I’m getting calls from a company called Blue Moon Capital. Google them and you'll find the website.  Annoyingly enough, they have been posting comments on my blog advertising their service – a practice that I’ve requested that they cease.

The premise of the company is that they identify investment possibilities for you, and for a $5,000 fee they’ll provide the investor with title and a bridge loan, then refinance at an 80% LTV. Their main pitch is that they’re offering you, the investor, “20% equity built-in as a head start.”

The details of how they propose to accomplish this are hazy. I’m a smart enough guy, but over the course of a couple of unsolicited phone calls and a few emails I haven’t really figured it out. Here’s their financing overview from their website:

There’s an interesting footnote to the right side of the diagram: “Depending on your loan structure, Blue Moon cannot guarantee no money down at refinance.”  Which to me means that it's likelly that you'll have to pony up 20% of the purchase price in order to get that 20% built-in equity.  Plus the $5k fee upfront.

Well I haven’t done exhaustive due diligence on this company, but I do know that chasing a something-for-nothing strategy is a sucker’s game – especially when the opportunity shows up via a cold call. Remember what your mom told you about deals that look too good to be true.