Did you hear the one about the real estate scammer and his LOVE AFFAIR with the federal government? It’s pretty ridiculous if you dig into the details. And you know I’ve got them all here for you. I’m Carole Ellis. This is Episode 47.
We’ve all read the news releases from the state attorney general, the FBI, the Justice Department, the Consumer Financial Protection Bureau, etc… All those entities that love to get on the news and just badmouth the HECK out of real estate investors who, they say, have been SCAMMING away like crazy. The message there is, as you know, that the investors are SCAMMING innocent homeowners. In reality, however, the government LOVES the cons out there that are giving YOU a bad name, and I’ve got the proof in today’s episode.
Before we go any farther, however, I want to take a quick minute to talk about real real estate scammers. The guys that give YOU a bad name, make it hard for you to work with homeowners, and just generally are bad for the industry. You can learn something from them. That’s right, that’s what I said. You can LEARN something from them. You can learn how not to get caught in their web. If you want the best protection out there from real estate scammers, we’ve got a new resource for you. It’s our REI Today Scam Alert List, and we’ll email you every time a new scheme hits so that you know what to look for and how to keep yourself, your business, and your MONEY safe. Sign up for the REI Today Scam Alert List at www.rei.today/scamalert (one word) today.
Now, back to the federal government’s absolute LOVE AFFAIR with real estate scammers. Here’s the deal. Recently, a Los Angeles investor pled guilty to participating in a mortgage fraud scheme wherein he scammed distressed homeowners out of fees for “rescuing” them from foreclosure and made it appear to many lenders (some successfully, some unsuccessfully) that the homeowners had clear title to their properties and had satisfied their debts. Pretty sneaky, obviously illegal, and clearly taking advantage of distressed homeowners desperate to avoid foreclosure. A number of homeowners, as you might imagine, eventually were foreclosed on anyway, and some of the others are now tangled up in charges of their own because of the fraudulent document trail. Basically, it’s a huge mess. This is why you need REI Today Scam Alert, folks!
But here’s the kicker. The U.S. government is not JUST after this guy for restitution, penalties, and fees for a foreclosure rescue fraud (and, I’m sorry, but you KNOW the homeowners aren’t going to see the vast majority, if they see any, of those damages). They’re after him for TAX EVASION. That’s right. They’d like this guy who made hundreds of thousands of dollars illegally on a foreclosure rescue scheme to pony up his IRS dues on those ill-gotten gains.
Now don’t you think there’s a bit of a conflict of interest there? Don’t you think that there’s a really decent chance that someone, somewhere, back in oh, 2005 when this guy first got started, might have seen a great opportunity to basically get a double whammy out of the whole thing by letting him SLIDE a couple years? Hey, what are the problems of a few distressed homeowners to being able to collect a HUGE tax bill and major fines, fees, and penalties for wrongdoing as well.
It’s bad relationship all over, guys, and it just goes to show you that it’s your responsibility as a real estate investor and as a homeowner to look out for YOUR best interests. The government CANNOT be trusted to do it for you.
Now if you’re wishing you could trust SOMEONE to keep tabs on the scammers and the fraudsters out there, I think you know what’s coming up next. That’s right, folks, you need the REI Today Scam Alert in your corner! Sign up for all the signs of fraud, the juicy details on who got caught, and how to keep yourself and your investments safe at www.rei.today/scamalert (scamalert is one word) and then, while you’re at it, text REITODAY to 33444 and I’ll immediately ALSO provide you with fast, immediate access to all sorts of great trainings, news coverage, interviews, and lot more timely information that will help make your investing safer, faster, and more profitable.
And remember, when you do that, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country. Text REITODAY no spaces no periods to 33444 or head over to www.rei.today right now.
REI Nation, thanks for listening in and always remember this:
Your best investment is your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.