My hearing aids weren't working!
What’s the biggest drawback in working foreclosure real estate?
Easy: sellers who lie. Sadly, it’s not a rare occurrence and smart investors understand and plan for it.
When foreclosure looms just over the horizon and a Seller’s hope to save his property is all but lost, and then I show up and somehow manage to save his home, I’m his hero.
A year or two later, when we’ve agreed it’s now time for me to get paid for having saved that home, “hero” is long forgotten and in its place is “greedy investor who took advantage of me.”
Of course, this doesn’t happen frequently and most sellers, the vast majority in fact, do follow through as agreed and grateful for having remained in their home, perform as promised.
that small percentage
But there is that small percentage who really never did intend to fulfill their commitment to me and when it’s my time to get paid, all kinds of excuses show up…
“I didn’t know what I was signing.”
“I thought it was a loan.”
“I was on medication when we did the deal and didn’t realize what I’d agreed to.”
“I never read the documents; you just forced me to sign without even having the chance to read them.”
And my favorite… “My hearing aids weren’t working.”
the best damn document
So, to handle these issues, I created a “Seller Acknowledgement” known as “the Best Damn Document” and investors world-wide use it to protect themselves in any real estate transaction they put together.
It lists all the excuses and we require the seller initial each and every one of them before finally signing off on the bottom of the page, acknowledging it was not, in fact, a loan, (among 21 other things).
The assistant attorneys general (AAG’s) involved in this investigation, having never rescued anyone from foreclosure, have no appreciation for any of this “sellers lie” phenomenon.
When they call a seller with whom I’ve done business and that seller says, “I thought it was a loan,” AAG’s, looking for this sort of reaction, actually believe that nonsense.
They desperately need to believe it because without it, there’s nothing to investigate.
So, every seller who says, “No, they did exactly what they promised and I’m happy with our deal,” is ignored and is written off as a hapless twit who doesn’t even know he’s been conned, while that tiny percentage who say, “I was duped” are foisted to the forefront and their word treated as golden.
No, Rob, they didn’t think it was a loan . . . we had a long talk about me not being in the loan business, about me not able to or wanting to make loans, and they signed my disclosure statement acknowledging they understood I haven’t made them a loan.
What’s the AAG say about our deal?
“The sellers think it was a loan.”
Rob, sellers lie, especially sellers looking for a way to renege on their promises to pay.
The problem, of course, is your AAG’s aren’t looking for the truth. They’re on a mission to prove I am somehow involved in a scam and that I’m putting Washington State homeowners at risk for merely being in business.
So, things like documentation are simply tossed aside with the comment, “they didn’t even read the paperwork and just signed whatever Joe put in front of them.”
No, Rob, they didn’t.
By failing to acknowledge that sellers sometimes lie, your office has demonstrated it has little understanding of what this foreclosure investing business is all about.
By accepting an “unhappy” seller’s version of the truth 100% of the time, and ignoring a delighted seller’s version of the truth 100% of the time, your office has demonstrated its agenda is anything but discovering the truth.
Sellers lie – plan accordingly.
bulletproof your deal
I wrote, “37 Ways to Bulletproof Every Foreclosure Deal” because I was tired of sellers and their attorneys attempting to unwind transactions that were in no way unfair.
The intent of the course is to document, in no uncertain terms, exactly what took place at the time of the transaction so there can be no possible way for a seller to later claim he was treated unfairly.
It’s a real world look at what happens in foreclosure investing and how to prevent sellers from making false claims at any point down the road, and the feedback I get from investors who’ve purchased the course is overwhelmingly positive.
And the AAG’s who’ve read it?
Through scam-colored glasses, they believe the course is nothing less than a formula for conning sellers out of their hard earned equity.
When you’ve never invested in foreclosures and never risked as much as a nickel in someone’s home, it’s easy to sit back and say that protecting your interests by making absolutely certain the deal you made is fully documented and the seller, completely unable to later claim otherwise, is overkill.
It’s the reality of high-risk foreclosure investing. Doing anything less in terms of documenting your deal and stripping away the seller’s ability to later claim a baseless defense that jeopardizes your deal is critical to sustaining that transaction and preserving your interests.
AAG’s would tend to disagree, apparently.
My course, 37 Ways to Bulletproof Every Transaction, is said to be a key piece of evidence to be used against me, at trial. My very words, I hear, will be used against me to prove I’m up to no good.
If true it only demonstrates just how completely ill-equipped these AAG’s investigating this case are and how their lack of any real world investing experience prevents them from appreciating the position of a foreclosure real estate investor.
Rob, sellers lie and smart investors plan accordingly. If investors did not, they’d quickly be out of business.