Be careful who you invest with

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Account Closed
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
9y

@Radhika M., great questions.

@Sylvia Pomazak, looking back, your instinct was correct from the get go. 

@Wendell De Guzman, it was unfortunate you got scammed by someone you trusted. That just sucks. As an outsider looking in, you didn't handle the situation well IMO. If you promised Sylvia to make it her whole, follow through on your promise. If you ran into an unexpected circumstance and couldn't follow through on your promise such as your lender pulled out, you should have let her know instead of letting her hanging for Friday after Friday over several months. Not answering phone calls is unacceptable when the person on the other end is sitting on a hot burner.

If you're doing the kind of volume as you have claimed on BP, $50k is just not a lot of money to make Sylvia whole. How much does your reputation worth? The reason we have this thread was because you didn't follow through on your promise and ignored her phone calls in addition to her getting scammed by Garrett Stevenson.

Personally, I don't think Sylvia is out to destroy you. She doesn't want others to go through what she went through, which was hell. As you already have seen, a lot of people found value in her thread. Of course, this is one man's opinion.

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  • Paul Sian
    Real Estate Agent · Cincinnati, OH · Member since 2016 · 169 posts · 146 votes
    9y

    Sorry to hear you got scammed and thanks for sharing your tale. 

    0Reply
  • Diane G.
    CA · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    There is no legal recourse here? 

    0Reply
  • Will Skillman
    Real Estate Investor · Terrace Park, OH · Member since 2016 · 54 posts · 18 votes
    9y

    Sorry to were scammed. Very unfortunate story. Hope you haven't given up on real estate. 

    1Reply
  • Steve D.
    Investor · Cincinnati, OH · Member since 2016 · 34 posts · 53 votes
    9y
    This is a disturbing tale on so many levels. Not least of which being that it involves mr Wendell de Guzman, someone that has been featured on a bp podcast and praised on his podcast page as a savvy investor with a lot of know how. Have you reached out to Josh Dorkin and Brandon turner ? If this actually happened, not questioning your story but all things need to be verified and 2 sides to every story, this person's podcast should be removed so others don't listen to it . You were naive, but the person who took advantage of you has to be held accountable.
    9Reply
  • Account Closed
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    9y

    Sylvia,

    Thank you very much for sharing this painful story to everyone. @Brandon Turner and @Joshua D., please read Sylvia's story and respond to the community. This deserves an investigation. Can't let the shysters ruin this community.

    Thanks.

    Minh

    10Reply
  • Chinmay J.
    Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
    9y

    @Sylvia Pomazak - Your first property.. and you decided to invest 5 hrs away. I just did Google search from Gilberts, IL to Cincy, OH. I am a big proponent of investing within driving distance at first. Imagine if you were investing in the local area, you would have been able to catch scam right away.

    3Reply
  • Adam M.
    Lawrence, KS · Member since 2017 · 175 posts · 51 votes
    9y

    Yikes. Would for sure of done an LLC. The second they had to come to the table to sign the legal docs and operating agreement they would of walked or tried to talk you out of it (both major red flags). Also would setup the bank account so you were the only one who could write the checks since you were fronting all the money and only paid the money directly to a (vetted) contractor.

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    this is far more common than you can imagine... remote rehab should only be attempted with those you have fully vetted.. It happens to many many people myself included over the years..  So don't beat yourself up.

    this is good detective work on your part to bring to light alter ego's etc etc. 

    It is a bit of a mystery... landlords check out tenants every which way but Sunday .. but investors tend to just believe....  

    one take away is to alway treat a potential investor partner like a tenant.. you want a full credit report and a back ground check.. cost you probably 100 bucks to do this.

    if the potential partner gives you some static like this is insulting etc.. you then know your answer up front.

    However again I want to stress this can and does happen with a lot of frequency your just brave enough  to post it... I know some pretty sophisticated investors who ran into the same thing with the same groups like this.. 

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  • Jeff Filali
    Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    Wow!!  So sorry to read your story @Sylvia Pomazak but thanks for sharing it to potentially prevent others from the same mistake.

    0Reply
  • Jeff Schneider
    Residential Real Estate Agent · Phoenix, AZ · Member since 2016 · 155 posts · 117 votes
    9y

    Sorry this happened to you Sylvia and thanks for sharing your story.

    3Reply
  • William Walker
    Investor · Wilmington, NC · Member since 2016 · 211 posts · 262 votes
    9y

    @Chinmay J. Did you really just say it's her fault for getting scammed????? Yes she could have done some things to decrease her risk, but at the end of the day it's the two scum bags that took advantage of her who are to blame. 

    @Sylvia Pomazak Sorry to hear this happened to you.

    2Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    9y

    @Sylvia Pomazak - So sorry to hear this.  I have partners who give me money to invest and I always send them a full background and credit check on myself, and my husband, so that they know who they are working with.  I don't do it on them but moving forward I might just to be extra cautious.  

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  • David Zheng
    Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
    9y

    I'm sorry that happened to you. I hope many people read this and to always always do research and always make sure you have your *** covered by something material

    0Reply
  • Sylvia Pomazak
    OP
    Gilberts, IL · Member since 2015 · 29 posts · 66 votes
    9y

    Thank you to all that have posted. 

    @Diane G.  in reply to your question is their any legal recourse. I have contacted an attorney regarding this matter. I have also reported both parties to the attorney generals office. Unfortunately stuff like this happens all the time, and people like Wendell and Garrett continue to get away with it. In fact, they still are doing deals today. 

    @Steve D. Yes I have reached our to BP and was told that unless I have a court order they would not be able to remove him from the site. 

    @Account Closed I agree. The next person I partner with I will be doing a background check. 

    I was very nervous to post this story for fear of being judged and criticized, or even that people would not believe me because of Wendell's presence on BP. But you know what. I don't care. Let the truth be told. 

    12Reply
  • Diane G.
    CA · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @ slyvia pomazak - I have been a big advocate of investing locally, as in within an hour drive kind of local.... To me, that is the only way how you can have a in depth understanding on the market...Drive around on a day tour or listening to someone's just do NOT cut it.....

    Also, I would go one step further to suggest NOT to partner with anybody until you have 10 years of RE experience.....Yes that could limit your scale, so what? 

    Full disclosure - I only invest in local, only A, no partnership.... Now looking (researching, studying, analyzing) to get into B class like....And yes, I will never get rich this way, will always need a day job....So be it...

    0Reply
  • Nick C.
    Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    9y

    This is every investors nightmare. There's guys like this in every facet of investing; contractors, tenants, agents, it's terrible. If they spent as much time and effort being productive as they do on their scams, they would be far better off in the long run. 

    2Reply
  • Chinmay J.
    Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
    9y

    @William Walker - Not one bit. It definitely was her fault to be trusting enough to allow the scam to have happened. Based on her replies, I think she got my point.

    0Reply
  • Anastasia Jordan
    Investor · Birmingham, AL · Member since 2016 · 446 posts · 305 votes
    9y

    Tragic......

    1Reply
  • Ryan K.
    Investor · Richmond, VA · Member since 2015 · 139 posts · 43 votes
    9y

    Sorry to hear about the scam. But you are doing an important service to others by sharing your story and exposing the scammers. Hopefully it will prevent others from loosing money and time.

    Looks like Mr Guzman posted 12 properties for sales in the BP marketplace just a few days ago https://www.biggerpockets.com/forums/517/topics/401029-need-to-sell-12-houses-so-i-can-buy-27-houses

    1Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    9y

    Sorry to hear this happened and thanks for sharing/warning. The old changing name trick seems to be something of concern in my experience. I had a guy do business under my company name, plural version of it...take money then change his name. For me that name change thing is first possible red flag. I realize you probably found out after the deal on this one. Good luck!

    1Reply
  • Sylvia Pomazak
    OP
    Gilberts, IL · Member since 2015 · 29 posts · 66 votes
    9y
    Originally posted by @Ryan K.:

    Sorry to hear about the scam. But you are doing an important service to others by sharing your story and exposing the scammers. Hopefully it will prevent others from loosing money and time.

    Looks like Mr Guzman posted 12 properties for sales in the BP marketplace just a few days ago https://www.biggerpockets.com/forums/517/topics/40...

    Yes he is still actively trying to find buyers and investors and likes to work with the "newbies". Hmmmm, I wonder why? 

    He also had a website called the diligent wholesaler where he gets people to buy his $1000.00 seminar and partner with him. 

    He doesn't stop. Why would he since he has never been caught. 

    2Reply
  • Account Closed
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    9y

    @Wendell De Guzman, 

    Can you shed some light on this? We'd love to hear it from both sides. 

    12Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    9y

    BP and others sites should do background checks and more on podcasters beforehand. In my book BP had a bit of influence in lending credibilty to all of this and might have been able to prevent or at least minimize investors losses from a scam. Instead the exact opposite took place. 

    6Reply
  • James Caruso
    Real Estate Investor · Middle Island, NY · Member since 2016 · 147 posts · 68 votes
    9y

    So sorry to hear about this. Can't imagine going through something like that.

    Hopefully BP will do the right thing and ban this scammer!

    2Reply
  • Sylvia Pomazak
    OP
    Gilberts, IL · Member since 2015 · 29 posts · 66 votes
    9y

    @Matt R.

    I take responsibility for not doing my own due diligence before I agreed to partner with Wendell and Garrett. I don't know what BP's policy of procedures are before they interview individuals or place them on a podcast. You have to understand that professional scammers want to have there presence known and create a large persona. They know that BP, Forbes, US Report are not going to do a background check on them.  

    BP now provides me a platform to tell individuals what happened and to let everyone know that dishonest individuals are everywhere! Even in the BP community. Yes it is sad. Yes it is upsetting and makes me angry. They are also at your REIA's they are at the education seminars. When it comes to working in an industry that involves money, there will be greed and there will be scams. So it is not BP to blame. BP is actually where I found the buyer for the property at the end of this ordeal. So where it started is where it ended as well.

    I feel like I have a responsibility to tell my story to the BP community. I have no money to give nor to take.  I have nothing but my ability to share my experience, and what people do with this information is up to them. God bless.

    5Reply
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