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Home › Forums › Closed Forums › Buying and Selling RE › So educate me about this, wise piggs…Real or fake?

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  • June 9, 2021 at 6:24 AM #23081
    Coronita
    Participant

    https://www.instagram.com/reel/CPtF9HKjVVW/

    So…is the basic premise behind this is

    1. use your personal income to qualify for a commerical loan to buy a multi-unit…That but loan amount doesnt go on personal credit, but the biz one…

    and

    2. then you can double dip and apply for a personal loan to buy your owner occupied house?

    and presumably cash flow from rental income from the multi unit pays for mortgage of primary home…

    Does this even work? or is this one if them Tom Vu like get rich quick informercials…

    Really curious about this one.

    the guy also has an interesting video “pretend your rentals have losses”… no comment there..lol

    June 9, 2021 at 8:19 AM #822053
    pluto
    Participant

    On the business loan you are are offering a guarantee in the event the loan defaults, then the lender will go after you. Its similar to VA insured loans. The VA is never on the loan the VA told the lender that the VA could be sued for the loan if the borrower defaults.

    As for double dipping it’s not really. If you take a business loan and put any of the money in your pocket without a dividend or disbursement you’re stealing from the company. Also, if you default on your business loan your personal property will be up for grabs, i.e. force a sale for your equity. If you default on your personal loan the business assets are safe as long as no one can pass the corporate veil.

    The “get rich scheme” here is to use leverage to control an appreciating asset. That only works when the asset appreciates. More like using your credit to speculate.

    June 9, 2021 at 11:52 AM #822059
    Coronita
    Participant

    Ok, besides this being a typical IG braggy “I’m successful and rich and you can be if you follow me” post….

    How does this even work?

    So basically, borrow to buy a multi-plex using your credit as pledge for a business loan….

    And that doesn’t show up on your credit. And then you borrow using the same funds to buy a house to live in.. Which shows up on your credit?

    Is that how supposedly this game work. Not saying i want to do it… How much truth is there in these things..

    June 9, 2021 at 12:23 PM #822062
    sdrealtor
    Participant

    Have some guts! Make a decision! Come to my seminar!

    June 11, 2021 at 1:38 PM #822054
    gzz
    Participant

    Look at his “past deals” link which doesn’t require registration.

    Most of them are in very poor cities with declining population like Gary and Hammond Indiana.

    I have a feeling his scam is buying $10,000 houses with a proxy, possibly putting in some cosmetic fixes, filling it with a tenant at a fake inflated rate, and flipping it for $60,000 to an “investor” who has never been to a place like that.

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