Taking a stand after a $50,000 lie

Taking a stand after a $50,000 lie

Investor · Peabody, MA · Member since 2015 · 114 posts · 107 votes

I've never named a figure on how much $$ we spent on what people call 'GURU training' but I think it's time. The amount of money that is being made by these companies is mind blowing. 

I've read posts by others on BiggerPockets who have invested in this training and many are quick to judge them saying 'who signs a contract without reading the whole thing?' or 'weren't you suspicious of a, b & c?', etc. The answer is no. No we weren't suspicious because people who you think would have a lot to lose stand behind these companies. Pete and Dave from Flipping Boston, Tarek and Christina from Flip or Flop, Doug Hopkins and Damon Lines from Property Wars, Greg Herlean and Mike Baird from Flip Men. They all endorse this same company/program by Premium Financial Training, Success Path, Advanced Real Estate Training (these companies are all linked).

You think that it's not too good to be true because you are paying a large amount of money and that's the catch. The reason not everyone is doing it is because they can't afford it, right? Wrong.

Here's how they do it...

* They have people speak that know Donald Trump and show pictures of them shaking The Donald's hand or speaking at the same event. They'll tell you about all of their successful students and how the same guy that knows Donald Trump is tight with many of the students. He tells stories of the student's successes and how he's had many personal conversations with them.

* They say they'll send you to a bootcamp where an expert will take you to properties and go through from start to finish how to make money on it right.

* They tell you that you'll have a mentor that you will be very close too and they'll even come and spend 3 days to work personally with you.

* They mention you can network with other students and use their connections so that don't have to go through the work and expensive lessons learned to find your own Power Team. 

* You'll have everyone's email (including Dave and Pete) that are speaking at the conference to contact at anytime.

* They'll tell you that you can get all your money back if you aren't successful by giving you a money back guarantee that when you read the fine print is next to impossible to claim.  

I could go on but I won't bore you. It's a good strategy, I'm not gonna lie. Nice work to whoever thought of it. The only problem is that what they promise is not what they deliver. 

Here's what you actually get...

* At the bootcamp you get a teacher from another market who will give you advice on how to flip homes in Austin Texas even though you are sitting in Boston. She gives you reference sheets with pricing that is super low (not accurate) for building materials to use when calculating rehab costs. You learn that Hard Money is basically free up front and easy to get. Just pay the points at the end...no big deal. If they ask to check your credit or require that you give them money up front then walk away. What??? They take you to properties where the teacher stands there and talks only when asked a question. Basically if you or anyone else in the class doesn't ask the teacher the right question you don't get the information. 

* The 'mentor' you were supposed to have only exists for the 3 day period that they come and spend personal time with you. You don't get Dave and Pete's email and when you try and email others you don't get a response. I attempted to email the bootcamp teacher when I couldn't find ANY hard money lender that would let us pay points at the end and obviously got no response.

* They call you asking for another $25,000 to have an actual full time mentor that will work closely with you for a whole year! When you tell them you've been mislead on some things so far they apologize like crazy and give you the package for 1/2 price acting like they are very concerned.

* The new mentor does call you once a week for a 1/2 hour but is sitting in Salt Lake City and has no idea about Massachusetts laws or processes. He gives you advice but it's advice that only works in the world they made up where everything is easy. After a few weeks the mentor just quits calling. You were told you'd also have weekly calls with a group of people and this mentor. This also has not happened.

* You ask Pete and Dave at a seminar in Vegas if they will wholesale to their own students and they stumble and say they'll think about it. Basically even though you've paid thousands thinking these guys stand behind all of this education, they want nothing to do with you.

After all of this...you still have to do everything you would have done if you never went to their bootcamp. You still learn expensive lessons and find that nothing is as cheap and easy as they claim it is and you are now have $50,000 less to work with. I won't go into more detail...this post is long enough already.

So, the purpose of this post...instead of criticizing those that have fallen for this 'super obvious scam'...as some members imply, I'd like to use this huge network to actually do something about this. Lets save people 10's of thousands and stop the company from making millions. We're in for over $50,000. Yep...that's right, I didn't add an extra zero. It's very hard to go after these companies as an individual so it's best to use the power of numbers. Please PM me if you've also spent thousands and would like to get it back or know someone who has.

My #1 goal isn't to get my money back (although it would be nice) or slander anyone's name but to stop others from being lied too and stop these people from getting richer every day by giving people a line of BS. 

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Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
11y

It official. Labor Day week should be 'scam awareness week'! Shady gurus? Had that! Wholesaler taking the EMD and running? Got it. Turnkey provider fudging numbers and conducting overall shady activity? You bet!

Here's my take away.  Shortcuts cost.  Looking for the easy way is sometimes just the easy way to be taken. Nothing worthwhile is achieved without effort.  Educate yourself.  Do your own due diligence.  Trust but verify. Locate a potential deal and bring it to a local ethical pro to help you.  Get an opportunity and a mentor will appear!  Make sure they are legit and not going to take you as well.

@Erica Nagle - thank you for sharing and I am sorry to learn of your experience. Did you learn anything REI related in buying all of this? Trusting no one until they prove themselves is a life lesson. Nothing specific? Extra sad. Thanks!

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  • Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Thanks for admitting your mistake!  Takes guts to do that and most people will sheepishly not admit their,   Which is what the scammers are counting on!  

  • Investor · Sparks, NV · Member since 2015 · 18 posts · 3 votes
    10y

    I went to one of the free REI training sessions that you mention. The first session was mainly just a pitch for the 4 day, $300 training session which I signed up for. The person running the free session said that the 4 day session would tell us everything we needed to get started in REI.

    You know what? I felt he was mostly correct, at least for those who were paying attention during the first 3 days:) Of course there was also a sales pitch for their $30K "select" program (or whatever they called it) which I passed on. $30K for a web sight and mentor is way over-priced to me at least. I did feel I got a good value for my $300 though.

  • Wholesaler · Waldorf, MD · Member since 2015 · 459 posts · 245 votes
    10y

    @Cal C. that's only the short story. The organization has plenty ways that they still try to suck money out of you. They call every couple of months to try to sell me their mentoring add-on program. They ask how goes my investing & no matter what I say, they try to sell me the mentoring program, because "we all know that the most successful individuals have mentors, wouldn't you agree?" It's pitiful, especially when I know from others that the mentor is following a script & doesn't really invest themselves.

  • Investor · Medford, MA · Member since 2015 · 7 posts · 1 vote
    10y
    I went to one I listened and they talked about buying real estate tax stressed properties in general. Then decided to show pictures of nice houses and smiling people. Then started signing up people for 1200 dollar next level stuff and pitched a $20k program but if u signup now it was reduced. I also think there are plants in the audience that jump up to sign up to get the train line going to the sign up levels. Basic mind hype. - just like the selling of water filters. Bull crap If you have $20k go look for a house on the open market! If you are looking in certain areas that's like buying it over the 20% down or buying it out right. Then you have something that will teach you much more than *** sitting and being hustled. After your purchase you don't have to call anyone to ask what to do you just need to address the problems with YOUR property situation. The most important thing with this model is to refin the flaws to maximize profits.
  • Real Estate Consultant · Memphis, TN · Member since 2015 · 70 posts · 82 votes
    9y

    I just saw this post and wanted to add on here:  there are other courses that these so-called specialists offer and they all work the same way (some are even from out of the country and will say they have all of the connections here in the US and are moving here in the same month while not paying taxes or owning a business license to conduct business!).  You pay a fortune and get almost nothing!  I even reported to the general attorney's office but all I got back was a link to a site that shows you how to avoid scam - duh!  Nothing in their link was helpful to have prevented any of my scam experience!  Of course, I am in CA where no attorney general is concerned with citizen's requests but rather their own and if they do contact you, you are probably the one being investigated for speaking up!  

    I would like to know if anything came out of this thread on BP here....please update as there are always more individuals who get scammed!

  • Investor · Peabody, MA · Member since 2015 · 114 posts · 107 votes
    9y

    So far nothing has come of it. I have a lawsuit pending but it takes a while. 

  • Investor · Peabody, MA · Member since 2015 · 114 posts · 107 votes
    9y

    So far nothing has come of it. I have a lawsuit pending but it takes a while. 

  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    9y

    @Erica Nagle Thanks for adding such great detail in this post.  Luckily I've only spent $295.00 for a weekend at the "rich dad" series in New Jersey.  The whole weekend was smelly but I put up the money so I went.  But the UP SELLING! was serious lol!!!  There were alot of people that appeared to fall for it but many of them could have been plants who knows.  But it was clear to me that they were traveling salesmen going all up and down the East and West coast preying on would be real estate entrepreneurs.  I'm sorry that you and your husband had to go through this and I think your doing the right thing by exposing it/them.  Think of the tens of thousands you are saving people!  Glad your not giving up!

  • Johnson City, TN · Member since 2014 · 586 posts · 705 votes
    9y

    I have noticed a lot of wanna be gurus and those looking for investors showing up here with tales of huge profits and gains. When questioned for their numbers they come up with figures that don't seem right but always have a slick response when quizzed further. Beware of self promoters.

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    9y

    Wow. I forgot all about this thread. Thanks for the update, I'm dying to see what comes out of the lawsuit! 

    Skyline Properties
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  • Investor · Peabody, MA · Member since 2015 · 114 posts · 107 votes
    9y

    Right now I'm looking for someone to file a suit with Success Path Experience. It will help the overall case against them and my lawyer will file for a nominal fee because it will help an existing case. Right now we have 5 defendants with the primary being Zurixx, LLC. This is the parent company of all of these guru companies. Success Path, Flipping Formula, Advanced Real Estate Education and some others are Zurixx, LLC 'doing business as' (dba) the various companies. Let me know if anyone is interested. I'm going to start another thread also.

  • Real Estate Consultant · Cleveland, OH · Member since 2016 · 511 posts · 345 votes
    9y

    If you want "guru" training, start networking in  your area. You will find all the advice you need. Work your relationships and get around people who are really doing what you want to do. These people won't be selling workshops, they will be buying/selling/renting houses. 

    I had 90 minutes one on one with a guru yesterday. Cost me $36 at Cheesecake factory for lunch. I learned more in 90 minutes than I learned in 90 days, and actually may have gained a business partner. 

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