Comments on: Beware of Fraud Peddling Real Estate Scam Artists, Consultants, and So Called Experts http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/ Learn, Network, Invest Sat, 11 Feb 2012 01:23:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Thomas Bartkehttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-71746 Thomas Bartke Tue, 22 Sep 2009 00:41:59 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-71746 Michael:This is a great post! Thanks for sharing! I continue to run into frustrating experiences with scam artists. It seems like whatever you try to put together a win-win deal with a seller and/or buyer as an investor, there is already a scam that "beats" our solution in a one-up-man-ship way.The next wave in this seems to be "mortgage elimination" scams...Best, Thomas .-= Thomas Bartke´s last blog ..<a href="http://cawholesaledeals.com/blog/613/instant-investor-cash-cycle-free-webinar/" rel="nofollow">Instant Investor Cash Cycle – FREE Webinar</a> =-. Michael:

This is a great post! Thanks for sharing! I continue to run into frustrating experiences with scam artists. It seems like whatever you try to put together a win-win deal with a seller and/or buyer as an investor, there is already a scam that “beats” our solution in a one-up-man-ship way.

The next wave in this seems to be “mortgage elimination” scams…

Best,
Thomas
.-= Thomas Bartke´s last blog ..Instant Investor Cash Cycle – FREE Webinar =-.

]]> By: Michael Creelhttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-58445 Michael Creel Thu, 17 Jul 2008 03:35:14 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-58445 They will always be around, but they're having a feeding frenzy on this mortgage crises. Credit repair and foreclosure specialist are popping up everywhere. They will always be around, but they’re having a feeding frenzy on this mortgage crises. Credit repair and foreclosure specialist are popping up everywhere.

]]> By: Stevehttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-58429 Steve Wed, 16 Jul 2008 20:33:36 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-58429 I've seen some of this in my real estate career. I have a real estate institute in New York. The best thing for consumers is to find an agent they trust. I’ve seen some of this in my real estate career. I have a real estate institute in New York. The best thing for consumers is to find an agent they trust.

]]> By: Foreclosures Way Up In 2007. A Time For Professional Advise | Real Estate Investing for Real Bloghttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54148 Foreclosures Way Up In 2007. A Time For Professional Advise | Real Estate Investing for Real Blog Wed, 30 Jan 2008 15:49:07 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54148 [...] If you happen to be one of the lucky few with golden credit and an eye toward buying a chunk of real estate, there will probably be bargains to be had. But, when there is so much pressure, as there is, to unload all those vacant houses, there is also a greater chance of getting caught up in a host of fraudulent practices. [...] [...] If you happen to be one of the lucky few with golden credit and an eye toward buying a chunk of real estate, there will probably be bargains to be had. But, when there is so much pressure, as there is, to unload all those vacant houses, there is also a greater chance of getting caught up in a host of fraudulent practices. [...]

]]> By: Michael Creelhttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54116 Michael Creel Tue, 29 Jan 2008 23:10:26 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54116 I'm certainly not going to claim there are no crooked Realtors in the world, but a majority of your crooks prefer to be unlicensed realty "investors". The license carries much oversight, fiduciary obligation, and legal repercussions for fraudulent activity. An agent must carry his license with a Broker, and that Broker must carry a hefty insurance bond. Brokers must keep records on all transaction for 3 years in their office files and are audited fairly frequently. So as you can imagine, if your out there doing shady real estate transactions and victimizing people, that's not really an ideal way to go about it. The mortgage officers had no such oversight, and anyone with a heartbeat could write loans for a broker. Statistically, most mortgage fraud has been committed via FSBO's due to the lack of oversight on that type of transaction. Most crooked deals are closed by attorneys because they are not required to be licensed escrow agents. Your big name escrow companies such as Ticor, Talon Group, and Chicago Title, etc. are pretty on the ball and will not let shady deals pass through their office. I’m certainly not going to claim there are no crooked Realtors in the world, but a majority of your crooks prefer to be unlicensed realty “investors”. The license carries much oversight, fiduciary obligation, and legal repercussions for fraudulent activity. An agent must carry his license with a Broker, and that Broker must carry a hefty insurance bond. Brokers must keep records on all transaction for 3 years in their office files and are audited fairly frequently. So as you can imagine, if your out there doing shady real estate transactions and victimizing people, that’s not really an ideal way to go about it.

The mortgage officers had no such oversight, and anyone with a heartbeat could write loans for a broker. Statistically, most mortgage fraud has been committed via FSBO’s due to the lack of oversight on that type of transaction. Most crooked deals are closed by attorneys because they are not required to be licensed escrow agents. Your big name escrow companies such as Ticor, Talon Group, and Chicago Title, etc. are pretty on the ball and will not let shady deals pass through their office.

]]> By: Allenhttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54112 Allen Tue, 29 Jan 2008 21:02:42 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54112 I have also been telling friends and associates for many months that I feel the bulk of the mortgage crises blame falls on scam artist (many posing as mortgage consultants), and the other posing as real estate agents!! Increasing sale price values of neighborhoods for that all mighty commission that they might miss out on and if the value of property is listed too low then they purchase the property from the seller to then in turn resell at a higher price. Have you ever noticed the initial crime seems to be thought up on the west coast and then prefected on the east coast (Florida were the average home is upside down $100k per Chase in house figures)? Is this crooked mortgages specialist or crooked realtor? Maybe a combination of both? I have also been telling friends and associates for many months that I feel the bulk of the mortgage crises blame falls on scam artist (many posing as mortgage consultants), and the other posing as real estate agents!! Increasing sale price values of neighborhoods for that all mighty commission that they might miss out on and if the value of property is listed too low then they purchase the property from the seller to then in turn resell at a higher price. Have you ever noticed the initial crime seems to be thought up on the west coast and then prefected on the east coast (Florida were the average home is upside down $100k per Chase in house figures)? Is this crooked mortgages specialist or crooked realtor? Maybe a combination of both?

]]> By: Andreahttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54102 Andrea Tue, 29 Jan 2008 15:17:48 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54102 I know of a Real Estate Agent/ Mortgage Broker and so called credit repair consultant. The last one of which he has no license or real experience in either profession. He preys on Old people, rich people,anyone of means. He starts talking about Real Estate and mortgages and ends up with. \”I\’m a sports consultant\”. He poses as that both in Vegas and in the Clearwater, Tampa Bay area. Be very aware of a person named Tom J. working for a company with the initials KW. If you check the Tampa Bay area MLS service you will find that he is a licensed realtor and mortgage Broker but has sold maybe 1 home in the last five years and has closed just a tad more mortgages. I know of a Real Estate Agent/
Mortgage Broker and so called credit repair consultant. The last one of which he has no license or real experience in either profession. He preys on Old people, rich people,anyone of means. He starts talking about Real Estate and mortgages and ends up with. \”I\’m a sports consultant\”. He poses as that
both in Vegas and in the Clearwater, Tampa Bay area.
Be very aware of a person named Tom J. working for a company with the initials KW. If you check the Tampa Bay area MLS service you will find that he is a licensed realtor and mortgage Broker but has sold maybe 1 home in the last five years and has closed
just a tad more mortgages.

]]> By: Roger Williamshttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54063 Roger Williams Mon, 28 Jan 2008 18:21:23 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54063 Hi Michael,Great post. Very interesting to see the details of this stuff.I would also say that borrowers need to be just as careful with the big boys too. I see many loans originated by Wells Fargo, BofA, WAMU, etc that shouldnt have been written or that were not fully explained to the borrower at closing.As always 'buyer beware'.Roger Hi Michael,

Great post. Very interesting to see the details of this stuff.

I would also say that borrowers need to be just as careful with the big boys too. I see many loans originated by Wells Fargo, BofA, WAMU, etc that shouldnt have been written or that were not fully explained to the borrower at closing.

As always ‘buyer beware’.

Roger

]]> By: Michael Creelhttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54040 Michael Creel Sun, 27 Jan 2008 18:23:44 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54040 It really depends on why a person is buying a home. If it's an investment, and you have no desire to keep it for the long haul, then the best strategy is to hold it as cheaply as you can. If you want to live in it for many years to come and make it your home, then you want to pay as little as you can to own it.On one property I put 150k down, and financed 350k; the payment for the first year was just $1,425 and went up about $150 a month each year after that. It is such a nice home I was able to rent a single room out for $850. I couldn't have possibly held it that cheaply on a 30 year fixed.Right now, with interest rates droppping like flies, the 30 fixed is looking pretty good; I may switch to a 30 and hold the home longer until the market gets stronger.Many people signed for a interest only and didn't even realize it. They just wanted low payments, and then when those weren't low enough, they got behind and damaged their credit. Now they can't refi. It really depends on why a person is buying a home. If it’s an investment, and you have no desire to keep it for the long haul, then the best strategy is to hold it as cheaply as you can. If you want to live in it for many years to come and make it your home, then you want to pay as little as you can to own it.

On one property I put 150k down, and financed 350k; the payment for the first year was just $1,425 and went up about $150 a month each year after that. It is such a nice home I was able to rent a single room out for $850. I couldn’t have possibly held it that cheaply on a 30 year fixed.

Right now, with interest rates droppping like flies, the 30 fixed is looking pretty good; I may switch to a 30 and hold the home longer until the market gets stronger.

Many people signed for a interest only and didn’t even realize it. They just wanted low payments, and then when those weren’t low enough, they got behind and damaged their credit. Now they can’t refi.

]]> By: rick marnon, mortgagehttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54037 rick marnon, mortgage Sun, 27 Jan 2008 17:55:40 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-54037 You summed up part of the problem, and it lies a great deal in the loan officers hands. They tried to pitch programs that paid better than others, and did not fully explain the programs to people. People that do not manage their money well should not be on an option arm. I had a close friend that wanted to be put onto that program, so I made him read some literature on it to make sure he wanted to do it. He eventually decided that for the cost he ultimately would not save much money. This deterred him and we put him on a 30 year fixed program. You summed up part of the problem, and it lies a great deal in the loan officers hands. They tried to pitch programs that paid better than others, and did not fully explain the programs to people. People that do not manage their money well should not be on an option arm. I had a close friend that wanted to be put onto that program, so I made him read some literature on it to make sure he wanted to do it. He eventually decided that for the cost he ultimately would not save much money. This deterred him and we put him on a 30 year fixed program.

]]> By: Joshua Dorkinhttp://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-53938 Joshua Dorkin Thu, 24 Jan 2008 06:00:29 +0000 http://www.biggerpockets.com/renewsblog/2008/01/23/work-smarter-not-harder/#comment-53938 That's a great post, Michael. Thanks for sharing the information and the warning! That’s a great post, Michael. Thanks for sharing the information and the warning!

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