Full page ad in our local newspaper this week for a "training" to educate the stay at home Mom's how to scoop up properties and turn them into cash cows, once you learn the secret formula!
Over the last 5 years these "educational" seminars that use the whole pyramid scheme for recruiting attendees have come to our town. Mind you, our market is not as great as it was, but so far we haven't had many short sales and foreclosures selling for "pennies on the dollar".
What's really sad is the percieved intelligence level of the people who attend these things, and really how delusional they are about how "easy it is to do this".
As I hang out in coffee shops, I overhear conversations from the recruiters for a good 6 weeks prior to the "seminar". The conversation goes something like this "for $xxxx investment, you can take the class, get the handout directions and start your own Real Estate Investment Business, can you borrow money from your home equity line of credit to pay for this?"
I have been taken on a few little joy rides with these prospective "buyers" who tell me an unbelievable tale of how they are gonna get rich on Real Estate. I have asked them, "do you know anyone in our market who has been successful in doing what you're trying to do? I know a few contractor flippers who've been in the business for years, maybe you should talk to one or two of them first."
Part of the conversation involves "looking for desperate people who will sign over their interest in their home, just to get away". And I believe that some people are desperate, and might be swayed into signing things they really shouldn't due to a difficult curve they've been thrown.
I do not participate in preying on the scared and desperate, in order to take advantage of their situation. Don't get me wrong, I'm willing to bust my butt to help people who need it, if they participate in what needs to be done to get out of a sticky situation. Education and due diligence are better for our home owner community.
Does anyone get the fact that the reason these guys come to town and recruit for these "seminars" is because the seminars are the cash cow?
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