How Criminals Steal Houses!
Quick Read
Summary
Takeaways
- ❖Fraud is easier today due to technology, data, and information accessibility, enabling criminals to target neglected properties.
- ❖Logan Fullmer's business model involves identifying properties with complex ownership issues (e.g., no will, multiple heirs, liens) and resolving them to acquire undervalued assets.
- ❖His team includes attorneys, private investigators, and genealogists to navigate intricate legal and familial histories.
- ❖Many real estate professionals avoid properties with 'clouded' titles due to the time, cost, and legal complexities involved, creating a niche market.
- ❖One observed loophole: federal forfeiture agreements often do not place liens on mortgaged properties, potentially allowing others to acquire them from incarcerated individuals.
- ❖Direct confrontation with fraudsters, backed by legal knowledge and threats of DA involvement, can be an effective strategy to clear fraudulent deeds.
Insights
1Resolving Clouded Titles as a Niche Business Model
Logan Fullmer's company specializes in acquiring properties with complex ownership issues, often stemming from neglect, death without a will, or fraud. These 'clouded' titles deter most real estate professionals, but Fullmer's team, comprising attorneys, private investigators, and genealogists, systematically resolves these problems. This allows them to purchase properties at significantly discounted rates and then sell them for substantial profit after clearing the title. The business thrives on the fact that most people are unwilling or unable to navigate these legal and familial complexities.
Fullmer describes starting with vacant lots, then moving to houses, targeting properties with 'ownership problems, title problems, missing owners, judgments and liens against them.' He explains how his team 'solve them, make the financial transaction, and then go sell it, make money.' (, )
2The Vulnerability of Neglected Properties to Fraud
Properties that are vacant, dilapidated, or have absentee owners are highly susceptible to real estate fraud. Criminals exploit the lack of oversight, unpaid taxes, and outdated ownership records to forge deeds or place fraudulent liens. This is exacerbated by modern technology, which makes it easier to create convincing fake documents and conduct transactions virtually, often duping unsuspecting real estate agents.
Fullmer states, 'When people forget about the property, that's when stuff starts to happen. Ownership drags on and it's easier today to do fraud than it ever has been because of just the technology and the data and the information.' He gives examples of fraudsters forging deeds and recording them to 'steal' properties. (, )
3Federal Forfeiture Loophole for Property Acquisition
A significant observation from time in prison revealed that federal authorities, when seizing assets through forfeiture agreements from convicted fraudsters, often do not file liens on properties that already have existing mortgages. This oversight means that the property's title, despite the forfeiture, remains clear of the federal claim, allowing the incarcerated owner (or their family) to potentially sell or transfer the property, or for a third party to acquire it for a low price, effectively bypassing the government's intended seizure of equity.
Cox recounts, 'the feds 90% of the time they would when they get the forfeiture they would not place a lien on the property if there was a mortgage.' He describes a scenario where an incarcerated individual could 'quitclaim deed the property over to me' for a small sum, allowing the acquirer to then sell the property for its full value, minus the existing mortgage, without federal interference. (, )
4Navigating Complex Fraud Cases: The 'Mustang Sally' Example
Fullmer's team encountered a property where the legitimate seller was a vulnerable individual, and a convicted, one-legged fraudster (dubbed 'Mustang Sally') had already obtained a fraudulent general warranty deed using a straw buyer/notary. The fraudster resorted to intimidation and threats. Fullmer's strategy involved gathering intelligence on the fraudster's criminal history and legal vulnerabilities (e.g., being on probation, notary issues) and using this leverage to force the fraudster to sign a cancellation deed, clearing the title without direct legal prosecution.
Fullmer describes the fraudster, 'Mustang Sally,' using a 26-year-old girlfriend as a straw man and notary. He details confronting the fraudster: 'I'm going to take all this to the DA. I'm going to sue you. Your ass is going to be... I'm going to take you down.' This led to the fraudster signing a cancellation deed. (, )
Bottom Line
The justice system's reluctance to prosecute real estate fraud, often categorizing it as a civil matter, inadvertently empowers fraudsters and complicates recovery for victims.
This creates a vacuum where specialized private entities like Fullmer's firm become essential for resolving these issues, as traditional law enforcement often lacks the resources or inclination to pursue complex title fraud cases.
Entrepreneurs can build legitimate businesses by offering 'fraud resolution' services, acting as intermediaries between victims/owners and a legal system that struggles with these cases, especially when targeting vulnerable populations.
The profile of a property vulnerable to fraud often includes being vacant, having delinquent taxes, no mortgage (or an old, paid-off one), and unclear heirship due to death without a will.
This specific 'fact pattern' allows both legitimate and illegitimate actors to identify targets. For legitimate investors, it's a blueprint for finding deeply undervalued assets; for criminals, it's a guide to properties ripe for theft.
Develop advanced data analytics tools that can cross-reference public records (tax assessor, land records, probate courts) to proactively identify properties matching this high-risk profile, creating a lead generation service for specialized real estate investors.
Opportunities
Federal Forfeiture Property Acquisition
Establish a company to identify properties subject to federal forfeiture agreements where the government has failed to place a lien (especially on mortgaged properties). Approach incarcerated owners to acquire quitclaim deeds for a small sum, then clear the mortgage and sell the property for profit. This exploits a systemic oversight in federal asset seizure processes.
Specialized Title Resolution & Acquisition Firm
Build a team (attorneys, PIs, genealogists) to acquire properties with 'clouded' titles (e.g., complex heirship, unreleased liens, fraudulent deeds). Systematically resolve these issues, often through negotiation or legal action, to clear title and sell for significant profit. This targets a niche market ignored by conventional real estate investors.
Proactive Property Fraud Monitoring Service
Offer a subscription service (like Home Title Lock) that monitors property records for fraudulent activity (e.g., unauthorized deeds, liens, or transfers). Target elderly or absentee owners who are most vulnerable. This provides peace of mind and early detection, preventing costly legal battles.
Lessons
- For property owners, regularly monitor your property's title records for any unauthorized deeds or liens, especially if the property is vacant or you are an absentee owner.
- If encountering complex real estate title issues, consider consulting specialists (like Logan Fullmer's firm) who are equipped to handle heirship, lien, and fraud problems, rather than assuming the property is unsellable.
- Aspiring real estate investors should explore niche markets focused on 'problem properties' with clouded titles, as these often present high-profit opportunities due to reduced competition and significant value-add potential.
- When dealing with properties inherited without a will, understand that multiple heirs (even distant ones) may have a claim, complicating sales and requiring legal processes like affidavits of heirship or probate.
- Leverage public records (tax assessor, land records, court dockets) and potentially private investigators to conduct thorough due diligence on any property, especially those appearing abandoned or undervalued.
Quotes
"It's easier today to do fraud than it ever has been."
"Those are the best scams. They think they're getting over on you and you're actually getting over on them."
"When people forget about the property, that's when stuff starts to happen."
"I'm going to take all this to the DA. I'm going to sue you. Your ass is going to be... I'm getting pissed at this point. Like I'm going to call him guy, but when you get to that point, I'm like, I'm about to blow 30 grand to take your ass out and fuck my whole deal up. I'm going to take you down. Fuck you. This is about the money anymore."
Q&A
Recent Questions
Related Episodes
Ivanka Trump: I Learned What Most People Never Do at 9 Years Old!
"Ivanka Trump reveals how growing up in the public eye, navigating high-stakes business, and serving in government shaped her unique approach to resilience, leadership, and intentional living."
“Chocolate C*KE!” - Ex-FBI Most Wanted Kingpin on Sicarios, Smuggling & Power | Owen Hanson • 405
"Former USC athlete Owen Hanson recounts his transformation from a rule-abiding kid to an international drug kingpin, his decade in federal prison, and his current path to redemption through legitimate business."
US Pilot RESCUED + Trump's BRUTAL Iran Warning | PBD #771
"This episode covers the daring rescue of US pilots in Iran, Trump's aggressive warnings to Iran, the economic impact of global conflicts, and controversial political statements, all framed through a highly opinionated lens."
STILL SIPPIN W/ POUR MINDS, KARLOUS MILLER & MONEYBAG MAFIA | 85 SOUTH SHOW
"The 85 South Show hosts and guests Poor Minds and Moneybag Mafia engage in a hilariously unfiltered discussion covering relationship dynamics, unexpected business ventures, and the pervasive influence of TikTok, all while sharing their unique perspectives on life's absurdities."