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Too Good To Be True?
  #1  
Old 06-28-2009, 04:38 PM
Sableonblonde Sableonblonde is offline
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Default Too Good To Be True?

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. 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

  #2  
Old 06-28-2009, 04:46 PM
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Sounds iffy along the lines of Herbalife or Kirby. http://www.cockeyed.com/contents.shtml under Citizen has some starting points.
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Last edited by rvdammit; 06-28-2009 at 04:47 PM. Reason: typo

  #3  
Old 06-28-2009, 07:25 PM
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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.

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Old 06-28-2009, 10:21 PM
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From what you're saying it sounds like a SCAM SCAM SCAM - it may even be a legal scam.
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  #5  
Old 06-29-2009, 11:55 AM
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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

  #6  
Old 06-29-2009, 03:19 PM
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Quote:
Quoth Rapscallion View Post
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!!!
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  #7  
Old 06-29-2009, 10:21 PM
Sableonblonde Sableonblonde is offline
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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

  #8  
Old 06-29-2009, 11:12 PM
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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.

  #9  
Old 06-30-2009, 06:37 PM
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Quote:
Quoth Sableonblonde View Post
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.

  #10  
Old 06-30-2009, 07:00 PM
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They "only" want 8000 bucks, eh?



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.
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