Saturday, July 28, 2007

Revisiting Old Mistakes

First the pyramid scheme…

Apparently people are really eager to dig up whatever dirt they can on me. So in the comments I noticed several people referring to my money making scheme on Newsnet from way back in 1997. I was surprised myself when I saw this. I vaguely remember it. I was 14 years old then. This is dirt from 10 years ago!! The internet (err.. Google) keeps you honest!

(By the way… I didn’t have my own email address back then so I was using a family member’s acount. That’s why the FROM name doesn’t match - for those who were wondering)

OK… what do you want me to say about this? Yes, this is pretty much a pyramid scheme. Yes, it was a mistake to get involved in something like that. I have been in America for 3 years at that time. As a poor immigrant kid, I was just trying to find a way to make some extra cash. I’m impulsive. I’m entrepreneurial. So I gave it a shot. And it didn’t work (surprise, surprise).

At the time I don’t think it was a big deal and I didn’t understand much about pyramid schemes. I didn’t even write that letter. It was a copy-n-paste type of thing. I got it by email and just followed the directions.

So am I just making excuses? No. I am NOT denying anything. It was wrong. I just want to show you my side of it.

Since then I did try a couple Multi-Level Marketing opportunities over the years but found them to be very similar to the old pyramid scheme but with a product attached to make it more legal. There ARE probably good MLMs out there, but I have a little bit of a sour taste from it. In a way I am glad I tried these schemes, because I now know what NOT to do.



Second… this one is more recent…

Ramit Sethi and the 24% return “scam”…

Here is the explanation I already left on Ramit’s I Will Teach You To Be Rich blog:

Ramit, thanks for a fair writup.

To everybody…..

Yes I DID send out that email to try to find some private lenders who want to put their money to work with me.

I wanted to use the money to bail out the properties, sell them and pay the lenders back. I wanted to also use the money for buying new properties. I was going to explain everything to a private lender once we meet.

To make it safe, I was going to secure the lender’s money by a trust deed against my properties.

This strategy was tought at one of the seminars I went to. They said to go to your friends/family and see if anybody wants to be a private lender.

What I did wrong was to make it seem like my business was going great when really I was in trouble.

The right thing to do when you approach somebody to borrow money is to be upfront with your financial health so that the private lender can make a smart decision.

However, I was desperate and sent out that first email.

Then I realized that it was wrong to hide the fact that I’m really facing foreclosure, so then I send another email to make sure everybody understands my situation.

So again, I apologize for not being upfront. I’m learning a big lesson through all this stuff.

Keep in mind that being a private lender on RE deals is NOT a scam. Its actually a great way to get a nice return.

Just make sure you know the strength of the borrower and make sure you get your money secured by real estate with some equity in it.

Casey Serin
www.IamFacingForeclosure.com

To add to that…

I was following the directions given to us at one of the seminars on how to find private lenders for your real estate deals. My goal was to borrow small amounts of money, say $5-10K, and use it to catchup my payment, sell my properties and pay the private lender back a generous 24% annualized return.

I was going to use the equity in the properties as collateral for the loans. Additionally I wanted to use the money to do more deals to get my real estate business back in shape.

What I did wrong was, fail to mention that my real estate business was actually in trouble and I’m facing foreclosure on all these properties. My intention was tell this to the potential private lender in person before taking any money. Then if they still wanted to lend it, they would do it knowing all the risks involved. But I should have disclosed that in the email.

That’s how I borrowed the $3,000 from a friend recently. I told him about my situation and he was still willing to lend it to me. I promised a flat 10% interest whenever I return the money (no collateral on this one). I already gave him back $1,000 plus $100 interest. I still owe him $2,200. Since, the Dallas house is not going to net me any money like I was planning on, I will have to find another way to pay it back.

Anyway… So I realized my mistake on that private lender solicitation mailing and I sent out another email shortly after - apologizing and telling everybody the truth about the health of my business and that I am facing foreclosure.

I was acting out of desperation and should have thought it through a little more.

I apologize again to anybody who is on my personal mailing list and received that original message. Sorry for misleading you.

Also I apologize to my high school friend Ramit for including him in the mass mailing. I haven’t talked to him since 2000 - back when we graduated. No wonder he thought this was a scam - he received it out-of-the-blue. I found him one day online and added his new email address to my address book for future follow up. But then this whole mess happened and I mass mailed everybody in my address book including Ramit.

By the way.. out of about a thousand people who received the email I only got one person somewhat interested. I’m surprised more people are not willing to put their money to work at 24%. Maybe because people don’t understand they can be private lenders on real estate. Or they don’t trust me anymore. I don’t blame them. It’s going to take me a long time to win people’s trust back. That’s the consequences to my rash behaviour.

Filed under mistakes, personal / feelings, other stuff
Deed in Lieu of Foreclosure Sent
What Really Happened in Phoenix
95 Comments

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1. Fran
November 4th, 2006 at 6:23 pm

14??

You were only 14?

Man, I am not giving out my web site. I hate to see what could be dug up on me when I was a teen.
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2. kpom
November 4th, 2006 at 6:26 pm

“I’m surprised more people are not willing to put their money to work at 24%.”

Uhhhh, because people think that this is a scam, and that they won’t make 24% - that they’ll lose 100% instead?

The fact that only one person out of a thousand responded to your solicitation shows that there is hope for the American people (or at least the people on your e-mail list).

Ever hear of MMM, Casey?
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3. Well...
November 4th, 2006 at 6:27 pm

Sorry, I’m a little fuzzy on the economics. If:

- you’re behind on your payments
- you borrow $5K to “catch up”
- you owe, say, $200K on the mortgage

Isn’t the “private lender” taking the risk that you:

a) use the $5K to bring your mortgage current
b) sell the home for at least $201.25K (so you can cover his return), AND
c) sell within a month so you don’t run out of cash and need another $5K before you can continue the transaction.

If you can’t cover expenses without relying on the “private lender”, how can you guarantee any return?

Also, if the homes are have a loan-to-value of 100% (or more), what equity are you offering the “private lenders” as collateral?

Am I missing something? If not, these questions are probably why you didn’t get a better response.

Your thoughts?
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4. Kevin
November 4th, 2006 at 6:40 pm

Casey, I fricking appreciate your tenacity. Your talent does not lie in real estate investing. In lies in marketing and promotion. This blog and the interest it has drawn is incredible. This is the area you should be concentrating future work efforts in. Businesses are willing to pay people good money that can bring traffic to websites.

The fact that you can write your above post and still say that you are surprised that more people are not willing to put their money to work at 24%, shows that you know nothing of the financial world. To get a return that high on ANY investment, means that there is a lot of risk. Or an extremely crazy circumstance (such as the stock market buildup at the end of the last century or the real estate market after the turn of this century). These circumstances don’t last for long. But there are always dreamers (you can use the word entrepreneur if you like) that believe this is reality. And your explanation getting loans from people to satisfy investors does not wash. It clearly explains why there is not this kind of return on investments.

You’re right when you say that people can offer Seller financing on their home. That can a good financing option for some people. But explain to me why I would wish to pay roughly $240,000 (your current listed price) for your home on Larchmont, while the market is still heading down, here in Sacramento, even with Seller Financing? What am I gaining as a potential homeowner? As I see it and this is only my opinion, your potential market of buyers is another individual as unsophisticated as yourself in the world of real estate. And if your agent has gotten you better offers, that’s great. She’s doing a good job.

I wish there was something I could do to help. No, I’m not interested in even taking a client by either of your Sacramento properties. Short sales are difficult enough. If you have other ideas of how I can help, I’m open to ideas.
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5. Free advice
November 4th, 2006 at 6:41 pm

Casey:

If you sent your email to 1,000 morons, you might get a lot of inquiries.

But evidently, you sent it to 1,000 halfway bright people who realize that anyone who’s offering 24% has a screw loose or is insolvent. After all, if you can’t find money at 23%, you probably have a credit score of about 300.

When you miss payments, credit card companies jack up your rate to around 29%. But even they aren’t foolish enough to expect that they’ll actually get it.

I’m sure there’s a way to loan money out at 24%, but it probably involves breaking kneecaps. And most people don’t have the stomach for that.
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6. Sprezzatura
November 4th, 2006 at 6:50 pm

I’m surprised more people are not willing to put their money to work at 24%. Maybe because people don’t understand they can be private lenders on real estate.

Um, no, it’s because most people realize that there is no such thing as guaranteed returns, and that anyone who promises a “24% fixed return” is not to be trusted.
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7. Unbelievable
November 4th, 2006 at 6:53 pm

“By the way.. out of about a thousand people who received the email I only got one person somewhat interested. I’m surprised more people are not willing to put their money to work at 24%. Maybe because people don’t understand they can be private lenders on real estate”

Or maybe the other 999 people have read your blog ?
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8. Free advice
November 4th, 2006 at 7:05 pm

Okay, so here’s the deal. Most of you probably won’t get this, but I hope some of you do.

I haven’t read Kiyosaki, and don’t intend to. But from what I gather, he tries to encourage people to shift their view on wealth.

I think what he’s trying to tell you is that most people tend to think of their wealth in terms of their income. But businesses don’t look at it this way at all. You may not run a business, but when you look at it that way, things become clearer.

First, the balance sheet. This is simply a snapshot in time. Assets are what you have. Liabilities are what you owe. You can call it what you want, but that’s what it is.

Largely, this is irrelevant. The only reason anyone would care much about your balance sheet is if you liquidate. For most people, that means dying.

Income is not an asset, but many people view it as such — and that makes it hard to grow wealth. Income is really just cash flow.

When you do get your paycheck, the money you get becomes an asset. But money in and of itself is a poorly producing asset. You need to convert into an asset that creates cash flow.

What you need to do is to convert some of your cash flow into assets that generate their own cash flow. That way, you can get cash flow without having to do the nine-to-five thing. Or you can do both.

It is useless to argue whether one particular good is an asset or not. It is useless to argue whether one particular good is a cash flow producing asset or not. For most of us, purchasing a car will not create cash flow. For Hertz, it does.

A balance sheet isn’t cash flow. An income statement isn’t cash flow. Deals aren’t cash flow. The only thing that counts is the cash that flows.

Casey’s mistake, among others, is to view putting “deals in the pipeline” as a measure of success. It’s never a lack of deals that will kill you. It’s lack of cash flow.
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9. Jeff
November 4th, 2006 at 7:17 pm

Casey, this is the third time that I’ve asked in the past few days: What’s your status, and how are you working to get yourself out of the jam you’re in? We haven’t had an update; you’ve only written about what other people are saying about you.

So, where’s the beef?
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10. Unbeliever
November 4th, 2006 at 7:20 pm

“Or they don’t trust me anymore.”

I vote “they don’t trust me.”
“Anymore” implies that they did at one time.
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11. Richard
November 4th, 2006 at 7:24 pm

I’ll save you all the negative stuff and obsene words because you won’t listen anyway.

At this moment your properties aren’t selling, even at a reduced price? How are you going to pay back using your equity? Who would want to invest with a situation like yours? Think about it. Put yourself in the shoes of an investor. Would this be something you’d want a part of?

Are you doing anything to reduce your debt? Are you working? Working meaning getting paid an hourly wage for your time? Look I understand the “rich dad” mentality. I’ve read all of Kiyosaki’s books. I’m not bashing the man, his book changed the way I see finance, but his teachings are very dangerous in the wrong hands. And you have the wrong hands. Have you played Cashflow? Do you start with making no income? Every character you start with has a job. You buy assets based on your job history, credit score, etc.

I’ve been in the same situation as you. Well not to this extent, but I thought I can just find properties and make a killing. Quit my job and everything. Guess what. It doesn’t work that way. Found out the hard way (without buying any properties, however) and went back to work. I’m a loan officer. I don’t get paid (on comission, just started), so you know what, I’m going to get a part time job. That way I can supplement my loan officer job.

I could write a million things about how you need to change, but you won’t anyway. I could tell you to stop doing anything involved in real estate, stop borrowing money to buy more real estate when you could be using it to pay down debts, but you won’t listen anyway.

I’m not saying these things just because I’m mad at someone who doesn’t take this seriously and makes real estate investing look bad, I”m saying this because as a fellow aspiring real estate investor, I want to you succeed one day. While now might not be the time, you really need to look at what’s important to you right now. I think it’s getting rid of your debt, then working your way back into real estate.

Good luck and if you believe in a god you better start praying as hard as you can.

Richard
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12. Dan
November 4th, 2006 at 7:26 pm

LOL I can’t believe after all you are going through, that you would be surprised that people didn’t “Jump” at the 24% return opportunity.

Maybe it’s because anyone who has ever saved or invested before KNOWS that giving a 24 year old $10K for a promised 24% return is the same as flushing the $10K down the toilet. There’s no way on earth you could ever sustain that business model… but the one you already tried didn’t work either so it’s no surprise you would find a second way to fail “in despiration”.

By the way, if you had found any lenders… what equity were you going to secure them with? You have no equity because the houses are all mortgaged for more then they can sell for… except MAYBE the Texas one where you might have had $5K or $10K equity but were unable to realize it before foreclosure (or maybe deed in leiu).

I’m glad to see that the pyramid wasn’t yet another “hail mary” pass to to try to stop the bleeding.
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13. Falconer
November 4th, 2006 at 7:27 pm

Hopefully your post was just the first installment. I don’t care at all about this history - it just goes to demonstrate character, and that’s already been crystal clear to me. I’m just interested in Dallas DIL, Phoenix deal, etc …

But, I just have to comment on this statement:

“Additionally I wanted to use the money to do more deals to get my real estate business back in shape”

1. You don’t have and never had a RE “business” - you’re just a speculator.
2. Such non-existing RE business was never in a “shape” to get “back” into.
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14. A Lawyer
November 4th, 2006 at 7:41 pm

Good lord. Will you please stop being so incredibly naive?

MLMs, classic pyramids, get-rich gurus…shouldn’t you pause for one moment and think?

Isn’t something very wrong, at a very basic level? You want to get rich - fine, lot of people want to. Why are you failing?

Maybe because it doesn’t work this way.
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15. Mr. Flipper
November 4th, 2006 at 7:45 pm

What a humbling experience it would be for any of us to have our past mistakes opened up, plowed through, dissected, and displayed to the public.

The additional sins exposed here aren’t measurably as shameful as the ones exposing them. The abject courage of the weblog author to lay himself bare on this site is both frighteningly poignant, and a magnet for monsters.
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16. Jozsibacsi
November 4th, 2006 at 7:54 pm

Casey,

Since beginning your “job” (have you been paid yet?) on October 22, your posts have included visits to bankruptcy attorneys, writeup in USA Today, meeting Robert Kiyosaki, doing media interviews, and now your mea culpa on past “mistakes.”

What I haven’t seen is any mention of income from your “Rich Dad.” Do you have any money coming in right now? If not, you should consider going back to your computer job. Think back over the past two weeks: how much time has been spent on this blog? How much with your “Rich Dad” job? How much money have you made?

Along with your collection of real estate guru books, think long and hard about this quotation from Warren Buffett:

“The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future — will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”
Berkshire Hathaway 2000 Chairman’s Letter

The real estate party hangover is going to be here for a long time.
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17. Roy
November 4th, 2006 at 8:07 pm

Looks like you never learned your lessons. Can you just be honest with yourself and everyone? I am so disappointed with you.
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18. Rod
November 4th, 2006 at 8:09 pm

Why should they trust you? Have you done anything honestly?
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19. edward allen
November 4th, 2006 at 8:16 pm

You can take great pride of being an RK student. “I always make offers with escape clauses. In real estate, I make an offer with the words ‘subject to the approval of business partner.’ Most people do not know the partner is my cat,” RK wrote.
I just love the idea about the private lenders, but why the measly 24 percent return on investment Casey? Why not a more generous 28 percent, or 32 percent, which would certainly be even more attractive for those with spare cash. The trust deed on the equity in your investments is genius. With such an attractive portfolio and $2.2 million worth of properties, you must have a lot of equity built up to use.
Might I suggest you take your loan proposal to Las Vegas or Atlantic City? I know there are some loan specialists operating there who might help, and I know they will like you.
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20. Silicon Valley Blogger
November 4th, 2006 at 8:37 pm

Wow! You’ve certainly had an interesting life. Let’s see — I am no stranger to pyramid or ponzi schemes either. I had a distant relative who bilked my family off $80,000 and got sent to jail for 3 years. Then when this individual was released, he promptly entered into another pyramid scheme and proceeded as if nothing was wrong about it. We wondered where the heck the Mercedes and the L.A. mansion came from. The we found out. Now this person is in jail for 10 years. In Cali, there’s what we call 3 strikes and you’re out. Hopefully no more mistakes. The law can be unforgiving if there’s one too many errors done. I wish you luck with the entrepreneurial lessons you’ve been picking up, but my advice is to be very careful going forward as reputation is very hard to earn back once it’s tarnished.
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21. Leigh
November 4th, 2006 at 8:46 pm

I wouldn’t loan you $5 for lunch.
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22. Legion
November 4th, 2006 at 8:46 pm

By the way.. out of about a thousand people who received the email I only got one person somewhat interested. I’m surprised more people are not willing to put their money to work at 24%.

Umm..and how did you come up with that figure? Where are the numbers that show you could guarantee that amount or even come close. I can say that I can give anyone 50%..but if I was a loser with limited experience in the field like you are Casey..why should we believe you?

You also haven’t explained all the lies about partners, associates and other bs about people with real experience in the real estate field.

I mean hell, you borrowed $3000 and still haven’t come up with a way to pay that giy 10%, what makes you think you can pay numerous investors 24% in the state that you were in only 2 months ago?

“My intention was tell this to the potential private lender in person before taking any money. Then if they still wanted to lend it, they would do it knowing all the risks involved. ”

This is called bait and switch you dirtball…con people into coming into a nice sounding investment, then give them the hard sell when you are face to face with them. Stop trying to make it seem like you were being ethical here…you lied like crazy on that mass email..promising the heaven and earth, when in reality..all you were really saying was

“I’m in foreclosure..can you give me some money? I’ll pay you 24% with the money from the second round investors that I sucker in”"

Also why didn’t you disclose this little scheme of yours in THIS blog? It occured about a month after you started this(You know, where you proclaimed to the world that you wanted to stop lying, disclose all your mistakes, make amends to the world blah blah blah…)..so don’t make the excuse that it occured before..or go ahead and lie about that too.

I think that you are realizing that the more you lie, the harder it is to keep all of them straight.
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23. Legion
November 4th, 2006 at 8:51 pm

Apparently people are really eager to dig up whatever dirt they can on me. So in the comments I noticed several people referring to my money making scheme on Newsnet from way back in 1997. I was surprised myself when I saw this. I vaguely remember it. I was 14 years old then. This is dirt from 10 years ago!! The internet (err.. Google) keeps you honest!

As for this comment, actually Casey, what this shows is that you have a PATTERN for going after easy moeny, and that actually, you were pretty unethical even back when you were 14. Easy money Casey should be your nickname..you wanted easy money then, you want easy money now..

Now I know you are going to retort..I WAS ONLY 14!!!!! Fine but what about now…I WAS ONLY 24!!!! That means 10 years of learning even more scams and cons.

As for digging up dirt..hey you wanted the publicity…prepare to be scrutinized..dirtball.
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24. Marcus B
November 4th, 2006 at 8:55 pm

I’m first
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25. 2020 hindsite
November 4th, 2006 at 9:24 pm

24% of nothing is nothing. You cant sell something that isn’t there. You had no equity really. After your all done selling your houses, your still in the hole 140k to credit card companies and such. So what are you really selling? Ponzi himself couldn’t have spread it this thick.

Face it - you have NOTHING and taking money and offering 24% - what the heck, make it 100% - you dont have it anyway.

PS your buddy that used to have $3k until he lent it to you is an idiot.
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26. John
November 4th, 2006 at 9:46 pm

I’m guessing it was “Iron” Mike Tyson who bit, right?
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27. jokeur
November 4th, 2006 at 10:05 pm

Casey,

You shouldn’t let people who “copyright” their comments post here. They are just setting themselves up so they can sue you if you ever accidentally include something they had said in a future book, TV show, etc.

Lawyers in America are parasites, pure and simple. They write the rules and then bleed the rest of us dry.
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28. yneone
November 4th, 2006 at 10:12 pm

Call me a fool, but I want to believe Casey soooo badly. This most recent post has me floundering abit though. Casey, it appears that you’ve been this way your whole life. I don’t understand it. Who are you? What was your life like growing-up? Did you even go to college? Who are your parents? This is why I’ve written to the television networks begging them to profile you. I am intrigued and need to know all about you. I’m trying to remember what I was doing at the tender age of 14. Oh yeah, playing street ball with my friends and enjoying my childhood. Your life growing-up could not have been so simple.
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29. Legion
November 4th, 2006 at 11:52 pm

Mr. Flipper,

“The abject courage of the weblog author to lay himself bare on this site is both frighteningly poignant, and a magnet for monsters.”

I see you are attracted to this website…I guess you are a monster.

By the way..you impress me so with your fancy schmancy big words…next time you want to wax poetic…ah why waste my breath.
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30. Stupid too
November 5th, 2006 at 12:14 am

Casey, I hate to piggy-back on your blog but we seem to have a similiar situation and you have received loads of great advice and I was hoping I could receive some as well.

Here is my story:
Home 1:
Purchased first home 4.5 years ago. VA foreclosed property; 30 year fixed at 6%. We lived there for a year and fixed it up. It it now leased and we have 40k in equity in it. We owe 48K and it is worth 90K.

Home 2:
Use VA home loan guarentee. Purchased on 30 year fixed at 6%. We lived there for a year. Purchased for 60K and has a 16k HELOC. Worth 90k. Rented until March 07′.

Home 3:
Purchased another VA foreclosed home. Valued at 145k. This home is on the market, MLS# 102518. We are willing to sell for what we owe at 110K plus realtor fees. Needs a new kitchen and flooring. On the market for 2 months.

Home 4:
Purchased this using a FHA loan in my name (other houses were purchased in spouses)and owner occupied for about a year. There is 28 years left on the loan assumable at 6%. We are willing to let someone assume the loan for what we owe plus realtor fee around 80k. MLS#102334 Been on the market 8 months!!!!!

My question of how to get out of this mess. We have the two homes listed under appraised value and still no takers. Both are in sluggish real estate markets and homes that size are not good rentals for that area.

I am scared to death and can barely sleep at night. I am lucky both my husband and I have good jobs so for right now we are barely swinging the 6 mortgages plus rent on our tiny apartment. (We had to move to a bigger city to make more money to afford the houses.)

It was never our intent to become real estate speculators; it just kinda happened that we would buy a new house and rent the previous one. Both houses that are listed for sale need some cosmetic work.

How do you find the money to make the repairs needed to sell when you can’t even get a credit card? (My credit is shot after making a few late payments)

Does anyone know any creative (legal) way to raise cash? Even if we could just sell one home we could save up the cash to fix the other. But right now we have zero extra cash from just making the mortgage payments.

Casey, I know all four of my houses do not equal in value one of yours and we have not hit foreclosure yet, but I do feel your pain. I apoligize for the long rant but please know that you alone and there are many people out there in the same boat.

Best of luck to you,
Stupid too
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31. After reading Rich Dad Poor Dad » My thoughts on Casey… again
November 5th, 2006 at 12:55 am

[…] However, after reading his post about a spam email that he had sent out to his mailing list I’ve become convinced that he will not get out of this mess. I don’t think he has the integrity nor the fortitude to be able to do it. I actually believe that he doesn’t want to get out of his mess. I think he’s going to let this hang around as long as possible, generate great blog traffic for a while, then declare bankruptcy and hopefully sell his story. […]
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32. Ken
November 5th, 2006 at 1:02 am

“I’m surprised more people are not willing to put their money to work at 24%. ”

Ummm Casey, you’re stupid.
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33. Mr. Flipper
November 5th, 2006 at 2:06 am

Legion wrote:

1) “I see you are attracted to this website…I guess you are a monster.

2) By the way..you impress me so with your fancy schmancy big words…next time you want to wax poetic…ah why waste my breath.”

The monsters, Legion, that I speak of, are those who dig up irrelevant trash and spread it around just to spite others and gossip. This is what a story about a 10-year old’s escapades would be all about.

Ahh, Legion, “frigh-ten-ing-ly” has only four syllables, and isn’t too fancy schmancy a big word for you is it?

Come on…I see that smile. Yez-z-z-z, there it is. Come on, come on Legion make a big smile…I knew you could…
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34. Nigel Swaby
November 5th, 2006 at 3:09 am

Stupid too,

Where are these homes you’re talking about located? Have you thought about renting the two you have listed?

Nigel
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35. bonanza
November 5th, 2006 at 3:13 am

“Stupid too”

I just looked at those listings on realtor.com and the listed prices are far above what you say you’ll take for the houses. Have your agent fix the listings to reflect the lower prices, and you’ll get offers. Advertise the houses in the nearest big cities too. If there is a “section 8″ program in your area you might be able to get higher rents. Just my thoughts.
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36. BUSY BONE
November 5th, 2006 at 3:15 am

aw yea!
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37. Unbelievable
November 5th, 2006 at 5:56 am

Um, Stupid Too

Are you REALLY seeking Casey’s advice ?
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38. Miguel
November 5th, 2006 at 6:59 am

“surprised more people are not willing to put their money to work at 24%.”

Perhaps if you replaced the word “generous” with “guaranteed” you might have got a better response?

Just a thought.
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39. Sid Finster
November 5th, 2006 at 7:48 am

OK, “down with negativity and up with chasing your dreams! Say ‘no’ to ‘dream stealers’! Right on, my man!”

Now that we have that crap out of the way, does anyone here know California geography? Because if the following article, titled “Where Not to Buy [RE] (at Least for the Next Year or So” is to be believed, young Casey has successfully used fraudulent loan applications to purchase at least one property in one of the nation’s six worst RE markets. I am not sure whether the Modesto or North Highlands properties also are in one of the markets that even CNN admits are crap.

http://money.cnn.com/popups/20.....index.html

Also, does anyone here know anything about RICO and whether civil or criminal RICO liability might theoretically attach to young Casey’s feats?
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40. edward allen
November 5th, 2006 at 8:53 am

There are Internet sites offering 25 percent return on investments in Argentinian real estate. They say it’s very safe.
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41. coyote investor relation
November 5th, 2006 at 9:26 am

“I was following the directions given to us at one of the seminars on how to find private lenders for your real estate deals. My goal was to borrow small amounts of money, say $5-10K, and use it to catchup my payment, sell my properties and pay the private lender back a generous 24% annualized return.”

Casey,
You are delusional. Small amounts of money are small, i.e. $5 or $10. To throw around numbers like 5 to 10k as small is to guarantee that you will not be sufficiently careful with it (as your record proves). When you have had a job and earned a salary I doubt that you felt 10k was a small amount. From your posts that took you 4-6 months to earn. People who are rich are not casual about money in 5 to 10k chunks except for rock stars and athletes. Do you know any? Real investors know that the big money is made by thinking big but carefully managing the small details.
Good luck. Buy some peanut butter in bulk and plant a garden.
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42. william howard taft
November 5th, 2006 at 9:36 am

No Offense Sir,

But I fail to see Why you cannot work a 9-5 job during the day, clear your debts with perhaps Bankruptcy, and work some OTHER type of business on the side, for an hour or two a day.

While I can understand how you want to be able to retire instantly, have no money worries, and sit on the beach and sip umbrella drinks in the tropics, you will have to find some way THAT WORKS to pay for all that.

Real Estate, I think is NOT where you should be. Would anyone (In your mind) HIRE YOU as a person to be a “flipping expert” ? Would YOU hire you ?

If the answer is NO Then I suggest you find another way to earn these Big Bucks.

The Real Estate market was driven up by people touting how “investors make millions” and everyone was going to do a flip, and “with almost no work make tens or hundreds of thousands in profit”.

The fact is Brazen Speculation drove everyone to look at homes as investments, NOT as places to live. People paid WAY more than they should have for homes, in some areas (not even california) paying 350K for 2 bedroom homes that were not that fancy.

Incomes have NOT gone up to keep pace.

I would suggest you STOP trying to “make money fast” and if you want to be the overnight, easy peasy success, find a way to either “build a better mousetrap” or offer some service people will need and want.

About asking for this five-thousand dollars from “investors” in some way to get out of debt….That was either a Terribly Bad Idea, or a Genius of Marketing.

William Howard Taft
Editor, www.popularparanoia.com
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43. John
November 5th, 2006 at 10:18 am

“Yes, this is pretty much a pyramid scheme.”

It is an illegal pyramid scheme.

“What I did wrong was, fail to mention that my real estate business was actually in trouble and I’m facing foreclosure on all these properties.”

You attempted to take advantage of people who can’t afford to lose any money.

“It’s going to take me a long time to win people’s trust back.”

You have a history of get rich quick schemes without regard for the people you are hurting. You can’t gain peoples trust without integrity.

I originally presented the “taking pictures of a tsunami wave” metaphor to you a week or so ago because you are attempting to take snapshots of something that will destory you shortly, rather than do something responsible. I too did some research and learned of your history and, like others, gave up “posting” it because the posts were edited or removed.

You’ve created this mess and I doubt you are capable of understanding why your actions are so wrong, or for that matter, what you’ve done for the past 10 years with “send me money so I don’t have to work”. Your tip jar on this site further supports your “I’m entitled” mentality.

I do believe you have Antisocial Personality Disorder or are Bipolar.

It’s very unfortunate that many resources that are being used and will be used to clean up your mess.
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44. Kevin
November 5th, 2006 at 10:53 am

Sid, North Highlands is in the Sacramento area, while Modesto is about an hour or so south of here. Most investors have seen that article, or something similar, by other mainstream media outlets. Casey, and other dreamers, wish to ignore such info and still believe there are plenty of ‘deals’ to be made here.
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45. Marc
November 5th, 2006 at 11:41 am

This social system no longer rests on the Founding Fathers’ Calvinist work ethic and taste for saving - but, on the contrary, on a new ideal (I don’t dare speak of ethics or morals): the quest for the biggest payoff for the least effort. Money speedily acquired, by speculation and why not theft. The gang of black unemployed who loot a supermarket during Katrina and the group of oligarchs who try to organize the “heist” of the century of Iraq’s hydrocarbon reserves have a common principle of action: predation.

Same for you Casey… you predate. This whole mentality will bring down the entire country, because nothing “tangible” is produced. No more goods, just swirl “money” around…

Meanwhile the rest of the planet will learn how to live without this country and gang up to destroy it. C’est la vie…
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46. You be scamming
November 5th, 2006 at 12:38 pm

I love the title of this entry , “Revisiting Old Mistakes.”

A mistake pal, is an inadverdent error. It is unintentional. What you did was yet more attempts, although unsuccessful, to commit fraud. Then when you are caught,, you deny any culpability, and attempt to justify the fraud.

“In a way I am glad I tried these schemes, because I now know what NOT to do. ”

See the pattern here? I suspect that you were like this when you were 4,when your were 14, when you are now 24 and when you will be the day you die.

“I was surprised myself when I saw this. I vaguely remember it. I was 14 years old then. This is dirt from 10 years ago!!
What were you “surprised” about? That at the age of 14 you were a crook then? You show a glimpse of your true self when you say that “The internet (err.. Google) keeps you honest!” Normal people do not “need ” to be kept honest. It in their nature. Obviously, your first instinct is to be deceitful and dishonest.

“OK… what do you want me to say about this?”
As if to say, “OK, you got me”, not ” Yes, what I did was wrong.”

“Yes, this is pretty much a pyramid scheme.”

No, it WAS a pyramid scheme.

“Yes, it was a mistake to get involved in something like that.”

Again, it was fraud not a mistake, and you were not “involved”, you were the perpetrator.

” I have been in America for 3 years at that time. As a poor immigrant kid, I was just trying to find a way to make some extra cash.”

And the millions of other immigrants that do not resort to crime in order to make a living are???

” I’m impulsive. I’m entrepreneurial.”
Yes, you are impulsive, but no you are not an entrpeneur. You are a crook.

“So I gave it a shot. And it didn’t work (surprise, surprise).”

In other words, you tried to be a crook and your scheme was too stupid to get anyone hooked. I take offense to your cavalier attitude about defrauding people.

“At the time I don’t think it was a big deal and I didn’t understand much about pyramid schemes.”

Another lie. Just as you lie now. You knew exactly what a pyramid scheme was. That is why you did it, for the same reason you are lying now- the get rich scam.

” I didn’t even write that letter. It was a copy-n-paste type of thing. I got it by email and just followed the directions.”

So, you plagarized someone else’s letter as your own, and you think that absolves you from a crime.

“So am I just making excuses? No. I am NOT denying anything. It was wrong. I just want to show you my side of it.”

Yes, your entire life seems to be about conning people, and making excuses when you get caught. There is no “my side” of the story. You are a crook and deserve to be in jail.

This is just sick. Your attempt to diflect ownership of your actions shows a sociopathic aspect to your personality.
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47. Unreal
November 5th, 2006 at 1:15 pm

” $$FAST-N-EASEY CASH$$ NO risk, NOT a scam!! ”

That was the header on your pyramid scheme in 1997. That’s why your comment above of ” At the time I don’t think it was a big deal and I didn’t understand much about pyramid schemes” rings of another lie. IF you as you claim didn’t understand much about pyramid schemes, then why put a disclaimer on the top about it NOT being a scam?

I have to agree with others on the issue of your mental health. You show distinct character traits of a personality disorder. Have you ever been treated for this? Have you ever been prescribed meds for a mental illness?

Personality disorders are very difficult to overcome. However, your illness is coupled with an unethical moral compass. This is a dangerous cocktail because not only are you essentially a criminal, but you are of the mindset where you actually ‘believe’ in your cause. Even to this day you see “no- harm, no-foul” in the two known prior criminal activities. People with disorders such as yourself refuse to accept personal responsibility, always blaming others or making up wildly imaginative cover stories. I have no doubt that you really believe “your side” and that you only “made mistakes”. That is part of your illness.

“The DSM-IV-TR: Diagnostic and Statistical Manual of Mental Disorders, published by the American Psychiatric Association, defines a personality disorder as, “an enduring pattern of inner experience and behavior that deviates markedly from the expectation of the individual’s culture, is pervasive and inflexible, has an onset in adolescence or early adulthood, is stable over time, and leads to distress or impairment.”

Currently, there are 10 distinct personality disorders identified in the DSM-IV:

Antisocial Personality Disorder: Lack of regard for the moral or legal standards in the local culture, marked inability to get along with others or abide by societal rules. Sometimes called psychopaths or sociopaths

Narcissistic Personality Disorder: Behavior or a fantasy of grandiosity, a lack of empathy, a need to be admired by others, an inability to see the viewpoints of others, and hypersensitive to the opinions of others.

According to Dr. Sam Vaknin, author of Malignant Self-Love: Narcissism Revisited, individuals with personality disorders have many things in common (see The Interrelationship Between Personality Disorders):

Self-centeredness that manifests itself through a me-first, self-preoccupied attitude

Lack of individual accountability that results in a victim mentality and blaming others, society and the universe for their problems

Lack of perspective-taking and empathy

Manipulative and exploitative behavior

Unhappiness, suffering from depression and other mood and anxiety disorders

Vulnerability to other mental disorders, such as obsessive-compulsive tendencies and panic attacks

Distorted or superficial understanding of self and others’ perceptions, being unable to see his or her objectionable, unacceptable, disagreeable, or self-destructive behaviors or the issues that may have contributed to the personality disorder

Socially maladaptive, changing the rules of the game, introducing new variables, or otherwise influencing the external world to conform to their own needs

No hallucinations, delusions or thought disorders (except for the brief psychotic episodes of Borderline Personality Disorder)

By reading the DSM-IV’s definition of personality disorders, it seems that these conditions are not treatable. However, when individuals choose to be in control of their lives and are committed to changing their lives, healing is possible. Therapy and medications can help, but it is the individual’s decision to take accountability for his or her own life that makes the difference.

To heal, individuals must first have the desire to change in order to break through that enduring pattern of a personality disorder. Individuals need to want to gain insight into and face their inner experience and behavior. (These issues may concern severe or repeated trauma during childhood, such as abuse.)

This involves changing their thinking–about themselves, their relationships, and the world. This also involves changing their behavior, for that which is not acted upon is not learned.

Then, with a support system (e.g., therapy, self-help groups, friends, family, medication), they can free themselves from their imprisoned life.

This article may be reproduced wholly or in part without written permission but must cite the author, Linda Lebelle, and provide a link to Focus Adolescent Services. http://www.focusas.com/index.html

Given the recent eveidence of at least two more incidents where you in one way or another attempted to perpetuate an illegal act, I suspect you will be a life long habitual offender. The only way to remedy such a person is via intense therapy, medication, or in your case incarceration.
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48. Misstrial
November 5th, 2006 at 1:24 pm

Hello Sid Finster:

“Also, does anyone here know anything about RICO and whether civil or criminal RICO liability might theoretically attach to young Casey’s feats?”

Enclosed is a link to the ‘Lectric Law Library which is a very good legal resource for the general public. You will find a simplified explanation of RICO (Racketeer Influenced and Corrupt Organizations Act) here:

http://www.lectlaw.com/files/cri18.htm

RICO laws are for federal criminal prosecution and to be prosecuted under RICO is a truly fearsome situation. (My sibling is a federal criminal investigator.) Although originally designed to prosecute the Mafia, U.S. prosecutors are now using RICO in their prosecution of urban & suburban gangs.

To the best of my knowlege, RICO is for federal criminal prosecution only and not for civil matters.

I would just like to add that addressing, preventing, and prosecuting criminal conduct by a minor is considered important in maintaining social order. That is why we have Juvenile Courts. Crime by a minor at age 14 is certainly addressed by the Juvenile Court. In most cases, in CA, that minor will be made a Ward of the court.

~Misstrial, copyright 2006
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49. Mr. Flipper
November 5th, 2006 at 1:36 pm

To Kevin, and all the others that are obsessing on whether Casey bought in the wrong neighborhood, accordng to the “money.cnn”…

It DOES NOT make any difference where you located as an investor. There are ALWAYS deals there —- or deals can always be made. Yes, Casey was riding a wave and that wave flattened out. He’ll learn from his mentor how to make money anyway in the current market — or he’ll find someone that is, and follow their example.

Meanwhile, it’s really a matter of knowing your market; what a deal looks like; and then knowing how to uncover it.

However, it is NEVER the case that there are no deals. I’ll bet that ALL the professional investors in those areas are just bowing down and thanking the Real Estate gods, like I am, for the news that their “farm” areas are being reported on national news as tanking, because that means the amateurs are NOT going to compete with us for the bargains for a while, and give us some breathing room again.

THE money.cnn ARTICLE WAS WRITTEN FOR RETAIL HOME BUYERS WHO ARE WILLING TO PAY RETAIL PLUS FOR A PLACE TO LIVE.

No professional investor worth his salt is going to depend on that article for advice on where to invest. No, what they’re going to do is put that article in their credential book to show their prospective sellers what a lousy time they’re gonna have trying to sell their hell-hole for the next year. “Oh, crap!” they say, as they let us buy their houses for a 40% haircut. Is is that easy? Yep. If you know “who” to look for. Some folks just want out. We know where to find those those folks. They are everywhere; in every market; every month; of every year.

Let me say that I hope you keep spreading the bad “money.cnn” news, because it really does loosen up our prospects, and cut down on the competition.
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50. Merced Going Quickly
November 5th, 2006 at 1:42 pm

Casey,
I think the creativity and forsight into turning your problem into a solution is impressive. You should try something other than RE, especially in this down market. Who would of thought that this much interest would generate around a young man’s demise.

24% come’on Casey, really? I would start pitching the movie rights. Yeah, I don’t think you’ll make it out if this RE mess, but I see something along the lines of a TV special.
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51. Curiosity
November 5th, 2006 at 1:46 pm

What’s your immigration status? Are you a U.S. citizen yet?
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52. Misstrial
November 5th, 2006 at 2:01 pm

Unreal:

Great post.

Have you read “Snakes in Suits: When Psychopaths Go To Work” by Babiak and Hare, copyright 2006? Both authors have their Ph.D.

Author Hare is the developer of the Hare Psychopathy Checklist-Revised (PCL-R) and the PCL:SV. Researchers have used these instruments to assess criminal psychopaths in many countries.

I encourage you to get a copy of this book to add to your repertoire:
ISBN 10 0-06-083772-1

I found their examination of psychopaths in the business world fascinating. (I am working to expand my knowledge of white-collar crime - which is why I visit and post on this Board.)

~Misstrial, copyright 2006
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53. Nigel Swaby
November 5th, 2006 at 2:09 pm

Stupid too,

Have you considered renting the homes at a loss, just to minimize your outflow? Your other comments make it sound like that town is experiencing a lot of homes for sale right now. Even renting for say negative $200 is better than not renting for negative $800.

This is something I suggested to Casey as well. A few years ago, I had a condo I rented. With lower interest rates came lower rents and less people who wanted to rent. I was stubborn, seeking a rent level that would allow me to break even each month. Once I lowered my expectations, I found a renter and found that only losing $150 per month instead of $700 gave me a lot more money.

Regarding your sale price. Why do you care about scaring the neighbors? Are they making your mortgage payments? Are their credit reports going to be impacted if you get foreclosed on? Do what’s best for you and your situation. Nobody else has your best interests in mind.

I hope this helps.

Nigel
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54. Casey
November 5th, 2006 at 2:27 pm

A few people here could stand to read: http://www.violentacres.com/ar.....-rich-girl

It’s a nice warning article on what can happen if you plunge into adulthood without first aquiring any financial know how.
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55. Legion
November 5th, 2006 at 2:27 pm

Hollowman,
Yeah I had meant Air Force Base. My girlfriend was in the Air Force back in 91, yeah she was THERE.
Anyways, I think it is growingly obvious that the tide on this blog has changed with the few more recent revelations about poor poor Casey. His cheerleading squad has been forced to see him for what REALLY is, and have started to drop off posting support for him. As we delve more and more into his various get rich quick shennanigans, more people are being less forgiving about his “alleged” innocent mistakes, and his claims to be an innocent running after the American Dream like everybody else are ringing less true.
Casey still hasn’t explained why he didn’t mention his pyramid scheme attempt of a month ago, how he was going to give people 24%, or who these “associates” of his were.
C’mon Casey, get off the blue ball and give us some answers, I’m really looking forward to the fiction you are going to write next.
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56. NLG
November 5th, 2006 at 3:04 pm

Everyone, I think some of you are being fairly harsh. Unreal, do you have a background in psychology yourself? I’m not sure that a practicing psychologist would feel comfortable making, or implying diagnoses from a man’s blog.

Casey is young, 24-years-old. He was trying very hard to make something of himself. However, he is misguided, and very naive. He has a lot to learn, more to learn than he can fathom at this point in his life. Hopefully he’ll learn it, he might not… but that’s life.

Some of his mistakes could be considered criminal, or the result of insanity… however, I propose they could be made out of pure, simple naivety. Just look at all of the mistakes young Paris Hilton has made in her short life!

NLG
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57. Editor
November 5th, 2006 at 3:37 pm

Casey - anxiously awaiting your point of view on the “Fiasco in Phoenix”.

Haven’t figured out yet how to spin it to us, huh?
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58. Legion
November 5th, 2006 at 4:04 pm

“Just look at all of the mistakes young Paris Hilton has made in her short life!”

Well that’s a GREAT example…I mean, if Paris Hilton can make foolish mistakes…anyone can!

That’s like Magic Johnson who slept with 10,000 women saying “If I can get AIDS, anyone can!!!”

“Casey is young, 24-years-old. He was trying very hard to make something of himself.”

Can you explain to me what part of his work was HARD? Can you explain to me how HARD he is working now? Sitting on your butt on a blue ball blogging, jet setting to meet the rich and famous, refusing to work a regular “cubicle” job because it is for suckers, limiting his “work” to 9-5 and not on weekends…this screams hard work to you? You should hire Casey right away before someone sees his potential….

I actually do have a background in psychology and I concur with Unreal’s assesment…Casey definitely does have some sociopathic behavior. Casey has also opened up more than most people would..so yeah..he has revealed a lot about himself, and he does fit the criteria for some of the DSM IV diagnoses..
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59. Misstrial
November 5th, 2006 at 4:04 pm

Sid Finster:

Sorry - RICO is for civil suits as well as criminal:

“Civil RICO

The civil provisions of RICO permit U.S. attorneys and private citizens
to sue for treble damages and the cost of the suit (including reasonable
attorney fees) if it can be shown that the plaintiff was injured in his
or her business or property and that those injuries resulted from a
pattern of racketeering activity. Many objections raised against the
RICO statute have focused on its use in civil cases, as varied as
divorce proceedings, religious disputes, and contractual disputes
between business people.

The use of the civil penalties provided by RICO is not included in this
report because private parties, not U.S. attorneys, have initiated most
of the civil cases. In the 12 months ending June 30, 1991, a total of
966 civil RICO cases had commenced in U.S. district courts. The United
States was the plaintiff in 12 of these suits.”

-courtesy of the ‘Lectric Law Library

~Misstrial, copyright 2006
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60. Muning
November 5th, 2006 at 4:31 pm

Look at all of these same losers coming back to kick Casey when he’s down. You’ll recover Casey.
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61. Jill
November 5th, 2006 at 4:33 pm

I think Casey has DSM-IV-TR. He has all the symptoms.

This is why I recommend seeing a psychiatrist before going to trial. If it’s on record that you have a mental illness, maybe you can get parole instead of going to jail.
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62. Rick
November 5th, 2006 at 4:38 pm

Stuipid Too,

You are NOT stupid. You are over extended. You are doing the right things, just sell one or two of those houses for the minimum you can bear and the load will be closer to what you can realistically handle. Fix up the rest and you will make a profit, maybe not huge but it could make all your sacriufices worth the trouble.

I am so glad to hear you are doing what you have to do to fix your problems. Casey needs to take some notes from you.
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63. Bottom Feeder
November 5th, 2006 at 5:18 pm

Who is your lender? I will call him soon :)
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64. 2020 hindsite
November 5th, 2006 at 5:23 pm

You have a lot of buzz, going - but so did Gary Gilmore. Don’t see you making enough from ads to earn you as much as you need. Kind of like going on the newly wed game and answering personal questions about your sex life for a washer dryer.
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65. Falconer
November 5th, 2006 at 6:06 pm

Good article about a master of mortgage fraud:

http://money.cnn.com/magazines.....tm?cnn=yes

An interesting excerpt:

“Schlesinger says classic con men, besides being psychopathic and greedy, are driven by a need to show the world how clever they are. “Their thinking is, ‘Look at all these schmucks who actually go to work and earn so much less than I do. I get up at 11, work four hours a day, and make millions.’ “
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66. Editor
November 5th, 2006 at 7:11 pm

Suppose RK’s attorneys have been reminding Casey that he signed a NDA and that’s why Casey’s silent on the Phoenix trip?
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67. Legion
November 5th, 2006 at 8:04 pm

Stupid Too.
Believe it or not, I agree with Rick above. I know I have been very critical with Casey, but that is because he is a lazy flake. Look at the difference between you and him however…
1) You bought cheaper properties..
2) You are actually working overdrive to make money to keep said properties…ie you don’t think a regular job is BENEATH you.
3) You have a work ethic, you are doing what you have to do to set things right.
4) You are looking for LEGAL ways to raise cash
5) You were trying to actually GIVE value to the community (buy a house and rent it out) not just flip it during the real estate boom
6) You didn’t lie about living in every house you bought, when you weren’t

Bottom line is, you and your husband seem like honest folk, and are really trying to do the right thing. Casey says he wants to do the right thing but his misadventures and actions would say otherwise.

I wish you and your husband the best of luck..you do have one thing that Casey doesn’t..credibility, and in the coming months, that’s going to be a big thing.
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68. Legion
November 5th, 2006 at 8:11 pm

Unreal,
I wouldn’t put it past him to be logging on and placing comments under different aliases..these kind of scoundrels have the mindset that anything goes and that he KNOWS better anyhow.
I really doubt that treatment or meds would work on this guy..besides, he is nowhere near the point where he can see his own sickness so that he can actually get anything from treatment…I could see him pretending to go along with the “program” however so he can come out and say..”I’m cured! Now can I get some money?” Just like all the has been actresses and actors out there.
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69. Stupid too
November 5th, 2006 at 8:57 pm

Casey,

Can you please make the comments collapsible? Some people, myself included, are posting very long comments. It is making it difficult to find and read the newest comments in order.

I noticed you are using Wordpress and a quick google search on ‘collapsible comments + wordpress’ yields quite a few useful code snippets. I did not try a google code search but I am sure that would work too.
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70. yneone
November 5th, 2006 at 9:17 pm

I am dying to know what really happened in Phoenix…in Casey’s words. Casey you are obviously gagging because by now you would have made mention of the trip. You even said that you would address the rumors. What is going on? This is not like you, now is it?
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71. ugly realist
November 5th, 2006 at 9:20 pm

Jill,

DSM-IV-TR is a reference work, not a diagnosis or mental state. Get a clue.
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72. peeper
November 5th, 2006 at 9:40 pm

Godliness with contentment is great gain.

For we brought nothing into the world, and we certainly can’t carry anything out.

But having food and clothing, we will be content with that.

But those who are determined to be rich fall into a temptation and a snare and many foolish and harmful lusts, such as drown men in ruin and destruction.

I Timothy 6:6-9
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73. bonanza
November 5th, 2006 at 9:57 pm

“Stupid too”

Glad I could help a little. Remember, your realtor works for YOU. If you’re not getting offers, and you’ll accept 35k under the list price, then you absolutely need to get that listing fixed. Your neighbors’ inflated opinions of their homes’ values are irrelevant here.

And I agree with the other poster who said you’re not stupid, just overextended. You’re taking action to fix the problem and you’re at least trying to make the payments, so to me you’re miles ahead of Casey and his delusions about “getting saved.” I think you will get through this just fine, because your attitude is proactive and you’re willing to make sacrifices.
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74. Kevin
November 5th, 2006 at 10:16 pm

Flipper, you are very right when you say there are deals to be made in every marketplace under all market conditions. I couldn’t agree with you more. You say that a professional investor would come into these markets and buy at a very low price. In North Highlands, Casey bought a home that was listed at $289,000 for $330,000. All signs showed that market prices had been going down for over half a year, but he ignored them. If he is a professional investor, what advice is he following?

Right now there are roughly 65 comparable homes (+/- 100 sq ft) actively for sale within one mile of Casey’s place in North Highlands. 10 other comps have sold since October 1 and 8 other comps are pending sale. My gut says that our market will probably hold steady through the spring. Then another slight downturn as many expireds come back onto the market. Only this time, they’re a little more serious about selling.

Is this an area you would consider investing in? What criteria do you use when looking at investing in a down market? If it’s just writing low offers until one sticks, so be it. I’m just wondering if there’s more to it than that.
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75. Rosemary
November 5th, 2006 at 11:32 pm

Am I missing something?

Just sell the propeties and cut your losses.
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76. Nobody
November 5th, 2006 at 11:46 pm

I see that my comment did not make it…

Buy this book: http://www.amazon.com/A****** -.....0898048044

Seriously. You will find it enlightening! Or are you afraid?
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77. Stupid too
November 6th, 2006 at 12:04 am

Thank you everyone for being positive in my situation. I know mine is bit different from Casey’s, I am not millions in debt but I do understand how he feels. I understand the shame and uncertainly that comes from not being able to meet your obligations. We were behind a few months ago and it was really hard to even bring the mortgages up to date. Luckily CW was willing to do a workout program for us.

So, right now we have 2 houses on the market and 2 rented. All it would take for me to be begging on the street corner or the internet would be for the renters to move out or my husband or myself to lose our jobs(run on sentence, I know - it is too late to practice proper grammar). We have been through unemployment in the past and it was scary. That is what drove us to pack up and leave our cheap homes in MS and move to the west coast. Here the job market is better, the downside it that houses are 300 times more.

Casey, have you thoght of any part time coding jobs? I am in the IT industry too and if you know languages beside HTML you can easily find gigs on sites like rentacoder.com. You should be able to make a few hundred a wekk to subsidise your income. It would at least help pay the CC billls.
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78. 6-4-3
November 6th, 2006 at 1:41 am

What you’re missing is that he owes tens (hundreds?) of thousands of dollars more than the properties are worth. Prices are declining across the country, so each week that passes the market price slips further and further from the loan amount. Just eyeballing it, my guess is that his LTV exceeds 115% on all of his properties right now.

He engaged in mortgage fraud to get loans that *exceeded* the purchase price in order to try to keep up with his bills. No lender is going to willingly allow him to walk away from that.
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79. Puma!
November 6th, 2006 at 2:01 am

“I had a dream were u were running in the jungle except u were not a girl but a puma and u were running….running….running. ur necklace had a name on it: Shel. Then u smiled at me and we made love until we rose onto the clouds and u were no longer a puma.”
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80. Sputnik the Cat
November 6th, 2006 at 4:17 am

Been reading your blog-o-shame for a couple of weeks now. So I’m totally up to speed on the mountain of sh*t you’ve buried yourself under. What I’d REALLY like to know, is how in f*cking hell did you plan to return 24% to the dumbass investors stupid enough to fall for your email? I wanna see the spreadsheet on this one…

Man, just as I was starting to feel bad for you… I really do want to sympathize, but you are PROFOUNDLY STUPID and deserve whatever happens to you.

Pyramid Schemes? MLM? Real Estate King? Jeezus - get a f*ckin’ job already.
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81. Mr. Flipper
November 6th, 2006 at 4:21 am

Kevin, you are not like the rest!

OK, yes, if I happened to live in Sacto, I would and could find deals there. But no, I wouldn’t market there on purpose, because I have a rule not to go further than 50 miles from where I live. There’s no point in that. Now, I’m really guilty of writing lengthy blogs, so forgive me in advance on this one. But I want to help you or anyone else get a glimplse of some workable mechanics and approaches for finding good deals.

Hint: I prospect for people with problems, not houses with problems.

Plan on needing $25,000 to get started.

I have no inclination to debate the effectiveness of what I offer here. It works. I work it. So, either go with it, or forget it, but don’t ask me to justify it.

Here’s a plan…

0) (Buy Robert Campbell’s book at http://www.realestatetiming.com/
I get nothing for that plug. Its the Bible for RE forecasting!

1) Forget prospecting listed homes.

2) Forget propecting through the local newspaper.

3) You’re in direct marketing.

4) Locate hard money, or borrow privately from sources you advertise for, or learn how flippers like me negotiate 100% seller-financed transacions.

5) Negotiate loans @ 10% w/ 2 pts max., 48 months min. and let the mtg broker know he’s competing for loans.

6) Select a farm area showing the fewest days on market, in the fastest moving price range.

7) Ask a title company to help you build a prospect list within your farm territory. List all the criteria you can think of that you want to help you in filtering your farm list. This may take a couple tries.
(Or subscribe to First American Real Estate Solution (FARES) and build any size/type farm list you could imagine. Experiment.

8) Build a minimum data base of 3,000 records / prospects for your marketing campaign.

9) Develop responsive ad copy. Show benefits. “fast” “friendly” “private”, etc. Its OK to be a little humorous. NEVER mention foreclosures, defaults, or anything embarrassing (This goes against all the foreclosure guru’s advice. Forget them.).

10) Use postcards with plain, flat-finished, colored stock. Omit all computer-type routing numbers, bar codes, and use only first class stamps — unless you want your response rate to drop in half. Include “return service requested” under return address to find out which prospects have moved, etc.

11) List ONLY your phone number to call on your mail peices. Be prepared to ANSWER phone 24/7, unless your at an appointment, or on the pot.

12) Mail every 30-45 days.

13) Your goal is to get appointments, not make ANY sales pitches. Prospects are curious, but the only time to discuss terms and offers is in person. Tell them you can’t know which way to buy, until you see the house, etc.

14) Appointment are made only when all title holders can be present.

15) After appt is made, look up the property information and determine if you want to keep the appt. or not. Does it still fit your critera; loan size, equity, etc.

16) Develop/copy/steal and memorzie a scripted presentation. MUST!

17) At appt. build trust. Forget small talk and complimenting seller for their taste in Chuhuahua dog sweaters. You’re not there to make friends. You are there to disqualify the prospect, or get a contract signed, but be courteous.

18) Bring your “fat” Credential Book. MUST! See professional sales person for examples of this. MY “CB” ALONE IS RESPONSIBLE FOR 90% OF MY CLOSINGS.

19) Limit the interview/negotiations to 45 minutes. Time it. After that, if your not in the middle of signing contracts, pick up your stuff and leave; you don’t have a deal.

Philosophy:

You make appointments so sellers can have the opportunity to convince you that their peice of crap is worth buying. You are not there to convince a seller to sell to you.

Kevin, I’ve shot my wad. I hope this is of some value to you. Clarifications aren’t possible here on this forum, but most answers would come from experience on the job anyway. Nothing beats on the job training.

Go online and buy only the guru material that fit the approach you like. Don’t become a generalist. I am a specialist in subject to financing, flipping, and investing. I can’t stress the importance of focussing on one approach.

Specialization really does separate the sheep from the goats for long-term success and wealth accumulation.

Kevin, Good luck!
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82. Legion
November 6th, 2006 at 8:24 am

Stupid Too
“I understand the shame and uncertainly that comes from not being able to meet your obligations.”

Ummmm…Casey has no shame about his situation…hence the blog.
We have been telling this guy to get a job, anything; coding flipping burgers anything to get some income coming in..he jsut won’t listen. He thinks it is beneath him. He still believes he is entitled to make $10k for a few hours work. Why? Because he thinks he is smarter than everyone else, that he is the longshot that is going to succeed….frankly…as you have probably guessed by his long story about Phoenix..so many people have tried to help him..yes some are doing it to benefit themselves…but at least they threw him a rope..and he screws them over left and right.
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83. Cheers
November 6th, 2006 at 9:12 pm

“Rosemary
Am I missing something?
Just sell the properties and cut your losses. ”

There has been so many times I have nearly responded to the brainless posts. But Rosemary’s post is short, so I’ll respond.
Rosemary, you are missing something. He is upside down–HE OWES MORE THAN THE PROPERTYS ARE WORTH.
Try the following experiment: Try to sell a newspaper for $1.15 next to a newsstand selling the same newspaper for $1 and maybe you will understand this.
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84. Vortex
November 7th, 2006 at 2:10 pm

“Try the following experiment: Try to sell a newspaper for $1.15 next to a newsstand selling the same newspaper for $1 and maybe you will understand this.”

If you know that papers going to be $0.90 next week, wouldn’t it be better to get $0.95 today and eat the 20 cents loss now?
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85. Silicon Valley Blog About Money, Finance, Geek Culture and Cyberspace
November 15th, 2006 at 1:00 pm

sympathy, as I find myself utterly astounded by someone’s crumbling financial world. But I thought, there were lessons to learn here and they were deep lessons involving one’s character and spirit that perhaps deserved a few words. If you read this post by Casey and this post by a well-respected young blogger and businessman named Ramit Sethi, you may discover that money or the pursuit thereof can be viewed quite differently by individuals who share many things in common, such as youth, ambition,
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86. old school
December 16th, 2006 at 2:45 pm

Hey Casey-
I’m just wondering as far as the Usenet posting if you ever actually got any money from that and if so how much. I remember when those kind of posts and emails were the rage but I never knew anyone who actually paid any attention to them (or at least admitted it.) I’m not trying to dig up dirt on you either, I’m just curious as to whether there were actually people responding to those. If you don’t want to post it on the blog, the email I’m posting with is actually a legit address for me.
Thanks.
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87. My thoughts on Casey… again » Live Learn Invest
December 30th, 2006 at 5:17 pm

[…] However, after reading his post about a spam email that he had sent out to his mailing list I’ve become convinced that he will not get out of this mess. I don’t think he has the integrity nor the fortitude to be able to do it. I actually believe that he doesn’t want to get out of his mess. I think he’s going to let this hang around as long as possible, generate great blog traffic for a while, then declare bankruptcy and hopefully sell his story. […]
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88. Get Multiple JOBS
January 31st, 2007 at 12:28 pm

Casey,

Really interesting to read this early entry of yours.

Here I was thinking you were a decent person only to see how you have been doing SCHINANNAGONS from the start.

Amazing. Telling people to INVEST in you and promissing 24% return while facing foreclosure.

No wonder you have so many haters and no, I am not one of them.

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