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  1. #1

    Help Needed Please!

    OK so heres the thing...
    One of my good friends came up to me with a proposition to make money (which supposedly his mom already did) which involves buying a home with an investor. All I have to do is have good credit. So heres how it goes:

    Basically since I have good credit, the bank will give me the loans for the house but I dont pay for anything. The investor pays for all the bank fees, closing costs and mortgage. We would then rent the house and pay whenever is left of the mortgage 50-50. After one year, we would then sell the house and split the earnings 50-50

    Now I've already begun to go through the process and the bank has already approved me. The house would be under my name alone but the investor would be the one paying the money. So I was thinking of ways I would get screwed:
    1-The investor doesnt pay the mortgage but then I would just sell the house and get 100% of the earnings...
    2-House isnt really under my name but I am signing all the papers and they all have my name on it.

    It sounds like a good Idea but also too good to be true...Have you guys heard of scams like this? if so...what was the end result? How will I get screwed?

    -thanks

  2. #2
    Join Date
    Jun 2006
    Posts
    5

    Re: Help Needed Please!

    Similar to something I was offered, but I was supposed to be the investor. Flakes walk out, and dangerous people stonewall before I could even get the money.

    You will know from their answers that beaurocrats who keep it simple talk themselves out of a job, and you will know from their lack of an answer when gypsies are scamming. I'll be learning about my own, legal responsibilites before asking someone else for a gut check.

  3. #3
    Join Date
    Jul 2005
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    canada
    Posts
    1,104

    Re: Help Needed Please!

    AQUA - Where do you live that you can buy a house today and sell it tomorrow and make a profit? Run away from this deal. It's very hard to evict tenants, too. If you have good credit and can qualify for the mortgage then you would also be able to make the payments - that's how the bank decides.

  4. #4
    Join Date
    Jun 2006
    Posts
    3,120

    Re: Help Needed Please!

    Oh vey :eek:

    This is one of the million scams advertised by "No money down" "gurus". Ask your friend which book/seminar he is using and then go herereal estate scammers list to figure out which scam you are about to get into. Do not let his off the hook. Somebody tought him this fraud.

    And even without going into details, have you even thought that "investor" or his assosiate is trying to sell the house above market price and dump it on you. If he pays for everything why do they need your credit?

    Another simple case. Your friend is a co-owner in this "enterprise". So you can not sell the house without his permision. He then asks you $10,000 for his permition to sell the house. What will you do? He probably has legal right to stop you from sale. You pay. You do not know anything about how to sell the house. You sell yourself house with unpayed mortgage. Good luck :(
    Last edited by borisf96; 06-02-2006 at 09:39 PM.

  5. #5
    sojustask's Avatar
    sojustask is offline The Late, Great Lady Mod - Retired User Rank
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    Re: Help Needed Please!

    Quote Originally Posted by aquapupp377
    OK so heres the thing...
    One of my good friends came up to me with a proposition to make money (which supposedly his mom already did) which involves buying a home with an investor. All I have to do is have good credit. So heres how it goes:

    Basically since I have good credit, the bank will give me the loans for the house but I dont pay for anything. The investor pays for all the bank fees, closing costs and mortgage. We would then rent the house and pay whenever is left of the mortgage 50-50. After one year, we would then sell the house and split the earnings 50-50

    Now I've already begun to go through the process and the bank has already approved me. The house would be under my name alone but the investor would be the one paying the money. So I was thinking of ways I would get screwed:
    1-The investor doesnt pay the mortgage but then I would just sell the house and get 100% of the earnings...
    2-House isnt really under my name but I am signing all the papers and they all have my name on it.

    It sounds like a good Idea but also too good to be true...Have you guys heard of scams like this? if so...what was the end result? How will I get screwed?

    -thanks
    Don't you think that you need a separate contract with this "investor"? Otherwise he's the one who is screwed. The bank won't loan to him, they are loaning to you. In todays falling housing market, you could also be stuck with the house in a year so I hope you love the house.

    Namaste'

    Lady Mod

  6. #6
    Join Date
    Feb 2006
    Posts
    219

    Re: Help Needed Please!

    you are the one on the hook if anything goes wrong . sounds like this invetsor can't or won't qualify on their own. I agree, right now across the country there is a housing bubble. All the people who took out/refi'd ARM's a few years ago are getting margin calls. ona $400K note you are paying $200+ a month more now than you were 2 years ago. I read where lenders are offerring 50 yr mortgages now. I would try to make sure you are getting a deal on the house . Whre I live I manage 1 bdr. condos which in 01 were going for $135K. Today realtors are listing them for 100K.

    the flip side is the investor is putting up the cash but you are the one stuck with the payments.



    Quote Originally Posted by sojustask
    Don't you think that you need a separate contract with this "investor"? Otherwise he's the one who is screwed. The bank won't loan to him, they are loaning to you. In todays falling housing market, you could also be stuck with the house in a year so I hope you love the house.

    Namaste'

    Lady Mod

  7. #7
    snowontheweb Guest

    Re: Help Needed Please!

    I finally found websites who wont scam you. The truth is I have found the best of the best and I am making tons of money from home and am wanting to share it with the people so they dont live a unhappy life. I am just an average guy wanting to help my people in the world to make lots and lots of money! Here is the website for the best of the best. You can thank me later cause I know you will!

    o.k. listen carefully spammer, saturnsc2 sezs: "here is is, the first pitch, a ball. the second pitch, a foul ball, the third pitch fouled back into the stands, the pitch, fouled back into the bleachers, the pitch, strike 3! YOUR OTTA HERE SCAMMER!"
    Last edited by saturnsc2; 06-05-2006 at 04:58 PM.

  8. #8
    Join Date
    Sep 2004
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    947

    Re: Help Needed Please!

    My God...who would fall for this?

    Quote Originally Posted by aquapupp377
    OK so heres the thing...
    One of my good friends came up to me with a proposition to make money (which supposedly his mom already did) which involves buying a home with an investor. All I have to do is have good credit. So heres how it goes:

    Basically since I have good credit, the bank will give me the loans for the house but I dont pay for anything. The investor pays for all the bank fees, closing costs and mortgage. We would then rent the house and pay whenever is left of the mortgage 50-50. After one year, we would then sell the house and split the earnings 50-50

    Now I've already begun to go through the process and the bank has already approved me. The house would be under my name alone but the investor would be the one paying the money. So I was thinking of ways I would get screwed:
    1-The investor doesnt pay the mortgage but then I would just sell the house and get 100% of the earnings...
    2-House isnt really under my name but I am signing all the papers and they all have my name on it.

    It sounds like a good Idea but also too good to be true...Have you guys heard of scams like this? if so...what was the end result? How will I get screwed?

    -thanks

  9. #9

    Re: Help Needed Please!

    Quote Originally Posted by scambuster
    My God...who would fall for this?
    I dont mean to diss you at all but I HATE WHEN PEOPLE answer to stuff like that scambuster. I mean its really a useless post that doesnt help anyone.
    The questions were:
    Have you guys heard of scams like this? if so...what was the end result? How will I get screwed?
    and you didnt atempt to answer anything or give any usefull information with your experiance with the issue.

    ...and what sux the most is that you're a moderator and should be the most helpfull person here

    -thanks to everyone else for their information

  10. #10

    Re: Help Needed Please!

    Don't do it. Here is the deal. I am currently a mortgage banker and I used to work with a guy that did tons of investor loans for credit investors and for real estate investors. Here is the way it works. The investor finds a house that is at a discount or usually what happens is that builders would have a few houses left on their inventory and they wanted to get rid of them so they would sell them at a discount price.

    The investor (person who finds the house at a discount and also finds the people with good credit called credit investors ) would buy the house for full market value using the other persons good credit.

    He would make a consignment agreement with the builder and get paid outside of closing or I like to say under the table. He had a hard time finding title companies that would allow this becuase it is a very gray area of the law. Most banks interperet as illegal because in a sense they are buying a house and getting money back. The bank has the biggest chance of losing their ass on these kinds of deals. Because they were financed at a 100%.

    The investor would split the money with credit investor or anyway he saw fit and he was supposed to find a tennant for the properties sell it to them on a lease purchase so they could pay you the monthly payment and you would pay the house and then after a year they could buy the house from you and take it off your hands.

    What would happen

    The investor would forget to pay the payments causing the credit investors credit to dive bomb to subprime levels. The investor never found anybody to lease purchase the house and ended up leaving everybody high and dry. The credit investor is responsible for the payments keep up, taxes of the house not the real estate investor because he doesn't own the house YOU DO. You end up getting corned hole. And most of them take a huge lost trying to sell the house because you bought it at inflated price and financed 100%. So you have a hard time paying the payments because the investor ran off with all of your money. You can't sell the house for what you bought it for because you paid way to much for it. You have no idea how to get rid of it or what to do because you heard about this from a friend and you didn't research it enough and you are not experienced in real estate so you file bankruptcy and learn to never do that again but only through lots of heart aches. Any questions. I have seen this happen first hand with a guy that stole 100's of thousands of dollars and ran off. He faked his disappearance moved to another state but the cops found him in California but it didn't matter because he had some pretty complex agreements with the credit investors that basically got him off with nothing to pay.

    Email me questions: sjoshuabrown at yahoo

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