
If you have a question, I’ll have a form added to the Contact Page in a couple of days for you to submit your questions to.
Here’s the first Free Question Friday edition:
I was on the phone today with an investor friend of mine that I’ve known for several years.
Just so happens, he’s wrapped up some real estate training with one of the well known gurus that’s teaching how to get a credit line for your real estate business regardless of your current personal credit ratings.
Anyway…
He was describing how the “guru guy” was teaching how you could get a credit line, then give homeowners in preforeclosure a 2nd mortgage to bail them out, then when they quit making payments (which is obviously going to happen 99% of the time) you can then foreclose and get the house. And if they make you payments – you charge a 18%- 24% in interest. And of course, you have a ballon so that they don’t drag it out.
Pretty smart huh?
Not so fast…
As my friend was explaining it – I stopped him and said “this guy is f****ing nuts – that’s extremely risky.”
He gets real defensive and starts explaining how you only loan money to those with lots of equity.
I stopped him again and said – “It’s risky because of the legal issues!”
See, this little technique was a new idea to my friend but has been taught in seminar land for years and it has a legal name for it called:
Predatory Lending
It’s when you give a homeowner a loan knowing the homeowner has no way to pay you back. This happens to be one of the fastest ways to get you in court causing you lots of legal drama.
And when real estate investors go to court over one of these instances- there’s a prejudice that you are the “fancy pants” professional and that you’re taking advantage of the poor homeowner.
That’s the truth
Now go ahead and tell me you have a fool proof way of making this little technique work- break out your disclosures, break out your CYA letters-
I don’t care.
This IS NOT a legitimate investment strategy!
Personally, if I’m not able to buy the house because the seller is wanting a loan, then I don’t offer a loan, I don’t offer a leaseback – I simply move on or look at approaching the deal from another angle.
Right now, there so many legal cases surrounding this very technique and also using leasebacks.
Leasebacks are when you take the house “subject to” then lease the home back to the homeowner.
Stay away from both of these techniques and realize anyone telling you otherwise is full of shit.
I made a post with a video about using the sale leaseback you can see here
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