Posted by John Behle on June 30, 2020 at 17:15:04:
In Reply to: Re: Wayne Palmer & previously offered course posted by The Wayniac on July 12, 2017 at 20:31:56:
Wayne strayed from what I taught him. He found
borrowing money so easy, especially working with
Kyosaki that he just borrowed and borrowed. He
started making many hard money loans and since he
had lots of cash, took on greater risk. Then he
started buying and developing real estate - which
has little to do with Paper or what I taught him.
When the market turned he thought he could ride it
out by just borrowing more and more money. At the
beginning he may have had a good intent, but at some
point he should have seen and accepted that he had
gravitated to paying off investors with cash from
new investors.That is exactly the opposite of what I taught Wayne.
I think about the time he started calling himself
the "Wayniac" his ego was out of control and caution
was long gone.1. I have always taught students to borrow secured
by collateral. He would have been fine if he had
not strayed from that. Whenever I borrowed from and
investor, I was in the middle, made sure it was a
good note and knew I could handle and usually profit
from any problems while keeping the investor happy
and secure. My investors were happy, received their
returns and when a note paid off received their
entire investment back. I knew if they were happy
they would probably invest again. I’ve never looked
an investor in the face not knowing where the money
would be invested and they would be secured.2. I point out the extreme pros and cons related to
buying existing notes verses lending money. They
are not the same. Discounted mortgage investment
can be done safely while hard money lending has
dangerous risks and less profit.3. I teach students the advantage of buying
discounted mortgages versus owning real estate.
They do not have the same risk factors. Even in a
crash like we saw in 2008, paper investors did far
better than real estate investors and many were not
harmed at all.4. Wayne got into shopping centers, undeveloped
land, recreational property, risky loans, auto
financing, auto towing and even making and selling
gold coins. NONE of this is what I taught him, and
most of which I warn students about. Wayne had
previous experience in some of these areas, but I
think he just got caught up into seeing almost
anything he touched or came across to him as a
profitable opportunity. He “should” and at one time
I believe “did” know better. Sometimes an expert in
one area believes they can do the same in other
areas they know less about or do not understand –
and are not prepared for the risks.5. Even despite all this, investigators concluded
that Wayne started out profitable and had good
intentions for most of the time he was in business.
Only in the last few years did it turn around and
bite him when real estate crashed in 2008. I’ve
seen lean times and I was always the first one to
cut my pay or not take a paycheck. I never borrowed
my way out of problems though some times I probably
should have. I’ve never and would never roll the
dice with other people’s money. Even rarely with my
own. I attended many conventions held in Vegas. I
never gambled. I worried at the look and attitude I
saw on Wayne’s face as I saw him gamble. I haven’t
seen Wayne since 1996. His problems occurred in I
think 2012 – 16 years later and twenty years after I
trained him. I’ve only talked with him once or
twice in the last 24 years.