That does it. I'm starting a private club.
And you are not invited.
At least not right away.
I may invite you, but first, you need to really want to get in badly. You may have to ask one of the other members to sponsor you and see if they can get you a private invitation. By the time you want to get in, you will want in so badly that you will not ask a lot of questions. You'll just be happy to be "in" and not "out". After all; this is a very exclusive club. There are people of great influence and respect in this club.
You see, I spend a great deal of my time making money in real estate mirrorbacks. I buy REO mirrorbacks from banks. I have special insider connections in many of the big banks. I buy these REO mirrorbacks at low prices and I am able to flip them quickly because of the network I have built up over the years. I am able leverage five times the amount I have in cash. If our club has $1,000,000 in member investments, I am able to buy $5,000,000 worth of REO mirrorbacks. Because of the inside networks of banks and bulk buyers I have built up, I can turn the fund about eight times a year.
Members in my club have been earning a steady 22% on their money now. Back in 2003 I turned a $100,000 into a personal fortune of over $10,000,000 in just three years. Now I am working with other people's money. I like the bigger numbers. I like making other peoples portfolios grow like mine did.
But I don't have a lot of time to explain all this to you. I am not taking on new members anyway. Only sophisticated investors understand mirrorback REO's and I don't have the time for unsophisticated investors that I have to explain everything to.
Oh, and don't tell anyone about the returns we are getting or how we are working with mirrorbacks. Secret AND exclusive; that's what we are.
Most of our members have a bigger fear of losing out on the opportunity to make money than they are afraid of losing money. In fact, it is this fear I am counting on. If they want proof that the concept is sound, just ask around at the Yacht Club, or over at the Golf Club. Ask any of the "in " folks.
By the way, the minimum investment is $100,000. Cashiers check would be just fine.
I will see if I can get you in.
Folks, of course there is no club and certainly no such thing as mirrorbacks. I was just taking a shot at my Bernie Madoff imitation. If you have never heard of Berni Madoff, consider yourself lucky. He just bilked sophisticated investors out of, by his own estimation, 50 BILLION dollars over the years with a yarn, I imagine, similar to the one above.
In reading about his exploits it made me think about the real estate investment frenzy a few years ago. Investors who otherwise were sophisticated got involved in real estate investing - with the fear that if that did not, they would risk losing the chance to make big money. They did not do the due diligence. They did not make their own analysis. They followed the social and influential crowd. They ignored the facts in favor of the emotion. They knew very well that if something looks too good to be true it probably isn't true; but they wanted so much to believe.
They needed to talk about THEIR deals at the next cocktail party, not stand by idly while other folks made the big bucks and bragged about it. Heck a little risk was worth the braggin' rights!
Oh don't get me wrong. Some of them is us, so to speak. The sinking tide lowered all ships. But that is little solace when your cash flow is nil and the bank still wants their mortgage payment.
But that was then and this is now. We must spend more time looking forward than looking back. Experience is a tough teacher, but it is a good one. Real estate, stocks, or mirror backs. There are no short cuts to riches and no quick paths to fortune; just hard work. And if you are going to join a club, or a fund, do so with wide open eyes, ask all the right questions, and trust, but verify.
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