Impact of Dinna Revilla’s arrest on foreclosed property business

February 20, 2008

Stocks, Mutual Funds, Forex, Finance Philippines

Make Money Online, Stocks, Mutual Funds, Philippines

Dinna Revilla - Riches in Foreclosures The renowned guru of foreclosed property investing in the Philippines, Dinna Revilla, was arrested three weeks ago and her supposed fraudulent schemes were featured last week on GMA7′s Imbestigador.

The arrest was based on estafa complaints by her investors, after Dinna allegedly continued collecting funds although the real estate properties were already foreclosed by the bank. In addition, several of the checks she previously issued as payment to investors bounced.

This development caused several people to believe that the foreclosed property investing venture espoused by Dinna and Think Rich! Pinoy author Larry Gamboa was a fraud.

Personally, I don’t think there is a problem with the business model. Investing in a foreclosed property is a time-tested strategy of real estate investing, along side the strategies of buy-and-hold (where a property is purchased and resold after value has appreciated) and flipping (selling the property at a higher amount right after construction was finished or right after it was purchased).

Several people not just in the Philippines have made millions from foreclosed property investing so the problem is not with the business model. The flaw lies with the people managing such businesses.

In Dinna’s case, according to complainant’s allegations, she diverted company funds for personal use, failed to inform investors about failed projects while continued to collect additional investments, and registered some of the properties under her name and not under the company.

If those were true, then if Dinna is guilty of anything, she is guilty of greed.

The current political buzzword applies here: Hindi na-moderate ang greed.

Discuss Dinna Revilla, her arrest, and her book Riches in Foreclosures in the Dinna Revilla thread in the PMT Forum.

Click for more interesting, useful and related posts:

Zemanta

Topic keywords for this post:

foreclosed properties philippines
forclosure business philippines
Larry Gamboa fraud
revilla arrest

Written by James | PinoyMoneyTalk.com · Filed Under Real Estate

Join the discussion! Post a comment below

darkangel2829

Hirap talagang mag invest sa Pilipinas. I think after those trials na pinagdadaanan ng bansa natin kailangan nating mag relax. Kailangang magbakasyon. Sobra na .. Tama na…Palitan na….
laurence catucod

DON’T GUARANTEE DEBT PERSONALLY TO BUY REAL ESTATE.
http://www.pinoy-compuworld.com/ Noel Nuguid | Pinoy Compuworld

well maybe they should ask Larry’s other mentors like Mr Robert Kiyosaki.
http://www.foreclosurephilippines.com Jay Castillo

Wow, more than a year has passed and still no update on the case. I totally agree with you James, hindi nga na-moderate ang greed. Aside from greed, it appears she had too many big deals that were not producing enough cashflow to service the debts. In the meantime, investing in foreclosures remain a very viable way to earn cash and generate passive income as long as done correctly.
http://www.pinoymoneytalk.com/ James | PinoyMoneyTalk.com

Onga e, walang update sa mga balita. Either wala talagang update o nde na interesado ang media na i-report ito. Yup, Jay, I think it was greed that became the downfall of Dinna. Investing in foreclosed properties is a good business model but you need to have good management and money skills to be able to sustain it (and also not become greedy).
buying investment property

This web site is very amazing, keep creating amazing material.