Armando Montelongo system

[Erick Sanchez]

I've recently purchased Armando's system and 3 day live course. Good or bad? After the purchase I read a lot of things about a scam which has made me a bit skeptical. I just want to hear someone else's thoughts...

Thanks

[Brent Paul]

A lot of the gurus will try to get you to spend tons of money on their "proven" methods.

The truth is everything is here on biggerpockets and it's free.  Tons of podcasts that cover everything from how do I get a loan to finding a property manager.

Some people have had success with gurus in the past and I admit I feel for it about 15 years ago also.  

[Patrick Desjardins]

He is one of the worst out there. Expect a lot of upsell to their massively overpriced programs.

Think about it, these guys charge 10-40k for their programs. For that price you can partner up with a local investor, learn a ton AND potentially make profits.

When you buy those overpriced courses the money disappears into the guru's pocket and you still aren't a real estate investor.

[Troy Fisher]

I really started to hate him when I saw him on Undercover Boss. It did a great job of really highlighting what these guys are really about.

[Jay Hinrichs]

@Patrick Desjardins

  I don't think you can categorize this company as one of the worse.. Since all the TV gurus basically use the same fulfillment companies to work the backend of their business.

They are all he same... they all market the same starting with TV and RAdio .. for the free seminar in your town.. then the 3 day course ( which cost ) then the upsell to the big events were they do bus tours etc.. and there is turn key product available for the folks to by.. along with asset protection. IRA set ups.. Insurance etc. Then there is the Master mentorships for the following year.

As with anything you will have some of the folks that spent the money do very well.. with what they learn.. and then you will have others that do nothing with it... No matter if they paid for the infor or got it for free they still would do nothing. 

And for this person if it jumps starts him to take action it could very well be worth the money.. 

[Mark Lopez]

Erick,

Im speaking from past experience with THIS system, do not let these guys persuade you into anymore upsell programs. Had I found Biggerpockets before I found these clowns, I would be that much further ahead in my education. Josh has started something here that is legit and very necessary to all investors, especially newbies!! 

Good luck, Mark

[Erick Sanchez]

good info from everyone. It seems like everyone has about the same thought. I wish I would have found BP sooner too.

Thanks to all!

[Mariana Ocampo]

hey eric, me and my boyfriend fell for that too we realized he was a scam and then I saw his undercover boss episode and I wanted to throw up, we were able to get our money back and you can too its just going to take a lot of calling them and pushing them but you can do it, it should have come with a cancellation notice, fill it our mail it express to them take pictures and keep copies and call that number and stay on the line you will find you need to keep checking with them but if you really want to get your money bacck you can if your interested, I believe all info should be free no need to charge an already struggling person thousands of dollars that is greedy and selfish

[Jane A.]

If you paid by credit card - you could cancel your purchase from your bank side. When you go to listen to gurus - have only $50 cash with you as they are really professional to make you want their system :))) fo jot overestimate your ability to resist

[Jonathan Twombly]

@Erick Sanchez

You should read this entire string here on BP:

http://www.biggerpockets.com/forums/79/topics/185362-please-help-41-000-paid-to-a-guru-company-to-be-refunded

[Stephanie Medellin]

Originally posted by @Troy Fisher:

I really started to hate him when I saw him on Undercover Boss. It did a great job of really highlighting what these guys are really about.

 I would love to see that episode!

[Don Montgomery]

It's kind of strange reading all these posts so negative about someone looking to assist you in your dream of becoming a real estate investor. Yes they dont do it for free, so what. This is a big money game so it comes with big money education. I am not defending Armando by any means, but I am a big believer in coaching and mentoring. And they costs lots of money. 

I dont work for any guru's. 

So funny I havent seen anyone complain about getting ripped off from a University. Arent they charging absorbent tuition only for their students to come out with nothing to show for it? I believe that is the biggest scam running right now. I just spoke with a gentleman that graduated from UCF with a 4 yr degree. He questions why he went because he feels like he didnt gain anything. 

I have been investing for a long time and I still attend trainings. I found that the alternative is to scrounge around for a piece here and there and try to fully understand it. A good instructor will put all the pieces in one place and give you step by step instructions on how to do it successfully. Helping you avoid pitfalls and mistakes.  And yes for that value you will and should have to pay. My opinion. 

I will close with I have an acquaintance that called me and asked me to come look at a property he had. I went and found that he had purchased it partnering with someone that clearly had no idea what they he was doing. Unfortunately my friend didnt either and was relying on this persons expertise to succeed with this deal. Turns out they are buried in a property that has many problems and they are looking for a way out. My suggestion was to cut and run before a bad situation gets worse. My friend lost $32,000 on that deal. Had he hired someone for guidance he would possibly still have his money and the knowledge to do it correctly every time. 

My suggestion is if you dont want to pay for training thats great, but dont blindly demonize someone for wanting to be compensated to teach you. 

Thanks for reading. 

[Jay Hinrichs]

@Don Montgomery  yup  a lot of Advice on this website is to not spend money on training and then just go buy a property for 20 to 40k

well that I think is extremely poor advice.. first off a property at that price point is usually a dog.

and or worse war zone dog.. and or folks get into deals and just lose the money because they really don't know what they are doing.. you can only get so much education reading and listening you need first hand guidance either in the field or class room I think.

Better thing to do with 20 to 40k if you don't want to pay for training is to partner with VERY experienced folks and do some deals to get experience

but no experience and go buy a 20 to 40k property I think is not the best thing to do. .one your buried in it.. and two you probably can't sell it  and three you probably will lose most of your money anyway and the only education you get is to not buy low end ghetto dogs

[Ayodeji Kuponiyi]

@Erick Sanchez as @Patrick Desjardins mentioned, you're better off partnering up with someone or educating yourself here on BP and starting small before scaling up. 

[Bill Gulley]

Did I not have two cents for this thread? I'm afraid I'd be over spending it!

As to education costs, no degree from any university or college guarantees success, but what you do get is a better quality of life from knowledge gained. Even if you can't apply all you learn, you're still wiser for it. 

Nothing in real estate should cost thousands of dollars, if it does you're being scammed.

Working with someone, especially old investors who do what they have always done probably isn't going to be a good place to start. Since the "student" doesn't have a clue they won't know if what they learn is currently legal, ethical or that profitable starting out. You need a good BS Meter starting out,  I have a blog on that.

A course on basic real estate should be around 3 to 4 hundred bucks, tops. (However you can get much of that free if you know where to look, it's not really on BP.)

We have some very good investors on BP, some real talent, but most of what you get is often the blind leading the blind, so saying everything is an education can be dangerous. You need a BS Meter, and the younger you are and the newer you are, the more you need that meter!

A few months ago I read some FTC filings against Realtors, investors and gurus, I believe the FTC is getting more involved with fraud and advertising issues and actually delivering on claims made. 

I believe the subject of this thread has been on BP before, as I recall I jumped in on some of those threads and I've not heard from him for a long time......so, guess BP  wasn't working for him very well. 

Learn the basics of real estate before attempting to deal in real estate! :)  

[Guy Gimenez]

He is currently be sued under RICO statute.  I think that's all that needs to be said. 

[Don Montgomery]

@Billy Gulley I read your  post and not sure how you arrived at many of your conclusions. Most importantly I would encourage others reading this post to remember that these are of one persons opinion and not to take them as concrete. 

To say that training should only costs a few hundred dollars in a business where you can make six figures on one transaction seems to me not thought through. 

Would you go to a doctor that paid $500 for his medical degree? 

Regarding FTC filings and other government agencies attacking businesses, doesnt necessarily mean that that business is doing anything wrong. We have government overreach like never before and are set to target and shut down businesses. I wont get political. Again I am not defending Armando. If he is hurting people then I hope his is punished. 

Regarding partnering with an experienced investor, what value are you bringing to the table? If you found a property, great then I am sure that will work. But you have to find the deal first to get in the door. 

Great training will cut years off of your journey to success. Over the shoulder, step by step training in a business that has great upside is priceless. 

I do agree with Billy Gulley in that I have been reading some threads and it is obvious that someone read something on a subject and was now sharing it as a proven tactic. Question everything that you read especially if its from someone that has no or little experience. 

I am new to BP and I am enjoying the conversations that are on here. Great site!

[Leland Barrow]

Real estate investing is not rocket science. I am sorry but it is not...no I am not even sorry, it is just not. The vast majority of what you need to learn in real estate investing is done by doing it. There is absolutely no benefit from these programs. It is not the equivalent of a college education. A college education is a long lasting bullet point on a resume. Put "I spent 40k on The Montelongo System for Real Estate Investing" as a bullet point on a resume and see if that helps or hinders finding a job. Someone else said you could make the mistake of buying a property in a war-zone. I think I would rather have real property in a war zone than flush 40k down a toilet. The fact is that everything you need to know about real estate investing you can learn from the search button at the top of your screen on this site. You don't need a mentor, what you need is to educate yourself, make a plan, take action, be prepared to make some mistakes, and learn.

Next time someone gives you advice on how to spend your money put their name into Google and hit enter. You may find some interesting tidbits that may make you want to discard their advice and keep them at arms length.  This site is not benign, people with money (like 40k), will attract all sorts of people. Take all advice with a grain of salt and be aware of what your intuition is telling you. 

[Don Montgomery]

@Leland Barrow I agree with you big time regarding Armando's courses. Though I have never taken any I have heard from what people have said there is not much value in them at all. I am strictly defending the fact that training in any business has value. 

I have been a life long entrepreneur and fortunately have only had to submit a couple of resumes in my life. Personally I thrive everyday to insure that I will never need to work for someone else but I realize that being an entrepreneur is not for everyone. 

I also agree with you that you should do your research on the person that you are looking to do business with. And most importantly as I am sure you do, research the company you are going to work for before you submit your resume. 

Not sure about the real estate investing not being a challenge though. If that was the case then I wouldnt hear all these stories of people losing tens of thousands of dollars because they didnt know what they were doing nor would there be a need for a site like this, would there? 

How is it that there are tens of thousands of people on BP all looking for information if real estate investing was that easy? I believe that this business needs to be approached with caution and respect because if you get reckless then it can cost you. My opinion. 

[Jay Hinrichs]

@Guy Gimenez  Civil Rico  HUGE difference I got caught up in a Civil Rico as a RE broker circa 1985 .. one of 45 defendants.. all I was   was the listing broker did not know any of the other parties.. the others included the secretary of the project the landscaper the Janitors and anyone else who even got close to the project..   most laymen really don't understand what these are.. I on the other hand have a PHD in them having been a defendant.

witch hunt is what those are..

more to the story.. Not defending him in any way ... just saying..

[Guy Gimenez]

@Jay Hinrichs

I understand your point Jay, but I think you've missed the bigger picture here.  While I've never been a defendant, I'm not totally ignorant of the legal system as i was part of it for many years.  And even as a layman when you have more than 100 people as Plaintiffs in a RICO action, well, it means there is smoke which usually leads to fire. I don't have to be an attorney or past defendant to know the guy is let his celebrity go to his head as I witnessed (and I'm sure a jury will have an opportunity to do so too) on TV. I watched his shows in amazement years ago when he would tell his contractor, "just cover it up" when defects were found in his houses. Perhaps there's another more gentle and righteous side to him, but the behavior he exhibited on TV in front of millions of people reflects a serious flaw in his character...one that won't likely be easy to overcome in court. Reality TV?  Absolutely. Will it likely come back to haunt him?  More likely than not. And I"m sure you know that juries typically consist of laymen, not those with PhD's.   

[Bill Gulley]

I see we have a new wannabe guru, that explains the opinions.

Readers should be reading word for word what I posted above, my posts are not entirely just an opinion based on belief but various aspects of business, economic concepts and legal aspects based in real experience. Take it or leave it. 

Always look to the agenda one may have in giving advice or an opinion, especially if they believe something has a higher intrinsic value than it actually has. There is a big difference between real estate and medicine, the barrier to entry in real estate is about as low as it gets, and the barrier to practice medicine is at the other end of the spectrum.

You really don't need a lot of knowledge in real estate to make a lot of money, not compared to other professions, there are no secrets in real estate! Saying that real estate requires a higher degree of knowledge than say undergraduate work in college is pure hype to justify getting into  people's pockets. 

Value of anything is based on comparable alternatives not on what may be a possible outcome. Kind of like driver's ed, you learn how to drive, but the gurus hype the class as if you're going to win the Indy 500! They play on your greed and your aspirations for success to  value the "education" instead of the actual information given. 

About the only thing new in real  estate are changing laws and regulations, otherwise there isn't anything new, different or exciting! There is a lot to learn, but none of it is really difficult, it's not rocket science! 

As to RICO, extortion is a funny game, it can apply to about any rip off, it's too bad a license isn't required to teach professionally in professional areas!!! 

[Jay Hinrichs]

@Guy Gimenez   this case will never go to trial.. it will settle...

Now if it was CRIMINAL Rico that's a whole nother kettle of fish.

Have you read the pleadings ?

[Guy Gimenez]

@Jay Hinrichs

I agree. Surely his insurance company is smart enough to settle. 

Civil cases, at least in Texas, have a much lower burden of proof than criminal.  And without question the vast majority of civil cases (again, I can only speak regarding Texas) are either dismissed or settled out of court as are the vast majority of criminal cases (plead to lesser charge or dismissed), but that seldom has to do with guilt or innocence...it has to do with keeping the system from collapsing on it's own weight. 

I haven't (and won't) read the pleadings as A.M. and I have never done business together and never will so the case has little value to me. I've had the misfortune to run into many investors/Guru's like him, but fortunately had the good sense to veer away from any dealings with them. 

[Jay Hinrichs]

@Guy Gimenez  this is what I think is so comical on BP... first sign of trouble  SUE THE BASTARD get a lawyer  like a lawyer is superman or something.

most of these folks that suggest these things Have no clue how the legal system works what reality is etc etc..

A real good attorney keeps you out of litigation does not instigate or suggest it.  

The real estate education seminar business is a target and has been.. Trump  rich dad poor dad. now AM... who is next  Yancy's  Tarik and his wife .. the boys from Boston.. they all do pretty much the EXACT same thing as AM.. they are all run by the same back office folks that handle all the event planning buying print and radio media putting up the front end teaser freebe events.. etc etc.

and those same companies also rep many others like Tony Robbins and other motivational speakers its huge business Event planning.  I was at one of those companies offices and they had over 600 employees working there the owners fly 50  million dollar jets to their mansions in Cabo.. make no mistake HUGE money

[Guy Gimenez]

Clearly it's a good business model...it obviously works and there are always plenty of new recruits from which to pluck $25K to $50K up front. You just need to know there are plenty of consumers playing the litigation lottery so either have good attorneys on retainer or make sure you don't stumble.