REI Exchange

Has anyone heard of TMG Ventures and the “Money-Guy”?
They claim a 40% return on your money. You invest in a land trust with these guys, they buy all the properties and send you a check! hmmmmmm I am a little worried that it is not the real deal.

That deal can be legitimate. You need to have your lawyer examine the trust documents before you invest. There is real estate and there is investing of every other type. There are 2 key aspects of real estate. The first is leverage and the second is control. Your goal (just like in Monopoly) is to control every piece of real estate that you have interest in. This deal takes one of the main components of real estate out. You can’t control the deal. So you have to ask yourself if you trust these guys. I am taking about the fresh and blood people. Not the “Money-Guy” But do you trust the person himself. You need to meet his family and talk to his friends. If he gives you one of those this is business speeches, I would at that point evaluate the deal just like I would with any stock broker or mutual fund guy. That would be past experience and track record. I would have to look at and talk to the partners in all of the deals they have done, not just the ones in the sales brochure.

I believe this is an online deal only and seems pretty risky. However I have asked for a copy of the trust to read and a copy of the contract. I guess I will make a decision from there. I will keep you posted.

I’m guessing they are doing preforeclosure buyout kind of stuff; that kind of transaction can give you those kind of returns, but you need to know what you are doing.

as BlueMoon pointed out, control is the issue (you will probably have none). I would check them out very carefully before commiting money.

If you think about it why not? I would do that if you could find properties for 30-40-50-% below market I would buy them and put them in a trust. what is there to loose when there is equity in the property? It is almost the same as HML (Hard Money Lending)

That is how I am thinking of it. And if it turns out the way they say…then it was a good deal. If it does not, well then I guess I made a bad decision. I like the way the deal looks but I don’t like the fact that I have no control once I send the check. ( not my style ). However I think the concept is great and I am trying to find a way to do this myself in our own little group. If I could have 10 people give me $5000 each and give them all a beneficial interest in the trust we could buy all kinds of property subject too.
I will let you know how it turns out. My business partner and I are going to make a decision in our Friday meeting.

Thanks for the post

That I could not agree more with.

you need to understand what their “fees” are and how the beneficial interest of the trust is being sliced up.