Real Estate Blog - Want to Be an Investor?

Home : Blogs : Gena Riede, Real Estate Broker Sacramento CA Real Estate (916) 417-2699 : Selling Sacramento Real Estate - Gena Riede

Want to Be an Investor?

Investing in Real Estate as an Investor – Great idea but never to be taken lightly. There are some important factors that you need to consider before ever jumping in to the Big Girl’s game of investing. If you don’t know what you are doing or wish to admit it, be sure to be represented by an experienced Realtor who can help direct you, correctly. In order to show you how to invest, it’s important to view how NOT to invest. Once you gain that knowledge it will be easy to make the right choices.

In a previous blog entitled Fraud in Real Estate I mentioned a young man who lives in Sacramento, Serin who got caught up in purchasing Real Estate property in order to flip which became a flop. After attending get rich quick seminars (you know the ones I'm talking about)...there on TV, written books etc. Serin wanted to make quick money fast and unfortunately it back fired. Some of the mistakes that he made, as an uninformed investor need to help educate others so that this type of gut wrenching episode doesn’t happen again. Serin’s Top 10 Mistakes

To find out Serin's Top 10 misktakes, go to Sacramento Real Estate Voice and read more.

Bookmark this article:

Posted by Gena Riede, Real Estate Broker Sacramento CA Real Estate (916) 417-2699 on 12/12/2006 10:45 PM

Comments (26)

real estate, investor, fraud

Originally posted at: Elk Grove CA Real Estate : Want to Be an Investor?

This post has been included in California Information Sacramento County, CA Information Sacramento, CA Information
Post is included in group: Everything California

26 Comments on Want to Be an Investor?

DEC

2006

Great post. Casey Serin is an anomoly. How he blogs about openly committing federal loan fraud (a felony) and gets away with it is astounding to me. I guess his youthful inexperience is working for him.

I liked your advice: straightforward, to the point, an no-nonsense. Investing is a big-girl's game. Ladies...there are no tears in baseball...err...real estate investing .

I thoroughly enjoy a Realtor that disassembles the lie that so many in our industry have told these past 4 years..."How can you go wrong investing in California real estate?" Well...Gena tells you right here!

Great post Gena. An smart investor makes prudent choices using good information...

DEC

2006

I guess this doesn't make for good TV, and that's why none of this stuff is never mentioned on 'Flip that House'. Shame though because shows like that are really misleading. Nice post, I've bookmarked it...

Great post Gena! I'm guessing you read Emotions Buy Homes :: Math Acquires Equity (A Must Read for Agents and Investors) earlier today. Just for your readers - there was once a similar situation in Atlanta where a young (ignorant of the law) man posted a blog on MySpace. We discovered his posting during a preliminary fraud check, denied his loan and sent the link to the FBI's "Operation Quick Flip". It was amazing how much detail he included in his MySpace "confession".

What people will put in print. I wonder if shows like Flip that house would show people who can't flip it or lose money on the deal. There are certainly a lot more of them. -Charles

Gena, Thanks for the post. This is a hard learned lesson and unfortunately there are numerous Serins out there.

Thanks for the post. I can show my "Flip This House" fans a factoid or two before they decide that they'll quit their day job

Gena - great post and very well-written. All those who think investing in real estate is a piece of cake should be required to read your post. Very thorough breakdown of just what NOT to do!

GREAT post!

Ann

This is good information that we all should know but probably needed to be reminded of. But one question. If you offer good counsel, accurate information and your investor ignores it, do you walk away from the transaction thereby assuming the position of being your brothers keeper. Or do you complete the transaction and let the buyer sleep in the bed he's just made? In short are we the police or simply counselors who can not direct the actions of another. yes if we become aware that someone is acting illegally, we should walk but what if they disclose nothing aside from the fact that they are and have arranged their financing and they do all that we require. Are we to still to be the watchdog and if in doing so we don't catch something aren't we opening ourselves to becoming liable..... Just a question or 2 that passed through my frequently sleeping brain this morning.

I hadn't been on that investors site for a while. I need to read up on his "story" again!

Gena... Just like everyone else, Great Post. And as Ann Cummings said, everyone things investing is just easy. No money down....low payments... easy to flip... etc etc. Again, good job.

Sometimes it is easy to get caught up in the chase, until you find out you are the one being chased.

Hi Gena, The rentals that TLW and I own are all within 1 mile of our house. And I have the financial resources to make payments whether they are rented or not. We did do a few flips in 2005 and made out OK. We are stuck with one lot that has depreciated quite a bit but I can afford to just sit on it until things turn around again. I actually still own the first rental I bought 25 years ago and I still have the original tenant living there. Talk about a great tenant!!!

Brain, hey I'm with you on this one. I can't believe how out in the open he is when he has committed fraud. Can't imagine how he has managed to allude jail time. And the kicker is that I think he is still looking to try and make the quick buck...just in a different fashion. Now, he can allude others as he was driven by greed. Amazing!

Yes, I do say it the way it is. No guessing what I'm trying to say. I don't speak in riddles. I hate that sort of thing and I feel that if you can't be honest enough to say it the way is, then do say anything. No one wants to wonder what the heck is being said and how you feel about it. Maybe that comes with age!

Thank you for all of your comments. Glad it hit the point!

Angus, truer words were never spoken.

Jessica, I agree those shows do a real dis-service to the consumer as well as some of these get-rich seminars! Thank you for your comment and for bookmarking. That's quite an honor.

Ken, actually no, I didn't read those articles but I will now. Loved hearing about MySpace.com Tushe (sp)! I would think that there is a lot of interesting information that could be easily gathered in that arena.

Jacqulyn/Charles, I agree I would imagine there are a ton!

William, yes I think you're right. There are a lot of folks out there with the same or worse.

Chris, good. I hope it helps save one of yours!

Ann, as always you have such kind words. Thank you.

Michael, that's a fine line. My advice is that as long as you are unaware and you have documented your file throughout the transaction, you should be fine. It is when these people are caught and the FBI comes in and starts "following the money" that the real estate agent is pulled in. Your file must be in order and if so, you should be fine. But, as always, I would caution to check with your Broker for further advice. And if you don't feel comfortable with that advice then call your attorney hotline and get their advice. My advice is free but will not hold up for you in a court law.

Craig, happy reading!

Jeff, not as easy as one thinks, hugh?

Betsy, how true. Can you imagine the stress of all that?

Bryant, good for you. Not everyone is so lucky! And what a god send to have a good tenant. Hopefully, this blog helped some of the new thinking investors to double think their actions before they end up in the "red." Isn't that our main objective...help, bring knowledge and info to those in need so that they can make a qualified decision? Sometimes, when they look at some of us that did it the right way and have funds, it all looks so easy and yet it can bite them in the b***.

I, as well as many others I'm sure, appreciate the clear cut manner in which you present this information. Too many people think real estate investing is simple and do not follow clear cut guidelines or rules!

Kaushik: This is my world -> "Too many people think real estate investing is simple and do not follow clear cut guidelines or rules!" I'm working on it but it takes a lot of time. Care to help?

Good job, Gena. Should be read by every wanabe investor as those who are not successful. It's not rocket science. It kills me how Flip This House can continue to make it seem so easy and profitable for anyone...but that's what gives you the better market share of the audience

DEC

2006

I've read a lot of what Serin himself has written. It's amazing to me that the feds haven't tossed him into jail. The guy openlu admits to committing fraud.

nice summary!

A world record for blog commenting!

http://www.ThompsonsRealty.com
http://www.PhoenixRealEstateGuy.com

DEC

2006

Kaushik, Thank you. I'm straight forward and say it the way it is. The reader is never wondering where I stand on a subject and I feel that it is the honest way of doing business. Thanks for reading and your compliment.

Ken, Always here to help! And I'm sure Kaushik will, too.

Jeff. Yes, that's true. TV and the seminar and books that investors surround themselves with as quick get rich schemes really hurt themselves. They think they are getting the proper advice. Too bad that they don't look at it with an experienced ethical Realtor...they might get a different spin and find themselves in better shape all the way around.

Jay & Francy, Glad I was part of your record commenting. Congrats. I too, feel the same. I have no idea why he isn't in jail. There's still time.

DEC

2006

It is not just investors that commit loan fraud. I recently had a customer who lied about their income and job status on a full doc loan.

Don, Oh my yes! I wrote extensively on all the fraud that is going on ... you might want to read Fraud in Real Estate, another featured blog that I wrote prior to this one.

FEB

2007

I like your post great information, we see them all the time investors wana be

FEB

2007

Paul, it looks like you resurected this blog. Glad you liked it. And yes, there are wanna be's everywhere...

This blog does not allow anonymous comments