It appears Schweikert’s well timed “now that I’m a congressman” loan scam with Metro Phoenix Bank pays much better rates of return than any other real estate market or hedge fund. Schweikert more than doubled and in one case more than tripled the original financial investment, solely because of irrational appraisals of the run down homes and plenty of MPB available cash for a United States congressman.
That home had been recently transferred from Schweikert’s bulldog investor machine, Swartz & Brough (who bought the property for under $50,000) to Sheridan Equities. Schweikert holds the power of attorney for S&B and is able to act and sign independent of the other principals in the Texas firm.
With portfolios of hundreds and hundreds of rental properties in the Valley worth millions, Schweikert has a limitless supply of collateral MPB can foreclose on in case he cannot pay back any of his mega-loans. If Schweikert defaulted, MPB would be the proud owner of $150,000 in low end rentals with $375,000 worth of "bad paper" as Schweikert would say.
When Schweikert returns to Congress in September, the banking lobby will be waiting for him to push their bills while he gets more 3-to-1 loan-to-value kickbacks from his friends at Metro Phoenix Bank.