{"id":6610,"date":"2025-06-26T07:55:42","date_gmt":"2025-06-26T11:55:42","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6610"},"modified":"2025-06-26T07:55:47","modified_gmt":"2025-06-26T11:55:47","slug":"we-buy-ugly-houses-and-other-ponzi-schemes","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/we-buy-ugly-houses-and-other-ponzi-schemes\/","title":{"rendered":"\u201cWe Buy Ugly Houses\u201d (And Other Ponzi Schemes)"},"content":{"rendered":"\n
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We\u2019ve all stumbled into bad deals at some point \u2014 but maybe not as painfully as Ronald.<\/p>\n\n\n\n

In 2017, a retired Texan named Ronald took some very questionable advice. It seemed like a good idea at the time. Ronald invested with a certain Charles Carrier, who owned (what appeared to be) a hugely successful franchise in the HomeVestors of America group.<\/p>\n\n\n\n

Ever seen a \u201cWe Buy Ugly Houses\u201d pitch? That\u2019s the same home-flipping<\/a> group.<\/p>\n\n\n\n\n\n\n\n

Taking Ronald for a Ride<\/h2>\n\n\n\n

Only a year earlier, in 2016, the Texas Real Estate Commission penalized Carrier for the unlicensed managing of real estate. It didn\u2019t portend well for Carrier\u2019s much-hyped home-flipping business. Today, Charles Carrier is alleged to have operated a years-long Ponzi scheme, extracting tens of millions of dollars from people, like Ronald, who are now left holding the bag. <\/p>\n\n\n\n

Ronald\u2019s story began when he advanced $115K in advance purchase funds. In return for the investment, Ronald was promised a gain of 9% annually. He\u2019d receive it in monthly payments. Carrier\u2019s business would use the investment to buy houses. Ronald would own a stake in the real estate.<\/p>\n\n\n\n

The promised 9% flowed in. So far, so good. On a roll, Ronald got his elderly dad to invest.<\/p>\n\n\n\n

But late last year, by which time the two had sunk about $700K into the scheme, the monthly payments stopped. Soon after learning their investments were wiped out, Ronald\u2019s father died.<\/p>\n\n\n\n

Where had all their money gone? Carrier would later admit it went to his own operating expenses, rather than flipping homes.<\/p>\n\n\n\n

Charles Carrier: Model Franchisee?<\/h2>\n\n\n\n

Twenty years ago, Charles Carrier opened a franchise of HomeVestors in Dallas. He was well educated, serious, and persuasive. His business became the \u201cmost successful HomeVestors franchise in the United States\u201d as his website proclaimed. Carrier paid commissions to another Texan for setting up steak dinners where new prospects would be introduced to Carrier\u2019s business.<\/p>\n\n\n\n

Most of Carrier\u2019s investors never looked over his shoulder. Unbeknownst to them, they were acquiring no liens at all. Collateral for the funds they advanced simply did not exist. And that is why some lost millions.<\/p>\n\n\n\n

If you\u2019re investing in real estate through someone else, it\u2019s wise to have a third-party title expert <\/strong><\/em>run a search on the title<\/em><\/strong><\/a>, then record the deed in the county.<\/strong><\/em><\/p>\n\n\n\n

In early 2024, Carrier began borrowing against expected proceeds. To do it, he took out loans with jaw-dropping fees and interest rates. Within a few months, Carrier was well over a million dollars in debt. That\u2019s on top of the $75K+ he needed to send to his investors each week, according to court documents.<\/p>\n\n\n\n

But there was still more. Carrier also needed to pay HomeVestors\u2019 regular franchise fees and marketing costs.<\/p>\n\n\n\n

Carrier borrowed profusely against houses, according to court filings. Some of these homes he owned. Others, he didn\u2019t. Carrier was proficient enough at drafting deeds. But some of them never got recorded.<\/p>\n\n\n\n

Investors Floored by Lack of Oversight<\/h2>\n\n\n\n

HomeVestors is supposed to hold its franchises to best practices. This means franchise operators must:<\/p>\n\n\n\n