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The Art of Fake Guru Checks & Incomes

Call me slightly annoyed.  It’s amazing to me how many times each month I see somebody doing some type of check flashing without any type of clarifications.  Some might be legit, but many times, it’s unfortunately just to get some sales, or to mislead people into thinking things that may not be true.

Recently, I saw an investor post a check on their Facebook page.  It was a check for like $13K or $17K or something.  It drew all sort of “boo-yah” and “rock on” comments from the naive.  Here’s the thing…in the upper left hand corner, the check was from a Hard Money Lender in Pittsburgh.  I can’t remember exactly the text that went along with the check for the facebook posting…but it was something like “just another day at the office”, or  “another great day”, blah blah blah.  It was something that made you think they just made some cashola.

If I was a betting man, I would have bet that check in their image with my money that their check they were flashing was a draw check for a rehab they were working on.  I really don’t think it was any type of a profit check, yet there they were…giving the impression for readers that it was some type of profit or something.

In the video following, I want to share with you a common fallacy about the checks that some gurus flash around.  Don’t get me wrong…they very well probably profited on the deal, and may have done very well.  But, the real numbers oftentimes don’t match up to what the true net profits are (before taxes).

Ok, so really quickly, wanted to put into words the biggest takeaway from the video.

If somebody has a $100,000 HELOC against a property.  Lets say, they then, buy a house, fixit up and have a total cost into the property for $60,800 (including purchase, buying closing costs, repairs, holding costs, etc).

Then, they sell the property.  The closing company, or attorney, sees no “recorded mortgage” against the property, appears to be owned free and clear and cuts them a check for $98,932.68.    Then, the “fake guru” shows everybody the check they received as “profit” for their deal.

They’re not telling you that they really need to now write a check for $60,800, leaving a total net profit (Before Taxes) of $38,132.68.  Thats their real figure, but it looks so much more believable to the naive to see a real check with the dollar figure.

Stay smart and stay informed.

Later,

Brandon Yeager

PS.  Have you ever seen any of these income claims and thought YOU weren’t getting the “full truth, and nothing but the truth”?

 

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