I received an email from this guy. Can anyone check it out and give me feedback on wether this is a scam, an is it completly legal, it sounds good and I am tempted…
Earn $10K – $30K every 3 Mths. w/ Your Credit
This is perfect for those who have at least a 620 CREDIT SCORE and want to flip money in Real Estate without using their own money.
How does this work?
My Name is Pierre and I am an Independent REI (Real Estate Investor). I started in this business when my father and I ordered the Carlton Sheets program back in 1997. It has been a long hard road since then but I have developed a formula that works for tod! ay’s Real Estate market. It is a simple formula used everyday by Real Estate Pros and brokers; the hardest part is finding MOTIVATED and EAGER sellers with GOOD Real Estate Property.
Thats what I do. I have the right tools and a network of people that enables me to find those type of sellers in FLORIDA, NEW JERSEY,
NEW YORK (Some Parts), DOMINICAN REPUBLIC, and soon many other CARIBBEAN COUNTRIES. I find sellers that are willing to sell their home for about 5 - 10% less than the Appraised Value of their property which enables the buyer (us) to receive that 5 - 10% discount at the closing of the deal. After the property is purchased, minor improvements, and other work is done to raise the value of the property, afterwards the property is rented and/or sold for a profit. Money is made up front at the closing of the deal (Average $5K - $10K) and on the back end once the house is resold (Average $10K - $25K).
Why do I need you?
I am 25 years old and my credit is not the best, and unfortunately I don’t qualify for 100% financing. This formula ONLY WORKS for those who qualify for 100% financing. I use family members to do deals but for tax purposes they can only do 2 deals a year without getting killed with TAXES. With 100% financing, we as the investors DO NOT INVEST ANY MONEY OUT OF POCKET, yet we RECEIVE CASH BACK AT THE CLOSING (purchasing) of the DEAL. This cash back covers minor expenses, and improvements on the property. The remaining amount is then considered as initial profit and is divided 50 / 50 between you and me.
What do I need from you?
At least a 620 CREDIT SCORE, 650 is preferred but we can work with lower scores too. If you are interested we will get you pre-approved through my partner, who is a loan officer for the 3rd largest lender in Florida. She will pre qualify you for 100% financing and generate an Approval Letter based on your credit score. With that approval letter, I can begin making offers to sellers desperately looking to sell their property. If they accept the offer, we then move forward on processing the loan and closing the deal. Closing costs, Appraisal fees, Underwriting fees, and any other miscellaneous costs will also be financed or paid with the “Cash Back” received at the closing of the deal. YOU WILL NOT SPEND ANY MONEY OUT OF YOUR POCKET.
The “Cash Back” received at closing will also cover the first mortgage payments unless we buy property that is already being rented and is generating POSITIVE MONTHLY RENTAL INCOME; or if we decide to rent the property to cover the mortgage payments that will have to be made before we can resell the property.
Is this illegal?
THIS IS NOT ILLEGAL IN ANY SHAPE WAY OR FORM. There is absolutely nothing wrong with buying a home cheap and selling it for more then what you bought it for. There is also nothing wrong with buying a home, fixing it up, and selling it for way over market value. If your buyer wants to pay you way over market value, and they have the means to pay, then it is their choice to do so. They can do it, and so can you without any recourse.
The problem with “Illegal Flipping” is when investors, mortgage brokers, loan officers, appraisers, etc… get together to “create” a better picture of a loan package to a lender. They do things such as inflating appraisals, gifting down payment, drawing up false w-2’s, manufacturing pay stubs, writing credit letters, etc…
We HAVE NEVER and WILL NEVER use any of these tactics. There is no reason for us to do any of those things. When we find a GOOD Real Estate Investment, we first do a PROPERTY ANALYSIS to figure out the approximate APPRAISAL VALUE, based on that we make an offer to the SELLER 5 – 10% lower than that amount. If SELLER accepts our OFFER, the lender will then conduct a REAL APPRAISAL. All my associates know the risk of losing their license and career if they were to use falsified information and would NEVER take those chances; not with so many LEGITIMENT DEALS out there waiting for us.
Again, what do I do?
I utilize my tools and network of associates to find “For Sale By Owner” properties with EAGER, DESPERATE, or MOTIVATED SELLERS. I then ANALYZE the property or pay to get the property appraised. Afterwards I negotiate with the seller to reduce the SALE PRICE of the property 5 – 10% off of the Appraisal Value. If SELLER accepts our OFFER below the market value of the PROPERTY we AUTOMATICALLY MAKE A PROFIT, which is usually received as “Cash Back” at the closing of the deal. I and a few handy men then do some cosmetic work and overall improvements to improve the value of the property before putting it back on the market. We can event rent the property at this point and earn POSITIVE MONTHLY RENTAL INCOME while increasing the value of the property. Our Real Estate Property then becomes the SAFEST and MOST PROFITABLE STOCK that you can ever own; not to ! mention it did not COST YOU ANY MONEY OUT OF YOUR POCKET. Once we decide to list the property for sale, I then find the best buyers and try to start a “Biding War” to get the highest price possible. Once the property is resold, and all costs and fees are paid, the remaining profit is divided 50 / 50 between you and me.
Other Services That I Do:
I work with a FULL SERVICE DIRECT LENDER who has been FINANCING and REFINANCING LOANS for over 22 YEARS.
I have referred HUNDREDS of CLIENTS to my PARTNERS and they APPROVE EVERYONE!
EITHER FULL DOCUMENTATION or STATED, (where all they do is VERIFY EMPLOYMENT)
They REFINANCE clients with interest rates as low as 4%, with 10, 15, 20, 25, or 30 Year Loans.
Take out MONEY on your HOME, AND GET A BETTER INTEREST RATE, AND A LOWER MONTHLY PAYMENT!
They work with ALL types of CREDIT; GOOD, BAD and even CH! APTER 11s.
(They can ONLY work with DISCHARGED BANKRUPTCIES)
I am also a NOTE BROKER. I find NOTE BUYERS and SELLERS the BEST DEALS on the market.
Again, I utilize my tools and my network to connect NOTE OWNERS who are EAGER, DESPERATE, or MOTIVATED to sell their NOTE with the right buyer offering the right amount of CASH for the NOTE.