Avoiding Lawsuits - Investors Beware -

[Ken M.]

I did not have a mentor.  But, I was a mortgage broker, so I knew some rules of the game of investing.

This was 30 years ago and nobody I knew was an investor, let alone doing creative finance. There were a few across the country doing creative finance, I just didn't know anyone.

I spent way more in lawsuits and learning law, than I ever would have if I'd gone the mentor route and learned from the right guy in the first place. Some stuff, (law) I shouldn't have needed to know, but I learned through necessity and experience. Lol :-(

With a good mentor, you avoid the stupid things you end up doing otherwise (seemed okay to me, type of stuff). You progress successfully with someone taking you through and preventing the lawsuits. 

Instead of paying $15,000 for mentoring, I spent in the neighborhood of $200,000 on attorney fees . . . under stress  . . . in court.

Not everyone out there that claims to be a mentor and have a subto community understands the law. I've read what some of them have posted. It's multiple disasters. In fact, one community of "investors" in a "subto community" reportedly is now involved in some 100 lawsuits in Florida alone. They haven't announced, that I can find, how many active lawsuits they have going in GA, IN, OH, TN, TX, AZ or CA.

When I first started out 30 years ago, I knew just enough to be dangerous. I had been a mortgage broker, so I understood finance and lending, foreclosures and such. But, there is a lot more to buying "distressed" properties. And the solution isn't to overpay off the MLS. And no, you don't need tons of cash or fancy financing, but you do need knowledge.

I didn't know for instance that court cases modify the law. Who'd a thunk it. Laws change. Things you can't second guess like; "You misread what a law says." "Some laws get enforced, others aren't." "

This one I love: "Everyone's doing it, so it must be okay", or "My guru taught me that" 

For some reason, the court is not amused when it hears that.

and on it goes, "A new DA comes in who has the ear of someone who was ripped off. So, suddenly everyone's under the microscope. " 

When first starting out, a new investor doesn't have a perspective on what is allowed and what isn't. Some make it a few years before their first lawsuit. 

Don't be that investor who buys now, regrets later. We offer 2nd opinions for free.