Real Estate Investing: Infomercial and Mentoring Scams
Real Estate Investing: Infomercial and Mentoring Scams
Flipping through late-night infomercials recently, I saw two real estate get-rich quick schemes, and I couldn’t help tucson dude ranches but wonder–why do people still fall for those old scams? Has anyone really talked a seller out of his home for no money down with owner financing lately?
Real estate infomercials do great harm to beginning investors, who waste hundreds of dollars on old information. Worse yet, those beginners soon get discouraged and miss out on the true (and profitable) adventure of real estate investing.
One of the most popular late night infomercial shows tells beginners that it’s possible to make a fortune by buying gas and fuel trucks for sale houses with no money down and then renting them out to cover the monthly payments. It’s true that you can buy a home for no money down, but the requirements include having good credit, good income, and the home should be owner-occupied.
Rentals don’t normally qualify for no money down financing. Institutional lenders aren’t supposed to make no money down loans on investment properties, and even if you could buy an investment home with no money down, the monthly payments would generally eat up the rent.
Late-night scammers also claim that investors can get owners to pay the closing costs, including the down payment. But when a finca san jose el olvido en guatemala lender asks where your down payment will be coming from, saying, "the seller" is not the right
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