Connected Investors Largest REI Scam on the Internet

Connected Investors Largest REI Scam on the Internet

Investor / Contractor · Sierra Vista, AZ · Member since 2015 · 13 posts · 76 votes

We signed up for Connected Investors 9-4-16. At the same time we where gullible enough to likewise put out information through the CiX site looking for lenders. Allegedly all the lenders on the CiX site have been vetted and are legitimate. Having said that, let me share with you what we've learned and experienced in the time (nearly 6 mos) we have been on this site.

!. Since 9-4-16 we have been contacted by 63 so-called private money lenders not affiliated with CI or their supposed list of vetted lenders. Not 1 lender has proven to be legitimate. Never mind the qualification that may have been requested. When these lenders were investigated; addresses turned out to be phony, licenses when claimed false and virtualy 61 of them wanted up front fees in order to process the loan. The smallest upfront fee was $1200 and the largest $10,000. 58 of the lenders required copies of our passport.

14 lenders were in the criminal data base of Interpol; 28 were in the in the financial crimes data base of Nigeria and 4 were listed in the Interpol data base connecting them to Russian mobs!

2. Of the dozens of REI's we shared deals with; not one was able to complete a deal. Ultimately it always boiled down to their inability to close due to funding problems. (Lack of money period in 85% of the transactions).

3. It is true that Ross Hamilton as assembled the largest social network for real estate investors. And like all the gurus, (Childress, Dave Galegor, Cantwell and the list goes on)...they pitch their seminars and courses; charge ridiculous amounts of money for outdated or information one can obtain for free with just a little bit of effort. The stats for 29,000+ investors on CI, who have successfully built or substantially expanded their business through CI is less than 5%. Just ask some of those who are begging for business hookup...how many deals have they closed directly with another CI investor. You will be shocked!

4. Rip-Off Report has plenty of people that have finally awakened to the fact that CI is nothing but a very cheap and ineffective gathering spot for REI's wishing against hope that somehow they will connect with a successful transaction.

5. During our miserable experience we presented 14 deals; not one of them closed as a result of CI contacts. We did however close successfully all 14 by simply using reputable resources such as Oncarrot, AWeber, Sales Genie and several other sites. If you pay attention to these gurus you begin to realize they are similar to a "tag team" wrestlers on WWF (fake too by the way)...one so-called "expert" REI will ply his crap for a while and then all the sudden another guru pops up touting the advantage of using this other gurus slop...but in the end its all the same swill.

6. Ross Hamilton knows full well the kind of people that promote their garbage on his site. In fact we know that two separate state law enforcement agencies are currently investigating several so-called lenders who were advertising on the site.

7. One of the most glaring signs of the scam oriented site that is CI...should be the fact that CI and CiX support Josh Cantwell. Cantwell is even more odious than CI.

In short we have determined to work with several agencies to see that CI is held accountable for the rip offs and scams that are perpetrated daily on the site.

If you are truly in search of legitimate funding; private or otherwise, you will find that real, honest lenders have nothing to do with these kinds of sites. They realize that licenses and possibility of severe criminal prosecution isn't worth the risk. Do your due diligence and search out legitimate lenders.

It's worth noting that COGO Capital is on the CiX "hit parade" but I can tell you with certainty that our experience has been nothing but 100% positive. They have funded many of our deals. Another agent of integrity can be found at funding by mary at g mail.

8. Lastly in taking the CI training we soon discovered that it is a gigantic sales pitch for more money and products that are never delivered. Again as we have reaffirmed in our business; there are far more effective products and tools available for ultimately far less money. The deals referenced above all came to a successful close as a result of those tools. Oh...and by the way we made a total of $143,582 total off those 14 deals. CI had virtually nothing to do with any one deal...period. 

I will give credit however to CI, in that we learned a multitude of things NOT TO DO and how to better refine our associations with those who are real REI's.

Conclusion: Connected Investors is a rip-off, scam and nothing short of a criminal enterprise!

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

interesting ...  I looked at CI and did not like it.

however be aware that those same nigerian scammers troll BP.... anyone looking for up front money is until proved otherwise a scammer. end of that discussion.

CI wanted me to advertise on their site for my funding operations I refused to do so.. Just like I don't advertise on BP... too many rookies drive you nuts.

See this reply in the discussion

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  • Suitland, MD · Member since 2015 · 7 posts · 2 votes
    8y

    I had signed up earlier in the year with CI. I entered my info looking for investor funding and was hit up with a barrage in scam emails and offers. Every single one of  the offers was a scam and all ultimately came down to an upfront payment of several hundreds to thousands of dollars. My heart breaks for those who have not done their due diligence regarding verifying their "so-called" lenders and have lost their hard-earned funds. Keep in mind though that even established and legit lenders can charge exorbitant interest fees, interest rates, point and/ or even profit splits. I myself is still looking for a good lender with balanced rates and fair fees. 

  • Suitland, MD · Member since 2015 · 7 posts · 2 votes
    8y

    Would really love to hear the feedback for some of the buy-in software packages such as "Deal-Dog", Pin-Point" funding, Invisible BAnk and other peddled "this will change your life' software. There are so many high pressure solicitations, lectures, special offers, guru training and so much more eagerly lurking out there with the sole intent of separating us from our $$. 

  • Winston Salem, NC · Member since 2017 · 201 posts · 56 votes
    8y
    Those programs only as good as the people using them lmao. I have a friend bought 6 programs and still haven't done a deal lol. I have a friend bought deal dog and is rocking. If they were bad nobody would have any luck. Not rocket science to figure out where to get deals . gurus know many turn realestate into astrophysics lol.
  • Investor · Detroit, MI · Member since 2016 · 211 posts · 144 votes
    8y

    I remember a time back the folks at Bigger Pockets were promoting Josh Cantwell, Appearantly the guy has salesmanship but look up the details of what he offers and you will find he wants the best deals, a sure profit and at minimum 16% on his money, plus he gets you to do all of the leg work and contruction but he gets to select the deals and control all of the money.

    heheheh When Josh was just a young lad he was told that, "there is a sucker born every minute" then instructed to go out into the world and find them. He was told that, that would be his best way to assure his financial success and to by the way, always find other people to put up the money, then get someone else to put up all of the work, and then to be the one to profit the most handsomely. I guess that made a whole lot of sense to young Josh, and he has never forgotten his brainwashing and remains true and loyal to it to this day. 

    I have to admit that if you premise everything on that Josh is going to be dealing with nothing but suckers then the logic of his thinking makes a whole lot of sense. 

    Josh's logic is spot on, it's just that his premise if flawed. We generally categorize people suffering from this type of condition,  as being insane.

  • Member since 2018 · 24 posts · 9 votes
    8y

    for kicks I tried to apply at the 'borrow down payment' section.  Only response was a link to an unsecured lender.  The only people in their forums are those looking for capital.  

  • Derwood, MD · Member since 2018 · 21 posts · 10 votes
    8y

    Alan

    This generalization of yours is very unfair to the platform. As a member of the platform (Connected Investors), I agreed that there are some fake leads that slip through the crack that "Connected Investors" system cannot flagged. But overall, most of the lenders on CIX are genuine. I have done deals with over five lenders. For the sake of privacy, I will not list their names.

  • Member since 2018 · 24 posts · 9 votes
    8y

    if they are real lenders, they would be happy to have free exposure...

  • Member since 2018 · 1 post · 0 votes
    7y

    Thank you so much for taking the time to write this post. The will definitely save me (and many others) money and headaches. 

    Cheers! 

  • Member since 2018 · 3 posts · 1 vote
    7y

    Newbie here. What is the best Site or Software for finding good houses to Flip?

  • Member since 2018 · 1 post · 0 votes
    7y

    Anyone familiar with Keystone Funding /wealth 212? They have a buy of 5k or 13.5k for 100% JV funding. Any experience with them? High pressure sales tactics which turn me off as well.

  • Investor · Hendersonville, NC · Member since 2013 · 755 posts · 281 votes
    7y

    This is pretty depressing. We would like to think that our love, REI, is populated with folks who want to get sellers out of a jam, lenders who want to see houses and neighborhoods improved, and rehabbers to do what they say and say what they do. Alas, wherever money is, unscrupulous behavior is sure to follow. I suppose I feel like, as the owner of 20 books on REI, which took 400 hours to get through, there isn't a quick way to get to the knowledge we need, or a fast way to make a connection that is legitimate. Every once in a while a person who writes a book and does a seminar is well-intentioned and full of integrity, but think of Trump University as being emblematic of how low some will sink to peddle their wares. REI is challenging, and if it seems easy or maddeningly difficult you're not doing it right.

  • Member since 2018 · 1 post · 2 votes
    7y

    I wish that I would've seen this prior to being scammed by a so called private lender. This Lender Unifund Premium Co, had all of their credentials and license. I was so skeptical about paying upfront fee's and should of known that a non collateral loan with a 4.2% on 115k was too good to be true. But, me being a new investor really wanted to believe this was possible. All though I fought and went back in fourth and didn't go with my first instinct. I also was going to stop transfer of up front fee's of 1.5%  $1725 while still on hold with of course and out of the Country so called investor. I know better of course we connected from CI. Once that money cleared the bank, I no longer received correspondence. I am sick to my stomach because I know better but my hope over powered me. Please beware of Unifund Premium Co.  Michael G Adamez and his fake video testimonials

  • Islip, NY · Member since 2015 · 1 post · 1 vote
    7y

    Yeah I . googled that guy.. Total fraudster  

    Knox County man charged with TennCare fraud after 16 months on run
  • Longmont, CO · Member since 2013 · 5 posts · 5 votes
    7y

    Ross, it's nice to see you post a rebuttal on here but it doesn't look like Alan is alone.  There are 3 pages worth of people saying your company is not worth the price of admission.  Everyone should do their own DD with this or any other offer.  You can't expect things to be given to you (or if you just pay a fee you will magically come into all these great deals).  It takes leg work, studying, time, (and maybe a handful of lessons learned) before you will have the POTENTIAL for success.

    Cheers,

    Chris

  • Tampa, FL · Member since 2015 · 13 posts · 11 votes
    7y

    You're right Chris. Everyone do their own Due Diligence. Personally, I have used both CI and CiX and found them to be very helpful. But as you say REI still takes hard work. I have not been doing this too long, but I have found 2 deals on their Pinpoint system, and have gotten funding by a reputable lender on CiX.

    One more thing.  When I was traveling abroad and tried to access my account, they suspended my account.  At first I was annoyed but when I spoke to customer service they let me in.  It made me feel safer that they were working to keep bad actors out.

  • Member since 2018 · 57 posts · 22 votes
    7y

    I was curious about CIX after seeing a youtube ad.

    As I typically do, I searched "CIX Bigger Pockets" to see what the BP forum had to say.

    His ad felt like a used car salesman (my alarm bells were going off).

    Another red flag from a lending source: lack of transparency in disclosing their fees. I am reluctant to give my information to get SPAM calls for years. 

    You can also google: "RipOffReport Connected Investors."

    I also check businesses out by adding scam to their name and see what comes up. 

    I have seen other local companies in Washington State post their fees ($795 + 4 points rolled into the loan + 12% for 6 months. New fee for extending). It makes it easier to shop and compare rates. You may not like their rates, but at least they give you full disclosure. 

    You have to understand a business's business model. If you're not dealing directly with a lender then they'll be padding what your actual rate could be. 

  • Real Estate Broker · Los Angeles, CA · Member since 2018 · 6 posts · 1 vote
    7y

    Great article.  Thank you for sharing.  I have also scoured the internet like most of our legitimate real estate professionals and they are nothing but a dime a dozen and all feed off each other.  It's disheartening and sad that they all give such a horrible representation to our industry.  The old saying "what comes around, goes around" is all we should hope for. 

  • Member since 2019 · 1 post · 1 vote
    7y

    Hi Ross

    How about offering this at a $125 per month to all on this forum that are interested in trying your system? Then if we like it we can sign up for a year.

  • Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Alan Goetsch

    my experience with Connected Investors was shockingly similar to yours Alan. Ill keep my post short because you said everything that needs to be said about Ross and his company. They are a scam and it took quite a bit to cancel my account i created with them and even thought i removed myself from all their email notifications, i still kept getting so much spam and BS from CI, their alleged network of Private lenders to the point that I had to let that email go and switch company names and make a new email address. That is ridiculous!!!

    Connected investors is SPAM and a garbage website. stay off it and for the love of god dont sign up and give them your email address, because they will use your email address more than a escort at the Bunny Ranch!! 

  • Member since 2018 · 1 post · 2 votes
    7y

    I agree that their webinar program is very compelling. I should have recognized that the repetitive closing throughout and,heightened approximately in the  last 30 minutes of their 2 hour pitch should have been a major warning signal but I ignored it. In signing up for their service which is called "PIN" I signed their online agreement but I made sure they had a rescission period. 
    They do and it is for 3 days which I confirmed by phone with their rep. The next day I sent in a request for cancellation according to their requirements and received an acknowledgement of their receipt for my cancellation. That was all I heard for one week. I contacted them and received an offer of 1/2 of my $1497. 00 payment, which I declined. The fact that they waffled and have not lived up to their word is why I am writing this warning to others. Maybe their system works. I don't know and NEVER will. I cannot do business with someone who doesn't do what they say they will from the start. So please be advised and forewarned.

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    7y

    It is not foolproof but it can help sometimes the more transparent someone is when vetting them. In other words do they have pictures on their website and contact info lot's of places? Do they have videos of themselves talking? Do they have testimonials from other clients with videos or contact info you can verify? What does the address who on Google etc. for street view? Do the companies match up? What about their LLC etc.? How long has it been formed?

    Not all but many scammers like to be GHOSTS providing minimal information as possible to engage a consumer in the marketplace. 

    I know nothing of this company and I am talking in generalities.  Often times scammer prey on people with limited money, marginal credit, etc. as they know they can sell them systems for a few K or take a small upfront fee and those people typically do not have the resources to fight it. ( The expense needed to possibly recover often exceeds what they lost). 

    Be careful out there. No free lunches in this world. If the loan sounds too good to be true it probably is. Seasoned proven lenders aren't typically going to do a high risk loan at phenomenally low rates.

  • Washington, DC · Member since 2019 · 10 posts · 3 votes
    7y

    I had a recent encounter with a "lender" on connected investors. com

    I was contact on there by a guy "named" Joseph Martella.  He sent me his personal email: similar to his name.

    I was intrigued. He ask me for the loan amount I was seeking. It was a $125 buy and $50 rehab . He said that was perfect, 70% LTV right on the ,math. He instructed me to send in the attached loan app with a photo ID. I sent the app but no ID. He said I was approved and a POF would be sent the next day. The next day he (or whomever it was sends an approval letter. It was made in the name Jospeh Martella Private Lender top me. He said they are ready to transfer the funds after I wire $3500 origination fee. Sweet deal right?

    I had already researched this supposed guy Joseph; every thing checked out.  They emailed me his drivers license, and all addresses matched., tax records everything.

    The next morning I paid Whitepages.com $5 to get his phone number, I called last night.

    Not only did he have no idea what I was talking about but he said he had recently send in for a loan and sent in his drivers license.

    These bastards are using this guy photo ID and personal address to scam people.

    PLEASE BE AWARE FOLKS, THIS IS SOO SERIOUS!

    here is the BS approval letter they sent me.  I blurred out my info and his address top right.

    Further more will everyone please contact me or Joseph on here if you see anything resembling anything like this with our names?  Thanks!

  • Rental Property Investor · Brooklyn, NY · Member since 2013 · 272 posts · 165 votes
    7y

    Also, shouldn't the offer of 5% for a 1st time, short-term, hard-money loan between 2 parties who've never even worked together before have been a huge red-flag? Aren't loans like this usually in the 10-12% range?

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    @Chris Burch

    see this thread

    https://www.biggerpockets.com/forums/49/topics/678...

    same thing as yours guy hits me on BP.. i new he was a fake first e mail.. but I wanted to see where it would go.. so that i could post the real time interaction for BP members.. if a conversation goes anywhere near what is in my post its 99% fake.

    I have been in the lending business for 4 decades I looked at CI to list our lending products ( very niche) it cost money and i just did not get a good vibe for the whole thing.. all these lead source you know pay 2k for this super secret software that is going to put all these distressed assets in your lap.. well that simply does not happen.. finding distressed assets is expensive time consuming endevour.. the guys and gals i know that do it .  spend minimum 10k a month most spend 25 to 50k a month.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Chris Burch:

    I had a recent encounter with a "lender" on connected investors. com

    I was contact on there by a guy "named" Joseph Martella.  He sent me his personal email: similar to his name.

    I was intrigued. He ask me for the loan amount I was seeking. It was a $125 buy and $50 rehab . He said that was perfect, 70% LTV right on the ,math. He instructed me to send in the attached loan app with a photo ID. I sent the app but no ID. He said I was approved and a POF would be sent the next day. The next day he (or whomever it was sends an approval letter. It was made in the name Jospeh Martella Private Lender top me. He said they are ready to transfer the funds after I wire $3500 origination fee. Sweet deal right?

    I had already researched this supposed guy Joseph; every thing checked out.  They emailed me his drivers license, and all addresses matched., tax records everything.

    The next morning I paid Whitepages.com $5 to get his phone number, I called last night.

    Not only did he have no idea what I was talking about but he said he had recently send in for a loan and sent in his drivers license.

    These bastards are using this guy photo ID and personal address to scam people.

    PLEASE BE AWARE FOLKS, THIS IS SOO SERIOUS!

    here is the BS approval letter they sent me.  I blurred out my info and his address top right.

    Further more will everyone please contact me or Joseph on here if you see anything resembling anything like this with our names?  Thanks!

    this letter is comical.. no lender writes like that. These are foreign bad actors with their wrong use of a certain words.

    Like no one say we GRANT you a loan.. or this is a pleasant letter to receive.. etc etc... but hey if you dont really have experience at it. I bet they get a bunch of this stuff to go.. the folks AT CI really need to watch who they let on the site.. if they are recommending lenders.

    At least on BP its well known and understood NO one is vetted. use at your own risk

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