Well, you could say I’ve been around the block or two. I mean, I’ve only been dealing in real estate for 40 years. When you read articles like this, about people who create a fund and then want to go do something with the fund, meaning it’s not like they already had the properties. They created a fund, put money in the fund for the use of going out and find properties and rehab. I mean, it’s a great story. Come on, real estate makes millionaires. But that’s not real estate. Real estate is a deed. If it ain’t got a deed, it’s a security.
What I really like about this is, it proves my point that people that don’t have a lot of money to invest are much better off owning the deed to the property or being a partner in the property, which is the way we work at First Wall Street Realty Partners. That’s our name, First Wall Street Realty Partners. You’re actually a partner in our property. Your name goes on all the paperwork. That protects you. You’re not investing in a fund that has overhead and people to pay and rent to pay. That’s a business. That’s not real estate. With us, you’re investing in a property and you are secured by that property.
I would say to read this article a couple of times to understand it. It’s pretty straight forward, although it is a common type of fraud where people are raising capital to do something with that capital. Right away, there’s my red flag. You should already have something you’re doing before you raise the capital, correct? With that said, this was an interesting article. There’s tons of fraud in real estate. You have to know what you’re doing, be experienced. You could lose your shirt on your first property, just buying it too high. The title work isn’t done correct. You get a lawsuit. You lose it. You get sued for tens of thousands of dollars. Just all kind of things can happen. So, there’s a lot of moving parts to being a successful real estate investor owner-operator. I hope you like my take on this one.
Cipriani Investments Sues Over Alleged Home Flipping Scheme was originally published on The Real Deal.
About The Author
- Robert Louis Annenberg Is a 40 year seasoned property owner, manager, investor, builder/developer and business man who is also an author of five published books to date (Amazon.com) and the chief editor of LifeQuestJournal.com. He can be reached at: Info@RobertAnnenberg.com and (201) 289-2500.
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