Taking a stand on a $50,000 lie progress

[Erica Nagle]

We are looking for others to join a lawsuit against Success Path, Flipping Formula and other companies involved in taking millions from people promising things they never deliver. The more people we can get to file the better our chances are of succeeding.

Here's why...

I've written a couple of posts about my experience with real estate investing 'guru's' and wanted to provide and update and ask for some help. You can see my story in the forum post 'Taking a stand on a $50,000 lie'. While my loss of money is tragic, it's not as tragic as the insane amount of money these people are making and others are losing even as we speak.

Here's how it works...

Once you realize you've lost thousands on empty promises and fraudulent practices you contact the company and ask for your money back. The Director of Customer Service, Shane Andrus will contact you via phone and try to make you think you are the problem while attempting scare you out of taking further legal. He'll likely insult you and accuse you of hidden agenda's and financial problems that you are looking to solve at their expense. He'll tell you that if you pursue legal action you will spend thousands and get NOTHING. He will offer you a fraction of what you lost if you sign an agreement first. This agreement states you should never speak of the settlement they gave you and never mention their name in a negative context ever again. It doesn't guarantee a date in which you will receive the money and some have complained they never saw the money even after they signed the agreement.

The business structure...

My lawyer has done some research and found a very tangled web of businesses that run various seminars, bootcamps, coaching, etc. The parent company of all of the companies they use is Zurixx, https://www.bbb.org/utah/business-reviews/training... for a larger list and more info. You'll have to scroll down to Alternative Business Names in the left column.

We THINK this is how they shelter themselves from lawsuits. Anyone who files will likely list Success Path or whatever company they had experience with as a defendant. But that company MAY not have any assets or there is some other catch. It's funny because thinking back to the Vegas Seminar JJ Childer's pretty much explained how they work and recommended investors structure their businesses the same way. The catch phrase is "Own Nothing, Do Nothing". This means you need two companies. One to own the assets and the other to do business under. The idea is that you purchase a property with Company A, LLC and do the work as Company B, LLC. This way if some shenanigans happen and someone has grounds to sue Company B for operating issues, Company B has nothing to lose...Company A has all of the assets. We aren't positive this is how they work but it's a strong possibility.

Just for fun..

I invite you to go to Zurixx's web page http://www.zurixx.com/about-us/our-team/ for a visual of who we are dealing with.

Please PM me if you are interested in getting involved and helping all of us that have lost money and others who will in the future. This affects people of all ages. Picture your parents, friends and other family losing all they have because they put their trust and confidence is these people.

[Jay Hinrichs]

can you be more specific about promises made and not kept.. 

Its no secret that these companies are in the business of selling education.. ( however did they promise results)  you can sell education but everyone's results will be different..  same with collage some graduate top of class and go on to stellar careers others never do any thing with their degree.

I have attended many of these as a vendor... I would say my main issue with their business practice is 

1. encouraging payment through credit card .. IE putting student in massive expensive debt.. but then again look at all the student loans out there.

2. tugging at the heart strings.. MLM based presentations  lead with why they are doing this all for the family big picks of family etc.. those are red flags.. I personally spend plenty of time with my kids I dont need them to paint some rosy picture that if I had financial freedom I would all of a sudden spend every waking hour with my kiddos  plus they don't want to hang with dad anyway.

3. mentorship that is nothing more than kids in boiler rooms in Utah.. I have personally walked through Premiers floors and Nudges floors.. hardly RE professionals helping.

Just curious also of what you expected did you think taking this course would some how lead you to real estate richs.. to me that smacks of being highly unrealistic for most sensible folks.. this is a very tough industry NO one can give you basic training and all of a sudden your a rock star.. but did you believe that would be the case ??? just curious... 

Also its important to note that when you go into a grocery store and you see Arnold Palmer wine do you think he is making the wine or made the wine... No he just sells his name.. this is marketing one o one sports stars do it all the time its called endorsements.. so these TV dudes are paid for endorsers for the back end offices that do all the work..  and like Nudge they front  Tony Robbins and others that are not even related to RE.. but they do the Yancy's also.. they are in the seminar business.

I suspect there is some room for deceptive practices here.. I know a group has filed a class action against Armando montalongo... not sure where it will go.. But I have been to a few of his deals over the years and I have funded many of his students that have gone on to do very well.  But when I am at these events I can tell right away that the majority have no clue and will never do anything.. but there is always those 10 to 20 students that walk out of there with the knowledge they learned and become players.. 

its just like anything real estate related.. 100% of people try RE sales or wholesaling and 50 to 90% fail straight away.. you have guys out there selling how to wholesale programs for 10 to 40k.. and that is even worse than the flipping guys.  And then there is the Note school 30 to 40k to learn to buy notes ... etc etc.

So as stated what specifically other than you lost money is your main point and grievance with this guru company.  Good job on the detective work.. but this is well known to those of us in the industry.