Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
AmyBass

Trying to figure out if Joe Crump's plan is a good deal or not?

Recommended Posts

Basically he sets it up for you to buy 10 new construction homes with 3-year lease option tenants already placed in them at closing. You do get mortgages on all of the properties though. If you wouldn't mind looking it over and telling me if it is worth getting into or not, it would really help me out. I am still somewhat of a newbie and the thought of the whole process being taken care of for me is very tempting.

http://joecrump.com/10in10/listen.html

Share this post


Link to post
Share on other sites

Hi, Amy, and welcome to The Naked Investor!

My first reaction is, as always, buyer beware. I'm a skeptical consumer by nature, and I think that's probably a good thing.

I don't have the time or the interest in listening to Joe's one hour sales pitch, so I can't comment on the specifics. So I'll ask you a few questions:

 

1) What't the cost?

2) Assume the worst case scenario: what happens to you and could you exit the problem with your skin intact?

3) If these deals are so profitable and safe, why isn't Joe keeping/doing them himself?

 

I'm not trying to be a nosebleed, Amy, but these are legit questions I have and would be interested in your answers. ^_^

Share this post


Link to post
Share on other sites
Hi, Amy, and welcome to The Naked Investor!

My first reaction is, as always, buyer beware. I'm a skeptical consumer by nature, and I think that's probably a good thing.

I don't have the time or the interest in listening to Joe's one hour sales pitch, so I can't comment on the specifics. So I'll ask you a few questions:

 

1) What't the cost?

2) Assume the worst case scenario: what happens to you and could you exit the problem with your skin intact?

3) If these deals are so profitable and safe, why isn't Joe keeping/doing them himself?

 

I'm not trying to be a nosebleed, Amy, but these are legit questions I have and would be interested in your answers. ^_^

 

The deal is free. Basically he lines you up with 10 new construction homes that you buy for 100% LTV, you put 10% down and then you get 10% back at closing, but you paid 5% in closing costs. So all in all the cost was 95% LTV.

The home has a tenant-buyer in them automatically at closing who is on a 3 year lease option deal. If they purchase first year they get it for 105% of the original appraisal, 2nd year they get it for 110% of the original apprasial and the 3rd year is costs 115% of the original apprasial.

Obviously Joe Crump is making his money by getting options on all the properties for lower than the 100% LTV and then exercising his option then transferring it to us when we actually buy it and do the deal. Just wondering if this is something worth looking into or not. Not sure if buying at 95% LTV is a good thing or not.

Share this post


Link to post
Share on other sites

OK. Now I see what he's doing.

My concerns: as the buyer, it seems I have no say in who is now renting my property. I'm a control freak, I suppose. But I want to select and choose who lives in my properties.

The bigger concern is that the entire deal operates on the premise that values will rise. As we can see right now, that isn't a given. Buying at full value means you are left holding the bag if prices decline. Joe's in a great position. As a buyer paying full price, you aren't. Ever hear the expression, "You make your profit when you buy"?

Share this post


Link to post
Share on other sites

Run Amy, RUN!!!

 

You can get the same "deals" all day long from any realtor, you don't need a "guru" to skim your profit. I used to buy houses at market value to do RTOs on, it can work out OK in a rising market but there are far better and safer ways to invest. For example you can do SLOs, that way even if you have to pay full FMV, at least you're in with no money out of pocket.

Share this post


Link to post
Share on other sites

There are wayyy better things out there Amy--stay AWAY from this one. Just my 2 cents. ^_^

 

 

 

Run Amy, RUN!!!

 

You can get the same "deals" all day long from any realtor, you don't need a "guru" to skim your profit. I used to buy houses at market value to do RTOs on, it can work out OK in a rising market but there are far better and safer ways to invest. For example you can do SLOs, that way even if you have to pay full FMV, at least you're in with no money out of pocket.

Share this post


Link to post
Share on other sites

×
×
  • Create New...