Just watched a webinar on Wholesale Reformation with John Cochran and Jeff Watson. Anyone know anything about it, was it worthwhile?
I sat in on the Cochran/Watson webinar last night. I've met Jeff Watson at our local REIA (Milwaukee) and I thought he did a good presentation when he was at one of our meetings, but I was put off by his and Cochran's approach during the webinar. They overemphasized how "99% of wholesalers are acting illegally and will go to jail with felony convictions" etc. During the webinar Cochran showed a subpoena that had apparently been sent to his mother in 2012 and that related back to Cochran's real estate activities through 2010. He used that to show the risks you take if you do things wrong. He did not explain (1) how his mother was involved; (2) if the subpoena was part of a civil or criminal investigation (he implied criminal); or (3) whether the subpoena had anything to do with wholesaling. The last omission was particularly odd because the entire webinar addressed the risks and dangers of doing wholesaling wrong. Watson apparently got him out from under whatever the investigation was about. My best guess, given that the subpoena went to his mother, was that it had something to do with how he was lining up investors for his deals - I'm guessing that his mother was an investor. Maybe a state's attorney that didn't have anything better to do might go after a wholesaler, particularly if a bunch of realtors got their shorts in a knot and pressed the state's attorney over their lost commissions going to unlicensed wholesalers, but that would more likely go into a licensing review board that would impose civil penalties. I'm not arguing with Watson's and Cochran's laundry lists of the stupid things that wholesalers do. I just don't see it as rising to the high level criminal activity that they painted in the webinar. They're spot-on in their assessment that a lot of new investors get into the business as wholesalers because it's cheap and easy. I also agree that a lot of wholesalers have no idea what they're doing, and that they start cutting corners when they realize it's not the get-rich-quick scheme that they were led to believe. The bottom line is that I'll stay home and skip Cochran and Watson's Las Vegas weekend (Vegas has never been my cup of tea in any case) and I'll spend my money on my own marketing campaign.
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