Investing Mentoring Scam

17 Replies

I really need some advice. My husband and I signed a contract to be mentored by a real estate investor in San Antonio, Texas. We also made two separate investments to flip a house together, a total of $21,000. Shortly after, he started flaking on the mentoring and I quickly became suspicious. We met with him and recorded him telling us about all he had previously promised and more. He has now stopped returning our calls. Has anyone had this happen to them and do you think we have a good case for lawsuit?

The mentors tend to over promise and under deliver. 

I've never met anyone who has filed a lawsuit against a "mentor" just a lot of people that have cut their losses and moved on.  I've never heard of anyone filing a lawsuit.

Hopefully you're in a position to recoup some of the money.  Whats the situation with the properties you're flipping?

I'm interested to see what others have to say.

What is going on with the "rehab" you invested in? Work still continuing? What type of documentation did you have in place for your "investment"? Jv agreement? Mortgage? Ownership? 

You may have to bite the bullet on this one.  It sounds like you have a good case.  But that probably doesn't mean that you'll get any money back.  I'd say do what you can time wise and money wise to right this wrong.  But don't let it control your life.  

It's probably going to be an expensive learning experience.  Success is the greatest revenge!

I am sorry to hear this happened to you.  It may be time to contact a lawyer.  Also, since you paid him money a couple different times, you may be able to file in small claims court without a lawyer.  A colleague of mine was able to do this. He did not get any money as the defendant never showed, but was able to place a lien on his home for the amount owed as a judgment from the court.  

I'd be interested in learning who this "mentor" is or which company he represents.

@Jennifer Parrott

@Seth Teel is correct. The information you provided is minimal so no one here can be of much help. But if you tell us who you're dealing with, some others might come out of the woodwork and perhaps be of some assistance. 

Bottom line is there is always a group of fresh new recruits entering this field who can be taken advantage of, so don't feel alone.  As @Roland Paicely stated, this will likely be an expensive learning lesson...one you won't soon forget.

@Jennifer Parrott , I've not had this happen as I've never had a mentor, but I have been on the receiving end of some bad, very expensive lessons owing to "services" provided by others, and it does, unfortunately, tend to happen. I'm not a lawyer or anything of the sort, but I've been running into things of this nature more and more lately talking to folks in the local industry. If you'd like to PM me, please feel free to do so and I'd be glad to do what I can, or at least discuss some of the things I dealt with starting out, some of which ring similar. Most of all, don't get emotionally worked up (easier said than done, of course), but pragmatically evaluate your options. The folks here are great for helping with that. Don't hesitate to reach out, there's a wealth of great information here and plenty of people glad to share it (for free, no less!). Good luck and hope to hear from you again soon.

I am so sorry that this has happened. For the future, there are so many people here on BP that will help you get started or even give you advanced type of information for free. All it takes is becoming collegues with them and asking a few questions. You paying for lunch or dinner should get an hour of "free" information. No one on this website should have to pay anyone a mentor fee or go to any classes because there is so much information here. 

I have had several people call me up, take me to lunch and ask a 1000 questions. I know that they would have paid thousands to take a class of the info that i give out for free. After the lunch, some people never call back and do nothing with real estate. Some take the advice and start doing something. I am always here for questions. I think there are so many people also who will answer questions without charging. I have even met people out at properties because they want to know if they have a deal.

Reach out, there are many people here that are willing to help now and in the future including me.

@Jennifer Parrott

File a complaint with the FTC. I spoke with one of their top people about this issue several weeks ago and I was told that they can't do something until they receive numerous complaints. It is the only way to get rid of the Guru's!

exactly what @Seth Teel said, always contact a lawyer first get their impression but remember time wasted is money lost, if youre focused on getting vengeance and fighting a court battle you wont be focused on getting yourself into deals.. stay focused, stay on the path.. sorry this happened to you .. gives us good mentors a bad rep

This just happened to me and my fianace! His name was Anthony! He gave us this whole pitch and explained everything so thouroughly. Didn’t give us any doubt about what was happening because he really was knowledgeable. The initial fee was 3000. We had mentioned that we are only 20 and 22 and that we moved to Vegas where we have no help from our family. so he wrote up another contract for 500 and agreed to take 2500 out of our first deal. We did about one or two phone calls before his urgency to help suddenly disappeared. We respectfully confronted him and he started to play dumb. Soon he blocked our number. We have the bank account Information of where our money went and the contract that we signed. We also want to take action. Anyone that Meticulous And devious deserves to get sued like a mf.

This just happened to me and my fianace! His name was Anthony! He gave us this whole pitch and explained everything so thouroughly. Didn’t give us any doubt about what was happening because he really was knowledgeable. The initial fee was 3000. We had mentioned that we are only 20 and 22 and that we moved to Vegas where we have no help from our family. so he wrote up another contract for 500 and agreed to take 2500 out of our first deal. We did about one or two phone calls before his urgency to help suddenly disappeared. We respectfully confronted him and he started to play dumb. Soon he blocked our number. We have the bank account Information of where our money went and the contract that we signed. We also want to take action. Anyone that Meticulous And devious deserves to get sued like a mf.

@Alex Aguilar

Sorry to hear that happen to you. Sounds like you paid $500 check if you have his banking information. Proof that you paid him will be the cancelled check into his account. The amount of loss sounds like a small claims case. You can search online for Las Vegas and small claims court. This will show you the process to get him served. 

Then in small claims court, it will be what is in the contract. You will need to prove that Anthony did not follow or say he will do per the contract.

Since there is no trust at this point, judge might ask if mutually agree to void contract or you should bring up. Then only item left is to prove that he broke agreement and get your money back.

good luck.

Terry

@Terry Lao we paid through a cashiers check. He had us go to the bank and deposit it into his secretary’s account. Although it’s not his bank account, we have text messages from him giving us the bank info telling us how to deposit it. I appreciate your help though.

Weirdly he Just responded back saying, “call you tomorrow what time is best?”

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here