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Path: utzoo!linus!decvax!decwrl!sun!idi!oliveb!3comvax!mykes
From: mykes@3comvax.UUCP (Mike Schwartz)
Newsgroups: net.invest,net.consumers
Subject: Re: "No Money Down" (Other People's Money) Scam
Message-ID: <312@3comvax.UUCP>
Date: Tue, 31-Dec-85 01:14:16 EST
Article-I.D.: 3comvax.312
Posted: Tue Dec 31 01:14:16 1985
Date-Received: Wed, 1-Jan-86 04:50:06 EST
References: <587@cylixd.UUCP>
Reply-To: mykes@3comvax.UUCP (Mike Schwartz)
Organization: 3Com Corp; Mountain View, CA
Lines: 43
Xref: linus net.invest:971 net.consumers:3252

I heard an interesting one on TV the other night.  It goes like this:
Step 1.
	Acquire a large number of VISA cards.  The "scam" lecturer says
	you can get well over 200 of them from banks all over the country.
Step 2.
	Find a house to buy, and offer the seller CASH TOMORROW for his
	place, (which clearly is the most upright way to get a discount
	on a house), for 70-80% of the appraised market value (or your
	best estimate of it).

Step 3.
	Go to your bank and get a cash advance on all those VISA cards
	(the lecturer says he likes to do it at 10 minutes before the
	bank closes, for kicks).  200 cards at $1000 per cash advance
	is $200,000 (enough to buy some pretty nice houses).

Step 4.
	Pay for the house using the cash.

Step 5.
	Refinance the house for 80% of the value and pay off the VISA
	cards within 30 days (to avoid the interest payments).

Step 6.
	Pocket whatever money is left.

	Step 7.
	Give the house away (all the buyer needs to do is take over
	the payments).

	His example:
	Offer $150,000 for a $200,000 house, take it or leave it (show him
	some cash maybe).  When you find a seller, go to the bank and get
	$150,000 in advances on VISA cards and buy the house.  Go to the
	bank and get one of those (easy to get???)  90% LTV mortgages for
	$180,000.  Pay off the $150,000 on the VISA cards and pocket the
	$30,000 that is left over.  The last step, says the lecturer, is to
	go to one of those real estate conventions and offer to give away
	the property, if someone will simple assume your loan.  Seems he finds
	a sucker or two at every one.


	/mike schwartz @ 3Com Corp.