Scam? At least it felt like it....
Here it is: As usual, I was surfing the net finding investment groups to network at and find investors to either invest with my company or to unload some of our properties. Anywho, low and behold I found a meetup group that seemed interesting. Without saying the meetup names, to avoid issues, I inquired of the organizer as to what the group was all about. The schpiel I as given was "we've been around since 2008 and we started out with 10 people, now we meet twice a week with an average of 75+"
So far, I was liking the number of potential investors I could hob nob with. So of course I wanted to hear more. I was further told that the members are investors from all levels - newbies to expert developers and accredited investors. Sounds good - tell me more.
We usually meet up at 7 and we go over the agenda then we break out into smaller groups like fix n flips, wholesalers, buy and hold, note purchases, and so forth. He went on to ask me what I did and I obliged him in letting him know that I worked for a Real Estate Crowdfunding firm that help distressed homeowners. Our accredited investors purchase bulk distressed mortgages (not notes) and in turn we offer the homeowner options to stay in their home. Sometimes by the time we purchase the mortgages from banks, the homeowners have already vacated the properties or choose cash for keys and in those instances, we liquidate.
He says: Wonderful! You guys will definitely benefit. We need you to come on down and start networking. You'll be sure to make some great connects. Needless to say, I was sold.
Long and short of it: I'm pretty sure this was a pyramidesque type of deal. Upon my arriveal, I immediately, noticed the 100 or so people; which was a good thing. Since we were a tad late due to traffice I realized that the "intro" segment had already convened and the break out groups had started. We were escorted to a larger room with about 35 people. I could see through the glass doors that there were groups all over the place. I was feeling a weird vibe though.
Mother Nature was right again. The moment we sat down, this guy in a not so tailored suit and very pitchy voice spoke into a wireless mic and started with "How many of you are tired of working your 9 to 5" "What would you do if I told you that you could adapt our system and start collecting checks in just two short weeks?" Then this guy showed us a powerpoint screent that pictures of checks he has cashed in the last year totalling $450K+". I felt so stupid and taken advantage of. Turns out we were attending a Real Estate College intro that costs $1450 for Real Estate 101 up to $14,500 (yes! $14500) for Real Estate Guru classes. We politely squirmed our way out the door immediately after.
OMG! Have we been duped, scammed, bamboozled. I think so....
In a nutshell thank goodness for the BiggerPockets and its NO PITCH platform. I wanted to jump up out of my seat and scream: GO TO BIGGERPOCKETS! ITS FREE AND YOU'LL REALLY LEARN SOMETHING.