Monday, July 25, 2011

Example of Short Sale Fraud

Get-rich-quick real estate gurus like to claim that they have all the answers.  But in reality their advice is literally a legal mine field of half-truths and quarter lies.  Few buyers who are dumb enough to try some of the techniques used in these high priced courses and seminars will remain unscathed for long.

This is the very reason why most get-rich-quick real estate gurus also sell Asset Protection Courses on avoiding lawsuits and court judgments.

Get the relationship between the two?

I recently reviewed a "Get Rich in Short Sale" home study course by a relatively famous real estate guru.  Numerous opportunities which they characterized as "profit centers" in my opinion were nothing short of fraudulent activities.

One of them involved the flipping of short sale properties by failing to make EXPRESS disclosures to lenders.  They believed IMPLICIT disclosures or inferences were enough to satisfy the legal requirements.

Sorry.

Here is what happens when that is tried in the real world.  It involves a trip to U.S. District Court as a criminal defendant.  What is important is that the VERY SAME ACTIVITY detailed in the guru's home study course was used by this real estate agent facing Federal jail time.

Can you REALLY make money in short sales?  Sure, of course, but it is NOT NOT NOT as the gurus with their slick haircuts and shiny shoes contend.  Speak to genuine real estate agents who specialize in short sales or investors who make a living in the area.  It is LOTS of hard work and even then many decent deals fall through for no reason other than bank capriciousness.

The bottom line here is simple.

The more a real estate course screams EASY MONEY or FAST PROFITS, the faster you need to close your wallet and run away.

For the record, I am not naming the guru or their course because they asked my opinion privately and I agreed to give it.  That said, this warning is a general one and applies to many short sale courses, not just one in particular, and this guru knows exactly how I feel.