Sunday, June 29, 2014
The depravity of real estate gurus should not shock me. After studying them for more than thirty years I thought I had seen and heard it all.
A guru banned for life from the real estate industry due to court convictions selling home study courses on how to become a successful property investor.
A guru selling seminars on how to make a fortune with foreclosures who lost their own home in a foreclosure because they could not afford the mortgage payments.
A guru who gets young underage girls drunk at their seminars for the purpose of seducing them.
I could go on and on and on and on. Trying to find an honest real estate guru is the equivalent of searching for a virgin in a whorehouse.
But this new story was unbelievable until I saw the evidence.
The facts run this way.
A major real estate guru was actually a genuine property investor. In fact, they owned so many rental properties they opened a property management office where they handled their own rental units but also expanded into managing the properties of other investors.
Unlike what they said in their books and course materials, their properties were financed conventionally with normal down payments and regular mortgages. No creative real estate hanky-panky or other nothing down nonsense.
So far, so good. Congratulations I would have said.
But there was a catch.
The guru raised the down payments to buy their rental properties by selling cocaine out of their management office.
No, this wasn't some nice person selling grams of blow for his friends on the weekend. This involved quantity and lots of it. LOTS.
The only reason I'm not posting the guru's name and some of the documents I've seen is this guru stopped selling dope when they started peddling get rich quick real estate home study courses. There is also no evidence they are still selling drugs.
Imagine that. You can make more money selling nothing down courses and seminar tickets than cocaine. At least this guru did.
Just amazing. And despicable.
Thursday, June 5, 2014
Real estate guru Randy Poulson has been arrested by the FBI in New Jersey for swindling $3 million from more than fifty of his own students and other investors.
Watch the video above from a local news station announcing his arrest and you can see Mr. Poulson teaching his students all about subject-to "Get The Deed" and other foreclosure rescue investing.
Then read the criminal complaint filed in the U.S. District Court of New Jersey against Poulson.
In the world of creative real estate and get-rich-quick gurus, this is nothing new.
Deja vu all over again.
Wednesday, June 4, 2014
Here are some interesting statistics to think about.
According to the National Bureau of Economic Research, the official organization which keeps records of such facts, the Great Recession which began in December 2007 ended in June 2009.
Historically, the two longest recessions in American history lasted 16 months (1973-1975 and 1981-1982). The Great Recession was 18 months. A person predicting the end of the really bad Great Recession at its start would have been nearly correct, off by just two months.
Historically as well, the average economic expansion since the end of the Second World War has been 57 months.
If the current economic expansion began in June 2009 and is 57 months in length, the next recession can be expected to begin in March 2014.
What happened in the first quarter of 2014? US GDP declined 1%, the first contraction in U.S. economic growth in three years.
Food for thought.