Thanks to Noelle Knox of USA Today for a pretty accurate coverage of I am Facing Foreclosure story. She actually checked my closing documents and my ownership of the houses to make sure the story is legitimate. (No other media source so far asked to verify my docs.)
This is for all you haters critics out there who still think I am running a scam blog. I don’t blame you too much though. We have fake stories like lonleygirl15 made up for profit. Not me. I’m the real deal. This is no scam.
Admittedly, with initial exposure on bubble blogs, I did try to spin it a little bit by blaming the banks, etc. But then I decided to simply take personal responsibility for whatever I have done wrong and get back to the honest mission of this blog. Why hide?
I am just trying to sell my houses, avoid foreclosure, get out of debt and tell a story of what NOT to do in real estate.
If I also end up making some money through this exposure, great. Although, that hasn’t really happened yet. I do get a few bucks here and there from the ads. The ads are pretty relevant to the topic of this blog and help cover the hosting bill / related expenses. But it is not really substantial or stable. People think media = money. That’s not necessarily true. (Unless… if I can find a ghost writer to help me write a “What NOT to Do” RE book… maybe then.)
But my primary goal for publicizing my “screw ups” on this blog has always been to help people. Help both regular home-owners facing foreclosure and newbie investors/flippers like me who got in over their head. That’s my target audience. I have already heard lots of positive feedback from other distressed sellers/owners. I guess, I’m doing something right!
Here is the USA Today article:
10 mistakes that made flipping a flop
SACRAMENTO — If there’s a poster child for everything that went wrong in the real estate boom, it just might be Casey Serin.
In one year, the 24-year-old website-designer-turned-real estate-flipper bought eight homes in four states — and in every case but one, he put no money down. At his peak, in April, Serin had $93,000 he’d taken out of the homes as he bought them. By July, he was broke, desperate for one last deal.
Now? Serin has $140,000 in credit card and credit-line debt and five houses in foreclosure. Last month, he started iamfacingforeclosure.com, a blog that’s drawn both notes of condolence and expletive-laced condemnation.
“I did some stuff shady, but I’m not going to hide from it,” he says. “Somebody can learn from it. I’ve already had people contact me and say, ‘Hey, I’m in the same place.’ ”
The rise and fall of Casey Serin is a tale with moral and financial lessons for real estate buyers, lenders and regulators. Having consumed real estate guides and seminars, Serin made just about every mistake a newbie could make — most of them, he admits, were no one’s fault but his own — from fudging loan applications to buying homes sight-unseen. That he began with bold dreams of class mobility makes his fall a peculiarly American saga.
93 Comments
October 24th, 2006 at 10:21 am
Casey -
I admit it - I was wrong!
I looked at the closed-ended “should I declare BK” question and thought to myself: buzz kill!
Wrong. While I was away a small tidal wave of vitriol rolled over this blog, sweeping all before it.
But it could have been bigger, and nastier, and more full of “ROFLMAO”s, puzzling psychoanalysis and bewildering interpretations of the bankruptcy laws. Now is not the time to hesitate, Casey. You’ve got to sustain the momentum!!!
Look: over at Calculated Risk, some guy, former exec blah blah blah interest in economics blah blah blah can post a bunch of charts and thought-provoking analysis and generate all of about 15 head-nodding responses (between 3 and 5 from one person bien sur), none of which has one tenth the energy and zip displayed by such gems as:
“You are a scott peterson of RE. granted you havent mudered anyone.”
(Yes, granted! Casey - word to the wise: start building an ideas list.)
“greedy little pukes”
…or the querelous:
“WHO IS REALLY BEHIND THESE SCAMS?”
(As I’ve suggested before - the key learning here is: *slow reveal*! Don’t tip your hand now boy! You’ve got ‘em writing in ALL CAPS!!)
You, on the other hand (contra the macro-obsessed “grown up” blogs) take a few quick quotes from the good book, a pic of a wonderful slice of sound-money Napoleon-Hill-ish kitch (in a frame! inspired!), drop the word “morality” into things and voila! A feeding frenzy! Like pirahnas on a wild pig!
The USA Today/Old Media exposure is great - ask “Mish” Shedlock the last time he got his mug in Americas most middle-brow read (answer: never) - but d*** it man, are you committed to this or not? You are wasting your gifts by not getting your posts together faster. The internet is a real-time medium my good boy! To the swift go the spoils! Obviously we don’t expect you to come up with the sublime (and now legendary) “blue ball” pic every day, but for God’s sake throw us a bone! And *not* a cut-and-paste from USA Today that you could simply link to - we need the real deal!
I remain your Obt’ Svt’.
October 24th, 2006 at 10:42 am
Dude - I have surmised the only reason for you putting this story out there, and out in the USA Today, is to get publicity. Publicity may attract someone to buy your story, or to offer you help, like that girl at savekaryn.com. Ain’t gonna’ happen….
Again - why are you not offering to the bank your Deed in Lieu of Foreclosure??
October 24th, 2006 at 10:58 am
I’m sure Liz at Alliance is happy to see you posted online, confidential paperwork that outs her.
And ADRE, isn’t that an online correspondence real estate school? Are they the ones that hit the numbers for you?
BWAHAHAHA..
October 24th, 2006 at 11:00 am
Congrats, what a coup!
October 24th, 2006 at 11:01 am
Kevin,
When facing foreclosure, you should always try to minimize your personal exposure. Casey is doing this by trying to sell, or short sell first. It shows he’s making an effort and it’s better than giving up altogether.
Maybe your landlord will take back the keys when you don’t pay the rent Kevin, but lenders are different.
October 24th, 2006 at 11:23 am
When did you ever make 50K?
October 24th, 2006 at 11:27 am
It will never cease to amaze me how people believe that media attention translates into financial gain.
You are not going to write a book. If you are even thinking that is a possibility then its time to get real.
All this media attention is doing is ensuring that there is plenty of evidence for your creditors to use against you in court. In any case no judge would look at what you have done and believe that you did not intend to commit fraud.
Your best option is to advise your lenders to foreclose immediately and then declare BK. Postponing the foreclosure process only adds more to your liability for each month you do not make the payments. Let them foreclose now and put a cap on what you will have to repay. Any lawyer that indicates there is a snowball’s chance in hell that ANY of your debt will get written off either has a law degree he got from a cracker jack box or is lying through his teeth. There is no way you are going to make that happen, and debt collection is a huge and growing industry at this point so expect to get hounded by the dogs until every penny is repaid.
What is going to happen to you is your income will be completely managed by a court appointed arbiter for a very long time. Payments will be negotiated with all of your creidtors, checks will be mailed from an escrow account where all of your income will be deposited, and you will be lucky to have enough extra cash to buy a frigging gumball for the next 20 years. If you try to hide any source of income and are discovered you will be held in comtempt and thrown in jail.
Your houses are overpriced, no investor will touch them. The fact that good old “Rich Dad” won’t buy them should be screaming that at you. Parading around in the media is getting you nothing but a self-inflated ego. Well it is getting you somewhere, deeper into the whole you have dug for yourself.
Get a real job while you still can, you have no assets to protect and if you do not get a real job and show the court that you are willing to make a good faith effort to repay your fraudulent debt jail time is a real possibility. As a bankrupt indigent you will not be getting sent to any country club prison either as it will take good (translation: EXPENSIVE) lawyers to get you there. I doubt you will end up in maximum security, but there are plenty of low-medium security pens that are not such nice places to be.
The court is not going to look kindly on you if you do not start pulling your act together young man. They will view what you are doing as an arrogant attempt to mock the financial laws of the state, if you draw a hardcore judge you could be looking at a pretty stiff sentence.
I think you have taken enough risks, get a job now before you have to pay a bigger price than you could ever imagine.
October 24th, 2006 at 11:35 am
Casey: You are clearly running out of material, and way too early in the week! C’mon, Man, how are we going to make it the rest of the week without fresh piles of insanity on your part? The comments are far superior to what you’re coming up with—put down the Dasani and get to “work” on this blog.
You’ll hear no more frustrated comments from me about why you won’t get a job and dig yourself out of this mess. It’s all about encouraging the entertainment. This is public service now! Think of it, Casey, you may not be making yourself rich, but you are radically adding value to the richness of every day lives of simple people around the globe. Spreading the wisdom to dozens…no, hundreds! Doesn’t that make you feel just great?
–hoping that you’ll stay crazy
–
October 24th, 2006 at 11:49 am
Quitting a day job to pursue a dream is always a positive thing. It’s just that it gets kinda crazy after the paychecks are no longer coming in.
October 24th, 2006 at 12:09 pm
hey Casey (this may be a stupid question), so how comes - rich dad - with his infrustructure (of rehab teams etc) doesnt take advantage of your properties??? as in - take over for you or something?
October 24th, 2006 at 12:12 pm
This site has all the hallmarks of a stealth marketing campaign. There are scores of better blogs regarding the real estate situation that don’t get near the media attention. This is being promoted to the hilt.
Trump and Koyasaki annouced a new book venture together, just as a clueless speculator starts blogging about his travails. Do not be surprised when he has a ‘miraculous recovery’ using ‘rich dad’ method around the time the book comes out and the conference tour starts.
First and last post. Done reading this crap.
October 24th, 2006 at 12:27 pm
I read the article and I’d have to say that I don’t think you are thinking realistically about your own situation or about real estate / economics in general. I’d be interested in reading a one paragraph statement from you in which you explain what you did wrong and the lessons you have drawn from your experiences. I have a feeling that if some rich uncle gave you 200,000 you would turn around and make many of the same mistakes all over again.
October 24th, 2006 at 12:30 pm
Ho Hum. Slow moderation again today.
I will say this though. You have shown a distinct talent for media whoring. Or maybe it’s just guts. I don’t know how many people would be willing to share their mistakes like you have. But if you get bailed out of this mess by the media attention garnered by this blog, every failed flipper will be telling their tale of woe on the internet in the very near future.
October 24th, 2006 at 1:02 pm
Casey shall very soon learn that not all publicity is good publicity. Many of 2nd tier executives who found themselves in the Wall Street Journal have learnt that lesson the hard way.
For every bit of good that Casey’s recent media pandering produces, it will also create yet more awareness of his crimes. DAs and prosecutors love to increase their win ratio, all that much the better if there’s some popular social justice angle complete with pre-baked PR. Right now some bright prosecutor is sitting in her office thinking about what she’ll say in her 45 seconds on NPR following up on this story.
Find solace in the few sympathetic fellow “millionaire seminar buddies”. Take comfort int their mysterio-speak and knee-jerk logic. Casey, you’ll very soon see their true colors when you finally go down for your crimes. Like rats from a ship, or rather like seminar drones from an honest day’s work. Before you know it they’ll be coaching some new, young rich dad wannabe; probably at a timeshare business tequila shooter seminar.
October 24th, 2006 at 1:03 pm
re: “tell a story of what NOT to do in real estate”
Save your story. Any normal person already knows to not do what you’re doing.
October 24th, 2006 at 1:15 pm
Guts?
Nope. Just stupity. It’s only a matter of time until the law shows up with warrants and puts Casey in cuffs.
October 24th, 2006 at 1:22 pm
Nigel - perhaps you misunderstand what “Deed in Lieu of Foreclosure” is - it is exactly what you said would be best, “you should always try to minimize your personal exposure”.
I don’t know why you mentioned a landlord v. lender, but here is what a Deed in Lieu is:
(Casey, I suggest you look into it, as well)
http://en.wikipedia.org/wiki/D.....oreclosure
“A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e., the borrower) conveys all interest in a real property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.
The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principle advantage to the borrower is that it immediately releases him from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he would in a formal foreclosure. Advantages to a lender include a reduction in the time and cost of a repossession, and additional advantages if the borrower subsequently files for bankruptcy.
In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntary and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Generally, the lender will not proceed with a deed in lieu of foreclosure if the current fair market value of the property exceeds the outstanding indebtedness of the borrower.
Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations.
Neither the borrower nor the lender is obliged to proceed with the deed in lieu of foreclosure until a final agreement is reached.”
October 24th, 2006 at 1:33 pm
Thank God for people like you. The Caseys of the world are the source of apocryphal warnings for those who, like myself, need to take heed of the traps that greed-induced delusions and blind optimism can place on the path to riches.
I say this because I myself am a very young man–23 years old– who felt the excitement of the past real estate market. I was even thinking of plunking down some hard-earned savings on an underpriced condo on the Maine coastline this summer, flipping it and getting a healthy return on it. But after doing some research, I came to the conclusion that it’s best to be patient, see how the prices work out over the following few years, wait for the market to bottom out and then to buy. Of course one has to take the fundamentals into consideration: always invest in your local market, put in the sweat equity necessary to sell, take a look at the real price of property (nominal price over rent, sorta like the price/earnings ratio) in whatever market you seek to invest, and hope for the best. And of course, I am saving a huge chunk of the money I am now making at a regular 9 to 5 job, knowing that debt is the devil stalking anyone who’s trying to make it. I also listen to Warren Buffett and his advice; the man proves 40 billion-fold that he knows what he’s talking about.
I don’t know where I am exactly going with this. I guess I am just trying to say that not all 23 year olds out there are sophomoric or deluded or criminally greedy. And that Casey Serin and his ilk scare the sh*t out of people like me….
October 24th, 2006 at 1:42 pm
Casey,
Another question, you mentioned repeatedly that you ignored the instructions on starting small - can you - verbalize what you would have done differently were you to do it again - with the benefit of hindsight??
October 24th, 2006 at 1:44 pm
hahaha i can’t wait til you end up in federal pound me in the a** prison.
October 24th, 2006 at 1:47 pm
This real estate mess that many areas are in is crying out for an example to be made of someone. This clown, for all his publicity that he has now, will soon be doing the perp walk, ala Bernie Ebbers, those cable guys in Philly, and Enron. I am not saying that he is on the level of those crooks, but someone is gonna be the poster child for the real estate fraud/flipping mess. Who better than our little naive pollyanna?
October 24th, 2006 at 2:13 pm
I think he already has a deal with some sort of movie or book and has the 2 million cash ready for all debts to be paid in full.Why else would someone give so much information out. So now you got your story in USA today and now the banks know the story and will not play nice they mean business and will play dirty.I do hope the best for you Casey. You made a mistake and we all do, just learn from it and dont make another one like it.
October 24th, 2006 at 2:31 pm
So the USA Today photographer took your blue ball pic?
You bought some of those props sight unseen?
Oh Casey, you sad fool. You haven’t even begun plumbing the depths of your “what not to do” tales.
October 24th, 2006 at 3:27 pm
I think this story has the makings of a fantastic book / made-for-TV movie, complete with dramatic reenactments of the hubris surrounding the real-estate bubble, images of thousands of giddy newbie investors attending seminars, the young Casey’s elation at a deal gone right, his Hawaiian vacation and then the slow descent into chaos and despair. A mix of “Startup.COM” and “Requiem for a Dream” … well, we’ll have to see how THIS story ends. Hopefully Casey doesn’t end up doing a little ’show’ in the Castro to pay the bills or stuck in prison for 20 years. The exciting final chapter has yet to be written!
October 24th, 2006 at 3:34 pm
This is such a sad sideshow.Have you thought about selling a reality-based show to Trump or CBS?
“Survivor: Casey”, maybe. The clock ticks down each week towards bankruptcy and incarceration, while dollar-shaped bonus points are awarded for website income, donations and the occasional short-sale.
October 24th, 2006 at 3:35 pm
Train wrecks are the ultimate spectator sport. Especially in slow motion. And the spectators won’t give a damn if, when or how you survive this. I don’t think you’ll be getting the daily hits when your blog entries are only of you hitting your head. Stupid, stupid, stupid…
The only thing that keeps me coming back is your honest-to-goodness belief that ‘Rich Dad’ will start spitting $5,000 checks at you for five hours of work, or as an ultimate last resort, you bend below your standards and take that $60,000 a year job writing code.
Um, good luck with that.
October 24th, 2006 at 3:41 pm
this idiot obviously believes in the ‘new Amercan dream’. Where money falls out of the sky and you do no work.
Casey, if it was so easy, don’t you think everyone would be doing it. I’m an economist and it doesn’t take someone with that much of an education to figure out that things are going to be headed south fast here shortly. Thanks in part to folks like you and these ‘creative loans’. Glad I’m locked in at 5 1/4 in an area that I expect to see at most a 25% pullback. This in DC where we have alot of spending thanks to the feds. Even the ‘experts’don’t expect more than a 10-15% drop here but I disagree. Won’t bother me as I bought it from my parents and plan on living here many more years. What you and other have created is a good buying op in another couple years. I will be waiting for the right signals. Thanks in advance although I’m sure I will pay some of it through higher fees, etc and probably higher taxes if we have to bail banks out.
October 24th, 2006 at 3:41 pm
There’s a host of websites you should be registering -
IAmFacingPremature——-.com
IAmFacingTwoBigGuidosWithGuns.com
IAmFacingTenToTwenty.com
TheWrathOfRichDad.com
IAmYourFatherLuke.com
October 24th, 2006 at 4:15 pm
http://www.alexa.com/data/deta.....losure.com
Here are the stats on the site.
37,000 week average
25,000 today (4:07p PST)
I unfortunately will be back to read the train wreck. I won’t be clicking any ad links or, haha, the tip jar.
Casey, you won’t convince everyone but how about slapping a copies of the deeds up here to show true ownership. Maybe a little statement with the account number blanked out showing your cashflow or lack thereof.
I still think this is something other than what it purports to be but I won’t be purchasing it.
October 24th, 2006 at 4:30 pm
With all this publicity, I just don’t see why the DA office will let you walk away with this without putting you in JAIL.
I think you deserve JAIL time because you have commited fraud. Wasted our time and the taxpayers money.
October 24th, 2006 at 4:47 pm
http://www.johntreed.com/Kiyosaki.html
THAT is all you need to know about Kiyosaki.
I don’t think you have filed for bankruptcy/deed in lieu/whatever because - possibly - you are hoping to make a media deal that will be your big payday.
The fact that you give Kiyosaki any credence at all means you are a fool; the fact that your new “Rich Dad” won’t help you out says more than I might feel comfortable saying.
If you are telling the truth, good luck; if you are being less than totally honest - and you seem to have a track record that supports that - then you might have just pulled off a media scam.
I have wondered why the attorneys for the banks you claim you were less than forthright with haven’t contacted you and made you the poster boy for the creative financing wave (no doc/self declared income) in residential real estate.
This is all the more confusing, in light of the USA TODAY story…
If I was on the board of one of the banks that lent money to you that you obtain through being, let’s be diplomatic, somewhat less than forthright, I would ask MY bank’s lawyers why you aren’t on page one of the local legal newspaper, and ask them just whose side THEY are on…
Additionally, I wonder what the bankruptcy lawyers you have consulted said when you used compelling little words liked, “I lied on the application for the loan.”
Might it be you haven’t filed bankruptcy because bankruptcy judges REALLY frown on that sort of thing?
October 24th, 2006 at 4:57 pm
baahahahhaahahahahahahahahahhaah
it’s because of morons like you that real estate is such an easy game
you had no idea what you were doing and you used massive leverage to buy 8 houses at once
aahahahahahahahah
hear’s a clue: if you’re dumb enough to accumulate ANY credit card debt, let alone $20k, you cannot be trusted with money. in fact, i don’t believe your story at all, there’s no way lenders would take that kind of risk on you.
let’s admit it, you’re just a wannabe actor after a book/TV deal.
October 24th, 2006 at 5:20 pm
Kevin,
I do know what a deed in lieu of foreclosure is. Thanks for the definition for the other readers edification.
“Have you ever had a foreclosure, or deed in lieu of foreclosure” is one of two questions on the Universal Residential Mortgage Application that answering yes will get you an automatic turndown for a loan. The other question regards bankruptcy.
Noticeably absent is a question about short sales. That’s why that is the first option to pursue and why Casey is following that path.
October 24th, 2006 at 6:24 pm
Maybe you could look into becoming a masseur at a truck stop or something?
October 24th, 2006 at 6:38 pm
> A mix of “Startup.COM” and “Requiem for a Dream”
Hahahaahah that would be awesome !
*click*
*clock*
*pop*
*buy another house*
Ahhhh…
(cue Clint Mansell music)
Casey, if you make this movie, I’ll pay to see it. And that’s a more tangible promise of income than any of your ficticious house deals !
October 24th, 2006 at 6:39 pm
Anon, I have read your last post at least 5 times, laughing harder each time. Please don’t leave, you’re all this blog has left!
October 24th, 2006 at 6:46 pm
Wow, given the fraud you were committing, and you still could not make money. If you got a primary residence borrowing rates for a rental investment; all you had to do is get a 30 year fixed rate mortgage 10/20 - I/O, but a place in a market that has a good Cap Rate compared with your already fraudulently discounted borrowing rate. They put a minimum down and forget about it. They rents would rise and the mortgage payment would be fixed for ever. Leverage multiplier would be high. If the market rises you could sell / re-borrow and take the gains, if interest rates rocketed and priced fell, you hold with no problem. You got greedy!
October 24th, 2006 at 7:05 pm
Ignore the noise. People make mistakes and learn from them- that’s how life goes. You haters are going to eat your words.
October 24th, 2006 at 7:13 pm
Did USA Today give you a release to fully post their copyrighted story on your site?
This is really all about publicity for you in some yet to be determined venture, isn’t it? Wonder what it is? Shilling for ‘rich dad’? Book / movie?
October 24th, 2006 at 7:15 pm
That’s a great idea though, sell your story… but would anyone want to touch it? Probably not until the dust has cleared, so it all might backfire and after the BK and all that settles down… then maybe you’ll be able to write your book. However, the focus of the book might be more on this blog and your media coverage than the story of how you went bankrupt… because… well… there’s a lot of interesting stuff going on in these comments.
NG
October 24th, 2006 at 7:18 pm
can’t you MSM guys think of anything better than hiring actors to make fake “blogs” to hype up fake shows?
there are plenty of good shows waiting to be made out there, no need to try to trick people
October 24th, 2006 at 7:28 pm
Rhea,
>> Quitting a day job to pursue a dream is always a positive thing. It’s just that it gets kinda crazy after the paychecks are no longer coming in.
No. Quitting a day job in order to execute a good plan is always a positive thing. There’s nothing wrong with having a dream, but you have to have a realistic plan for getting there before you can walk away from all sources of income. Sometimes the realistic plan may includes something simple like scrimping and saving for a year or more so that you have enough cash to survive on until your plan actually becomes profitable.
What was Casey’s plan?
For that matter, what’s his plan now? He still doesn’t really have one.
-btc
October 24th, 2006 at 7:45 pm
I think Randy H is the Mark Foley of this blog. He doth protest too much. Keep protectin’ the children, Randy! Please tell us what “tax forms” Casey was supposed to file when he accumulated his mountain of debt. Oh, wait, Casey’s “running a business”. Sure. One more time for the stupid people:
DEBT ACCUMULATION =/= INCOME
DEBT FORGIVENESS = INCOME
October 24th, 2006 at 9:00 pm
Why all this gloom and negativity? Hold on. Mortgage rates are coming down again soon, as you see from all the buying frenzy on the stock market, and the real estate market will recover. You just got caught by unfortunate timing. Tell these banks that all you need is a couple of months, and it will be boom-time again. If you give in, it will be the banks that make all the money.
October 24th, 2006 at 9:13 pm
Casey:
I have read your blog and not commented for a few weeks. I guess I feel sorry for you because of your young age. I feel bad that you bought into the whole Kiyosaki flim-flam game. I further fel bad that you have brazenly committed loan fraud and am in amazement that you are publicly providing evidence for a prosecutor.
I have worked in mortgage lending for 12 years now. I moved to Southern California in 2003 and had numerous 20-somethings call me an “old man” for offering caution or “gutless” because I worked every day instead of chasing deals. I should be gloating but frankly, I’m not.
So…here’s my advice:
1- Get a job. Drive a truck, design websites, or deliver newspapers but get a job. You’re young, healthy, and have some sort of talent that could be useful to society.
2- Stop with the “flipping/wholesaleing” gig. You’re not going to solve a gambling problem with one last roll on a hard 8. You’re not going to stop a drinking problem by getting blind drunk so you hate it. Stop…stop…stop!
3- File BK. You took a shot and lost. No big deal. By the time you are 35, it’ll all be gone.
4- Sell the homes and pray. The lenders will take it in the shorts. You lied but frankly they probably knew it. Let the underwriters explain how they let you have a home with little or no documentation or downpayment.
Get this behind you. Get proactive and join the ranks of the working drones. Maybe you can get back in the game when the nex big boom comes along!
October 24th, 2006 at 9:20 pm
An astute reader sent me this from one of my other blogs. We’ll see if Casey allows it to post. He contends, after all, he’s done nothing wrong. And his chums like the guy above seem to think anyone criticizing his fraud is a deviant. Well…
–
http://www.da.saccounty.net/si/index.htm
The Special Investigations Division prosecutes financial crimes with losses in excess of $100,000.00, real estate fraud and specialized cases including misconduct by public officials, political corruption and election fraud.
The Division is comprised of four attorneys, three criminal
investigators, an investigative assistant and a paralegal. One attorney, a paralegal and two criminal investigators are exclusively dedicated to the prosecution of real estate related crimes. Real estate cases are investigated by members of the unit in combination with special
investigators of local, state and federal law enforcement agencies.
The Special Investigations Division can be reached at (916) 874-5897.
Direct contact can be made with the Real Estate Fraud Unit by calling (916) 874-9045
October 24th, 2006 at 9:59 pm
Randy H-
Hey, I just compared you to Foley because you called me a criminal for no reason at all. You made a lot of things up, like how I’m a “friend of Casey”, and sounded like a bit of a tinfoil-hatter. FYI, like you, I don’t even own any real estate, so I’m hardly a “friend of Casey”. If you’re correct about Casey collecting revenues, I apologize, because I don’t remember him ever saying he collected a penny. (Why he hasn’t rented his houses out is another story…)
I don’t understand the link you posted. Of course Casey committed loan fraud, and the agency you refer to will likely investigate it. That agency is not the IRS. The IRS investigates tax crimes.
Once again, I challenge you to tell us what tax crime Casey committed. Let’s assume he is not operating as an S, C, LLC, etc. If your net tax liability at year end is under $1000, you are not required to make ES payments.
By the way, you really are an unlikely nexus: a pretentious, pseudointellectual twit, and a self-aggrandizing bully who just HAS to keep posting so he can drive traffic to his own blog.
I would hope an MBA married to a CPA could surmount the major challenge of filing a 1040-ES, which consists of writing a check and filling in one blank on an 8.5 x 3 inch form. Only a SUCCESSFUL ENTREPRENEUR like yourself who has “run lots of real businesses” could handle such a Herculean task.
October 24th, 2006 at 10:13 pm
P.S. Randy, reading your last comment again has left me even more bewildered. Why do you keep parroting “Casey..contends, after all, he’s done nothing wrong”? I think he has made it abundantly clear that he’s afraid of going to jail for fraud. If you’re so afraid he won’t be punished for his misdeeds, you should turn him in yourself. I’m sure you would hardly be the first reader of this site to forward it to the relevant authorities. Your vitriol in coming back day after day to bully your imaginary enemies (like me, the master criminal and “friend of Casey”) is a little strange. I stand by my theory that you’re just trying to generate traffic for your own blog.
October 24th, 2006 at 11:03 pm
Randy H,
I have to confess, I have not read this blog the whole way through, so if what I have missed is obvious, then please point it out politely and quickly. I assure you I am not trying to be mean or anything, I am just ever so slightly confused.
You say in a recent post that “Casey was collecting revenues, no?”… What revenues are you referring to? The only thing I have heard of which might be described as “revenue” was some years ago, with his first “flip”… though I may have something wrnog. if you are referring to something else, please let me know.
I know Australian tax laws are different to yours, so I won’t comment on the rest of it… I would just like to know what you meant by the “revenues” bit…
Thankyou.
-anonymous Aussie lass
October 24th, 2006 at 11:20 pm
Claims that Casey is facing prosecution for not filing quarterly estimated income statements (ES) are silly.
What will happen when Casey does file, and does owe (assuming this to be the case) is that the IRS will then calculate some penalty amount and accrued interest for the “late payment of estimated taxes” and will then send him a bill.
I’ve gone through this many times, as I didn’t know in April and July, etc., what increased income I would have later in the year. Or I just didn’t bother to file the ES forms.
And so I got a computer-generated form listing how many dollars I was to send in.
(There are also some slightly complicated calculations having to do with suddent jumps in income. A person who earned, say, $20K in one year and then has a jump to $150K, would not be penalized for not filing ES forms.)
Don’t get me wrong: Casey may face serious taxes (for 1099s on short sales, written off debt). And other problems. But not prosecution for not filing some ES forms and sending in some money with them.
–Tim
October 24th, 2006 at 11:34 pm
gran puba
My second comment had nothing to do with you. It refers back to numerous previous threads. Casey’s self-claimed revenues have grown thread by thread. At first he claimed he “didn’t make a penny”. Over time it’s grown to over $50k. I freely admit that he may not have committed tax fraud, only that I would be willing to take that bet.
It’s been a very long time since I filed an ES; probably over 15 years. I’ve primarily run C and LLC corps. Figuring out all that when I was Casey’s age was a lot tougher. I can understand the notion of “learning as you go”. I got into some trouble with 940/941 in my first C corp until I realized I’d have to pay for a proper payroll service.
But that’s my point. If Casey were an honest young guy trying to build a business — any kind of real business — then I’d be nothing but supportive. I’d tried being supportive when I first happened upon this blog. But it became quickly apparent that Casey is a symbol for a much deeper problem. That’s the reason there are so many “Friends of Casey”, which I’m sorry if I incorrectly assumed you were. But if you go back, you’ll see tons of rich-dad millionaire seminar drones giving him terrible advice, egging him on, and doing harm to not just him but likely other young folks out there thinking that there’s easy money to be had by getting fraudulent loans and flipping houses.
My real complaint is with those who *should* know better, but still insist upon casting Casey as some enterprising young guy who had the right idea, but just got unlucky. No. Casey got exploited by some tacky real estate “investors” seminars, tried to implement their bull, and ended up here. There’s no justification for it. And it’s not “victimless”. We *all* pay for the crimes these rich dadders commit. Every fraudulent loan that defaults costs the rest of us.
Oh, and by the way, I’ve owned plenty of real estate over the years. I was just smart enough (not a big accomplishment given anyone paying attention did the same) to sell before the bubble popped so I can buy back in for 35% or less after the dust settles.
Driving traffic to my blog? I really doubt anyone here would care about anything I write there. I get most of my blog traffic from other, more constructive forums I author on. I really don’t care if anyone here ever visits. I’ll probably disappear at some point, after I’ve tired of this train wreck. I’m not here to get Casey put into jail. Actually, I secretly hope he doesn’t do a day in jail and instead gets to turn witness to the bigger criminals who suckered him in. But that never seems to happen today, so he’ll probably end up a scapegoat deterrent example. Meanwhile rich dads will continue to get people drunk on tequila and sell their books and “educational” materials that teach people how to try to make money without working for it.
October 24th, 2006 at 11:37 pm
Gran Puba
From reading the posts from this thread and last you seem to be the one who attacked Randy first and now you link him to some psycho and claim he’s trying to generate traffic to his blog? Why, because he actually defends himself against your vitriol?
With every post you sound less and less like you know what you’re talking about. Please, quit embarassing yourself.
October 25th, 2006 at 12:42 am
Ah to see the battle betwix Randy H and gran puba…it’s like watching a chiuaua trying to pick on a pit bull. To paraphrase gran puba’s last thread “I got nothing”.
October 25th, 2006 at 3:40 am
OK. This has viral marketing written all over it.
Guy blogs about defrauding his banks for 2 Million and underlines this again and again for every radio show and newspaper that interviews him.
If this were real, the last thing anybody would do is blog about it every day for two hours and release press statements.
The whole blog is too exposed, to glossy, the pics are too perfect. He even looks like an actor.
This has the main hallmark of viral marketing: The entire story is fascinating in a way yet when people start digging deeper it becomes implausible.
October 25th, 2006 at 5:38 am
Casey,
Don’t let the hateful people on your blogs destroy your spirit. I wish you the best of luck and prosperity.
noah
October 25th, 2006 at 6:06 am
Nigel,
Checking the ‘have you ever had a foreclosure?’ box on the application does NOT get you an automatic turndown. It does on conforming Fannie Mae type loans, but there are many sub prime lenders who will loan to people who have foreclosures in the past. Of course, their credit scores will reflect it and they will pay much higher interest rates to make it worth the lender’s risk.
October 25th, 2006 at 6:48 am
I’m not in California, nor any of the other states involved, but somebody who is should fill out the following form:
http://www.da.saccounty.net/si/fraud_report.htm
Hell, Casey, you could do it yourself during the 25% of your “working” day that you set aside for blogging. It would certainly spice up the activity around here.
October 25th, 2006 at 7:04 am
I for one enjoy reading Randy H’s comments everyday. They are well thought out, and I too feel a sense of frustration with each passing topic that Casey makes daily; the main reason being that he admits to “fraud” but then either wants to repeat his mistakes or just brushes them off as if they will just go away.
All Casey’s comments about how he wants to repay evey dirt penny is a lie..he will decalre bakruptcy sooner or later like a predicted almost two weeks ago, just like I successfully predicted that he would find a rich Dad to continue his real estate empire building.
Legion
October 7th, 2006 at 1:59 am Sigh…
I am going to have to call BS on your desire to repay all of your loans. Everything you have said and done thus far has pointed to the fact that you have and probably always will try to TAKE the easy way out. Like earning money..you couldn’t be happy with trying one house to flip..you went for eight. Instead of getting a job and paying the lenders back a dollar at a time your reply is that “If I flipped burgers I woundn’t be able to pay even my credit card nut each month”. Instead you just sit on your butt (and lose a 70K per year job..you do know that is almost twice what the avg. american makes right?) and continue this stupid blog.
I suspect that sooner or later we are going to see you stating that you have FINALLY (yeah right) decided to declare bankruptcy. I think with all this publicity you are hoping that you can cash in on some easy money with a book deal, tv show appearances, or even the lecture market (hell if that idiot Kato could do it you sure could). Either that or you are waiting for some sugar daddy to bail you out and show you the ropes (CHECK)..ie Rich Dad Poor Dad or even Donald Trump…you know..one of those guys that love to see themselves in print so much that they would do it just for the publicity. I paid 90k in taxes last year…and it really pisses me off that it is probably going to be used to bail cretins like you out.
My predictions…
1. Casey will continue to take the easy way out (ie w**** himself out to the media..for a price of course) (CHECK)
2. Casey will declare bankruptcy.
Incidentally please get a vasectomy….
October 25th, 2006 at 7:06 am
re: The Special Investigations Division can be reached at (916) 874-5897.
Direct contact can be made with the Real Estate Fraud Unit by calling (916) 874-9045
October 25th, 2006 at 8:02 am
You guys could do the cause of letting this worthless little piece of human trash go on to his destiny of being a two bit hustler with a criminal record by ceasing to post on this blog. Just say no. I know it’s tempting to beat the little twerp up and it’s fun but every time you do it, he probably makes money somewhere.
Let him rot in his own disgusting mess. Alone. That’s what he hates the most.
October 25th, 2006 at 8:07 am
Here’s more evidence to hold on. This AP story on the housing downturn quotes a real estate expert saying it’s only temporary and things will turn around in the Spring. As I advised before: do everything you can to hold on. How about doing what investors do on the stock market and double down after losses, and buy more houses. Here’s the AP story:
WASHINGTON
Sales of existing homes fell for a sixth straight month in September and the median sales price dropped on an annual basis by the largest amount on record, further documenting a lukewarm housing market.
The National Association of Realtors reported that sales of previously owned homes fell by 1.9 percent in September to a seasonally adjusted sales pace of 6.18 million units, the slowest sales rate since January 2004.
The median price of a single-family home fell to $219,800 last month, a drop of 2.5 percent from the price in September 2005. That was the biggest year-over-year price decline in records going back nearly four decades.
Housing, which had set sales records for both new and existing homes for five consecutive years, has been rapidly loosing altitude this year, as consumers were battered by rising mortgage rates, soaring energy prices and a slowing economy.
However, economists with the Realtors said they believed the housing decline could be hitting bottom.
“The worst is behind us as far as a market correction _ this is likely the trough for sales,” said David Lereah, the Realtors’ chief economist. “When consumers recognize that home sales are stabilizing, we’ll see the buyers who’ve been on the sidelines get back into the market.”
However, analysts said that the weakness in housing could last for several more months with a real upturn in sales not occurring until next spring.
Sales were down in all sections of the country except the South, which posted a small 0.4 percent decline. Sales fell the most in the Northeast, a drop of 3.7 percent, followed by the West, where sales were down 3.1 percent, and the Midwest, where sales fell by 2.8 percent.
The inventory of unsold homes, after climbing to all-time highs, fell for a second straight month, decreasing 2.4 percent, to 3.75 million unsold homes at the end of September, which represents a 7.3 months supply at the September sales pace.
Sales of single-family homes dropped by 1.6 percent to an annual rate of 5.42 million units while sales of condominiums fell by 3.2 percent to an annual rate of 763,000 units.
The 2.5 percent drop in the price of single-family homes pushed them down to $219,800 while condominium prices fell by 3.2 percent to a median price which was also $219,800.
October 25th, 2006 at 8:58 am
the fact that this idiot posts the post referring to the fraud hotlines tells me that.
a) he has someone backing him on these sells and he really isn’t that bad off and this is a publicity marketing ploy.
or b) he truely is a moron and is hoping this will bail him out.
I don’t believe that he is only trying to help others. He’s not sincere.
October 25th, 2006 at 9:33 am
Howie, you’re an a**.
October 25th, 2006 at 10:16 am
IZ LIKES YOU CASEY.IZ WILLS PROTEKT YOUZ INS PRISIN.YOUZ WILL BEEZ MY B@$##.DEN I WILLS SELZ YOU FER A PACK OF SIGARETT
October 25th, 2006 at 10:24 am
How about doing what investors do on the stock market and double down after losses, and buy more houses.
For homework, please complete this assignment:
You are a US stock market investor. You’ve been making unprecedented returns in the market with tech stocks. It’s early 2000, and there’s some signs of bumpiness ahead.
After a couple of months you find you’re down quite a bit. Although a couple of your stocks have gone bankrupt, most are healthy companies, just well off their highs.
As the market flattens out, some pundits start calling this “the bottom” despite multiples still being many times their historically supportable averages, and a couple of your stocks even recover a tiny bit, do you:
a) Double down! Buy more on margin! Maybe even triple/quad down by buying calls and writing puts!
b) Use this plateau as a liquidity window to exit most or all of your positions, cover your margin, and look for somewhere else to park your money for now.
As a bonus, work out the outcomes in Q4-2006 for this investor had she taken either option in Q1-2000 with $100K invested in the NAS index (Qs). Assume the risk-free rate is 4%.
–QED my point about “rich-dadders” egging Casey on. Casey, *day traders* double down when the market tanks. *Investors* unwind their positions and rotate their money somewhere else.
October 25th, 2006 at 10:32 am
Well, you’ve stuck your head in the stocks and people have pelted you with rotten fruit and eggs for a couple of weeks. That being said, you’ve taken the beating but dodged the hubris. It really appears that you’ve learnt nothing.
You’ve created less carnage than a liquored up 24 year old in a Z28, but you’ve still done a lot of damage. Brian Brady & others have given you a lot of sound advice which you seem intent upon ignoring.
I think you need to stand before a judge and explain why you committed fraud. Let’s not guild the lily here, that ugly word has connotations and you’ve fit the bill to a ‘t’.
I also trust the legal system will spit you (& many other ‘white lie’ fraudsters) out with some kind of intent. I, quite frankly, think calling for jail time is the height of stupidity. I would like to see you ordered to take a job, have your wages garnished and do a number of hours of community service work.
And that’s not vindictive thinking. You’ve gambled money you never had a right to on the cynical assumption that the upside is all yours and the downside is someone else’s problem.
Well, guess what - you’ve directly contributed to other peoples problems, which include, stupidly high prices for legitimate first time buyers, an impending wave of financial institution downgrades which will hurt pension funds, and no doubt, stripped some more hide off honest taxpayers to mitigate the whole debacle.
Someone please pass me another rotten egg….
October 25th, 2006 at 11:22 am
I am sure this is a publicity ploy. Wish he would go back to Eastern Europe.
October 25th, 2006 at 11:25 am
Hey, my house is for sale at 50% higher than the market value. Why don’t you come buy my house now? it is a good investment, you can probably sell it for 51% higher than the market value.
I agree that this guy should be put in jail. Obviously, he hasn’t learn from his mistake and started this website to tell the world about how he did all the fraud and break the law.
October 25th, 2006 at 11:31 am
Casey, does Rich Dad ever ask you to sit on his lap?
October 25th, 2006 at 12:07 pm
CASEY, IF I WERE YOU I WOULD SHOOT MYSELF IN THE HEAD.
THERE, PROBLEM SOLVED.
WHAT A FRIGGIN DUMBA$$ !!!!!!!!
October 25th, 2006 at 1:19 pm
So much advice… and so many nonconstructive comments (Bubba).
Surely this guy will do whatever he thinks best. It sounds like he’s given up on his business already, and has no intention of unloading his properties and trying to save face. It sounds to me like only the $200k worth of debt is what he’s actually responsible for.
I think he would have more luck selling his properties himself to avoid potential jail time, embarassing court hearings, and a whole hella bad time. Then he’d be on the hook for some of the differences, but the payments would probably be more reasonable and he could seek professional help on how to minimize the payments on those debts. I’m sure some crazy company would gladly pay your debts to consolidate everything into one loan…..
There are endless options out of this situation. I don’t think filing BK is a good one at this point.
NG
October 25th, 2006 at 2:10 pm
re:
“If this were real, the last thing anybody would do is blog about it every day for two hours and release press statements.
The whole blog is too exposed, to glossy, the pics are too perfect. He even looks like an actor.
This has the main hallmark of viral marketing: The entire story is fascinating in a way yet when people start digging deeper it becomes implausible.”
You’re part right. Most people wouldn’t do this. But most people aren’t as incredibly deluded like Casey is right now. The gloss and staged pics are just Casey pouring several hours per day into amateur web design and goes back to one of his core problems - He’s thinks he’s a pro and smart enough to spin himself out of his problems.
Like all the “bright” ideas he’s had, this too shall bite him in the a**.
October 25th, 2006 at 2:42 pm
Randall:
Why don’t you do your own homework assignment?
Only this time, it’s not “early 2000.” It’s late 2006.
Show your work. Present the comparison between the riskless rate of return and any index of your choosing out to say, Q1 2011.
We’ll be back in early 2012 to give you your grade.
October 25th, 2006 at 3:30 pm
This blog just gets weirder and weirder. Not only do I have a troll, but I actually kinda agreed with “Astrid’s” last comment. If Casey had half a brain, he would be spending a couple hours a day on finding a country without an extradition agreement with the US.
Incidentally, I heard on the radio that the military is actually preventing many military personnel with high debt load from going to Iraq/Afganistan because they are security/embezzlement risks.
Maybe the French Foreign Legion is still an option…
Not immigration law advice
October 25th, 2006 at 6:16 pm
I am Facing Foreclosure
October 27th, 2006 at 4:38 pm
Haters? I think you need to revise your opinion : a HATER is someone who hates through jealousy. I don’t think anyone could be jealous of the situation you are in.
October 28th, 2006 at 9:21 am
[…] Facing Foreclosure in USA Today @ I Am Facing Forclosure […]
October 28th, 2006 at 12:32 pm
This does have the makings of a good story (I’ve never seen a blog with this many comments). Just try to keep yourself in the media and some type of money making opportunity will come along. If you come across as being articulate, you should be able to get a couple of cable news interviews. Then maybe an agent to pimp the story more and help you get focused on a book.
The over the top nature of the story - a 24 year old newbie buying six houses in four states - is what makes your story better than most other flip gone flop stories. I could see Bravo, HGTV or some other cable station wanting to do something with the story. And a lot of people would watch, saying to themselves, “At least I didn’t screw up that bad.”
Good luck, kid.
October 29th, 2006 at 10:19 am
The problem most people have is the inability to be flexible. It seems to be written in stone in every American’s brain that ‘real estate’ is the one are wherein one cannot fail. This is in the past. We have moved into a new era, where getting involved in real estate is a fool’s game. Not only has real estate entered a bear phase, but it’s going to get a lot worse before it gets better. Not only is real estate going down, but it’s going to stay down, and while ‘for how long’ is up for grabs, it isn’t inconceivable that it won’t be back in our lifetimes. The reason why is simple: It’s the economy, stupid. This time it’s no drill. We are in deep kim-chee, our United States, and when it goes fiscally belly up, the world goes with us, as we are the world’s largest economy. We can’t help but drag everyone down with us. So nowhere on the planet is real estate a safe investment, folks. Where you want to be is the one safe harbor in times of economic strife since time immemorial: GOLD. Gold is the new dot.com. Gold mining stock. Visit Kitco.com, Gold-Eagle.com, 321Gold.com, LeMetropoleCafe.com; those will get you started. It truly is time to think outside the box. —Marilyn
November 5th, 2006 at 10:47 am
[…] The next morning, Tuesday, I headed to the Rich Dad head quarters for our meeting, where I told everyone that we would have a surprise guest… Casey the kid from the USA Today article would be stopping by! (I also told RK, who doesn’t follow much on the internet, about the whole conspiracy theory that Casey’s story and blog are part of viral marketing to promote the new T/K book! That made everyone laugh- and RK said, that wasn’t a bad idea! (Sorry conspiracy theorists- Casey really is a kid in forclosure that RK had no idea about before the article! ) […]
November 6th, 2006 at 9:50 pm
Hey Casey, Ignore these people I know that your problem is real and I hope you just hang in there and do what you need to do.
December 8th, 2006 at 2:00 pm
[…] http://iamfacingforeclosure.co.....usa-today/ […]
March 21st, 2007 at 11:09 pm
Its not whether you win or lose, but its having had the chance to play the game.
March 21st, 2007 at 11:15 pm
Been there and done that. From owning many houses and losing them in divorce to rebuilding some wealth that most would envy. There will always be others others dragons to slay my friend.