Les Jones

Economics > Casey Serin, Failed Real Estate Mogul and Web Hustler

PDB tipped me off to this. Casey Serin was a 22 year old college student who read a couple of real estate books and got himself several million dollars in debt as the real estate boom came to a whimpering close.

Facing financial ruin, he created a Web site, IamFacingForeclosure.com, to attract attention and advice. Some would say more for the attention than for the advice, which he seems to have mostly ignored. The banks have since foreclosed on some of the properties, and the others are still in jeopardy.

USA Today used Serin as an example of what not to do in 10 mistakes that made flipping a flop.

LessUrban has a less-than-flattering account of Serin's real estate and blog dealings, and suggests that Serin broke the law in his mortgage transactions.

I have no opinion on whether Serin broke the law, but if he did it wouldn't surprise me. John T. Reed - a no-nonsense real estate guru I actually trust - has this to say about many of the nothing-down plans:

Many of the nothing-down techniques, like Allen’s “second-mortgage crank,” require you to commit a felony. He does not tell you to break the law. But he tells you to do something which cannot be done without breaking the law. It’s as if I told you to drive from San Francisco to LA in four hours and admonished you not to break the speed limit. It is impossible. For example, Allen’s “second-mortgage crank” has you getting a new 80% loan from an institution and the seller taking back a second for the rest.

Simple, right? Wrong. Institutional lenders are generally not allowed to make such a loan and they will not knowingly do so. They ask where the down payment is coming from and “seller” is not the right answer. Allen says the key is finding “the right lender.” Joe Land, whom I debated on the 3/16/86 60 Minutes’ “Nothing Down” segment, said the same thing. Land said he had done these deals. I asked Land for the name of a lender who was willing to do such a deal. At my behest, Morley Safer and a Time magazine reporter asked Land the same question and even promised anonymity for the lender. Land refused to name one. He cannot. Neither can Allen or any other nothing-down guru.

In his real estate guru ratings Reed notes that many of them have gone bankrupt, gone to jail, or both.

You might want to review Reed's disection of Robert Kiyosaki, one of Serin's gurus. Kiyosaki, like many other real estate gurus, claims he's made fantastic deals, yet refuses to give the property addresses so that someone can confirm that those incredible deals really happened. Reed's properties are listed on his about page.

Serin is likewise an acolyte of Carleton Sheets, and paid big bucks for expensive classes from Russ Whitney.

P.S. One fascinating thing about Serin is his precious belief that if enough people hear his story that cash money will somehow appear in his bank account, his financial problems will be solved, and he can live the good, unemployed life his real estate gurus promised him. That he's willing to do anything but get an honest job is the reason I consider him a hustler.

P.P.S Serin links to a San Fransisco Chronicle article about him. He seems to be unable to tell the difference between good attention and bad attention. From the article:

Still, he doesn't seem to see those birds crashing to the ground. Serin estimates that even if he can sell all of his properties with short sales, he'll still be $200,000 to $400,000 in debt. "It's pretty scary," he concedes, sounding not at all scared. How will he escape? "I could go back and get a job and just work for a living, but even if I get a Web designer position that pays $50,000 to $70,000 a year, my payments on my debt are still going to be $3,000 to $3,700 bucks a month. I could file for bankruptcy," he pauses. "Or I could see if I can do a few more real estate deals."

Suddenly his voice has the buoyancy of a true believer. "To succeed in real estate you have to have the right knowledge and the ability to take action. I fell down this year. But I'm not going to go out without a fight."

Shorter Casey Serin: naively believing real estate guru horseshit got me into this mess, and naively believing real estate guru horseshit will get me out!

See also:
- YouTube, Meet Bullshit Artist. Bullshit Artist, Meet YouTube.
- That Lying Old Fraud Michel Thomas Has Died
- Help John Reed By Fact-Checking Russ Whitney's Ass