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Sableonblonde
06-28-2009, 04:38 PM
My boyfriend (well sort-of boyfriend, we're just casual) recently attended a real estate investing seminar, and now he is all excited about becoming a real estate investor. Tired of his 9-5 job, he claims that he is going to start buying and renting out properties, and it will be very easy, with little work needed on his part, so that he'll be able to spend all of his time traveling and stuff.

While I want to be supportive and encouraging of his dream...I have been nothing but skeptical. I asked where he was going to get the money to start buying properties, and he said he would get a bank loan. Okay - I am not trying to be a smartass, I am serious with this question - would a bank loan tens of thousands of dollars to someone who makes $20,000k a year, has no money at all saved, no assests, and no experience in the business he hopes to start?

He claims that this company who ran the seminar, whoever they are, are going to help do everything for him - get him the money to start out, find properties for him to buy, etc. He said their fee for all of this is $8,000. :eek: I said, what if it doesn't work out?? What if this is a scam? He insists that it isn't.

After the seminar, he went back for an "interview", and was accepted - that alone seems suspicious to me. They act like there is this tight selection process, and yet decide that someone with no money, no assets, and no experience is the perfect candidate for real estate investing? Huh.

So I don't know if anyone here knows anything about this sort of stuff, but I figured I'd fish for some opinions. He is SO excited, but I'm thinking he is being scarily naive, and it's gonna be bad for him when this doesn't work out :(

rvdammit
06-28-2009, 04:46 PM
Sounds iffy along the lines of Herbalife or Kirby. http://www.cockeyed.com/contents.shtml under Citizen has some starting points.

One-Fang
06-28-2009, 07:25 PM
Be very supportive - so supportive that you look up other investiment firms and make appointments for him to go and consult with them. :)

He might get an idea of the real world. Yes, that's too good to be true.

draggar
06-28-2009, 10:21 PM
From what you're saying it sounds like a SCAM SCAM SCAM - it may even be a legal scam.

Rapscallion
06-29-2009, 11:55 AM
Generally speaking, if it sounds too good to be true then it is.

Also, if these people are able to make huge amounts of money in real estate, why aren't they doing it themselves?

Rapscallion

taxguykarl
06-29-2009, 03:19 PM
Generally speaking, if it sounds too good to be true then it is.

Also, if these people are able to make huge amounts of money in real estate, why aren't they doing it themselves?Rapscallion is right about this. Ask how much the promoter made in real estate--show me the tax returns. If you don't like the answer walk away. Check on stock quotes and annual reports for the company promoting this seminar--a steak dinner says the company (if publically traded) is a penny stock and makes most of its revenues off these seminars.

BOTTOM LINE: WALK AWAY!!! WALK AWAY!!!

Sableonblonde
06-29-2009, 10:21 PM
By doing some googling I found the website of the guy giving the seminar. To me it sounds very glaringly like your run-of-the-mill get-rich-quick in real estate scheme. There are also articles about how it is a scam. But, he is accredited with the Better Business Bureau.

I guess it isn't my place to stand in judgement...it is not my life. What bothers me is how he is in denial about how this is such a gamble. The seminar cost nearly HALF of his yearly salary and there is no guarantee that he will succeed. Plus he has this cavalier attitude, claiming that there will be no little to no work actually required...which I think is a little ignorant. I don't think I will mention any of my "research" to him...he already thinks I am being too negative :(

csquared
06-29-2009, 11:12 PM
Raps makes a good point. He is selling the idea for $8,000 a shot and carrying ZERO risk.

If this was such a great deal, he would be saving the property listing for himself.

strawbabies
06-30-2009, 06:37 PM
By doing some googling I found the website of the guy giving the seminar. To me it sounds very glaringly like your run-of-the-mill get-rich-quick in real estate scheme. There are also articles about how it is a scam. But, he is accredited with the Better Business Bureau.


I usually don't care if someone is listed with the BBB. You pay for a membership. Just because someone is listed, doesn't make them a reputable company.

Yes, the real estate investment thing is a scam. I had to talk my dad out of one of those 10 years ago.

RecoveringKinkoid
06-30-2009, 07:00 PM
They "only" want 8000 bucks, eh?

:rolleyes:

Really.

That's a scam. Make sure this guy uses absolutely none of your money and don't let him talk you into using any of yours. Let him burn off his own money.

A person cannot invest until they have something TO invest. And your bf won't ever collect enough to invest if this is his idea of a good business decision.

If he is dying to invest somewhere, tell him to invest in some stock. Pick a good, strong company and invest in that. Some companies are doing well even in this economy, so buy it while it's low and sit on it till the economy recovers.

spark
06-30-2009, 07:46 PM
Getting into real estate NOW?

No offense, but has he read the news? Looked at the stock market, noticed all the yelling and flailing and panicking over the real estate market crash?!!!!

Okay, I guess there's something to be said for getting in while the market is down, real estate prices are somewhat cheaper than they used to be. There's no guarantee that things have stabilized though, I've seen some people predicting a second market slip, to bring house prices back in direct line with inflation, which they're still significantly above.

Even if this was 100% legitimate and not a scam (and I don't buy that for a minute!) it still might not be a wise decision. I know way too many people right now who were in real estate, and are currently in dept up to their eyeballs, out of work, and out of luck.

RecoveringKinkoid
06-30-2009, 08:25 PM
Is this (http://ezinearticles.com/?John-Beck-Scam?-Decide-For-Yourself-With-the-Information-in-This-Review&id=2203689)what your bf has gotten into?

Edit: Looking worse and worse.... (http://74.125.47.132/search?q=cache:dizq9YL13EsJ:nouveauscam.blogspot.c om/+real+estate+investment+scam+%2B%248000&cd=19&hl=en&ct=clnk&gl=us)

Okay, look here, have your bf do a google search of "real estate investment scam +$8000" and see if that doesn't cool his jets. If it doesn't, well, there's no help for him.

Sableonblonde
06-30-2009, 09:40 PM
Oh, TRUST ME, he is not, and will not, be using any of my money. Our finances are in no way joint. If he wants to risk going $8,000 into debt, that is his own issue.

It does sound a lot like that John Beck thing, where they supply you with information and lots of encouragement, and supposedly contacts, but really it's hit or miss whether you will actually succeed. Maybe it is not a scam so much as it is desperate people getting preyed on.

I had though along the same lines - if there are so many great real estate investment deals out there, why wouldn't these guys just want to snatch them up themselves instead of drawing a bunch of other people in the "share the wealth?" If you found such a great money-making idea wouldn't you want to keep it to yourself? Why would you want to create competition for yourself? Then of course, the seminars and drawing people in seem to be the great money-making idea.

A person cannot invest until they have something TO invest.

Well, uh, not according to this seminar's website. According to them anyone can succeed in real estate investment, even those with zero dollars to their name. Especially those with zero dollars! It seems like they are actively recruiting broke people, desperate people. Which, makes sense.

RecoveringKinkoid
07-01-2009, 01:16 AM
Broke people are desperate people, and very often, they are people who have a tendency to make very bad decisions with money. Hence the perpetual brokness.

Who was it that had the very true sig that said something to the order of "rich people get richer because they keep doing what made them rich. Ditto the poor."

I don't know if that's the quote, but that's the gist of it. And it's true.

Your bf is about to seriously screw the pooch.

I don't think it's a coincidence that they are asking the exact same amount as the "first time real estate buyer" incentive pays. I mean, this thing just screams "scam" to me.

Mr Slugger
07-01-2009, 01:41 AM
You know the sad thing, like most scams like these is.... there's a little bit of truth in it. I mean honestly I don't doubt that perhaps with some training some of these people just might pull it off. But the problem is only a small percentage.

It's kinda like when I started my first website, long before CS, I spent about $150 to get it up and running within two months I was up to making about $1000 a month off them with just minimal effort. And when I made money on ebay it was like $500 a month no problem, again minimum investment. But you've got to know the market and get into something that not a whole lot are into. But to some extent I consider myself lucky. I mean yeah I've had 2 successful internet businesses, but I've also had flops.

The problem is that people "share their secret" look at it as they don't have to worry about the flops anymore. Others will flop.

tropicsgoddess
07-02-2009, 03:11 AM
That company is asking for an upfront fee of $8000??? Those are some major red flags for a scam. Let your guy know that you do support him and that you do have your reservations about this venture he wants to get into. I don't know why anybody would want to be in the real estate biz or anything close to it (mortgages, etc.) when the market is so shitty right now.

Jester
07-02-2009, 03:54 AM
He claims that this company who ran the seminar, whoever they are, are going to help do everything for him - get him the money to start out, find properties for him to buy, etc. He said their fee for all of this is $8,000.

So, let's see. Little to no work? Check. They'll do just about everything for him? Check. They'll help him find everything he needs to succeed, without him really having any knowledge about this field? Check.

So far, it is only potentially a scam. Now, do they want a large amount of money up front for "fees" and "training"? Lesse, eight grand....yeah, I would say that is a huge fucking check!

Legally this is probably not a scam. Realistically, this is absolutely a scam, and the one certainty I see here is that your boyfriend is going to lose his eight grand and probably never see a return on it. I mean, anyone who wants to make a lot of money without doing any work and having other people do it for them is by definition very lazy, and the fact is one does not make large amounts of money by being lazy, unless they inherit it.

These people are preying on people's hopes, dreams, and utter laziness, and the fact is, for the company it is a win-win situation. If the "investor" actually does all the work and makes money and succeeds, the company wins by looking good. If the "investor" is lazy, as most of them will doubtlessly be, the company can say they did not succeed because they didn't do what was necessary to make money. The company wins by pinning the fault on the "investor."

You may notice I put the word investor in quotes. I do this because a true investor has some realistic chance of making a return profit on his initial investment. This is NOT the case here. Your boy toy is getting taken for an eight thousand dollar ride.

Remember, if it seems too good to be true, it almost certainly IS too good to be true.

Getting into real estate NOW?

No offense, but has he read the news? Looked at the stock market, noticed all the yelling and flailing and panicking over the real estate market crash?!!!!

Actually, if one is buying for investment and/or future sale, this is the perfect time to get into real estate. It is totally a buyer's market (Nurse Betty got her new house for a steal last fall), and if I were the type to buy property, right now I would be buying as much as I could. Could the market dip more? Sure it could. But at some point it will bottom out, it will stabilize, and it will recover. And in general, real estate only appreciates in a stable economy. Yeah, I know it's not a stable economy now, but these things are cyclical, and at some point int he future, the economy will stabilize.

That being said, that doesn't make this whole thing any less of a scam.