Would you think scam??

[Rachel Mellies]

We have a friend who uses a wholesale/turnkey type company for his property investments. They sell you the property for about 10k more then they bought it, then they have construction teams to renovate for you, then they turn you over to third party property management. They help you get lenders and set up your llc’s and trusts. Our friend is happy with them and he has other friends working with them too.  We spoke with them for a long time on the phone and the guy was very smart and showed us their dashboards with impressive information about their properties and all the numbers associated with it and that market. Going off that call and our friend, it would seem legit. 

however, we keep seeing alot of red flags. Crap website and goes under a couple names both of which are names or separate companies with bad reviews. There’s next to nothing about this company online. they did podcasts but stopped a year ago. They’re asking 5k upfront for costs that go toward setting up your legal stuff and becoming a ‘member’. And that deal goes up to 10k after 7 days. They’re emails are marked spam and suspicious and look like phishing emails. 

Is it possible for our friend to own houses through this company and have renters and everything running normal on that front, while in the end being a scam?