It’s A Scam!
November 7, 2009 
13 Comments
I got an email a few weeks ago from a customer who purchased a course I recommended and she was in a frenzy. She said that she wanted her money back because she discovered the product is a “scam.”
It was a weird email to get because I only recommend products and services that I have personally used or reviewed extensively. And the product that she was referring to was not only a product that I helped create, it was one that teaches a strategy that I use in my real estate investing business today.
According to dictionary.com, the definition of a “scam” is:
A fraudulent business scheme; a swindle.
Here’s what I think of when I think of a scam:
** Those Nigerian emails saying you can make a million dollars by paying for a wire transfer
** An Indian virtual assistance company that has a $300 set up fee and you never hear from them again after paying.
** People who advertise a property for rent on Craigslist that they don’t own and disappear after you give them a security deposit.
What I think some people call a “scam” when they’re talking about real estate investing courses is the fact that the getting of the desired outcome requires actual work.
For example, I hate short sales. I bought a course on short sales a few years ago. I took one look at the manual and said (out loud if I recall) “This sucks.”
I wasn’t referring to:
- The course
- The material
- The strategy
- The price I paid
I was referring to the work that was involved to pull off a short sale.
But, because I had invested this money and was considering the strategy, I figured I would at least try one … just to see.
I followed all the steps and got a deal. I gathered all the docs from the home owner, put together my package, sent a preliminary email to my buyer’s list to let them know something might be coming, submitted the package to the bank and waited. And waited. And waited. Then followed up and resubmitted the package and then waited. And waited.
At this point I said (really loudly) “This sucks!”
Then, after all that time, the bank said “no” and I screamed, “This sucks!!”
Bottom line: It didn’t work.
But really, what exactly didn’t work? Was it the course? The strategy itself? No.
I followed the course to a “t” and I did not get a $25,000 commission on this short sale like the sales letter promised. Is it a scam?
I have two close, personal friends who kill it in short sales (they thought my short sale failure was hysterical) so the strategy obviously works. And one of my friends learned how to do short sales from the exact same course that I bought. In fact, I bought it on her recommendation but my deal did not work out like hers usually do. Is it a scam?
I think that many people are confusing “scam” with “actual work required” and that’s scary. Real estate is and never will be a get rich quick scheme. There is no one magic bullet that will drop $1,000,000 in your lap.
There is a secret, though.
The secret is to choose a strategy that fits your strengths and interests, educate yourself about all aspects of that strategy and work at it every day until you are successful. And then work at it some more.
So, the next time something’s not working out the way we had hoped, let’s not be so quick to call it a scam. That should be reserved for the Bernie Madoffs of the world not the real estate investing educators who are working hard to put out great information.
Great article/post Susan!
I am the “silent” partner behind your dancing Broad cohort! Man, that was an awesome jibjab vid you put together with yourself, Steph, and my wife Julie!
Anyways, I am finally getting around to checking out your blog and came across this post. It’s something that we constantly comment upon on both our blog and on our website http://www.revnyou.com. For some reason people who buy courses, go to seminars, or conferences and even buy books seem to associate handing over their money with getting an instant return on the dollar investment. It’s the idea of Return on Investment vs. Return on Time. When you are first learning a new strategy, often your ROT is quite low due to the huge learning curve. Whereas, your ROI can be fairly high if you buy a $300 course, spend a few bucks on placing ads and legal work and turn and make $4,000. But, the TIME and EFFORT has to be there.
Thanks for the great post!
Dave
Susan, this is a great post and SOOO true!
Although there are few that I disagree with, most so-called ‘gurus’ are indeed scammers!
Paid for a $4,000 bootcamp with Robert Allen back in the 1980s and he never came through…shortly thereafter read about his accident and also about his bankruptcy….
Come to think of it, now that he’s back ‘in-the-game’, so to speak, perhaps he should be paying back all of his creditors, including his students!
I may agree with you that the courses, books and tapes (CDs/DVDs) may contain good information but many, many times there are bootcamps associted with the courses. I have find many of these so-called bootcamps and promised email support to be of very little value…just another attempt to sell you more crap!
I don’t agree with you, Ingrid. I personally learned some stuff from Robert Allen. And guess what, my #1 mentor in real estate investing is now in PRISON! He was guilty of tax evasion but I sure didn’t get “scammed” by him. I am grateful to him every day. Just because he didn’t pay all his taxes doesn’t make him a scammer.
I have courses AND people are still raving about my Getting the Money Bootcamp. I think it’s short sighted to be so dismissive of all “gurus”in general.
Ingrid: I challenge your statement above that, “most so-called ‘gurus’ are indeed scammers!”
Have you purchased training from most ‘gurus’ yourself, gone through that material, and found that you were scammed? Or is it possible you’ve felt taken yourself, and are now painting with a too-broad brush?
Also, you seem to be implying that if someone’s been through bankruptcy, they’re clearly unqualified to be teaching how to make money in real estate. REALLY? Do you think bankruptcy or even foreclosure doesn’t happen to even the best real estate entrepreneurs? In reality, it’s happened to most of them. Being an entrepreneur by default is riskier than a regular job. And no, you don’t always win…you do bad sometimes and you lose big sometimes. But it’s not whether or not you do bad deals…it’s how you contend with it during and afterward that matters.
If your measuring stick for someone worth learning from is that they’ve never dealt with bankruptcy before…you may find most current millionaires off your list.
Just a friendly challenge. I can tell you’ve felt hurt and taken advantage of. But don’t blame all the gurus. I guarantee every single product you’ve ever purchased had a money back guarantee of at least 30 days (it’s the law). If you don’t like what you got, SEND IT BACK. And move on. And don’t paint every other expert the same way.
OK, off the soap box now.
…jp
I am considering ordering your course Susan and it seems to be only available to download and learn from internet. How much success has fellow people who bought your product had in buying apartments and how long did it take. I have some knowledge I just need help in obtaining my first unit. I want an income to replace the 50k I am making now. I have other interest I would like to pursue at my age of 50.
Yes, all my courses are digital since I run a green company. The students who actually use the strategies are having success. It seems to take anywhere from 3-6 months to get the first doable deal. It’s not get rich quick and you’re definitely not going to replace a $50K a year income on one deal if that’s what you’re implying.
I really loved the Master lease option course the way it was presented. I see myself being a solutions implementer in commercial properties.
I do know of a couple of other real estate strategist that are somewhat aware of the master lease option. But their courses cost thousands more.
I really want to be one of the first 500 people to get the course. I believe if I can get enough knowledge to implement the strategy in the right market and investment property. I will be able to quit my job and live a quality lifestyle.
Two things I wish I heard mentioned in the sales pitch. One is Dave Lindale writing offers that include a repairs on the leased property also an acquisition fee. When I can make offers that include that fly. I will be over the top and running wild.
Thanks Will. On a MLO the repairs are typically made by the owner. You usually address that in the MLO to decide a $ threshold. As far as an acquisition fee for you upon closing an MLO, I would love to see proof of anyone doing that. That works when you are buying but I’ve never seen it just upon signing an MLO.
Susan,
I need your help now to price a multi-family property and submit correct LOI and loan package to an interested insurance company.
I’d like for you to consider an investor /partnership arrangement for the below asset and other off-market products.
Whatever you thoughts I’d like to talk with you briefly.
DETAILS:
This profile is in my possession, 216 units m/fam., Class “A”, 96%occ. Located in the Chicago area. Target price at 45-55% of current appraised value
I’m an ex-new car dealer, willing to do what it takes to create a practice and build a portfolio. Please with your experience Susan, I feel invincible in this matter. Please let’s talk. Thanks in advance.
Michael Jordan
708.378.5121
Hi Michael. I do occasionally partner with students on multifamily deals. To qualify, the min purchase price must be $10 million, no rehab and you must be a member of my coaching program.
Hello Susan…I’m all in. Will be purchasing your course next payday. I love how you explained everything via facebook webinar.
Thanks Raymond!