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My thoughts on Casey… again

November 5th, 2006 by Kenric

I’d like to think that I write a happy blog.  A blog with no negative thoughts towards people, one that encourages people to expand their lives and try new things.  When I first read and wrote about Casey’s blog I was glad he was willing to tell his story online and hoped that he would get out of his mess.  But after hearing the fiasco from the past week on No Limits Ladies I went from a supporter to a hater.

However, after reading his post about a spam email that he had sent out to his mailing list I’ve become convinced that he will not get out of this mess.  I don’t think he has the integrity nor the fortitude to be able to do it.  I actually believe that he doesn’t want to get out of his mess.  I think he’s going to let this hang around as long as possible, generate great blog traffic for a while, then declare bankruptcy and hopefully sell his story.

Here is the deal on the spam email.  Casey’s old friend from high school received this email.  I’ve bolded the relevant part of the letter for my discussion.

This January I quit my job to do real estate investing full-time. Together with partners in the area we buy and sell houses for fast gains and we also hold property for appreciation. In the first part of the year I personally bought 7 houses in 4 different states. It’s not all easy – there is definitely a learning curve. It helps to have experienced associates to help me along. Now what??

We have a unique opportunity to continue to expand the real estate business. Because of the market reversal in California there is going to be many people in trouble with their loans. People have been buying more home then they can afford or refinancing like crazy. Foreclosures are already on the rise and they are going to sky-rocket in the next several years.

There is an opportunity to 1) help people out of trouble and 2) make some money. Service and integrity comes first though. I know what its like to be behind payments and face foreclosure. I refuse to be a “shark” investor.
It must be win-win, or no deal. Want to participate?

Do you have money that’s sitting in an account somewhere earning an embarrassing 1-3%? Are you comfortable with your retirment money sitting in a volatile stock-market?

Maybe you’re not investing at all. Are you comfortable trusting social security to take care of your retirement?

Invest your money with us and get 24% fixed return secured by real estate.
We use your money to buy and fix houses improving the area and helping sellers in distress.

Benefits to becoming our private lender:
* we pay fixed 24% interest on your money – reliable returns
* compounded monthly – your interest is making interest and it grows exponentially
* secured by real estate – just like a bank, YOU get a mortgage against our properties to protect your investment
* start with as little as 10,000
* may use your 401K or IRA account – get tax advantages
* your money doubles every 3 years
* 10,000 grows into 100,000 in 10 years

Worst case scenario…
If we can’t pay you back, you get a good property. We only put your money into a house that has at least twice the equity as the amount you’re investing. We only invest into nice properties in good neighborhoods. If something were to happen to our business you can normally just sell the house at a discount and get your money out. What stock or mutual fund is going to give you THAT kind of security?

Limited opportunity…
We can only take a certain number of private lenders. Get back to me soon so I can explain in more detail.
Also please forward this to anybody else who may want to get a high return on their money. We pay referral fees!

So this letter created a bit of an outrage because we all know what Casey’s situation was now.  But at the time of this letter it wasn’t disclosed.  Casey wrote is his friend a follow up letter explaining his situation.

So today Casey responded to these letters on his blog.  Again I’ve bolded certain parts.

To everybody…..

Yes I DID send out that email to try to find some private lenders who want to put their money to work with me.

I wanted to use the money to bail out the properties, sell them and pay the lenders back. I wanted to also use the money for buying new properties. I was going to explain everything to a private lender once we meet.

To make it safe, I was going to secure the lender’s money by a trust deed against my properties.

I was following the directions given to us at one of the seminars on how to find private lenders for your real estate deals. My goal was to borrow small amounts of money, say $5-10K, and use it to catchup my payment, sell my properties and pay the private lender back a generous 24% annualized return.

I was going to use the equity in the properties as collateral for the loans. Additionally I wanted to use the money to do more deals to get my real estate business back in shape.

So in his first email he states that he only invests in properties that have double the equity of the investment amount.  Then he admits that his plan was to secure this new found money against his properties, which all of us know have virtually no equity.  He did not have 50% equity in any of his properties.  He must have known that when he sent out the email.  The fact that he sent out that email tells me that this guy is not honest and has no integrity. 

His blog is beginning to fall apart.  His plans and course of action do not make sense anymore.  I think that his lies are finally catching up to him.  It’s hard to keep covering up lies with more lies.  You’re gonna slip.  And with so many people reading you every move, anything that doesn’t add up will be uncovered.

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