Is It Legal?

Over the last couple of months I have spoken to hundreds of investors who heard about the Assignment of Mortgage Payments System™ or AMPS™. One of the big questions, particularly in response to some negative accusations made about the legality of this process has caused investors to ask the question…

“Is AMPS™ Legal?”

See Lawyer Scott Horne’s AMPS™ Review Video?

This is an important question because it doesn’t matter how much money you make if at the end of the day, you end up in jail. Obviously, we the REI RockStars run our business with integrity, and would never put all our hard work at risk by doing something illegal.

That said, there are a number of reasons why I believe the AMPS™ are legal. I have formed these opinions by doing deals with my partners as well as talking to a number of attorneys who between themselves have done thousands of owner financed transactions without issue.

Keep in mind though this is just my opinion, I am not an attorney and you should seek your own counsel.

Is AMPS™ legal?  Here is my take…

Basically, AMPS™ is just another form of “subject-to” which has been around for a long time and has been taught by many “Gurus” including Robert Kiyosaki just to name one.  Now, would someone as high profile as Robert Kiyosaki, teach strategies that were blatantly illegal.


So you see, AMPS™ has a heck of a lot of precedence.

The “innovation” of AMPS™ is that instead of investors buying subject-to, they are simply getting homes under contract subject-to and then “wholesaling” the property to an end buyer. They are able to do this because the AMPS™ contract gives them an equitable interest in the property.

“The Plot Thickens…”

There is actually a lot more to this then just the “legal” stuff too.  As AMPS™ investors, we the REI RockStars really do try to make sure we are treating people with the utmost integrity. In fact, we have a saying around here…


We tell the sellers and buyers everything and try as hard as we can to do what is right for them, not just what makes us the most money. We believe that this is part of the foundation of us doing so many AMPS™ deals in less than a year and a half. And we also know that it leads to more deals, because when our sellers have needed help again, very often they have come back to us.

This is what they call, repeat business…


Feel free to check out the below video as well. This is Phill Grove interviewing nationally recognized real estate investor and real estate Attorney Bob Diamond talking about mortgage assignments. Bob Diamond is a regular guest on Fox, NBC and CNBC as well as his own real estate radio show. He is also author of 3 popular books on foreclosure investing. Check it out below: