This is a very long post, but I've just experienced this and wanted to be thorough, so here goes.
You hit it on the head Brandon. I went to a one-day seminar on 2/14/16 where Mike Holmes of "Holmes Makes It Right" (and many other TV shows) was the speaker... took a picture with him and everything. Since I watch his show (which is based on him being ethical and caring regarding the homeowners who have been bilked out of thousands by unscrupulous contractors), I figured this seminar would be different. But, after he (and his son) spoke, the real deal began. The first scammer worked us up into a frenzy and made promise after promise, the major one being that "if you sign up for our 3-day workshop, we will give you access to discounted properties and will then match those properties up with our cash buyers list which is thousands deep! All we ask is that you use our transactional funding at 1% (3-day deals), because that is where we make our profit!" Fair enough, and I appreciated his honesty because I didn't have any issue with that, and most HMLs charge the same amount. I'm struggling as a new investor with knowing how to find discounted properties to wholesale, and since they were only asking for $199, as opposed to the usual $1,997, I signed up. I had never attended a 3-day workshop before, but was almost trampled by the 500 or so people in the hotel ballroom who wanted to do the same.
The next speaker was all about stocks and how to invest in them to make a profit. That 3-day seminar coming up in March was discounted at $99. More bum-rushing to sign up.
The next speaker was all about how to purchase tax liens to make a profit. That was an on-line scam -- I mean workshop -- and was discounted at $49. Yep – more bum-rushing!
That night, those Pathway folks made A LOT of money. But wait -- there's more!
At the 3-day workshop (Feb. 19-21), the reality set in quickly. We were given name tags with numbers from 1-4 on them, and within the first hour, we were told to fill out questionnaires which asked about our finances. Those were collected. About an hour later, we were grouped in 4 groups by our numbers, and our "leader" explained that our exercise was to call up our credit card companies, and friends and family, in order to come up with at least $30,000 each to prove that we could do so to be involved in our financial freedom through real estate investing! After all, the mantra was that we had to change our "THOUGHTS, WORDS, ACTIONS" (and we were asked to spew that out loudly on cue over the 3 days!). We were given scripts to say to the CC companies to have them raise our lines of credit, or to open new accounts. We were given another script to say to friends/family to convince them that if they believed in us and what we were doing, that we could promise them 10%-40% ROI. We were given about 15 minutes or so to complete this fun exercise.
Then the time came for each of us in our group to say – out loud – what we were able to come up with individually. When I began to say that I wasn’t able to come up with anything, I barely got the words out of my mouth before my “leader” moved on to a more promising mark – I mean student. At that moment, I knew that eventually they’d be asking those who WERE able to come up with that money (and more) to plunk it down for something – I mean, one guy said he was able to come up with $295,000! But, the basting wasn’t over yet, and they were not done. By the end of day one, it was obvious what was happening (at least to me), and we were asked to listen for our names to be called, and if it was, we were to step out of the room into the lobby. When those names were done being called, the big-wig speaker, left the room to speak with them. The rest of us stayed where we were for more info. I’m “***”uming that those who stepped out were those who could provide for this company what they were looking for.
More of the same on days 2 and 3, and whenever we took breaks/lunch, we were instructed to change our seats upon our return. How odd is that? I, and several others who I ended up speaking with, felt that was because they didn’t really want us to get too familiar with those sitting near us for fear that we’d begin to speak to one another about the sham. But, people will talk, and once we were off the premises, talk we did. And, it was like being undercover, because we were told by the big-wig on day 1 that if we were discovered speaking negatively about what was being presented, or networking in any way, that we would be asked to leave.
I do have to admit that some of the information given was informative at times. Only, we were promised at the 1-day seminar that we’d have access to discounted properties and then to interested buyers, and that never happened. And, I found out that many came from other 1-day seminars, and that some of them DID pay $1,997 to attend the 3-day workshop!
At the beginning of the 3-day workshop, we all were promised a 30-minute, one-on-one consultation to discuss our current situations and to provide us with a course of action going forward. I didn’t get that, and when I inquired on day two when I would get it, I was told it would come. Same answer when I asked on day three, and it really hit home that I wasn’t in the 1% when I saw others getting their consultations, and at reserved times! I mean, why spend time on someone who obviously can’t further their company’s financial goals, right? The one-percenters got their face time, because they plunked down $25,000 each for the Diamond Package to go to a Buying Summit in Las Vegas to learn how to buy real estate. Of course, I wasn’t the only one who didn’t get the promised consultation, or who couldn't plunk down $25k, and you gotta know that there will be more upselling at the Buying Summit in Las Vegas too, because the beast HAS to be fed!
At the end of day three, the one-percenters were asked to stay in the room with the big-wig, and the rest of us were asked to move to another room with the consigliere. That's where the upselling to RE Property Pro Software (at $3,000 a pop, which is the software that helps you find discounted properties, buyers, etc. Guess they forgot to tell us at the 1-day seminar that we would have to pay $3,000 for the info that they alluded would be free), and LLC formations (at $595 a pop) was done. Because of the number of people who plunked down $25,000 each, and the software and LLC upsales, I'd say that these scammers made off with a minimum of $750,000.
Before leaving, I found myself in the ladies room with their only female coach (whom I didn't have any interaction with prior). She asked if I was going to Vegas, and when I said that I wasn't, she suggested that I go speak with the big-wig's consigliere about a payment plan that they offered. First I was hearing about it (must've been offered to those who had their 30-minute consultations... LOL!), but since the "drug" was still running through my veins, I took her advice. Hey -- no one likes being left out, and if I could just find a way to get to Vegas, I too can get this knowledge, right?! He was still in the room that I had just left, and was huddled over a laptop with the big-wig. When I approached, they never looked up as I sat down just feet from them. The big-wig's consigliere told him that "this is what came in today, but this isn't the final number because the checks are not accounted for. We should have the final number on Friday when the checks have cleared." Then they looked up and saw me, and looked at me as if I was something on the bottom of their shoes. I told them that I was instructed to come speak to them about the payment plan, and the consigliere explained to me -- very condescendingly -- that a $500 deposit would be required that day with $2,041 due over the next 12 months, but that was just for the boxed materials on his desk that would give you EVERYTHING that the Vegas trip would provide, only you wouldn't be going to Vegas, 'cause that's only for people who were able to pay the $25,000 on the spot! Still too rich for my blood, and as I turned to walk away I could feel their disdain.
But wait – there’s more! In about a week, someone from their Protégé Department will call you and offer you training in some capacity -- from Boots on the Ground for $5,000 to on-line with access to phone support for anywhere from $500 or so. You see, they feel badly that you weren’t able to take advantage of the $25,000 Diamond Package, and they’d really like to help you to succeed in real estate investing. So sweet of them to care, and since that’s far less than $25k, it’s a bargain!!!
All-in-all, I was scammed out of $199 for what I knew to be true all along, and that is unless you have a true MENTOR in your life who’s vested in your success, it’s going to be really difficult to become successful in this, and any, business. No one becomes successful without guidance, and those who claim to be "self-made" are liars. Doctors, lawyers, CPAs, and even bag-packers at Whole Paycheck Foods have to be shown how to do their jobs correctly when they're first starting out, and we "newbies" (as the more seasoned like to call us) are no different. I pray for the day that I come across a seasoned investor who recognizes in me what they see in themselves, and takes me under their wing. When that happens, my learning curve will be cut in half and I know that I will be successful, as well as add value to my mentor's business. Until that day comes, I will continue to move towards success by learning what I can through reading, podcasts, webinars, my REIA, trying (I have one Assignment of Contract under my belt), failing (can't seem to get to my second deal), and sites like BP. But, there are opportunists lurking everywhere, so we have to develop good judgement and intuition to be able to recognize those wanting to take advantage of our lack of knowledge.
Zachary -- these 1-day seminars and 3-day workshops all seem to use a variation on the same theme, and I can’t imagine that your experience will be any different if you go. This was a money lesson learned, and those kinda lessons really stick. I won't be doing THAT again... LOL! But, if you do go, I’d be very interested in hearing if your experience was different, so PLEASE post!
