USA Today has an interesting article that's circulating in investment circles. Here's the intro to the article, which is titled, "10 Mistakes that Made Flipping a Flop".
In one year, the 24-year-old website-designer-turned-real estate-flipper bought eight homes in four states — and in every case but one, he put no money down. At his peak, in April, Serin had $93,000 he'd taken out of the homes as he bought them. By July, he was broke, desperate for one last deal.
Now? Serin has $140,000 in credit card and credit-line debt and five houses in foreclosure. Last month, he started iamfacingforeclosure.com, a blog that's drawn both notes of condolence and expletive-laced condemnation.
The rise and fall of Casey Serin is a tale with moral and financial lessons for real estate buyers, lenders and regulators. Having consumed real estate guides and seminars, Serin made just about every mistake a newbie could make — most of them, he admits, were no one's fault but his own —
from fudging loan applications to buying homes sight-unseen. That he began with bold dreams of class mobility makes his fall a peculiarly American saga.
I can't write everything in the article, but wanted to link to it so it can be read. The new investor made some very serious mistakes, some of which were illegal. I'd encourage anyone thinking of investing or already investing to read it as a reminder of what NOT to do. Check out the ex-investor's blog as well. (Although I suspect he's trying to make money with it).
Ready the full article on their website.
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