Is Jon Iannotti's REACT Real Estate Investing System worth $2K?

Question

It sure sounds tempting in today's hot market.    Has anyone had any recent experience with REACT?

Jeff Schwarz · Answer

All of you are hearing the sales pitch and not the actual guts of the REACT program.  Lots more to it.  You actually learn how to purchase and flip FSBO's that are being marketed for around their actual value.  The $100,000 above market value part of the program works if you find a property like that but the real guts of the program is not that part.  It is learning how to flip properties that most investors are not even paying attention to.  Don't criticize what you don't understand and if you can't afford the price they do have a monthly payment plan I think it is $29 if your credit qualifies.  It is and outside finance company.  If you can't dig up $29 per month for a successful program that has been out there and being used for a long time then either you are in the wrong profession or you already know everything and don't need it.  Question for you: I you bought the program for $2,000 and actually flipped a house because of the knowledge and you earned $2,000 was it worth the price?  Can you do it again?  Hey thanks for reading this far, just giving my opinion and thoughts.

Bob Burozski · Answer

yes, I have known Jon and wife Stephany for 10 years when they were mentors for Ron Legrand. I work with him on funding some of his deals and have followed his technique since it started. It is real, not a scam, and I would advise partnering the first time with them. This technique will be the best no risk way to make money when the market goes sideways or down in the future. That being said, if you are in a fast appreciating market it will be harder to find these type of deals just like it is hard to find wholesale flip deals now. the price will be made back on your first deal. I am not an affiliate just a friend. this is a real deal not a scam and Jon is a great mentor, in fact, Jon does not advertise this but he used to be chief of police in Pittsburg Pa. before getting into RE.

Tom Parris · Answer

That is not the way I understood their program.

They are wanting me to find homes that $100,000 more than the median sales price in the area.

There has not been any mention of me (or anyone) putting up any money on any of the transactions.  They want to control a home for $300,000 and sell it for $340,000 Cash.

Wendy Hoechstetter · Answer

I just saw their pitch at a REIA webinar, and *if* you buy it following that, it’s $1,997 for the program, and another $500 gets you the 4 day workshop, too. He said that it “usually” sells for something like $7,997! Which is totally bogus, if you ask me, for the relatively little that is described as being in the course.

He emphasizes that they do *not* do any sort of mentoring. They will answer questions on a monthly group call, and you get one half hour call with them when you first buy the system.

I’m really interested in the system, but just can’t afford it right now.

Art Bell · Answer

I joined last Thursday.  The value prop is intriguing.  The business manager describes the opportunity is simplistic terms over the phone.  They insist you sign an agreement in which the stress NO REFUNDS.  After spending the whole weekend viewing/listening to their training tapes, the system is not as simple as originally described.  What a shock!!!!    There's a lot more work involved to working the system.  I called for a refund within a three-day business window, but they are refusing the refund.  Is it a bad system?  Depends on your personality.  There is quite a bit of work involved.

Patrick Liska · Answer

Here is the link to his site, listen carefully to the video, he says that you find the houses, they come in and negotiate the price, he will partner for 50% of the profit. unless you have a buyer set and you do a double closing with check in hand from your buyer to pay for the house, then you will be putting up the money. finding a house that is undervalued by $100,000 is either a foreclosure, tax lien, or you go door to door or have mailers to that you buy property and hope to find a seller. he mentions turnkey, but the way his " system" sounds is wholesale.

http://www.teamreact.com/jon---steph.html

Patrick Liska · Answer

Followup - just want to give you a scenario.  in his video he says he wants properties that are listed for 100,000 + that's all he will deal with. you have 2,000 into him for the program, lets say you find a house for 100,000, he jumps in and negotiates for 75,000 purchase, now you have to put down 20% and carry the loan ( 15,000) + (60,000@ 4% for 30 years= 286 / m ) say it takes 2 months for a buyer and you sell it at 120,000. the property just made $55,000. your original closing costs are 3000 when you bought the house, when you sell lets just say the realtor is 6% commission ($7200). now i don't know if he subtracts those costs on his end or just the original margin, i will assume its the original margin so 55,000 @ 50%, he gets $27,500 for him and the same for you. not too bad, but now you have to deduct your closing, holding ( insurance, taxes, etc for those two months) and realtor fees) so 27,500 - 3000 - 7200 - 572 = 16,728 - ( taxes and insurance etc.) so now that 15,000 you put down is a total gain of nothing, you made him 27,500 but you have no gain at all, you just get your 15,000 back.

Patrick Liska · Answer

who is he ? I just looked him up and went to his site to see. he is a wholesaler who wants your money to buy property to resell so they can make 50% from your money, he is not a mentor and he even says that. wouldn't waste my money, keep studying here on BP and go to local REI meetings and learn from local investors.

Mark Young · Answer

I went to Jon and Stephanie ‘s weekend work shop in Little Rock Arkansas it was amazing. They are the most down to earth people and can’t wait to for the 4 day in Florida. Left the workshop and got 2 deals 1 with 3 houses using their concepts. If your tired of hearing no’s all day. Give them the time and find a workshop somewhere. It will b worth every cent.

Scott T. · Answer

I heard Ron LeGrand mention the Iannottis (Jon & Stephanie) as being the inventors of the ACTS program he was promoting in earnest from approx. 2014 until the present (based partially on LeGrands 1980s approach after the S & L debacle...) the interesting thing when you view the introductory video(s) is how their newer REACT approach has since (2012- 14) evolved into a near "flip- flop" from the ACTS program (Assigning Contracts Terms System?) into a program that now targets a "new type of buyer" because there are so many "foreign investors" and "professional landlords" (to hedge funds) buying- up these lease option, to owner financed notes, vs. mainly "first time home buyers," to "retirees." (Afterall, many "Millennials" just aren't buyin' these days!) There's the $2497.00 invest, then one can finance that out at $90.00 a month... and they will either do (50/50%) "deal splits" (and you simply bring them the "warm leads," and perhaps help market and advertise, etc. and they do most of the work to get it resold...) and they are the ONLY people I SEE who are doing this, as everyone else wants to "sell you" (then "upsell you!" ongoingly...) and are all marketing passe' products, on a "revolving carousel" on the "promotion of the month..." bandwagon. (Jon isn't like that, from what I'm seeing and hearing...) They have a "one time charge" to "opt in" (including all "updates" to their materials, etc.) and THAT'S IT... so look into it, before "commenting."

See:   teamreact.com/ training-video-2.html

e.g.   youtube.com/ watch?v=RUqK0MseQXo&t=1513s

And:  meetup.com/ Florida-Gulf-Coast-REIA/?_cookie-check=OrC5rrpMzLED0MTo

I'm going to give this a shot, as I've (lightly) studied most everything to do with "terms" and this stuff is far beyond the scope of 99% of the "mentality" here, frankly. (i.e. The usual bandwagon of: rehabbing, fix -n- flips, wholesale arbitrage, buy- n- holding under 16 apartment units, etc., etc.) These types of "terms" deals are the next best thing to "being the bank," and holding "performing notes" once you finally DO... THE relevant RESEARCH. (And no personal credit, borrowing money, riding- out the banksters planned and executed phony "market cycles," et al...) And I have no personal or professional affiliation to Mr. Legrand, the Iannottis or anyone else "selling anything' within the industry, at large.  ATB ;-)  Scott

Is Jon Iannotti's REACT Real Estate Investing System worth $2K?

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