Losing 50 Investment Properties to Theft | David Greene

Losing 50 Investment Properties to Theft | David Greene
In this video, David Greene, the esteemed co-host of BiggerPockets, recounts the shocking tale of how he fell victim to a scheme where 50 of his investment properties were stolen. David delves into the intricate details of the ordeal, revealing valuable insights into real estate security and the risks investors face. Join him as he shares his harrowing experience and offers invaluable lessons on protecting your assets in the world of real estate investment.
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[@TheMrBrandon]

Another lesson from this - diversify. When you're financial free there is no reason to continue leveraging up to the gills and doubling down on 1 asset class. Buy some stocks, bonds, businesses, etc.

[@timursalikov5911]

Or he can just have a mortgage on those properties and if someone tried to steal the title the banks legal department would handle it.

[@davidstephens9594]

David, only by the grace of God are you able to move forward without losing your sanity. Good job, and thanks for sharing.

[@nickfazzio5277]

This story is remarkable

[@MattTheMortgageGuy]

Loved the brutal honesty in this segment

[@straightupchicagoinvestor]

Thanks for listening!

[@dulce8859]

This is why i watch you religiously. No ego discussions about what can go wrong rather than worrying about what ppl will think of you. Thank you for sharing! In a couple counties I have homes in, you can go to the county website and sign up for notifications in the event one of your deeds is changed. It doesnt stop the crime, but at least gives you a jump on the fight. If you find a way to stop it from happening in the first place I look forward to learning how. Good luck🍀

[@DavidGreene24]

Thank you for that

[@1128THEGREATEST]

This story is insane! Thanks for sharing your story David!

[@Johnny-yx2qx]

Did he say what state this was

[@omark8012]

Omg. This is scary as hell.

[@AntonioM-v6n]

50 properties... and they were 100% committed to going to door to door. Getting notarized, going to real estate meetings.. just wild

[@rp-wb6xn]

Wow, David I’d definitely be naming and shaming these cities that are so ridiculous.Others should be informed that they’re not welcome here if they’re investors.

[@michaelwillman5342]

I agree, he should name the towns so other scumbag airbnb owners will get and go elsewhere.

[@jod5834]

David, you should write the book about it. The story is insane..I give you a lot of credit , you keep your sanity..

[@yulissaguevara1727]

What a nightmare. Thanks for sharing. What are you doing differently to prevent this from happening again?

[@FIRE_DrNinjaTurtle]

Thank you David for your honesty

[@ShewedDude]

The extent a liar and a thief will go to to cover their lie and thievery is astonishing..

[@TEFgolfer11]

David, this situation is absolutely insane. I can't begin to imagine how frustrating this has been, and it's out of your control too. I would be curious to know what percent of your original portfolio's worth you lost because of all the fallout from this fraud. Id like to become an investor myself one day but stories like this certainly are discouraging, albeit rare

[@Johnny-yx2qx]

So this happened in Illinois since he’s talking about Chicago

[@Johnny-yx2qx]

Did he say what state it was

[@Johnny-yx2qx]

@@straightupchicagoinvestor what state I couldn’t find online

[@lucrtrvl]

I am very sorry you had to experience this ordeal, dear David. Your contribution to investors community is highly appreciated by all of us the fans of BP. Your case with title fraud is a nightmare of any real estate owner. We all need to be educated on how to fight and prevent this type of crimes against our ownership rights. It seems the system makes it very easy to commit such crimes. I wish you to overcome all the obstacles and at the end come out of this straggle strong and being able to protect your assets as never before.

[@davebeason4867]

Wow David. I have been listening to you for a while now and hearing you tell your story sounded a lot like Job (without the death of course). Way to power through and come out on the other side. Know that your testimony has helped someone.

[@liasilva2789]

Job didn’t die in that story but I was thinking the same wow david had a job phase but we know that he’ll get a double fold return as a result of leaning on God during horrible circumstances

[@thinkingoutside970]

Totally agree David. I had a similar situation. I had 2 property managers 2 different areas spend my rent cash every month on fraudulent or unnecessary charges while I paid the mortgages taxes insurance etc from my pocket. I eventually got the properties back in control but not without difficulty. Warning to investors, its your investment dont leave it to anyone to manage. People have lost everything trusting property managers. Make sure you protect yourself.

[@brettlaw4346]

It is a trust but verify situation. To add another layer of complexity, but assurance is the ability to obtain recourse. You don't give responsibility to people that have nothing to lose.

[@minihoneybee]

Would the stealing not possible if you deed all property to a land trust with your LLC as Beneficiary?

[@nickfazzio5277]

Following

[@midkort]

Curious.

[@VideoSiteAccess]

Commenting to get an update.

[@msadventure49]

I think this comment is correct. If your LLC is just the Trustee or beneficiary and not the owner of the house, knowing that name doesn't matter. The thief would have to know the names of all the land trusts to be able to find them in the first place.

[@jamesnorris5202]

Yes and also put a lien or memorandum on your property

[@craigshak]

Also something to note in Texas you are able to register an email with county when deeds or anything gets recorded you are notified. I recently got notified when I closed on some properties . Now it’s too late as those are getting recorded but better than waiting for 6 months to find out

[@deltalovie]

How did you do this? I'm googling, but not quite sure how to register mine.

[@craigshak]

@@deltalovie first figure out how to do a deed search in the county you own property once you can get to that site then search for the name under which the property is held once you locate the deed etc usually at the top there is a property alert tab where you put in the names such as personal name or LLC or trust that your property is held in and provide your email address where to be notified if any changes happen for those properties . If you cannot find them then ask the county clerk office. Google could not find it for me either but go to the district website and search for the deed records. Be careful there are lot of aggregator sites who do this for you for a price but I would not use them. The site for deed records should be able to be reached through the main district website . Usually for Tx it will have Tx.gov in its website name

[@JPLAviation]

Figuring this out as well what’s the update

[@VideoSiteAccess]

Commenting to get an update.

[@craigshak]

So each county is a little different but generally if you go to deed search on the county web page it will direct you to a page and in general at the top of the page there is a link for property alert or on one county it says property fraud alert . Click on that link and register the name or names that own the property . It can also be an LLC name or trust name or Whatever then also attach email you want the alert or be sent to . I ha be bought properties after I set up these alerts And as the properties got recorded then the alerts came right away. If you have trouble then reply here with county you are interested in and I can try to find that link and post it here

[@toe-ray-she]

Thank you for sharing your experience. I told my wife I want to write a book titled, "Do I Own The Property I Own?" This given the amount of control mortgage lenders, insurance companies, and municipalities have over a property. And that's without all the issues you had with being scammed.

[@msadventure49]

I'd buy that book.😮

[@BTate]

Thank you for this! I appreciate the transparency. Everyone neglects the different exposures at play when it comes to residential real estate investing and this anecdote from a prominent investor like David Greene proves that we can all 'get got' at some point. It also shows that if you're doing well enough for yourself, there will always be people who don't care to see you continue to succeed or have sense of urgency or empathy when it comes to helping you fix your problems. I can not emphasize the final 30 seconds of this clip enough. Thanks again!

[@TheChristianImperialist]

Would the problem have been mitigated if you used a series LLC or having each property in a different LLC?

[@ErickaWilliamsCC]

this is wild... LIFE LOCK and TITLE lock is NEEDED in the future.

[@olacraig2883]

Never heard of title lock but that’s interesting!

[@georgemcclearyMRD]

Title fraud defender does the same thing and costs half as much

[@stevenw373]

Omg dude that’s brutal. Just nightmare worst case scenario. Gave me anxiety just listening

[@LADETROIT]

This is one of the reasons why titles should be on the blockchain.. real estate and vehicle

[@saintnick4035]

💯

[@SergioB-MakingMillionaires]

Wow! This is an eye opener

[@ShelleyT-tp1uy]

Is it me....or are people just getting super bold. Like they don't care at all that it is likely they will one day be identified and caught committing a serious crime. This thief was leaving a public paper trail ..and continued on completely unbothered until the law caught up with him. Smh.

[@msadventure49]

America is becoming a lawless place. Nobody cares anymore.

[@808BizStuff]

Look around at all the examples of no consequences. Hell, U can try to OVERTHROW the entire country & coward Garland & entire US DoJ do... NOTHING !! The criminals have all the advantages these days. Makes no sense to play by the "rules".

[@improvechannelonrealestate5487]

Fantastic video. I love to hear the difficulties that investors go through and how they claw their way out of them. I’ve had to claw my way out of a few doozies myself.

[@jackiesingleton5797]

Your story is helping so many people be aware. Thank you.

[@roirobert]

Hi David @biggerpockets Thank you for having the courage to share such a painful story - not taking the "asking for a friend" route. It was disappointing that your 1031 intermediary was not more helpful, first explaining the three identification options (identify 3 properties, the 200% rule or the close 95% rule). Second, I wish someone had mentioned the DST options at least to buy time, when time is needed. Next time you want IPX1031 - which is the best of both worlds backed by Fidelity and good people (including numerous full time attorneys fully focused on 1031s) that give a small high level sevice feel. Their St Augustine, Fl office will take good care of you. In which state did this happen?

[@MrHeavy466]

This is now _the_ real estate nightmare for me. Kudos to Dave and his team for overcoming, what I would have previously defined as, an insurmountable challenge.

[@jasonjosephlee]

Such a great story. Real Estate investing is the best thing I have ever done; yes there is stressful parts to it but we learn and keep growing.

[@WALLYDRAG502]

Yeah, people information isn't safe on the internet. Your parents and grandparents were right the entire time.

[@phgamer4393]

you should have been able to sue that government agency that would have made them move quicker on fixing it.

[@808BizStuff]

Damn! This dude is HELLA chill for all the crazy, frustrating, stressful shit he's been thru !! Wow!

[@nickfazzio5277]

Wow…. I’m soo on track and have been aiming for what you described in the closing seconds. Get a couple duplexes. Be retired at financial independence, setup property management…. And go into coast mode. That’s what I’ve been aiming for, for the last 2 years and I’m about 3 months away….. ahhhh. Thanks for imparting your wisdom David!!!

[@dismurrart6648]

My old landlords did that. Not gonna lie, I thought it'd be fine but it was frankly awful. We didn't have screens the entire time because they were damaged when we moved in and now that we have them, they are the wrong size. It was so bad that it convinced my fiance to be on board with buying.

[@JCMPremiumTV]

And this is why I build and sell, get my money and run. Rinse and repeat. Fuck owning and holding. The only thing I would hold is a 200 unit apartment complex.

[@demondsam2010]

I’ve been studying for 2 years i have a spread sheet, would you mind looking at it ?

[@MrDavid949]

In what state was your LLC?

[@PastorMelquicedec]

Omg😢 tjis story gave me anxiety

[@tazyboy28]

Finally got one to say it. Always keep savings. At least half of the down payment you've put into all properties. You can always expect other people to ruin everything you have going for you. Here you are doing the right thing and every one in society, including the criminals and citizens, are tearing your bytch ass up, and there's nothing you can do about it. I would have just paid them taxes and took the hit because its less headache and you have clearer decision-making moving forward. When you rush, you tend to make bad decisions. I learned that by getting into multiple car accidents because i was rushing. You have a lot of wisdom to learn. A LOT!!!

[@chals476]

my jaw is on the f****** floor

[@RyanDMarrs]

I'm really sorry this happened to you. Some real resilience there my friend.

[@oldstocks]

Wouldn’t a high leverage property scare scammers since the mortgager would have been impacted?

[@paulconner4614]

I still wonder how you are able to just transfer title on a piece of property when it requires ID and Notaries and Lawyers. Is he just signing a fake title and having his brother notarize it and filing it.

[@HildaRealtor]

there are many cases that crooks just change their names and steal the title. it is the incompetent city and government enable these crooks to steal so easily.

[@aprilvancleve9463]

I'm so sorry, David! People can really suck sometimes but it's inspiring you seem to be keeping a level head about it.

[@casper250]

So is this his current situation or is there more to this story?

[@ShorlanTanzo]

Law Enforcement eventually caught up with the guy, but it took some time. Basically, lawyer should have been involved immediately, lawsuits brought up against the gov offices for allowing the illegal changes (just to get them to change it back), and wire fraud charges brought to the FBI. Sherriff's office was sleeping while the offender was running around causing imminent harm.

[@propertykingkeith]

Sorry you had to go through that David. Going through that situation will only make you stronger so look at it as a lesson and not a loss 💪🏽💪🏽

[@Letthefartsout]

Remember sometimes it’s easier just to pay the taxes on the gains and move on. There is nothing wrong with taking profits.

[@LauraHauch]

I think it is Taxes AND depreciation recapture, all claimed and unclaimed depreciation (30 years) has to be paid back too.

[@dl6860]

You sold to a hedge fund because that was your only option at that point. Now, you've just done what they want you to do. And you now see how these destructive policies have contributed to your inevitable sale. It's not just what happened, it's why.

[@ggilas1]

Wow, there are so many risks to owning real estate. There use to be a time where people who provided housing were admired by our government, and now we are not only being taken for granted but we are being thrown to the wolves as sheep.

[@zackfelker]

Scalpers don’t provide concert tickets.

[@MiningforGems]

New fear unlocked as a investor. Insane story

[@theliefilter6412]

My hate for government just became greater. I have so many horror stories of how government screwed me over I should write a book. Government only makes things worst. This is a perfect example.

[@steve_Above_and_Beyond]

I had the issue of not being able to close on one of the seven properties I identified in a 1031. I was able to close on the six as a 1031. The 7th fell out, that amount uncovered became boot. I paid the taxes, added to what was left over and bought a 7th property.

[@minihoneybee]

So you are not able to complete 1031?

[@steve_Above_and_Beyond]

@@minihoneybee I was able to. If one property doesn’t close, it doesn’t mean the entire 1031 is ruined. It just means you end up paying capital gain on the failed portion. In my case it was one out of seven properties. That’s why my QI said that it’s always important to at least try to 1031 rather than just paying the gain.

[@olacraig2883]

So sorry for your experience and the losses but thank you so much for sharing! Can you do a dig into the culprit’s profile and their affiliations? The gall and audacity to follow through with such boldness gives insights into a bigger play/ backing to do these things with boldness and shamelessness. -The squatter experience The 1031 experience(not surprising) Stay strong. We need legislation to pay attention to these issues. A lot has happened in the last 4 years on the back end to the smaller investor- government municipalities and happenstances. We need to pay attention to the streets and the thieves! Sounds like the wild Wild West, right? Stay strong and thank God for giving you the strength to get through this!Sounds like an attempt to break you but like God created the air got created in abundance, he would restore you in the same breath. Stay Stoic, blessed and ready for his restoration!

[@Pooua]

I've heard of some of these things (especially the real estate theft), but never anything like this! As a new, would-be real estate investor, I'm begin to rethink my life's choices.

[@lissakong4104]

This would have destroyed me.

[@nickfazzio5277]

Agree…. I’m not at that level of mental toughness yet for sure

[@PiyushShah-lx7wn]

Thanks for sharing. 1031 is a complex process. But when you have a capital gain more than 1M there are other strategies you don’t have to do 1031 exchange but you can set up in a way you transfer all your funds to that account or LLC and use to invest when ever you want , there is no timeline and you don’t pay capital gain Tax. It cost around 60 to 80k for setup. And further to that there is a strategy you don’t even pay taxes on the income you earn from that investment still you can claim all deductions. This is the strategy used by all billioners in our country USA

[@thedude2867]

This is why I do Reits and don't get involved with the headaches that go with owning real estate.

[@hunterwright4388]

Moral of the story : Creative finance. Do not take on personal debt on investment properties.

[@monkmysterio]

class D neighborhoods!!!

[@nickfazzio5277]

I’m in all class D with section 8 state paid. Is that good or bad? They are ridiculously lucrative but appreciation over time (generational wealth building) isn’t there. Your thoughts?

[@monkmysterio]

only in republican jurisdictions @@nickfazzio5277

[@tinachxx110]

Where can we watch more of this story?

[@reseller7]

What state is David discussing? No sense in others being hurt because of this state.

[@loisscudero1674]

When we got our tax bill for 2023 they also included a pamphlet on signing up for fraud alerts with our counties.

[@andreag8666]

Wow, this is crazy

[@joanebaptiste-cummins3207]

🤯🤯🤯What????? This sounds like insanity, but I appreciate you sharing your truth.

[@juliansanchezbiz]

This is insane... All these sequence of terrible events because of some crook stealing title to his properties.... So sorry this happened to you David, a lifelong of work ruined by a criminal.

[@salo1129]

Appreciate the honesty and the look into the other side 😊

[@emjam3502]

That’s why block chain technology like the company propy will change real estate due to problems like this with title fraud

[@Alkalineman]

Oof dude caught some felony charges for that database breach

[@aliciamarana]

Damn. That is horrifying.

[@WTF-sh4is]

Omg this is why I swore off investment real estate! Thanks for sharing, David. Sorry this happened to you

[@kimberlindy]

If the properties were stolen, how were you able to sell them to a hedge fund? And if you somehow got them back, why did you decide to sell them then?

[@normanskillings9492]

It’s amazing how horrible people can behave when there’s no rule of law

[@VortexHealingCentreTas]

Holy shit!

[@darnelllewis5984]

I'm glad you were able to settle this.

[@mmartinez4117]

Holy freaking $hit... my freaking heart rate went up just listening to this!!!! I'd go mad. I need to get a STR but where to buy is the question. So many people are complaining about them. Wow... I'm exhausted... but I won't give up. Thanks so much for sharing your experience.

[@jordanroberts7931]

This is another reason why we need tokenized digital deeds.

[@vegasmitch1472]

i Would "DELETE" That Person if the Law didn't put them Under prison!! it's going on in Atlanta Big Time Right now!!

[@XavierIsraelMatamoros]

Agree. If the law doesn't give justice, then you take the law into your hands.

[@shawnnajohnson2722]

Were any of these properties in LA County Palmdale that you were scammed out of by any chance? I was scammed out of $2500 by a fraud and when I went to get move my things in another tenant was in there...They had a false deed and everything. Luckily I still had my other home and was trying to get that one for my daycare so I was in luck that I was not homeless...Man these people that do this they need to get ALOT of time in jail! It takes advantage of peoples lively hoods and could really mess lives up!

[@1fashionbliss]

Wow, I'm sorry that happened to you!

[@williamroth5640]

What is going on! I feel like I'm hearing insane stories like this every other day.

[@goyourownway5566]

What a horror story! Life has a curve ball reserved for everyone.

[@MartinD9999]

Oh snap! Definitely upvoting this so it gets spread wide! 👍🏽

[@marksimon8393]

I was just wondering, how the bigger investors are doing that post and share there knowledge online.

[@deecummings9725]

hey David, thanks so much for sharing in regards to the 50 properties that you lost. I can’t imagine how difficult that must’ve been.  here’s my question though what could you have done to prevent that from happening? Is there a certain way that you could’ve held the title for that that would’ve prevented that from happening? Please let me know.

[@Andrew-ig5sp]

Wild! No different than over seas funds buying companies that are real estate rich, selling off the real estate, renting it back out to the company that sold it to their new real estate holding company, then use that new self created cash flow to leverage up the company, using it as a piggy bank until it collapses. File bankruptcy losing debt since the real estate was previously sold off. Jobs lost. Organization destroyed.

[@lomein1590]

The government? Unreasonable? No way.

[@HJeng-n7n]

Does anyone know the name of the crook that did this? Would like to look them up.

[@realmstupid-on8df]

I changed ownership of my car from the previous owner to myself all online with just pictures of the title. It was legit and gifted to my by the owner. Still tho...it could have been a forged and I never had to go to the county clerk in person. The title is in my name it says sold for $0. If I want to forge my title I could. I could sell my car cash with my forged title. If you look up the title number it's legit and they would probably be able to take that forged title and transfer it in their name In person. Now pretend if I was a criminal and you live in Ohio. I can steal your car all from my computer and sell it for cash to whoever and they can probably end up getting it titled in their name. I'd just have to steal ur car which wouldn't be hard if I target specific cars.

[@andreag8666]

😮 that’s nuts!

[@janitoronfire]

This is what happens when you feel the need to grow for growth sake.

[@jonathanmilton9753]

Can you sue the state?

[@spldrong]

Crazy, are you ever gonna get anything from this guy?

[@Johnny-yx2qx]

What state did this happen in

[@modernmillennial]

Dang David has been going through it

[@conductingintomfoolery9163]

You invested in Chicago… shocker

[@KMPandme]

Great story some good simple advice also

[@canaanproperty4879]

Thanks David for sharing this with us investors. God bless that you still came out strong. I got myself a few duplexes with stable rental income and now consider to retire at the age of 50. After watching this I feel I should keep working for the unpredictable future.

[@midkort]

I don't think that's the lesson. That "lesson" presumed you can be in total control of "your" world, as though you were God. Needless to say, that's not s worthy pursuit.

[@themarkandmelteam]

Helpful video so that newbie investors don't mislead that it's easy to get rich owning rentals

[@Nicolas-k7v6r]

Thank you David for sharing.Sometimes it seem life is not fair and i knew that some people are very bad but this guy was a real crook.

[@PropertyOpportunityProfit]

What in the 🤬🤬🤬🤬🤬 Man I thought I had seen it all.