Sunday, October 22, 2006

How to be a total idiot

You might have seen this one. This 24 year old "aspiring real estate investor" bought 8 houses with no money down. He fixed and sold two of them and then ran out of money. Now the banks are foreclosing on the properties and, well he's screwed. Here's his site.

What's wrong with this?

First off, I don't buy it. I don't think it's happened and it's just a publicity stunt to generate ad revenue or something. Why? It's too out there. The author claims to have "taken some seminars" and read some books and then just started purchasing houses. WTF?!? I seriously doubt a bank would allow that to happen since he seems to have had no credit and no job or any means of paying off the mortgages besides selling the properties. Sine he bought the houses going into a real estate downturn, the banks wouldn't be dumb enough to think that was enough as collateral.

Even if they would for some reason...why would they let him buy 8! houses?

Besides how illogical it is for him to have purchased these properties in the first place, the guy admits to lying on his applications about income and other factors. Um, fraud anyone? The site is too public at this point for him not to get official attention for it.

One more rant...
Casey claims to have read the books most of us have by authors like Robert Kiyosaki, Robert Allen, and Loral Langemeier. Kiyosaki is great for learning general finance principles, and even to point you in the direction of investing in real estate. But if you're going to take Rich Dad Poor Dad and the others as an instruction manual for purchasing millions in property with no other knowledge then you're just dumb.

Finally, his posts today discuss his getting a job with "his rich dad." The post sounds far too close to the theme of Rich Dad Poor Dad to be real. Maybe I'm wrong but I don't think so.

No comments: