Make Big Money using other peoples' money!
By dragon54u
@dragon54u (31633)
United States
December 14, 2016 1:41pm CST
I heard this on the radio about a house-flipping scheme. Supposedly this person is looking for a limited number of people to learn his special 3 step house flipping scheme--this is where you buy a house then resell it and make money. This person claims you make money by using other peoples' money but you don't borrow anything and you can make as much as you want.
I always think these things are scams. They sound too easy and what I hear is "Your town is the perfect place for my scheme because you are all stupid and greedy". 
Do you hear a lot of scheme like this? Have you even been involved with one? If so, was it a rip off or legitimate? (I'm guessing it probably wasn't legitimate or you wouldn't be here!)
Do you hear a lot of scheme like this? Have you even been involved with one? If so, was it a rip off or legitimate? (I'm guessing it probably wasn't legitimate or you wouldn't be here!)6 people like this
7 responses
@owlwings (43897)
• Cambridge, England
14 Dec 16
Property flipping can be quite legitimate. It involves buying a property which needs upgrading, doing some real and substantial work to it to bring it up to standard and then selling it at the genuine market price for the upgraded property. A careful buyer can make a reasonable profit by doing this, even if he contracts some or all of the work to reliable workmen.
Unfortunately, there are several illegal schemes based on this. The most obvious, of course, is the buying of a property which needs renovation, making purely cosmetic changes and reselling it at a substantial profit. Only later will the unfortunate buyer discover that much more work needs to be done to bring the property up to standard! A variant of this involves a 'straw buyer' - often a friend or associate of the scammer - who contracts to buy the 'refurbished' property and obtains a mortgage from a bank based on a falsified survey. They may make a few payments on the mortgage but then default, leaving the bank with a vastly over-valued property to sell in order to recover the value of the loan. From the outline you give, I very much suspect that the scheme you mention is something of this sort, possibly with some extra 'wrinkles' which make it just borderline 'legitimate'.
2 people like this
@dragon54u (31633)
• United States
15 Dec 16
I knew a person that flipped houses and she did well at it, mostly just waiting till the market increased then selling. I'm always suspicious of people who want to teach you to make money because if they know so much, why are they bothering to teach others rather than making it themselves?
2 people like this
@PatZAnthony (14749)
• Charlotte, North Carolina
25 Dec 16
@dragon54u They do not want to do the physical part of the work...they just want to invest and tell others what today. Except for those with a scam in mind; they just want your money.
1 person likes this
@1hopefulman (45111)
• Canada
19 Dec 16
There is no way to make easy money. I stay away from such offers.
1 person likes this
@dragon54u (31633)
• United States
19 Dec 16
Easy money usually means breaking or bending the law. It's not for people like us!
1 person likes this
@scarlet_woman (23463)
• United States
24 Dec 16
you couldn't pay me.house flipping is extremely risky.if you don't sell it and it sits,you're still paying out til it does.you'd be better off renting it in the meantime but you have to hope the tenants don't wreck it.
not to mention structural problems that add to the flipping you often don't find out about until it's too late.
..and your investors don't care.they want their money back NOW.
1 person likes this
@dragon54u (31633)
• United States
15 Dec 16
I think that commercial is done by one of those people!
1 person likes this
@PatZAnthony (14749)
• Charlotte, North Carolina
25 Dec 16
We know some who actually have done this. The issue for them was, they did a ton of work, while the investor received most of the profit.
1 person likes this
@dragon54u (31633)
• United States
25 Dec 16
Exactly! All these people want is for others to do the work while they reap the profits.
@Mike197602 (15504)
• United Kingdom
14 Dec 16
If they ask for money to learn the secrets I give them a wide berth
1 person likes this
@dragon54u (31633)
• United States
15 Dec 16
Right! I always wonder if they know how to make so much money, why aren't they making it instead of "teaching" others to make it? Why aren't they on a beach somewhere enjoying life?
1 person likes this
@missjessicadawn (3286)
• United States
16 Dec 16
I don't like schemes like that. I feel like people should make money in a more honest way.
1 person likes this
