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


Forbes

Spring's 2018 Real Estate Market Is A Good News Bad News Story
Forbes
The Spring 2018 real estate market is a good news bad news story. A recently released report from Arch Capital MI points to affordability slipping, inventory declining while interest rates and housing prices rise. Key findings from the Arch Capital MI ...



Forbes

The Blockchain For Real Estate, Explained
Forbes
There is a lot being written about blockchains, bitcoin and related technologies, and for many real estate professionals, this is part of a brave, new, confusing world of technology. Like the original internet, the blockchain is a revolution in ...



Daily Beast

Why Should Hannity Have to Disclose His HUD-Backed Real-Estate Empire?
New York Magazine
Sure, they had “occasional brief conversations” about “legal questions,” which “exclusively, almost, focused on real estate.” And Hannity didn't pay him? Correct, he “never paid Michael Cohen for legal fees.” But they both think this fell under ...
Hannity Owns Real-Estate Empire, Linked to Shell CompaniesDaily Beast
Sean Hannity Reportedly Owns a Real Estate EmpireSplinter (blog)
Sean Hannity Linked To Multi-Million Dollar Real Estate EmpireTPM
The Real Deal -Washington Examiner -AlterNet
all 103 news articles »


Fortune

Climate Change Is Already Depressing the Price of Flood-Prone Real Estate
Fortune
New research shows that real estate properties in areas affected by extreme weather and sea level rise are losing value relative to less exposed properties. The effects are already substantial, but they may point to a looming collapse as climate change ...



USA TODAY

Sears CEO Eddie Lampert offers tentative deal for real estate, Kenmore
USA TODAY
Sears Holdings CEO and hedge fund investor Eddie Lampert has offered to potentially buy the distressed retailer's real estate, Kenmore brand and other assets. Lampert's hedge fund disclosed Monday that it had sent a letter to the retailer on Friday ...

and more »


Sarasota Herald-Tribune

REAL ESTATE PEOPLE
Sarasota Herald-Tribune
Jackie Avenia has joined Sunset Business Brokers International LLC, in Sarasota. She has been a licensed Florida real estate agent since 2015, and recently acquired the Seniors Real Estate Specialist designation. She works in residential and commercial ...

and more »


Buffalo News

Erie County Real Estate Transactions
Buffalo News
Following are real estate transactions over $5,000 as listed in records of the Erie County clerk's office for the week ending March 16, 2018. ALDEN • 13185 Broadway St., Paul R. Hunt; Pauls Bike&sports Center to Eggink Rei, $275,000. AMHERST • 22 ...



Updated presentation for investors of INVL Baltic Real Estate
GlobeNewswire (press release)
INVL Baltic Real Estate announces an updated presentation that will be used for the meetings with investors. Compared to the presentation, which was published on 21th December 2017, the Company informs that the information related to the terms of the ...



Charleston-area commercial real estate sales
Charleston Post Courier
James Dingle of Coldwell Banker Commercial Atlantic represented The Corner of Awendaw Associates LLC in its $375,000 sale of a 2.5-acre lot at 5030 Highway 17 to Charleston County. Goose Creek. Jack Owens of Lee & Associates represented Mims Amusement ...



BRIEF-CONSUS Real Estate Realises Cash Inflow Of EUR 131 Mln From Recent Vauvau Forward Sale
Reuters
BRIEF-CONSUS Real Estate Realises Cash Inflow Of EUR 131 Mln From Recent Vauvau Forward Sale. Reuters Staff. 1 Min Read. April 23 (Reuters) - CONSUS REAL ESTATE AG: * DGAP-NEWS: CONSUS REAL ESTATE AG: CONSUS - REALISED CASH INFLOW OF EUR 131 MILLION ...


Google News

home | site map
© 2006 TIGER MEDIA