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- Posts: 93
- Joined: Wed Aug 17, 2011 10:53 pm
- Location: USA
Unless you could guarantee that the amount could be paid back - even from your own pockets - if the worst should happen, I vote, "No way in hell unless you like the idea of living with a bonfire being lit under your ass every day until the entire amount is paid back in full."
There is a reason those houses are so cheap - buyer's market or not - and if they and their potential tenants can't pay you back and especially if you're not the one overseeing the entire deal from start to finish, you're SCREWED. My older sibling got involved in something similar - without using a credit card at the beginning - and where the project wasn't a complete failure, they took a substantial enough loss along with a few major hits on their credit report. The money, thankfully, was something that could be earned back so it wasn't so awful, but my sibling definitely paid a price for the failure.
And using PayPal? NO. NO, NO, NO, a million times NO! Seriously, are you crazy? If you're getting involved in real estate, you MUST take the legal route because it is the safer route for you, for the potential middleman, and for the seller. Not to mention PayPal's service is riddled with backend loopholes and their customer service is nothing short of questionable at times and refunds and fraud problems can be the nightmarish to deal with. They are a service for online transactions like eBay or online stores, but NOT for something as serious as a house or a car.
As secure as they claim to be and as much as they say they weed out the fraudsters, THEY ARE NOT because otherwise, how could I have customers buying from me whose PayPal personal names are, "The Sandman" and "Grim Reaper" and "Backyard Cowboy"?
Furthermore - and this has happened as I was involved in this before when I participated in a group order in a community I once participated in - there are plenty of cases where someone has used PayPal to collect money from people.... and have managed to spend the money/shuttle it elsewhere and run off to never be seen again with the money being completely lost and untraceable and with PayPal basically saying it can't do anything about it.
If your third party took your money via PayPal and ran off with it without doing what they should have done, do you think PayPal would be able to help you get it back? Especially if the other person might argue that they DID do everything and provided fraudulent evidence? I would vote, "NO."
Of ALL possible money-transferring services to use, DO NOT EVER USE PAYPAL for any amount over anything you could afford to lose and lose forever.
You need to keep a tight watch on that money AT ALL TIMES and keep tabs on any/all third party members involving in the whole process and keep legal documentation of ALL of it.
That said and ranted and given that you actually could use those checks or the card to somehow pay for the house:
1) If you can't afford to pay off the house yourself without the help of those checks, how long can you do those promotional BT offers (because that's what those credit card checks are for) and if you fall down on your luck, how many more times can you keep transferring those balances to favorable credit lines that charge little to no interest?
2) Are you absolutely ready to face the potential of failure and along with it, the potentially damaging affects on your credit and possibly your reputation and person?
The market for what you're doing looks lucrative and I have seen success from others who have done it. But as with anything that is lucrative, there are always predators out there preying on people who have neither the experience nor the knowledge about what they're getting themselves into and if you yourself can't be there to personally oversee everything and meet everybody involved, the likelihood is that much greater and the damage that much more potentially catastrophic.
I would definitely suggest more homework before jumping in.
I have seen more than one someones jump in and they WERE well-informed before jumping in and in more than one case, one of them WAS taken advantage of owing to their lack of attendance and the person/company who took advantage of them was supposedly very reputable.
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