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Nov 22, 2005 1:38 pm

There is a guy in my area who literally says in his radio spot...


"I have an investment that has paid guaranteed returns of 10 or more for the last ten years with absolutely NO risk to your principle."   "My name is ****, call me and I will prove it to you."     


Does anyone else have ads on the radio in their market like this?

Nov 22, 2005 1:57 pm

Obviously nothing to do with registered securities. 

Nov 22, 2005 1:57 pm

10%

Nov 22, 2005 8:22 pm

Seems like there was an arb case that involved a similar deal. I think Bill Singer's site posted the results a few months ago. In that case, a B/D sponsored the ads and had to pay a big fine.


The ad sounds like it's advertising securities, to me.

Nov 22, 2005 9:06 pm

Malcontent,



They are first trust deeds silly.



BPD

Nov 23, 2005 12:49 pm

BPD:


Actually I do a little investing in real estate.  I have sellers deed their properties to me in multiple trusts for each property and the buying mechinism is called a land contract.  I then have my LLP as the bene on my trusts.  If you went to the county recorder it would show I own none of these homes although legally ownership hs been transferred t me. This is how I am able to take over the sellers payments and I avoid the cost of having to get a new mortgage along with said costs.  Then I sell these homes using lease options.  I carry my new buyers who cant get mortgages. They put money down and we set a closing date anywhere from 12 months to 36 months into the future.   If they cant close for any reason I keep the down. 


My firms lets me send out ads via direct mail to search for buyers and I run it as a side business that is fun and profitable.  I was just surprised that this guy doing these ads is allowed to say guaranteed because it isn't as simple as that and I think it misrepresents  the comlexity of what is being done.


Thanks for enlighting me though BPD. 

Nov 24, 2005 1:28 am
Malcolm:

BPD:


Actually I do a little investing in real estate.  I have sellers deed their properties to me in multiple trusts for each property and the buying mechinism is called a land contract.  I then have my LLP as the bene on my trusts.  If you went to the county recorder it would show I own none of these homes although legally ownership hs been transferred t me. This is how I am able to take over the sellers payments and I avoid the cost of having to get a new mortgage along with said costs.  Then I sell these homes using lease options.  I carry my new buyers who cant get mortgages. They put money down and we set a closing date anywhere from 12 months to 36 months into the future.   If they cant close for any reason I keep the down. 


My firms lets me send out ads via direct mail to search for buyers and I run it as a side business that is fun and profitable.  I was just surprised that this guy doing these ads is allowed to say guaranteed because it isn't as simple as that and I think it misrepresents  the comlexity of what is being done.


Thanks for enlighting me though BPD. 



Sounds a little complicated.  The part about deeding to you via multiple trusts is the one that really has me scratching my head....

Nov 27, 2005 4:38 pm

joedabrkr:

Sounds a little complicated.  The part about deeding to you via multiple trusts is the one that really has me scratching my head....


---------------------------------------------


...and the IRS sharpening their pencils!


Seriously, in South Georgia, several "Einsteins" have attempted a similar type of real estate investing. In their case, they actually bought the property and bank financed it themselves, for people who could not get mortgage loans. The downpayment was 10-20% of the purchase price and the premium over the regular monthly payment was $150+ per month. Like your example, the lease-to-purchase agreement was 36 months. The "Einsteins" could get multiple mortgages of this type from the bank, because they showed their monthly receipts as rental income. The banks were only happy to oblige a "good" mortgage customer.


Well, as you may have guessed, a problem developed. Seems the "Einsteins" missed making some of their mortgage payments. (They personally pocketed the downpayments and the mortgage payments.) The banks foreclosed and the poor buyers lost their downpayments and whatever they paid-in for the mortgage payments. Some of the buyers filed civil suits against the "Einsteins", but they got no-where due to either an "Einstein" bankruptcy declaration or an "Einstein" skipping town.

Nov 27, 2005 4:42 pm

rrbdlawyer:

Please visit http://www.rrbdlaw.com/RegulatoryLinks/researchads/2005.htm


and scroll down about three cases to the "Lerner" matter in October.


Doberman, you win the "RRBDLAW.com Reader of the Month Award".  That award is suitable for framing.  The Award is absolutely free.  Simply send me $35.76 for shipping and handling.  If you do not cancel the Award within 10 days of the month following the prior month in which the notice of the aforementioned award was issued, the award will be sent to you for six additional months.  Your credit card wil automatically be debited for the shipping and handling fee.  If you decide to cancel, you will be charged a cancellation fee of $234.00, plus a processing charge of $20.00.  You will also be required to re-ship all Awards and you must include a processing fee of $35.77 for each Award returned. 


Happy and healthy holiday to all my forum buddies!


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I thought the above wording looked familar! That's in the fine print they use on the "Thighmaster" infomercials!