Peter Conti's - Commercial Dream Partner?

Question

Hello All -

Currently doing single family rehabs but want to get into commercial properties. Based on the magnitude of investments and risks, I think that finding a mentor is the way to go. I am tossing around entering into Peter Conti's Commercial Dream Partner's program, for a few reasons.

Wondering if anyone has joined and can provide insight?

Thank you ahead of time for your responses.

Adrian Bolton · Answer

I wasn't interested in real estate investment at first knowing very well that you need to have high net worth and substantial cash in the bank to investment in those kind of deals. Considering that the economy is in recession, high bank lending rates and overpriced housing markets (especially in the West Coast), real estate investment was no big no for me. The last thing you want to have in life is to end up in a bankruptcy case - I'd rather commit suicide than ending up in bankruptcy.

Despite all my rightful instincts and clear judgement as a financial analyst, I still went ahead with Peter Conti's Real Estate 101 class as they call it. I was lured into the idea that Peter was selling that "you can become wealthy and invest in multifamily family apartments with little or no money for investment". Then he went on to sell how he was a low paid mechanic in the East Coast with very little money to invest in real estate and then becoming so successful that he became a millionaire 3 years later.

To start of, I filled up the online form and then Peter's team called me in which they used a very smart tactic to say that if I don't enroll in the class as soon as possible, the class would be filled up and there will be no space left for me. I ask for the fee and they said it was $15,000 and there's no way I had that money in my bank account. They said they have some lending options I could use so they hooked me up with some lending institutions. I did the pre-qualified offers and turned out based on my good credit score that the lowest interest rates they could offer was 29.99 percent and that's the same as paying 5 times the loan amount so if you are borrowing money from one of those lenders then you'll ending paying up $75,000 at the end of the loan term. I got a loan from my bank and they offered around 15 percent for the $15,000 loan.

I started the class after paying the entrance fee of $15,000 and asked the guy doing the registration how soon I could get a deal and he mentioned shortest would be 3 months and longest would be 9 months. I was so excited and could wait to finish Peter's 10 weeks class and make one true deal and "have me set for life" as the motto Peter used to say.

Well, just on my second week in class I made my first offer and submitted the offer to the forum. Eric Hamm the CEO responded and said that I had to get a pre approved loan letter from the bank in order to make an offer to the seller. This took me off guard as Peter's team were all talking about syndication and we don't have to worry if have no money to put for down payment. Guys and ladies, to reiterate the last thing you want to do in 2023 and may be in 2024 is to be taking mortgage from any lending institution. The Feds have been hiking interest rates like to crazy to discourage people like me and you spending more and to save up since we will be digging deeper into our pockets if we continue with this lifestyle of extravaganza spending.

As we progressed into the 4th week of the course, more classmates had the same situation as me that they were finding it difficult to get pre-approved loans from hard money lenders and banks. Eric (CEO) and Peter mentioned that we need to find business partners who are high net worth individuals and are willing to co-sign the loan/mortgage with us. We had to find friends and even family members who are willing to take the risk and co-sign the deal for us. There you go and I thought this was the end of my hope and now I'm really stuck. I called on of the hard money lenders I was working with and asked how I can qualify for a pre-approved loan offer. He asked me what was my net worth like and how much liquid cash I had in the bank and boom there he just stopped me half way through our conversation that there was no way I going get an offer from the bank if my net worth was nothing closer to the down payment for the property. Which in this case was 25 percent down payment for commercial property investments. After we ended the call, I felt like I've been betrayed and lost all the confidence to continue with this course.

But I realized I learnt my lesson and had to warn anyone venturing into Peter Conti's course to stay away from them and don't waste their time and money like what I did. At this point in time, I am still trying to figure out how to repay my $15,000 loan which is currently due for payment at this time of writing. If you are not a high net worth individual or doesn't have any friends or family members who is a high net worth individual, its unfortunate to say that you should not proceed with Peter Conti's course. You are losing more than to gain.

Real estate investment especially with wholesaling involves a lot of time, investment and commitment and if you are someone who is not a salesperson like me and has a day job, doing  Peter Conti's course will not make sense. They do their follow up calls during working hours i.e.  from 10am to 3pm  and if are at work, you'll have to sit in your car or take the call during your lunch breaks.

There are much better real estate courses out there, please just do your due diligence and take advantage of the information on the internet. Start attending networking events to get more connection. Even so, if you are not someone who wants to do the dirty work, there are reliable investment opportunities out there with better returns and may be start off with something like Fundrise.

Fern Bacungan · Answer

Not worth it for me.  I'd suggest just getting educated yourself (by reading books, watching Youtube). Then networking as much as possible (GOB Network of apartment owners, local REI groups, FB groups, etc.)  Always try to add value to others in your group through your own knowledge, being a bird dog by finding deals, etc.

Fern Bacungan · Answer

I wanted to share my disappointing and unfavorable experience with Peter Conti's Mentorship Program.

I purchased Peter Conti's Dream partner program for $15,000 in October 2022.  I selected his program after reviewing 2 additional mentor programs by Peter Harris and Tyler Cauble. Peter was the only one who offered a 6 month money-back guarantee if we couldn't close or wholesale a commercial property within that period of time. Was that part of his "hook" to sell his program?  If it was, I swallowed it hook, line and sinker.

His money back guarantee includes:- making 3 offers a week to Off-Market and On-Market properties- submitting the offers and their written responses from the broker/owner to his website. Verbal replies are invalid.- if you make more than 3 offers a week, he will not accept more than 3 offers as a valid submittal

My team of 5, including myself, was very capable. We were sending 5-10 offers a week investing in residential real estate.  We used various sources of leads (title company resources for off market leads, MLS data for on market leads, etc)Firstly,  one of the first items which wasn't revealed until AFTER the purchase was:- Peter doesn't put up an money in any transaction, including Earnest Money.  He also doesn't offer his biography or financial statements as part of a buyer profile.  So you are entering a transaction alone financially. Side note:  he gets 50% of the profits on a deal.  As a partner, wouldn't it be helpful if he participates in some form, financially or with his financial statement?  Certainly, he's using his "expertise and experience" while negotiating and navigating a deal.  But be ready to take on ALL the financial risk, including putting up Earnest Money.  On a commercial transaction, 1% of $1m is a $10k Earnest Money. If you don't have the resources, he will ask you to ask friends, family or other investors to put up the EM because he will not.

Secondarily, I believe his money-back guarantee program is rigid, inflexible and biased.  I honestly don't believe he wants to honor his money back guarantee for investors who give 110% effort to closing a deal.  Over the 6 month period (24 weeks +/-), we submitted 3 offers a week to Off and On-market properties.  There was one week where we submitted only 1 offer. Another week where we submitted 2 offers. (Keep in mind, we were actually submitting 5-7 offers a week because some brokers/owners did not respond to our offer. Only written responses are considered  a legitimate offer).  Because we did not "qualify" in those 2 weeks, he would not honor the guarantee. Having made 3 offers  week for 24 of the 26 weeks, I asked if we could do 2 additional weeks.  He said No.   Does he really want to honor his money-back guarantee? Or was his intention a marketing gimmick with no intention of giving his students their money back.

On a positive note, I learned a few things:- Guru's exist to help you elevate your game to the next level. Don't expect them to take you to the finish line. Only you can do that.

- Would I do Peter Conti's program again?  No.   didn't feel he was a true partner in these transactions. Certainly, he served as a consultant along the journey.  A partner means that you can trust him/her during the process; that you both have something at stake; that your goals are alignment with each other;  I never felt that way. It felt too one sided.Why does one "partner" puts up all the financial risk, and the other partner gets half of your profit for their "experience".

Lastly, I believe you can learn just as much by simply educating yourself in all areas of the game with the vast amount of free information on the internet. To actually do a deal, find a partner who has invested in a transaction in the past. Offer him the majority part of the deal and you learn along the way.  You can find these partners by being a wholesaler who sources deals, fellow investors in local REA meetups, be active in FB groups, and network with as many people as possible. That doesn't cost you anything but time and effort.

Peter Conti · Answer

Hi "Adrian" - We don't show a client with your name or any tuition received, so I'll assume you're a real person who's using a fake name.

Commercial real estate takes dedication and persistence, and is generally accepted to be worth it by those who stick with it. We train our staff to avoid stating any time periods to get a deal as we can't control someone's efforts nor how they might follow our advice. As we can't listen to or monitor every call - our agreement spells out (in bold)  "you agree you have not been promised any results" and "this supersedes all prior discussions." If our rep mis-spoke I do apologize for that.

We tested a conditional guarantee with a few clients, but found it attracted people like the one who posted above that attempted to check off the boxes in the guarantee instead of completing our training, joining our zoom calls and letting us guide them on their commercial investing journey. CRE, like anything else in life, requires the commitment to stick with it until you succeed.

We help our clients overcome obstacles, but rely on them to let us know they need some additional help. In your case, your concerns about a pre approval letter could be solved if you'd asked for further assistance. I'm sorry to hear you think it's a bad idea to use a mortgage to buy real estate. We could talk you thru that one as well if you had asked which makes me think there's a chance you might not really be a client of ours. With any mentor or guide you'll need to stay the course and avoid the temptation to jump ship and go after the next shiny white object.

I wish you the best of luck and those who choose to work with us know we will continue to support and encourage you for as long as it takes to get to your goals.

Rajesh Rajasekaran · Answer

Fern - Peter Conti wholesaling secrets course worth it?

Brooke Wicklund · Answer

I got the pitch yesterday

Fern - did you get the weekly 1-on-1 time? Did you find the 3rd party software that searches on the deal and get leads for you - was that valuable at all?

Rashad Cooks · Answer

Hey Angel,

I’ve been looking not the course myself. Considering no one’s given you a response did you end up biting the bullet and doing the course, if so could you give me your insight on it so far?

Peter Conti's - Commercial Dream Partner?

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