Learning From Other People’s Mistake

Casey Serin is your average 24-year-old who is looking to get rich. He figured real estate would the money train that would get him to where he wanted to go. However, Casey made many mistakes along the way and now is in foreclosure on all his properties.

I’m a 24-year-old aspiring real estate investor from Sacramento CA. After going to few seminars I bought 8 houses in 8 months across 4 states with no money down. I fixed and sold 2 and then ran out of cash. I am now facing foreclosure on 6 houses. I’m learning my lessons, finding solutions and blogging about it.

I Am Facing Foreclosure is Casey’s blog about what he did, how it all went wrong, and what he is going to do about it. I guess the blog is his way of turning lemon into lemonade. The blog has received a ton of press and helped Casey get a ton of traffic. However, he’ll need a bunch of tier 1 media outlets talking about him before those Google ads on his blog can bail him out.

Last month Casey was invited to speak to a college real estate class about his real estate investing and facing foreclosure story. The teacher saw his screw-up story in the paper and thought the students can learn what NOT to do from him. Here’s the video of that presentation.

I must admit, Casey has a lot of guts admitting he took out “liar loans” to finance his properties. That may end up landing him in jail. If you’re a real estate investor, or are thinking of getting into real estate investing, Casey’s blog is worth checking out. Don’t make the same mistakes he did!


19 thoughts on “Learning From Other People’s Mistake”

  1. HMTKSteve says:

    I find myself having no sympathy for this kid.

    He tried to enter the market to late and got burned. That happens in every market.

    Why did he go out on a limb on 6 homes at once? He should have done them one at a time or two at a time at best.

    Too make it worse he was gambling with other people’s money by going the 100% financing route.

  2. Mayo says:

    Now this is a real schmuck !

    Now he’s pleading people to help him!!

    Dumb a##, and he will probably get rich
    by publising a book on how he got in jail,
    by trying to forclose
    him self :=)

  3. Paul says:

    I’m curious… What’s a “liar loan”?

  4. Jordan says:

    Nahh he won’t go to jail. The guy is cute, young and goodlooking.

    If he were old and ugly he would be in deep trouble.

    Lucky for him.

  5. Mayo says:

    I think he stated that he as a real estate developer made something like 20K$ per month in income instead of ZERO K he actually made.
    He overblown his income sheet and based on that recieved good credit lines, only he couldn’t support the daisy chain (his income was too low for his outcome :)).

  6. John Chow says:

    Paul – A liar loan is a loan where you lie to the bank about what the property is used for. Banks don’t give 100% financing to investment properties. They only do that if you’re living there. Casey stated that every single house he bought was a personal “I will be living in it” house. In other words, he committed mortgage fraud. Not only is that a bad thing to do, it’s also illegal.

    Mayo – He didn’t state that his income was $20K per month in the video. The $20K per month was what it was costing to keep those properties running! Of course he doesn’t have that kind of money, which is why he’s facing foreclosure.

    Jordan – I doubt he will end up in Jail. The banks have no interest sending him to jail. If they do that, there’s no chance they’ll ever get their money back.

  7. Mayo says:

    John, so it’s basically a credit on the house – without any collateral, something like leasing line??

    But as i understand it’s majorly done by self employed people who can pump up their income i.e. they max out their CC’s and put the money inside the bank that gives them the loan, in that way you can buy a 1MM house without and real income and hope that you can pay out all the CC’ bills. There are as i know Check Kiting schemes where you have round-trip cash flow by cashing checks from one bank to another, and round again.
    In my country (Croatia) we still don’t have that systems, but they are slowly coming in. Only thing people here are using semi-legaly is kiting CC’s i.e. transfering from one account to another using credit lines until they go bust…

  8. John Chow says:

    Mayo – No, he just financed 100% of the purchased price when he wasn’t legally allowed to. Kiting is not as big as problem anymore because of how fast the banks do their clearing of checks now.

  9. Gdog says:

    I think he’s going to have to use his Google Adsense earnings to save him this time. 😉

  10. Jonathan says:

    Is it some rather subtle irony that the title of this post has a grammatical mistake in it?

  11. Yea, his site generates HUGE traffic due to the publicity that he is getting. He’s been on TV, newspaper articles, and big sites are writing articles about him (like johnchow.com). 🙂

    I wonder what kind of income he makes from google adsense. Maybe he’s making up this story to drive traffic to his site? 🙂

    Joe
    http://www.StingyFinance.com

  12. Nomar says:

    interesting video, i enjoyed watching it.. and i hope he will get out of debt soon. and go on with his life.

    he is doing a great job with his blog by the way

  13. Joe says:

    I have no sympathy for this guy. Jordan is right, if he was old and ugly, nobody would care about this story. He is doing a very clever job of spinning the story though.

  14. Casey Serin says:

    I’m not making that much money off the blog considering how much traffic I get… most people are not there looking for foreclosure help but to watch the “train wreck in slow motion”. Only 1/3 of 1% of ads get clicked on.

    Besides, my primary goal is not to necessarily to capitalize on the traffic but tell my story story and help other over-leveraged borrowers by talking about how I’m getting out of my mess, etc. I’m also taking personal responsibility for “shady” loans and talking about what NOT to do in Real Estate.

    The blog is also opening doors, allowing me to meet interesting people, and creates opportunities. There are many exciting possibilities on the horizon but it all takes time to develop and I’m still facing foreclosure and have to fight my fires.

  15. Sonia says:

    Sounds like he was under a lot of financial pressure to start his business and deliver results. He is also a good speaker. Who knows, may be these seminars is a better option for him than a real estate business.

  16. John says:

    There is no way in hell there story is real. I am going to take some time to look up public records in the recorder of deeds’ office to see if this is true. I am positive caseys story is fake and he is trying to profit by getting some book/ movie deal.

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