Flashback Fridays: Casey and Kiyosaki, Part 4

Part 1

Part 2

Part 3

Back in Part 3, I detailed how Casey Serin pocketed his $30,000 profit on his first investment property when he bought it, not when he sold it. Because Casey Serin is such a savvy real estate investor with mad entrepreneurial skillz, he managed to sell the property through a house swap and ended up buying a property for too much money. From the 13:25 mark of the video:

13:25: Casey: “Well, my other deals…after I sold this one, what happened is I sold it for 360, and I paid off my loan of 360, and I already had the 30 I pocketed, so that was the profit I took up front. So I was happy just to pay that off and move on. Now the only way I was able to do this though is, I found this guy who…I was having a hard time finding buyers because the market was already slowing down. But this guy who bought it from me, he had a house he was trying to sell, so that was a contingency, and I said, ‘Well, maybe we can work out a deal’, so I ended up buying his house, and he bought this one. The problem is I paid too much for his house.”

14:00: Kiyosaki: “How much was his house?”

14:02: Casey: “I paid 295. And 100% financing as well. And it would have appraised for a little over 300 at the time, so I thought…because at least buying it at a discount…but the problem is, it wasn’t a big enough discount, and it wasn’t the best inventory either. It had a garage conversion and it had some oddities about the house, and so I knew I wouldn’t be able to sell it quickly. I ended up renting it out at a loss, and that was a mistake. I did a lease option where I rented it for $1400, and my mortgage on that house was $2400. And that house is one of the ones I’m trying to get rid of. I’m still stuck with it. That’s the Burdett house in Sacramento. And it’s on my website, but…(audience laughter)…if anybody’s interested…(audience laughter) We just got a short sale approved on it, ‘cause I couldn’t sell it for what I owe on it, unfortunately. And so I’m working with an investor on asking the bank to take a small loss instead of taking a bigger loss by having the house go through foreclosure. I owe 295 on that one. The short sale was approved for 248, so there’s a little bit of a discount there for somebody who wants to pick it up below market value."

Casey also explains in the video that instead of holding back, getting a job, and focusing on making mortgage payments on the Burdett property, he kept buying more properties to see if he could extract money from them through profits or cash-back-at-close. I guess that's what Casey calls "entrepreneurial". Well, I call it "mortgage fraud" and a "Ponzi scheme", because that's what it was.

After Casey gets done explaining how he achieved Epic Fail in the real estate business, Kiyosaki tells Casey to say "Screw You" to the critics. But Kiyosaki misses the point. People are critical of Casey not because he failed, but because he failed with little to no moral compass, and he committed blatantly illegal acts that should have placed Casey in jail long ago.

Kiyosaki justifies Casey's illegal business dealings by saying that all of the critics are no better than Casey by making the following comments:

21:45: “Do you know someone that pretends to be a saint, but they’re having sex with their dog?”

Classy.

25:35: “95% of people who fill out credit apps lie.” Then Kiyosaki says “99% of the population are frickin’ liars."

As usual, Kiyosaki is pulling numbers and generalizations out of his ass that make no sense and have no factual basis whatsoever. Must be an entrepreneurial thing.

So much for a Friday post...

Well, I woke up Friday morning and found out my Internet service wasn't working. Usually my first assumption is that the Internet service provider is screwing up somehow, but I looked over a few things and concluded that something wasn't working at my house. After calling tech support, we confirmed that I needed something replaced. The replacement arrived today and now I'm back online. I tried to solve it earlier by going to Radio Shack, but they said they didn't have what I was looking for.

While I was offline, I wondered what Casey would do if he was offline for 4 days. Would his head explode? Would he tweak something else more frequently instead of his sidebars? Or would he use the time for something productive, like coming up with an old-fashioned offline scam? One can only wonder.

Anyway, I'll try again this Friday for Part 4 of Casey and Kiyosaki. I'm not sure if I'll have a post up before then. My wife comes back tomorrow so my posts should resume shortly. Thanks to all of you for dropping by.

New post tomorrow

I thought I was going to have time last weekend to post Part 4 of Casey and Kiyosaki, but no dice. I will be posting it sometime tomorrow.

Also, keep in mind that you can track new posts for this blog by getting set up on Google Friends Connect. By doing this, you will have done more in one day than Casey has done in a whole month.

December blogging update

I apologize for not posting for several days, but I've run into one of those instances where I need to focus on matters unrelated to Casey Serin and his trail of grifting behavior. Also, starting this weekend, my wife will be out of town for 9 days and I will have to play Mr. Mom on a full-time basis until she returns. Therefore I expect my posts to be much more sporadic during the month of December. Part 4 of Casey and Kiyosaki may drag into the weekend.

In the meantime, for one of the most thorough critiques of Robert Kiyosaki ever written, you can read John Reed's analysis here. (After looking through John Reed's website over the years, it's pretty clear he enjoys writing about anything --- a LOT.)