Real Estate Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Real Estate Investing: Infomercial and Mentoring Scams


Flipping through late-night infomercials recently, I saw two real estate get-rich quick schemes, and I couldn't help but wonder why people still fall for those old scams? Has anyone really talked a seller out of his home for no money down with owner financing lately?

Real estate infomercials do great harm to beginning investors, who waste hundreds of dollars on old information. Worse yet, those beginners soon get discouraged and miss out on the true (and profitable) adventure of real estate investing.

One of the most popular late night infomercial shows tells beginners that it's possible to make a fortune by buying houses with no money down and then renting them out to cover the monthly payments. It's true that you can buy a home for no money down, but the requirements include having good credit, good income, and the home should be owner-occupied.

Rentals don't normally qualify for no money down financing. Institutional lenders aren't supposed to make no money down loans on investment properties, and even if you could buy an investment home with no money down, the monthly payments would generally eat up the rent.

Late-night scammers also claim that investors can get owners to pay the closing costs, including the down payment. But when a lender asks where your down payment will be coming from, saying, "the seller" is not the right answer! Today's sellers are also fairly savvy, and understand that with no money invested in a property, a buyer could easily walk away and leave them with a home that's been ruined by careless tenants.

Another TV program offers a bogus system for buying houses at ridiculous prices, but think about it: has anyone bought a home, free and clear, for $345.00 at a tax sale recently? Hordes of investors flock to the tax sales in the area where I live, bidding up the prices of foreclosure properties far beyond a few cents on the dollar. It just doesn't happen.

Today, another real estate investment scam is popular in Southern California. Here's how it works: a young person we'll call Charles charged $4,000 on his credit card to hire a real estate "mentor," after the mentor wined and dined him at a fancy Beverly Hills restaurant.

In exchange for the fee, the mentor instructed Charles to find distressed houses by driving around the area and writing down the addresses of ugly houses in nice neighborhoods. Once Charles had given him the addresses, the mentor obtained the owner's address and sometimes a phone number. Then it was up to Charles to call the owners and talk them into selling their houses for no money down, and carrying the paper, too!

I met Charles when he called me about buying a property that my husband and I had on the market for $1.2 million. When I asked him how such a young man was going to make the payments on $1.2 million home, he told me that he planned to rent the house out for enough to make the payments.

As a real estate investor myself, I tried not to laugh at his naivete, and after talking to Charles and listening to his frustration about trying so hard to follow his mentor's advice, I offered to help him find a property, and I'm happy to say that Charles now owns his own home. But he'll still have to spend years paying off a $4,000 credit card bill.

If you want to make money as a real estate investor, a good first step is to buy your own home, like Charles did. You can do that for no money down if you have good credit, or for a relatively little amount of money down if your credit is poor. Once you've purchased your own home, fix it up and then either sell it or refinance it and use your profits as the down payment on an investment property.

Don't pay hundreds of dollars for out-dated methods that may have worked in the middle of last century! They're a waste of your time and money. Real estate investing is truly a great way to make a fortune, but you must stick to tried-and-true proven strategies, ones that work in today's real estate market.

(c) Copyright 2004, Jeanette J. Fisher. All rights reserved.

Professor Jeanette Fisher, author of Doghouse to Dollhouse for Dollars, Joy to the Home, and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, newsletters, and sales flyer template, see http://www.doghousetodollhousefordollars.com/pages/5/index.htm


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Torrington Register Citizen

Real estate notes, Jan. 20, 2018
Torrington Register Citizen
NORTH HAVEN — Dawn Calvo, CEO of the New Haven Middlesex Association of REALTORS® (NHMR) is pleased to announce the Association's 2018 Board of Directors. They are as follows: President Joel Grossman, Calcagni Real Estate, Wallingford; President-Elect ...



Sun Sentinel

Where are South Florida's 8 Amazon headquarter sites? Real estate experts identify potential candidates
Sun Sentinel
With South Florida as a finalist to be the home of a second Amazon headquarters, real estate experts have identified potential candidates for a site, which would bring 50,000 new jobs and a $5 billion investment. The sites are all conjecture, however ...

and more »


Sun Sentinel

Ask a real estate pro: Can you speak at an association meeting with a proxy? That depends
Sun Sentinel
Board Certified Real Estate Lawyer Gary Singer explains what a homeowner association proxy voter is. Gary M. Singer. Privacy Policy. A: My condo association is going to have our annual meeting and our neighbor is going to be representing her son at ...



Forbes

Mattress Firm Fraud Defendant Claims Retailer Has 'Unclean Hands' In Real Estate Conspiracy
Forbes
Former in-house real estate executives Bruce Levy and Ryan Vinson, former Colliers International Atlanta executive Alexander Deitch, along with three developers and their principals — Nashville-based Oldacre McDonald, Illinois-based Quattro ...



Bisnow

Amazon Seeks Community Connection With Its Real Estate
Bisnow
Attention Atlanta: Amazon's head of real estate has a message about what type of real estate it wants in a headquarters. It is all about community. While Amazon is not about leasing space in trophy towers, Vice President of Global Real Estate and ...
Amazon's real estate chief just outlined the company's top priorities for HQ2Puget Sound Business Journal (Seattle)

all 2 news articles »


The Real Deal Magazine

Commercial real estate in the age of #MeToo
The Real Deal Magazine
As West Coast senior vice president of development for Seritage Growth Properties, Kacy Keys has reached a level of leadership that women haven't often achieved in Los Angeles' commercial real estate scene. But the road to Keys' powerful perch was not ...



The Providence Journal

Real Estate Notes: Waterfront Portsmouth home sells for $1.67M
The Providence Journal
29 for $1.67 million, according to Lila Delman Real Estate International. The sellers of 15 Hammel Court, Joseph Pasquale and Caren Demoulas, were represented by Delman associate Alex Thursby. Teri Degnan Real Estate & Consulting represented the buyers ...



Real-estate transactions: Jan. 19, 2018
Peoria Journal Star
These transactions, recorded the week of Jan. 8, are compiled from information on file with the respective counties. They represent sales of $78,000 or more. PEORIA COUNTY. 3711 S. Granville Ave., Bartonville, Larry W. and Marilyn R. Davis to Clyde ...



Miami Herald

Some impacts of new tax law on local real estate are clear. Some aren't.
Miami Herald
Even though the sweeping tax reform bill was signed into law on Dec. 22, the massive document is so dense that even seasoned real estate professionals aren't entirely sure what it will mean for Miami. While some of the bill's real estate provisions are ...



SouthCoastToday.com

Real Estate Newsmakers
SouthCoastToday.com
“Sarah Korolnek has a passion for customer service and strategic planning, honed through over 15 years of experience in corporate executive roles,” a press release from the agency stated. “Her clients benefit from her keen ability to solve problems and ...


Google News

home | site map
© 2006 TIGER MEDIA