When we followed Jenae and her scammers during the last foreclosure crisis, they had convinced amateur investors in Bressi Ranch to borrow most or all of the sales price – Countrywide was willing to finance 100% to virtually anyone in 2007 – and then rent out the homes until they go up in value.

We thought it was far-fetched because the monthly payment was well above the market rents, but they were bumping the purchase prices to include up to $100,000 kickbacks from the sellers for a slush fund to cover the negative cash flow (but went into the scammers’ pockets instead).  They paid $1,100,000 to $1,300,000 for houses like this one, but as prices started to weaken, they all bailed out.

If they would have just hung in there until now, the idea would have worked!

Pin It on Pinterest