My Experience of Rich Dad/Elite Legacy Event Scam

85 Replies

Thank you @Constance Kang for sharing your experience. I guess I found this post a few hours too late since I already signed up for their 3day course which happens the end of this month. I've recently stared getting interested in real estate investment and I'm trying to read or grab every opportunity I can get my hands on. I do confirm that the free seminar was really pushy and convincing with all the smooth talking. I now realize that I ignored the scamming signs because I thought what's the worst that can happen I loose $500 (yes their raised it). But I'd rather not waste my time if their main goal is marketing their expensive packages. So I immediately requested my cancelation the next day.

Hello everyone,

I couldn't more agree with most of the people here! It's a total scam and I've just wasted 800$ + accomodation and transportation and valuable time for the 3 days seminar... Here's my story (which is not very different from others).

I read RDPD a year ago and I liked the idea and the way it was presented. I then bought 2 more books from RDPD compagny. Let me tell you that it's all over the same speech. Nothing new in either those books. I end buying the last book "why the rich get richer" to prepar myself to the seminar...it was one of the worst book I ever read, a complete repetition of the previous ones. I know now why rich getting richer: by abusing of people.

I got an advertise on facebook for a free 2h seminar about real estate investing. I smelled that they d try to sell me something, but I was ok with that. Everyone have bills to pay... I went to the seminar in Bern CH. We were welcomed by an energic guy and we were like 100 pple. He introduced himself for a long time telling us how poor he was and how miserable his life was before he did a mysterious 3 days course...and then briefly talked about investment strategy (super brief)... then he tried selling us the 3 days seminar at a 787$ price if we were to take it on site (I later found out on the internet that the price is 787 whether you take it on site or not). So... as a good fool, I end up signing for the 3 days course expecting to have good lessons.

I then went to the seminar that I left after 2 days of consistent brain washing. Here how it works:

Day 1: warm welcome by motivated staff, coffee, snacks, we already feel we are millionaire. Soon enough, the staff told us not to give business card or do any business: "guys, if anyone give you a business card, please report to me". 

The first 2.5 hours were spend on introducing themselves, a lot of example to show how great their were and that a mysterious 25k course helped them achieve their financial freedom in 2 years. It was like that the remaining of the day and the next day: every 1-2 hours worth of example on how great they were per half day. After 2 hours spend there I already felt something was wrong. We were introduced to the check-ching noise: the cash machine receiveing cash. A sound we were expected to do all day long as soon as a good offer was proposed.

The next 2.5 hours was on how to get money left and right to invest in real eastate. They asked as lunch homework to call our credit card compagny and ask to raise the limit to 100k!!! Big red flag. I made the link between the 25k course they shortly talked about and the increased limit. My suspision were true when I came back from the lunch. Most of the crowd had done their homework and coincidely the limit was always between 20-30k. What a nice way to show us we could buy the 25k course...great manipulation.

The next 2 hours were some BS information about real estate that any fool could find on the internet in 2 minutes. Moreover, they were showing us different cash flow sheets with big mathematic mistake. I asked about the mistake...I was told: questions are during break time. The last 2 hours of the day was pathetic. We had to make an exercise in group: we had 130k in fake cash, and we were supposed to make a deal with the staff (people from the staff beeing the bank, the lender, the ect, ect). No one could find a good deal until one of the speaker took the microphone and said: fortunatly 2 mentors came in the room (coincidence number 12) and you can ask their help for 25k. 99% of all sheeps in the room jumped on the occasion and we soon got a house at the best price ever: thank you the mentor. The last part they showed us a TED talk and we had to write on a paper what I want to do before dying...then we had to stick these words to the "commitment wall"...

Lastely, they ask us if we d like a one on one strategy the next day during the lunch (yes we are hard worker who saccrifies even lunch for what we want). In order to prepare for the strategy we had to fill a paper with information such as 401k, retirement plan, credit card, ect. 

The day was over, I was pissed...I talked to some people that were dead serious about the mentor ship program. I tried to convince not to, but I was the black sheep and the negativ people the mentor had talked about all day long. Fortunatly some of them seemed to be concerned when I told them that the credit card game was just a way to make us buy their BS.

Day 2:

In the morining we are welcomed like kings again. But this time we shouldn't sit next to the same person again. Good way to prevent collusion. They start again with marvellous example on how good they are, letting new student to speak about how great they have done since they signed up for the Elite Program. 2 hours of brain wash... 

Short break...go back in the room for some boring real estate BS we could find on internet. Then other speeches and other false example. We reach to the lunch break we've decided to skip because we're good students. As I expected, it was not a strategy for private advice, but they split the room in 2 groups, and another brain wash started for 30 minutes by a guy showing us how in 18 months we d be financially free. People are tired, starving, brain washed and I can see they're getting into that BS. After that, I see some random dudes signing for the elite program worth 25k, hearing: welcome to the familly and so on... During that lunch work shop I haven't taking notes and I felt more and more the staff is looking bad at me: of course I m the only fool who hasen't talked to them yet! I feel umconfortable. I feel it's a cult.

After 6 hours of that day, I was still hoping I d get something from my money. I knew I was dreaming and it was a way to justify the 1k+ I spend for that week-end. Let's move on... the guy started: as many people talked to me during breaks about the Elite course, I thought I' d briefly introduce it to you guys: let's take action. One more conincidence, they had enough paper with price to give to everyone,  and for some mysterious reason, the guy who is so nice to talk to us about the Elite course because some folks had asked him has a full PPT presentation about the elite program...then it was followed by a women who showed us for another 2 hours about how the mentorship was great (hotel, mercedes, ect). It was enough for me: should I leave now or during the break? As a well educated people I decided to wait for the break...I talked people into not doing the 25k course hoping I could save some lives...

Lesson learned: ALWAYS look at reviews on the internet. I ve been such a fool it's a shame. But I've learned...I look on trip advisor for a 40$ meal but not for a 1k$ course. What a fool!

My motivation to write all this is to confirm the above comments and posts and to let everyone know it's still the same BS today. Biggest scam ever. I write because I felt so bad for these people enrolling in the 25k course. One dude, 55yo, told us at the beggining on the mic that he was desparted, tears in his eyes, to have more cash to finally see his son growing... I was so sad to see he wasn't seeing the BS that were sold. He ll end up more in debt and see his son less. As previously said: uneducated poor people chasing a dream...

Final words: scam, false advertising, wash brain, sales pitch. Thank you RDPD compagny, you've tought me and expensive lesson!

I just finished the 3 day training that I paid $495 for in Knoxville. I think the wisdom from this verse found in Proverbs 11:14 which says "Where there is no guidance, a people falls, but in an abundance of counselors there is safety" was what allowed me to learn from this experience and not be taken advantage of.

When it comes to what was being said in the training, I agree with probably 95% of it. It was very much aligned with my values (abundance mindset vs scarcity). However, I believe the hypocrisy comes in when you look at what the actions of the presenters are compared to what they are presenting - does their walk match their talk. If the goal is to have passive and portfolio income, why would you spend 42-44 weekends per year on the road doing presentations? Wouldn't you want to be in Hawaii or somewhere else? They are clearly relying on earned income as a quadrant 1 employee - not an investor. Why do they expect you to trust them with no evidence when Kiyosaki says to not trust anyone? 

I have to say that the presentation was extremely strategic - hitting every issue that would be important for Knoxville's demographic values. I think the strategy calls were used to profile everyone in the class and intentionally match their selling strategy to these profiles. There were emotional stories about the military, guns, family, faith, etc. However, when I thought about it, there was not any verifiable evidence to back up the stories. For example, Brandon Diaz our instructor showed us a picture he said was in one of the issues of Time Magazine when he was a Marine in Baghdad. When I asked him what issue that was, he said he didn't know and that he only found out about it 3 years after the fact. Hmmm, that was a really weird answer. Why would he even bring it up if he didn't have a copy of it himself? He also claimed to tithe 10% to his church in Chattanooga - Silverdale Baptist Church. I emailed the administrator of that church and explained what was being claimed and asked for someone that knows Brandon that I could call and receive a few references that didn't come from Brandon himself. I expect to hear back on that soon and maybe I'll update if anyone is curious out there. Brandon also said he made a ton of money on a 100 unit apartment complex on Signal Mountain in Chattanooga 3 or 4 years ago after the tornados hit that area hard. I called a local real estate agent there he said the tornados were 7 years ago and they did not affect Signal Mountain at all. Brandon said his mom owned "In Good Health" medical practice in Chattanooga. I couldn't find any names or ownership besides the doctors that were listed online - maybe she did, maybe she didn't.

In conclusion, I learned a ton but also took everything with much grain of salt. I got the contact info from some of the folks who signed up and I plan to check in and seek to better understand what kind of support they receive and what type of mentor they work with. I'm very skeptical of people like this but I'm also skeptical of reviews bashing others because I know many people are lazy and would rather criticize than own up and do the work. I'm extremely grateful for my group of counselors who I know have my best interest at heart. They helped keep me safe and also allowed me to learn a ton from the entire experience. 

@Ben Neds I can't verify or deny much of anything you posted - I do however live on Signal Mountain and there were tornados that came through here. One of them came down this street and tore off the roof of my neighbor's house right across the street Not sure about the apartments mentioned though...

@Ben Neds ,

Not everyone aspires to the beach life. When I build the passive income I want, I will seek opportunities to present to groups on topics which are dear to me ... credit literacy, financial literacy, etc.

@Constance Kang Thank you so much for your information. I do have a question though, I recently attended the free seminar...and signed up for the 3 day workshop. The cost of the 3 day workshop was $695. I paid $400 to receive all of the materials. My question is, can I cancel the class without paying the remaining $295 or am I liable to pay the rest because I signed the form? after reading all of these comments, I don't want to waste my time ( considering I have to drive 1.5 hours each way to the workshop). Any information will be greatly appreciated. Thank you!

@Constance Kang go to real conferences, REIA’s, meetups, spend time on BP and network with other investors.

Get started at some point and you’ll learn a ton. I love education but I’ve learned a ton just by getting out there and doing it.

I actually have a different take on this. I too went the the free workshop and signed up for the 3 day classes. We, my husband, son and I, signed up for more classes either online, on demand or in person, and a 3 day private in person, on site mentorship. Just finished the third class, which was great for us and gave us a lot of new tools, and just finished the 3 day mentorship with a guy who was fantastic named Rick Sigler. Can't say enough good about him and the amount of guidance and info he gave us over 3 days. That's too bad you had a bad experience. We didn't and just wanted to say not everyone associated with Elite and Rich Dad Poor Dad is bad. Happy to answer any questions.

I went to the 3 day Rich Dad Poor Dad event in March of 2015. I came home and told my wife that I wanted to sign up for the $40,000 course. She said “no” so I didn’t. We were starting to do real estate ourselves and did our first flip on our own and lost $5,000. Then my wife went to a 3-day training herself and ended up signing up for the 40k course and an additional 25k coaching course. All in all it was about 75k that we spent. It was not the RDPD training but I imagine it was similar. The year of the training we earned 95k from 6 flips. The following year we switched to a buy and hold model and increased our net worth much more than that.

For my wife and I the training worked really well. But I would say I have the personality for it and we were in a good position to take advantage of it.  We sold a rental that we had to pay for the majority of the training. We had money and access to creator over and above the cost of the course so we were able to hit the ground running. Not everything in the course appealed to me (ie they had some turn key properties that didn’t look like they were as good as advertised). 

Could I have learned what I learned during that 1-year program for a lot cheaper by reading books and articles. Maybe. But that really isn’t my learning style. I learn best through personal interactions and seeing things being done.

Some benefits to the training were:

1. It helped my wife and I get in the same page with investing.

2. We learned how to get access to a lot of credit.

3. We got great contacts and referrals that have helped us springboard our business.

Some cautions of training programs in my opinion are:

1. Know your own personality - if you are someone that succeeds in most things then a training like this can help you do it faster. If you are someone that jumps into things and then lose momentum and returns to the same place and state of mind then this is probably not a good idea for you.

2. Know your learning style - if you learn a ton from reading books and articles and can go out and do things you have read then it is a lot cheaper just to read books or articles rather than pay for a formal education program.

3. Know where you are starting from. If you have little to no money, then I would not suggest doing a program like this. I would suggest learning how to manage your finances and get into a better financial position before doing a program like this. Otherwise you are left to just learning how to wholesale to start earning money. Which is t a horrible thing and some wholesalers do great. But most wholesalers I know have a large team and lots of money in their business to find leads.

So in conclusion, I agree that some (or many) of the training programs have high pressure sales techniques to get people to join their programs. A lot of the people who join are not financially in a place where they should spend more money to join at that time. And some people don’t have the personality for it and are likely not to do much with it. I just wanted to share my thought here because I just don’t like threads that are negative towards real estate education programs as a group. It’s like saying all used car salesmen are bad or dishonest. If that is the case than it leaves us to only buy new cars. Which might not be the best financial decision. 

So hopefully this post may balance out some of the opinions given here.

I usually attend free events for the free info that they divulge. I learned a lot of the basic details and went home to research the rest. Sales are tough to come-by and I won't give up my hard earned dollars just to anybody. My take is this, you can always learn the ropes on your own. Cost is the biggest barrier to entry into anything now a days. First thing I didn't like about the free event was how cheap it is to get in initially and right off the bat I knew there will be additional expenses. Secondly, the author was not present. Red flag right there. Lastly, the presenter mentioned there is a recording camera in the back and that threw me off completely as I figured they get sued a lot and reminded me of Trump University scandal.  Guys, don't reinvent the wheel, take the free info and run with it.  A lot of the stuff they say is true and build on the free info they give you and grow your portfolio. My rich cousin taught me this rule since I was 13 years old, "You don't pay, to get paid". Brian Tracy says we should invest 10% of our income into our education every year which I agree but from reputable guys like Tony Robbins, Brian Tracy, and etc. 

My experience has been way different. I am completing my final year as a student with Elite, and the my experience has been very positive. Perhaps Elite has changed since you all took it. I paid for the basic package which was $17500 but I was able to split that cost with a buddy. They allowed two people to take this journey together. I gained enough knowledge that I have bought 5 duplexes and 3 SFR's (Memphis). I am grossing $93K/year with an average Cash on Cash of 16.6%.

We went to a free seminar also where we were introduced to the rich dad guru, but Mr. Kiosaki wasn't there. Instead we were told we had to pay $500 to attend a 3 day class workshop where we would be instructed on how to obtain real estate deals that would make us thousands of dollars, and in the bag of goodies they sold us was an Ipad as part of the deal. So we went for it. The class instructor did show us various creative financing methods, but most of the time was spent trying to hype people up to become better people and help other people out of a foreclosure situation. The instructor said he had made over a million dollars after being in the military, and it only took him 7 years. We are in the last day of class and are being sold high education classes for about $60,000. It looks like a scam to me but I want your opinion. We can't afford $60 much less $60,000. They even cried at the end of their presentation to show the class how important this elite classes are and how it helped them. I would love to learn creative methods of investing in real estate, but I don't know where to turn without getting ripped off.

I've never been to a RDPD seminar. I read the RDPD books, which I thought were OK, and I played the Cashflow board game about 50 times (mostly Cashflow 101) over a 4-year period back in the 2000s. I highly recommend the Cashflow game.

I felt uneasy with how Kiyosaki would associate with other investment guru types who I concluded were shady. One stormed out of the room, telling me I would "come around" when I refused to move all of my money from the stock market to the SFH investments he was promoting. I came around instead to the conclusion he was trying to swindle me out of my life savings and thankfully I kept my money where it was in the stock market.

The CBC secretly sent a reporter with a hidden camera to a RDPD seminar in Canada and you can come to your own conclusion about whether these seminars are a good deal or not.  I conclude the RDPD seminars are a scam.

http://www.cbc.ca/player/play/1404600019

Thank you for you're review!  I went to one of the free events yesterday and ended up falling for the first real estate class.  I left after they started selling the options trading class.  I left feeling strangely violated.  You're post saved me from wasting my time and money.  Thank you!

P.S.  This is embarrassing to admit but they are now giving out free tablets to keep track of all the documents needed for the class.  And buy free I mean charging $400 for a $150 tablet because instead of my class being $300 like you'res was I paid $700!  Although in my defense I had never been in a sales situation before.  Now I know what to look for!  Thanks again!

@Constance Kang My friend also invested 40k into that program. The terrible thing is that its not lifetime access, plus they just build up packages after package. I was lucky I found a community of Real Estate Investors, and they have been guiding me! 120% hard money is crazy. @Andrew Ware And yes. Guaranteeing 6 figures is just a bad sign. @Raymond Lee If you guys have not found good guidance for Real Estate Investing, I can help you out.  

I attended one of Rich Dad's free seminars a couple years ago, here's what I experienced.

The event started out with the main speaker sharing his success stories in RE, and ended with him trying to get us to sign up for the classes. He sounded somewhat convincing in the beginning, so I stayed for half the seminar. During his speech I researched his background and found out that he's a professional speaker hired by agencies to give presentations, and has no ties to RE. I ran out of the room as soon I found his online profile.

It's unfortunate that people fall for this scam

Originally posted by @Bartosz Rosol :

I attended one of Rich Dad's free seminars a couple years ago, here's what I experienced.

The event started out with the main speaker sharing his success stories in RE, and ended with him trying to get us to sign up for the classes. He sounded somewhat convincing in the beginning, so I stayed for half the seminar. During his speech I researched his background and found out that he's a professional speaker hired by agencies to give presentations, and has no ties to RE. I ran out of the room as soon I found his online profile.

It's unfortunate that people fall for this scam

99% of the set up folks are all actors or professional speakers.. a lot of successful real estate folks are not great presenters.. and would lay and egg on the stage. you need that type of personality..   its a skill set ... I mean many investors are just not great at public speaking nor would do it.

To piggyback on Jay's point, generally speaking I think the kind of personalities that are really good at real estate are the opposite of the kind of personalities that are really good at self promotion and presenting. 

The individuals I've met along the way that are really good at real estate are analytical, level headed, and disciplined. Their income comes from buying, selling, and holding real estate over the long term. 

The shameless self promoters are gamblers, narcissistic, and constantly chasing the next money making scheme. They become gurus as soon as humanly possible, and their income comes from preying off of newbies by convincing them that they buy, sell, and hold real estate when really they're just selling courses. 

I'm sure there's individuals that are good at both, I'm just speaking in generalities. 

Originally posted by @Nick C. :

To piggyback on Jay's point, generally speaking I think the kind of personalities that are really good at real estate are the opposite of the kind of personalities that are really good at self promotion and presenting. 

The individuals I've met along the way that are really good at real estate are analytical, level headed, and disciplined. Their income comes from buying, selling, and holding real estate over the long term. 

The shameless self promoters are gamblers, narcissistic, and constantly chasing the next money making scheme. They become gurus as soon as humanly possible, and their income comes from preying off of newbies by convincing them that they buy, sell, and hold real estate when really they're just selling courses. 

I'm sure there's individuals that are good at both, I'm just speaking in generalities. 

I think that basically sums it up.. but lets remember also there is HUGE money in the top 10 gurus.. TV flipping show.. then align with back end fulfillment company usually out of Utah and your off and running..  Like Tarik and Christine.. or than merril or any of the others. its a natural progression and the HUGE money is made selling the information. 

to be fair and balanced like Fox news.. there are always a % of folks that come through these trainings that do quite well and the money they spent forced them to take action.. its just the other 90% who spend the money and well never really do anything.. I mean really buying rentals is not overly complicated..  A Great broker is all you need.. !!!

I think there must be some organization that has this canned business model ready to go and approaches people who have names / followings and offers to implement it for them, given the near absolute uniformity in the advertising, and the convention / sell / upsell structure with all the exact same sales tactics, just substituting out the guru for the flavor of the week.

Last weekend, I went to an afternoon presentation and ended up signing up for the $500 3-day course. Dumb move. Luckily, when I found out that it wasn't going to be much help to me, I was able to cancel. I still need to return the 'free' books to get my full refund.

Regardless of the info being offered and how it is offered, it's all about the person trying to learn and what they do with it.  Granted some information is more pitchy or surface than others, but most times it's decent info.  The person trying to learn usually just doesn't do anything with it or know how to apply it.  The people teaching the class are teaching but they are not the ones that will implement the ideas to propel your success.  I have no affiliation with this group or know anything about them besides what this person just wrote. I am speaking from mentors/classes in general.

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