WORST Way to Invest in Real Estate

http://www.freedommentor.com/worst-way-invest-in-real-estate Discover the WORST way to invest in real estate. This is the other side…real estate investing gone bad.

20 Responses to WORST Way to Invest in Real Estate

  1. Olvin Velez

    After paying a home for almost 10 years I was sold into getting an Obama Plan to reduce my monthly payments. I was scammed into making payments through Western Union. It sounded strange but I never thought a lender would do anything fraudulous. They said that the Obama program works by putting payments in suspension while they find a bank to buy the loan. 9 Months passed and when I repeatedly called for status, they would always ask for some random documents. In the end, after over 9 months, they simply said the program expired. They told me not to worry, that they would send me their terms. When it arrived, it basically consisted of me taking an additional 30 years at the same rate. When I didn't accept their terms I went to another lender to apply for a mortgage. That was when I learned of the scam. I was denied a loan with another lender. They said I was showing non-payment for over 9 months. I kept making my Mortgage payments until one day I received a call from Western Union to pick up a check. It was my latest mortgage payment. My lender simply rejected my last payment and they proceeded with foreclosure. I lost nearly 10 years of mortgage payments, the additional mortgage payments during the 9 months, my home and my credit was destroyed for 7 years. Now I'm trying to rebuild again. I am trying to learn as much as possible because a lot can happen with real estate.

  2. Adiel Stephenson

    This is one of the only guys doing this who actually has something useful to say.

  3. guloguloguy

    Phil, your AWESOME, educational videos are priceless!!!! Have you done any that deal with the subject of how to evaluate the risks, rewards, and pitfalls that can be involved with "appurtenant easements, which might cause the property you're considering to be the "servient" one, and one or more adjacent property owners, (or their subsequent purchasers), to become "dominant" ones, thus, their "easements" might seriously encroach on the future use of, or access to the full parcel of land, (that you'd like to purchase). What's the process to get these easement issues resolved, so as to fully protect One's property rights, now, and for the future?!…. THANKS!!!!!!!!

  4. Chris Murray

    Phil I am just curious… was your Mentor Ron Legrand?

  5. Merlinda Marshall

    I bought a condo though a tax deed in central Florida 78K. Initially I had difficulty accessing the premisses because it had great security and was gated. Long story short, after 3 months of communication with the management company, I finally was allowed access to the grounds, and the entire block in which my newly acquired property was housed had been demolished! The insurance company paid the condo association (over 2 mill) and they demolished it during the recession without the legal permits, or updates to the county.

  6. wnc817

    I have one house that has lost money almost every year. I managed to always pick the wrong tenants for this particular home. I thought I would give section 8 a try. When they moved out they put chocolate syrup on the baseboards. When I walked through the property there were roaches literally everywhere, including the ceilings. It made my whole spine tingle. It cost somewhere between five and seven Grand to remodel everything, doing all the work myself. On the bright side, I now have a brand new porcelain tile kitchen with stained cabinets and refinished floors in the rest of the house.

    Try takeaways here: Read the fair housing law and do the opposite. Political correctness is for losers. Second, it can definitely pay off of you are willing to get your hands dirty.

    I had about a hundred applications on the home before I found an older couple to rent to. They take very good care of the home and appreciate my hard work. Finally, the house has positive cash flow. Fortunately, buying the home at a discount meant that I can absorb remodeling costs and still have equity.

  7. william tyndall

    I build a nice house for my dog and he would not even go inside.

  8. Marina Lueders

    Thank you for your videos, I am becoming more educated, you are a great mentor and educator.

  9. Keith Lindsay

    So the best thing to do is to own the the property?

  10. breezyvibe

    super helpful . . i see another video of yours i want to view . . and i'm off. . .

  11. Mike Yonko

    Always watch your videos, Philly would like to rehab for u

    I work in the south & east coast

  12. ChrisoGaming HD

    I got the luckiest story ever, so there was a guy (I'm not gonna name anyone) his dad had purchased a 20-50 acre farm for $16,000 and the guy inherited it after he passed away. The government then approached him and offered him $460 million for it. From $16,000 to $460 million because the land was near a suburban neighbourhood and they wanted to build a housing estate. What I want you to get out of this is sometimes choose wisely with property location.

  13. The Grey Cat

    what do recommend if a girl wants to get married?

  14. Charles Holifield

    now this is a great video that every one needs to hear

  15. Rusty Case

    Bad story ? Sure… Too much competition at the tax sale so I paid the tax, paid water & electric, took up adverse possession.
    Better half had relatives re-carpet & make other improvements against my wishes. A probate lawyer for deceased owner contacted local realtor who assessed and wanted more than I would pay. We vacated. It worked out as rent, though. rc

  16. Albert Hernandez

    Phil your videos are so much fun. Thanks for sharing this information.

  17. Jess n T

    Wow the example of the developer was heart breaking =/ good example to know. I hate HOA'S i am currently trying to sell a condo in las olas florida and it's not selling because of $1000 HOA.

  18. Dan Forster

    Phil Pustejovsky In Australia my wife and I own two condos – one of them is rented out. The rental has Landlords Insurance which covers costs for damage and loss of rent (beyond a bond that the tenant had to put down at start of the lease – equal to 4 weeks rent). If the tenant steps out of line my real-estate agent can also flag him as a credit risk so for the most part we've never had trouble. Our condos are also in nice areas. I would avoid buying a cheap deal in a not-so-nice area as the quality of your tenants available to rent drops dramatically. That being said I always carefully screen prospective tenants. We did have one couple that lied about having a cat with them (as we have a no pets policy). This caused problems with one of the other owners and eventually we had to evict the tenant which wasn't pleasant as I was self-managing at the time!

  19. Dan Forster

    Very good advise.

  20. Enmanuel Duverge

    this guy is the best.