Real Estate Pump and Dump Scheme-Fabian Calvo

Fabian CalvoBy Greg Hunter’s USAWatchdog.com 

Fabian Calvo of TheNoteHouse.us processes $100 million of distressed real estate annually.  He says we are in the process of a pump and dump real estate crisis.  Calvo contends, “The big hedge funds and big private equity are buying all the real estate right now. . . . So, when they start dumping, they will be dumping to those buyers who will be getting money for free from the government.  It has all the characteristics of a pump and dump scheme.”  Calvo claims, “No money down loans are up nearly 20%.”  Calvo predicts, “It will be bigger than the last one because it will be a bursting of multi-bubbles–not just the housing bubble, but the bubble in U.S. Treasuries.  It will take out the real estate bubble.  They will both go down together.”   Calvo contends, “You have a mad scramble for hard assets globally.  It’s not just gold.  Sovereign wealth funds are buying real estate like crazy.”  Join Greg Hunter as he goes One-on-One with Fabian Calvo of TheNoteHouse.us.  

Comments
  1. Dwain

    When the dollar fails, unprecedented numbers of jobs will be destroyed setting off a chain reaction collapsing all job sectors. If true, why invest in RE when no one has a job to pay rent? Invest in metal, food and water.

    Im convinced 9/11 was an economic foreshadow. Buildings got hit . . . they burned and then collapsed without warning. Momentum brought all floors down.

  2. Troy

    Greg, your a busy man :)!

    P<P+I = DEPT (HELLO) THEY NEED MORE DEBT, OR EVERYTHING GOES BUST!
    ARE WE GETTING IT?

    Just perhaps http://www.robinhoodtax.org/ as a partial solution.

    GOOD VID! http://undergrounddocumentaries.com/the-secret-world-of-gold/

    WAR IS GOOD!!!: http://www.youtube.com/watch?v=5hfEBupAeo4

    NOTHING TO SEE, MOVE ALONG.

    SHEEPLE!!!

  3. Eppoh

    Greg, I have been reading your column for almost 4 years now. In that time I have missed huge gains in the stock market with my 401(k), not bought a property that is now appreciated already 31%, and just generally been in a funk about our economy.
    No doubt our economy is being ruined – slowly by greedey bankers and pols, but man you are way over the top.

    It is too bad the moniker of Dr. Doom is already taken, becasue you deserve it.

    Now, go stock some more can goods in your bomb shelter, and hurry! , right?

    • Greg

      Eppoh,
      I don’t give trading advice but with you I am going to make an exception. Please go long the dollar now and go buy a 0% down home. While you are at it, please put the rest of you money in the stock market. The next time you want to heap criticism on me please man-up and put a real verifiable name on your comment.

      • justin king

        TWIST THAT KNIFE.

      • eppoh

        I wish you had given me that advice 3 years ago. I would be waayyy ahead now, and would have done it using the funny money the Fed has been dumping. Shoulda followed the big bank money.

        • Greg

          eppoh,
          What you were seeking was money making advice. I give protection advice. Please man-up and give a real name next time you comment.
          Greg

    • justin king

      Outrageous fees on 401K’s wipe-out much of either your gains or losses and if your property has appreciated 31%, you are in a very small minority. Chastising anyone for their financial advice is ludicrous, as it is always imperative to weigh-in with bears AND bulls before investing in anything. Greg Hunter is not a doomster, but he does know when a train is bearing down on him./// OK Greg, you can now send my last donation back.

    • Troy

      LOL!

      Remote view this: http://www.youtube.com/watch?v=Qmu-DOHWDVo File under here’s your sign ;)

    • droidX-G

      Where on planet earth has real estate appreciated 31% in 4the years

  4. Ben

    I’m not sure I buy what he said. I recently bought a house and
    couldn’t qualify for these so called subprime loans. No one
    offered me a no money down loan. Instead I had to borrow against
    my 401k to make the 20%. I still had to pay a higher interest
    rate. This is after working with 4 independent mortgage brokers.

    Give me the contact info for that broker that will give me a no
    money done zero percent loan. Then I’ll believe him.

    Also, where does he get the rest of his figures? I have two grad degrees
    including an MBA from Duke. I still have to substantatiate my work.
    Why should these guys get a free pass?

    • George Too

      Ben,
      they only give people that have no assets and no ability to repay the 0% loans. You have assets.

  5. Illinois Troll

    Great interview! Love that he stresses diversifying your talents and learning a new skill. Will be a valuable asset when the downturn comes.

  6. Snorky

    Real estate again. Maybe. Not for me. Sure, there is money to be made. But this time around, some people are going to end up jumping out of high-rises/skyscrapers when it busts (like the one in the background of the video).

  7. art barnes

    Greg, “the hype”, “phony numbers”, etc., when will the American people ever see the puppet master behind the curtain and stop buying into this crony capitalism and demand free markets?

  8. Joe G.

    The usual “home sales are up” cheerleading from various media outlets continues to be unconvincing that there is any kind of organic economic growth. In a rare moment of clarity, it was disclosed on local talk radio news here in Sacramento that there is about 15 years of available commercial real estate…

  9. George Too

    Greg,
    I believe that a skill will be need. Either accounting, welding, machining, farming…something that will be useful. Something more than being a greeter at Wal-Mart.

  10. Al

    Has the world gone entirely mad? Are we at the point where nobody knows what to do about anything? Get in, make money and screw the guy I just screwed? Are the truly insane running our lives and our planet into a hellish nightmare? We know the congress and senate are mostly paid off shills with no backbone, but do none of them care about the children that must now pick up the pieces? When this gigantic shell game finally implodes and the “little guy” realizes he’s been suckered, where the hell are our leaders going to hide? This country is burning down around us and most Americans don’t seem to notice—or care. The implosion of our once thriving economy might jar people awake, and they deserve all the pain that’s coming to them, and then some. Let’s face it, we paid dearly for this screwing. Boy, are our kids and grand kids going to be pointing some angry fingers at us—–and for good reasons. Sorry won’t cut it——–

    • justin king

      Did you see John Stewart last night on the story of the Aussie Queensland Premier who decided to throw away his title before caving into the gun lobby. It was more of a story about political guts than guns. No guts – no progress, regardless of the issue.

  11. John Chang

    With new information coming out about real estate, what would you advise about a first time home buyer with great credit about getting in the market? Wait and play by ear? Get in asap?

    • Greg

      john,
      If you are going to buy a house expect to be in it a long time and don’t expect to make big money on it. You can live in it though, and that’s really all a house is for.
      Greg

  12. Charles H.

    Hey Greg,

    A ‘multi-bubble’ explosion in two to four years. That’s kind of like the family sedan is stalled on the tracks and the train is in view. So first it was the Investment Banks, and now it is the Government that will crash the economy?!??
    I haven’t even read about “Agenda 21″, because I don’t get into conspiracy theories – but I’m beginning to think there WILL BE a massive depopulation event. Chernobyl was a land-locked cataclysm, and has killed or sentenced to death a couple million. Fukushima is AT LEAST three times worse and may render the Pacific Ocean polluted with radionuclides within a couple years; the rest of the oceans eventually. Chernobyl was said to have ruined the USSR economically and caused the breaking of the Arms Race. Fukushima, despite the cover-up of silence should do about the same, except it may remove one of the last bulwarks to the Western Economy – hence the “get-it-while-you-can-turned-anyway-you-can” attitude. The supermen who are controlling markets and governments, who take upon themselves the destiny of the world – almost make it plausible to control the world in a single government; and limit mankind to it’s diminishing resources.
    To never underestimate an enemy often includes not limiting the absurd extremes they may take; which, unfortunately usually does exceed our own considerations of behavior. It’s like the Rikker Maneuver, when the Sona commander asks Warrf “He wouldn’t, would he?” And Warrf answers: “Yes, he would!” Today’s self-ordained supermen are like Old Man Potter saying: “they’re not MY children.”
    Great interview – Fabian Calvo shined.

    • M.Smith

      Sir, the American public has no ideal how bad Fukushima affects has already been on north America & the world! http://www.fukushimafacks.com is a great place for real updates, http://www.enenews.com. I am glad others are saying some thing at least about the facts of killers Rad’s, now fact of life for who knows how long! It seems strange to see the MSM hiding the truth about a killer on the lose, it makes great head lines!

      Now the markets are as bad the lie about Tempco having control over the nuke waste being sent by air, water & food! It will only get worse as time goes on!

      Great work Greg, take care & GOD Bless!

  13. josh

    ok. i was skeptical of fabian’s claim that the real estate market was being setup for a pump and dump. then i read the headline in the ny times, “Size of Down Payments at Heart of Mortgage Debate.” now i’m not so skeptical. how could the regulators possibly consider going back to no money down mortgages. that’s insane. the mortgage business isn’t rocket science. there are certain established principles that have proven to work over the last few generations. twenty percent down on a thirty year mortgage is a core principle. making sure that whoever wrote the mortgage has skin in the game, is the other. apparently, that’s being rethought, too. unbelievable.

  14. justin king

    Hi Greg, — Fabian Calvo is one of the best of your guests because he knows how the different parts of the economy LINK together better than most advisors.// Considering the right wants austerity and the left wants QE, there can never be a solution in the U.S..It’s playing for time in a desperate situation./// I see no flaws in Calvos future-shock scenario. The 21st century started with Y2K and just kept going downhill. A house on a small island is looking better and better.

  15. Jerry

    Great interview Greg. I deal with real estate quite a bit, and from what I’ve seen there is still a lot of foreclosure inventory out there so the Feds have to loosen the banks lending up to new home buyers to get rid of some of it. The problem is I’m still finding people upside down with their homes who have sucked the equity out their house in order to survive this rotten economy. When they try to sell it they can’t because they owe more than its worth and they wind up defaulting and letting the bank have it, which provides another wave of foreclosures in a never ending cycle.

    • Greg

      Good info Jerry. Thank you for posting it.
      Greg

      • BOB D

        A guy down the road from me is way underwater on his house, want’s to sell but can’t. He will walk away soon. Other house’s down the road been empty for over a year. Then down the road a couple miles seven new homes going up.
        The paper work on these mess up homes my be the problem. Maybe the Mark to market is the problem.

  16. Paul Malley

    Greg, Very informative interview but I am confused. Mr. Calvo says this real estate bubble is about to pop but he recommends we buy -with research and/or his help- real estate. Seems like a mixed message (unless he recommends buying AFTER the real estate market pops again?) Help! -Paul

    • Tom

      I believe he said the bubble will pop in 2-4 years. He’s buying now and will sell before that bubble pops. We haven’t seen the 0% mortgages yet. They are just starting to inflate the bubble.

    • aa

      Paul I agree with calvo’s pump and dump and that the real estate bubble is about to pop. I agree with most everything Calvo says on his Fabian 4 liberty programs, but my advice is to avoid his real estate course. I purchased it and my wife and I listened to the entire course and we were not impressed. In my opinion it requires a super salesman type personality to make it work and even then Calvo recommends flipping the properties to groups of professional buyers who know value when they see it. So you better buy properties with plenty of equity and hope the market doesn’t crash in the mean time. And you better hope the real estate experts he recommends buying from all over the U.S. know value and are ethical. Real estate expert John T. Reed http://www.johntreed.com/Reedgururating.html has stated that you are doing very well if you can purchase real estate with 20 percent equity. It’s not easy. It seems to me you would need to buy properties with even more equity to make Calvo’s program work. Calvo sounds a lot like nothing down guru’s Robert Allen and Carlton Sheets. Check out Reed’s opinion on these two and other too good to be true guru’s. And forget about getting your money back if you don’t like Calvo’s course because I have been trying for quite a while and still haven’t got a refund on the 200 dollar course. In my view making Calvo’s real estate program work requires a very gifted and savvy professional.

  17. jc davis

    Thanks Greg for this interview. It has helped me decide where to put my money. Not in real estate. Thanks also to the posters.
    George too has my pick. We must find something more then a Wal-Mart greeting job.
    As a pre1982 penny pincher I am stocking up on materials. With Wal-Marts, Lowes , and stores forced to cut back on employees its a matter of time for the shelves to start looking empty.
    I for one will never again invest in things I cant use if I cant sell them.
    This week I bought water tanks. The materials to hook it up cost more then the tank itself.

  18. Mike H

    The citizens of Rome partied with their free bread and circus right up until the Vandals crashed through the gates. Nope, nothing to see here…move along…

  19. George Too

    Greg,

    http://www.bloomberg.com/news/2013-04-25/blacktone-buys-atlanta-homes-in-largest-bulk-rental-trade.html

    Blackstone Group LP (BX) bought 1,400 properties in Atlanta, some eligible for federal low-income housing subsidies, in the biggest bulk purchase for the fledgling homes-for-lease industry.

    The private-equity firm, which has spent more than $4 billion on 24,000 rental properties in the last year making it the largest buyer in the U.S., purchased the residences from Building and Land Technology, said Marcus Ridgway, chief operating officer of Invitation Homes, Blackstone’s single- family rental division.
    Sorry for off topic but snap…this worries me. In a time of budget tightening, with ammo readily available, why would HS need a massive stockpile. And we are talking about a big a$$ pile. What are storage costs on this. We are talking about 200+ shipping containers of ammo that needs to be stored in a cool dry environment. There is no rationalization for this stockpile unless they believe that the supply will be disrupted. Why would they think that would happen?
    They are burning 5.5 million rounds a month in Afghanistan. 260 million rounds would last 48 months. Why would it last homeland security just 2 years…and why would they need to stockpile 2 years worth?

    Despite the potential for cuts, the department still reported stockpiling more than 260 million rounds of ammunition as of November 2012 — a two-year supply, according to information provided to the committee ahead of a hearing on Thursday

    http://www.washingtontimes.com/news/2013/apr/25/sequester-tight-budgets-means-dhs-buying-less-ammu/#ixzz2RUCyEzDK

  20. Jerry

    If you want to know what a housing bubble looks like after it burst, go no further than Ft. Myers Florida. My son bought a house in 2007 for $280,000. with one of those Countrywide 0 down deals. Guess what the bank sold it for in a short sale in 2012? $65,000.cash. In my view we are looking at another bubble popping because of this stagnant economy. Once inflation kicks in and interest rates go up, have your cash ready to buy cheap houses for pennies on the dollar.
    The Feds can’t keep printing money for ever.

  21. Jim H

    Greg,

    Interesting interview, but there is one problem with the scenario, bubbles happen as a result of 2 things. First “everyone” being in a market, and second that participation being largely financed.

    Those conditions do not currently exist. The only people currently investing in real estate are investors with substantial financial backing, the general public is not participating and many in the general public are not in position to do so due to low credit ratings.

    Bubbles like 2008 are a confidence game and take decades to set up.
    While we may be in the early stages of one, I cannot see the necessary components being in place for a bubble maturing for quite some time.

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  23. Allen Ols

    Greg do u pay your guests for the interviews or do they call in free and if they don’t charge you can you have 5 guests a week or 4?

    • Greg

      I do not pay for guests. They do sometimes plug a book or program but I do not pay and I am not paid in any way. I have Google advertising and I have zero control over what adds are placed on the site.

      • Allen Ols

        I see I e mailed. Jim willie. To move. Fastly. To contact you or silver doc. Or somebody as we have not heard from him since a. Sherrie interview. Many of us do not undrestand the financial tools. Such as hypothecating gold, and more. I did glean info from greg manarino. On. Derivitives. But how would one buy a derivitive. Not that I want one. Lol

  24. Oxford Buck

    So Greg,

    You’re saying NOT to buy real estate as an investment – even if you buy what Buffet says are “distressed properties”, i.e. properties less than replacement cost with positive cash flow?

    • Greg

      Oxford Buck,
      I am saying that when interest rates go up the value of real estate will crash. What happens to real estate if rates go to 7%? Someday rates will go up. That said, real estate investors can make money in this market, but it is very risky. The investors we are talking about are paying cash, not taking out a 3.5% mortgage. If you are playing the rental game, you have to have cash for when properties are vacant or, are damaged by the renter. Most small investors cannot take the hit if something goes wrong or if rates rise. All I am giving is a word of extreme caution, especially if you are not paying cash.
      Greg

  25. Allen Ols

    Jim sinclair. Writes. Gold is for saving, .currency is for transacting i would advise eppoch to research your past. Guests and find one that disagrees w. You better yet have him engage jim wille. Or eric sprott. Keep going fwd. Greg

  26. K Fox

    Currency war is far more important than people think as it will speed up the dollars devaluation, destroy the Petrodollar, with the dollar it’s “So long it’s been good to know ya.”

    Italy Supreme Court Pres. just blamed the Bilderburgs for the worlds problems. Saw it on Rapture Ready News May 8th, Wednesday.

    The elite know that all wealth comes out of the land that’s why they rarely sell, name one thing that doesn’t start out in the dirt. Houses are just sticks and stones nothing more. The rich have been buying huge tracks of land for several years…and railroads.

  27. pallspera

    I really like the Interview, thanks for sharing it. I think this information is useful for first time buyers.

  28. Brad

    Are there any countries that are friendlier to the real estate investor ?

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