m.wlbt.com/ms/p/a3/119/view.m?id=124279&storyId=16914214&news=Top%20Stories&news2=Main
This guy was one of my hard money clients I did not lend to him but buyers he would bring to me… He started out OK then went off the deep end with the rehabs and what he was telling the buyers.. So we stopped doing any bizz with him back in 08.
If you know of anyone that has been taken advantage of or lost funds from gross misrepresentation the FBI will follow up.
If you say nothing then so be it. but if you want to see some justice done then here ya go.Start with the local authorities then the nearest FBI office. I know there was a few threads going around about OZ investors investing in LLC's that did not own the home they were purported to be owned by the LLC… thats clearly fraud. and theft.
Can’t open link but YAY with a snoopy leap if this will help my dude. Ha we are down on that one to lovely deeds… Just so so so unfair and tens of thousands of dollars down the drain!
What I don’t get is why people need a front man… Skip it and either go to the people who ARE wholesalers or buy from the open market…why would you use a “dating” service to introduce you to a wholesaler. When I used to sit the auctions in Vegas (aka weight loss regime as summer heat), everyone there was great… I don’t know a single one that if you had googled “wholesaler” you couldn’t have contacted directly to source you a property, clean it up and hook you up with a property manager. ALL while being 100% scrupulous.
It was in my “detroit” case that I realized how bad it can get.
Oh yay.,. Will forward and try to reopen. Thanks Jay. Thanks for posting too.
http://www.uscashflow.com I think is his web site It was still up yesterday.
Up shot is he took at 25k deposit from clients from Norway… and spent it on himself.
FBI raided him charged him with all sorts of malfesanse.. They are also seizing his home and all his other possessions to pay restition.
Of course not all Turn key companies just flat steal money like this guy did but one has to be very careful with who you deal with
Its USAcashflow.com
most of his properties he post are Atlanta.. although the 25k he allegedly pillfered was for a deal in West Memphis..on a multi family which of course any one familar with Memphis would recognize most of west memphis as deep in the hood
jayhinrichs wrote:Its USAcashflow.commost of his properties he post are Atlanta.. although the 25k he allegedly pillfered was for a deal in West Memphis..on a multi family which of course any one familar with Memphis would recognize most of west memphis as deep in the hood
Bout time, to be honest every week I read about some one who is going to the big house.I am glad to hear it and read it .Makes it harder to be in this business though with so much crap going on.
Glad you posted that Jay
Alex
The problem I see Jay is that the scope of any FBI investigations won't involve any Australian companies ripping off Australians. I can tell you a dozen or so companies here that operate as the middle man to US wholesalers….they are just adding on whatever margin they want in addition to the wholesalers and then charging money on top of that for "set up or establishment or membership fee's"….call it what you want.
Our regulator ASIC is a toothless tiger on these issues and often act way too late to be of any use to consumers.
On another matter….Jay there was a forum posting in the last couple of weeks that got a bit heated between you and a few others…..did this get removed from the forum ?? I have a person I met that used a certain person to set up trusts to assume mortgages and has lost his investment…..would have cost many many thousands to defend the case…..this was sort of where you were heading in your posts but now I can't find itPeter, glad to respond and appologize for my getting out of control…. I had a few martini's ( one olive grey goose) and my wife slipped me my half of ambien a little too early.. so the combo kind of gets me going and sometimes its not pretty.
<moderator: I have removed references to individuals that may become inflammatory>
Its the bandit signs you see " I buy houses any price any condition" they are looking for the owner losing the house and may only need 5 to 20k to bring the loan current. Investor steps in buys the house either keeps the owner that was living there the tenant or moves another in. Well There are 2 things wrong with this scheme.. I makes the contract to buy voidable and an illegal practice, the other gives the lender the right to alienate the title.
So example:
US local guy scourse the NOD's or sends post cards and gets responces' Shows up to the house and promises to pay all the back payments and take over the house, and hopefully give the poor shmuch a few bucks so the can move on..They then flip this to a new owner making their customary flip type fees. The new owner or their LLC takes Title SUBJECT TOO the exisiting financing and it could have a great 4 to 6% fully amortized loan.. ( speedy was talking about one of those today)…
so here is the issue to help people with forclosure problems you need to be a licensed foreclosure work out specialeliest. And in most states thats an attorney,, CPA,,Real Estate Broker, Mortgage Banker, who has taken special course. Those that just show up as future owners are clearly not allowed to give advice or buy these homes under these default conditons… There are also formulas that run with these types of transactions if the house is subsequently sold the old owner is entitiled to 85% of what ever profit was made. So you can see a company like ours that would qualify as a forelcosure consultant would have a fiduciary to get the hightest price possible for the poor seller loosing their home and or try real hard to get them a loan mod so they can stay….
<moderator: delete>
The alienation clause is simple the deed of trust has the right to be called all due and payable if you transfer title, unless its spouse or family planning type stuff…. Schemers try to get around these by naming their LLC in the name of last owner. So to the bank it looks like owner just moved the asset to their personall LLC…However a check at the state and the owners of the LLC are not the old owner and this scheme gets busted.
So this is called Equity skimming and the fed does not like it any more… It is a model I used extensively until the laws changed. And prior to the laws changing because this is how I amassed more than 20 million dollars worth of real estate. one of the people that I bought the home from Sue me and turned me into the Attorney Genereal in state of WA… We ended up giving the house back ( wife never told the hubby they were having financial trouble and hubby was in Iraq) so it was a no brainer to give them the house back and it was only 10k cash down deal we did not even ask for our money back we used it as a donation to help a US military family.
So the conversation went on I got more pastinate blah blah blah…
Bottom line is if there are folks out there promoting this scheme its not legal on two fronts. the skimming laws and alienation.
NOW if you just pay cash then all is write with the world no law against that willing buyer willing seller. RE brokers though need to be careful and make sure they are doing the best for their seller as they can… A RE broker who shows a pattern of representing the selling and buying side and selling houses far under market can and will loose their license upon complaints.
Any way if you have more specifics you can shoot them to me off line and I can make a pretty educated guess.
<moderator: delete>
OMG OMG OMG.. THAT IS SO SO SO FLIPPING FUNNY …. JUST READ WHAT I WROTE UNDER THE “NEWBIE”… THIS IS THE GUY THAT GOT ME LOOKING AT ATLANTA… I posted my reply to him that I sent to all my clients back then!
THAT IS HYSTERICAL!!!!!! Seriously – Demetrius Mathis… LMAO….
texas cash cow just reread.
I think what this guy did was the ole Subject too… Then create a trust or LLC name it the Smith family LLC or Trust… The smiths are the owners of the house… This at first fools the bank…. Then they did a little deeper at the secretary of state and see that XYZ company or owner actually owns the trust or LLC not the Smiths…. And the mailing address change along with registered agents. At that point the deed of trust has been alienated and is callable. and depending on how the transaction went down there could be claims made of equity skimming ,, Realtors fiducerery etc etc. RE brokers loose there licenses all the time for these types of deals…. I know been one 37 years. Never had a complaint. And thats in California the most complaint riden state in the Union.
emma171 wrote:OMG OMG OMG.. THAT IS SO SO SO FLIPPING FUNNY …. JUST READ WHAT I WROTE UNDER THE "NEWBIE"… THIS IS THE GUY THAT GOT ME LOOKING AT ATLANTA… I posted my reply to him that I sent to all my clients back then! THAT IS HYSTERICAL!!!!!! Seriously – Demetrius Mathis… LMAO….Lucky you did not get hooked up with him but you would have vetted him out before he stung you most likely, but he had a knack I can tell you he moved hundred upon hundreds of homes and has hundreds upon hundreds of clients that are going to enjoy seeing him paying the piper.
I feel sorry for the wife though she is a nice lady teach's third grade. Probably did not have a real scense what he was up too.
I could write a white paper on who the good guys are and who the bad guys are. I have loaned to probably 50 different turn key companies over the years
Ambien and vodka…. normally soothing not incensing?
Posted my reply to Demetrius on the other but here it is again.
QUOTE
DemetriusFantastic – thanks for the below..
Okay. I am about to send this verbatim out to my email list. I just want to make sure I get this absolutely accurate:
A house that was bought at auction for 24k on July 5, can be bought through you for $57k… Except that we have to rush because they move so quickly…. Probably this example property has been sold already…..although it has sat since July.
This is a property that you are asking $20,000 more for than any recent sale within a half mile.
I will pose it to my clients and let them decide. As they all use zillow, trulia, redfin and other such websites, if they do choose to pay you literally more than the house cost in commission (27k in repairs/commission for a house that cost 24k) and to pay 20,000 DOLLARS more than EVERY recent sale within 1/2 mile then that is up to them – I am more than happy for them to have choice in this market and will simply outline the services you offer.
With enormous thanks….
UNQUOTEI am glad to hear that some of these companies/individual’s will be brought to justice. I can only hope that enough people will come forward to make the verdict that much easier.
I unfortunately have a client that was misled by an organization and it is a clear case of fraud. I have done everything but pay him, to report it to the FBI and try and get something done about it. He lives in Canada and just does not have faith that it will go anywhere. I tried to explain to him that they may not investigate, but if they get enough complaints about the same company/individual, they will without question, investigate it.
I had a PTA meeting with my 11 year old, and one of her classmates mother, is an actual FBI agent. We were talking about the FBI, as my 11 year old has dreams of being an agent. As my 11 year old ran out of questions and loss focus, we discussed what it was we did for a living. We talked about RE and more specifically what can be done with suspicion’s of fraud or any other questionable activities. She made if very clear, the more complaints of being ripped off made directly to the FBI, about any one company or individual, they will investigate it. The problem as she put it, not enough people complain about it and simply write it off as a lesson learned.
I guess what I am trying to say, is don’t write it off as a lesson learned, there is something that can be done. Will it result in you getting your money back, probably not, but it will put these characters where they belong.
There are too many legitimate companies operating that this does not have to be the norm, the more of the scam artists that get locked up the better. It will leave the legitimate companies standing, and give all investors the confidence in spending their money overseas or even locally.
I cannot speak as an attorney, nor am I an employee of the US Dept of Justice, but I have to bet that there is an agreement with Australian authorities, that if the FBI wants a resident of Australia, and they have a legitimate reason for wanting that resident, Australia will see to it they are given that opportunity. It would not be the first time the FBI, has made an arrest outside of the borders.
John
As Emma, Jay and Alex know, we are getting there. This will come out. A lot of work has gone into this over the last 12-18 months.
That doesn’t mean it has happened. If anyone knows an Aussie who has been ‘hurt’ then please get them to contact either myself or Emma. We have one very good lead, but more would be VERY helpful to get the story a bigger footprint….
The sole aim in my efforts has been to help the industry clean up the rogue elements. I have had really great people help me in the past – but I would have been a very easy victim early on. What pisses me off is that you do not need to rip people off to make great money – these are great deals anyway!!
Texas Cash Cow Investments Australia wrote:The problem I see Jay is that the scope of any FBI investigations won't involve any Australian companies ripping off Australians. I can tell you a dozen or so companies here that operate as the middle man to US wholesalers….they are just adding on whatever margin they want in addition to the wholesalers and then charging money on top of that for "set up or establishment or membership fee's"….call it what you want.
Our regulator ASIC is a toothless tiger on these issues and often act way too late to be of any use to consumers.
On another matter….Jay there was a forum posting in the last couple of weeks that got a bit heated between you and a few others…..did this get removed from the forum ?? I have a person I met that used a certain person to set up trusts to assume mortgages and has lost his investment…..would have cost many many thousands to defend the case…..this was sort of where you were heading in your posts but now I can't find itThat post was pulled down think it was getting pretty heated as I was there jumping in as well.Jay made some valid points but I think things were getting personal on a few levels.
Please PM me and Jay and let us know more. Time for people to know who these guys are ripping people off. Social media is a great tool as any one can find out any thing.
Talk soon
Alex
PS you got PMjayhinrichs wrote:Peter, glad to respond and appologize for my getting out of control…. I had a few martini's ( one olive grey goose) and my wife slipped me my half of ambien a little too early.. so the combo kind of gets me going and sometimes its not pretty.<moderator: I have removed references to individuals that may become inflammatory>
Its the bandit signs you see " I buy houses any price any condition" they are looking for the owner losing the house and may only need 5 to 20k to bring the loan current. Investor steps in buys the house either keeps the owner that was living there the tenant or moves another in. Well There are 2 things wrong with this scheme.. I makes the contract to buy voidable and an illegal practice, the other gives the lender the right to alienate the title.
So example:
US local guy scourse the NOD's or sends post cards and gets responces' Shows up to the house and promises to pay all the back payments and take over the house, and hopefully give the poor shmuch a few bucks so the can move on..They then flip this to a new owner making their customary flip type fees. The new owner or their LLC takes Title SUBJECT TOO the exisiting financing and it could have a great 4 to 6% fully amortized loan.. ( speedy was talking about one of those today)…
so here is the issue to help people with forclosure problems you need to be a licensed foreclosure work out specialeliest. And in most states thats an attorney,, CPA,,Real Estate Broker, Mortgage Banker, who has taken special course. Those that just show up as future owners are clearly not allowed to give advice or buy these homes under these default conditons… There are also formulas that run with these types of transactions if the house is subsequently sold the old owner is entitiled to 85% of what ever profit was made. So you can see a company like ours that would qualify as a forelcosure consultant would have a fiduciary to get the hightest price possible for the poor seller loosing their home and or try real hard to get them a loan mod so they can stay….
<moderator: delete>
The alienation clause is simple the deed of trust has the right to be called all due and payable if you transfer title, unless its spouse or family planning type stuff…. Schemers try to get around these by naming their LLC in the name of last owner. So to the bank it looks like owner just moved the asset to their personall LLC…However a check at the state and the owners of the LLC are not the old owner and this scheme gets busted.
So this is called Equity skimming and the fed does not like it any more… It is a model I used extensively until the laws changed. And prior to the laws changing because this is how I amassed more than 20 million dollars worth of real estate. one of the people that I bought the home from Sue me and turned me into the Attorney Genereal in state of WA… We ended up giving the house back ( wife never told the hubby they were having financial trouble and hubby was in Iraq) so it was a no brainer to give them the house back and it was only 10k cash down deal we did not even ask for our money back we used it as a donation to help a US military family.
So the conversation went on I got more pastinate blah blah blah…
Bottom line is if there are folks out there promoting this scheme its not legal on two fronts. the skimming laws and alienation.
NOW if you just pay cash then all is write with the world no law against that willing buyer willing seller. RE brokers though need to be careful and make sure they are doing the best for their seller as they can… A RE broker who shows a pattern of representing the selling and buying side and selling houses far under market can and will loose their license upon complaints.
Any way if you have more specifics you can shoot them to me off line and I can make a pretty educated guess.
<moderator: delete>
Jay again this is why I love the concept of partnering with you. The vast know how that I just don't have.Never entered the creative financing path. Just buy cash and sell cash has been my model
Talk soon
Alex
OH MAN! Holy Crap! This guy has been calling me for months to sell our product in FL…He never bought anything from us, but I JUST talked to this guy on Friday! I didn't know his "re-sale" operation, but geez, how stupid can you be. Though he was smarter then that. Stupid Stupid Stupid
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeJust one of a hundred plus clients I had in my hard money days…
Hard money lending is basically like this.
Your borrower wants to steal your money how are you going to protect yourself.
Just look at the company you sent me Ageis and there submission form..
Big D was good at what he did… If he kept his hands off the money ( we never let him near it ) he got paid a flip fee off of the HUD like any other flipper,,, But when he gets investors to send him money directly well thats creates a problem
This story unfolds 1000's of times accross the US… people send money direct to a contact instead of the Title co. or Closing attornies and this is what can happen.
I have also seen it big time in the Property management business… Nothing regulating those guys other than their word. And you get one with a gambling problem drug problem Women or man problem.. And your rents can and do go missing. Even though its not legal having all that cash sitting in an account that they can write checks off of well there you go Mortal man and temptation. Happens every day like I said in the PM business as well and PM's end up going to jail too.
Me personally for my transactions.
I would never even send money to closing attornies unless I had personally met them and seen their operation, checked them out with the local bar association. And new they were underwriting for one of the major insurance companies.
I ALWAYS PREFER a national TITLE co. for my transactions when ever possible.. Your just not going to loose your money sending it to First American, Fidelity, Safeco etc etc.
Thats why even though we can go direct to closing attornies in our TWH model ALL funds from our investors go to First AMERICAN and then they dispurse to the closing attornies once they get verification and recording numbers that the deeds have recorded. Cost us a little extra as we pay all closing cost. our client does not pay one dime of closing costs.. But it gives them that safety net that they need when they are out of country or state. We just had 7 wires hits this mornging from Perth all at First American and all those deals will close this week. No money will transfer until First american signs off on it.
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