All Forum Posts by: Erica Nagle

Actually it's very different because when I sell the fixer upper I'm not providing buyers with false comps to inflate the value of the property. The loss would have been even more if I sold the property the day after I bought it. I'm not factoring any sales costs losses, just pure property value. As I stated in my post, it was my fault for not verifying the information I was provided and my goal is to make sure others don't make the same mistake.

@Jay Hinrichs

Please see my other forum post "Taking a stand on a $50,000 lie". It lists details of what they promised and did not deliver. Sorry I'm not sure I understand how your Arnold Palmer reference relates to what happened. Good for you for being in the industry for a long time and knowing what others don't but it doesn't help anyone to insult those that don't know what they don't know. 

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.

@Robert L. see my recent forum discussion 'Success Path fraud'

@Alexander Felice read my post again. This wasn't a 'few years' later and the market has only improved since I bought. I could have sold the property a day after I bought it and had a larger loss than I will today.

This post serves purely as a warning to others. I was sold something by being provided false information. This is straight up dishonest business and others should know. Just sharing my mistakes so people can learn the easy way instead of hiding like a coward. I'm not too proud to admit I messed up while I watch others lose.

A couple of years ago I purchased two 'Turn Key' properties from a company called Return on Rentals. I purchased the properties at the Investor Summit in Las Vegas (red flag alert I know). For those of you that are not familiar with this event, it's put on by Advanced Real Estate Education who is affiliated with other companies like Success Path (Tarek and Christina endorsed) and Flipping Formula (Dave and Pete of Flipping Boston). See my other posts for more information on these outfits. 

Anyway, Return on Rentals is a company that buys houses all over the country that are in disrepair, says they fix them up so they are rent-able and sells them to investors. They hook investors up with property managers local to the property and refer insurance companies to insure the property. If someone doesn't have the cash to buy a property they show you how you can use funds in your retirement account with zero tax penalties. They have a close relationship with another company, Horizon Trust, that does self directed IRAs. They make it very easy for you to roll any existing IRA over to a Horizon Trust self directed IRA and Return on Rentals will work directly with Horizon Trust to close on a purchased property. The rent will go directly into the IRA and it's a great retirement account. This all works as promised and it's a fairly simply process for the investor, they do all the work for you.

What they sell you on is that you are getting 10%-12% ROI with the rent you'll collect from these properties. Their numbers are accurate and you will get a good return over a long period of time it's a good investment.

Sounds good right? Well not so fast. Of course there is a catch. The property they sell you is likely in another part of the country and you are completely unfamiliar with the local market. They tell you that they have purchased the property, made improvements and are now selling it to you at a discounted price...$10k off! They show you pictures of the upgrades and give you a list of comps that show that you are getting a fair (even good) deal. Here is where the catch comes in. The comps they provide you don't have cities listed and are not comps at all. When I recently looked up the 'comps' for one my properties I found out they were in different cities and ranged from 5-10 miles away from my property. I then looked at country records to find the purchase history. It turns out they purchased the property SEVEN days before I signed the contract to buy at their 'discounted' price. The price I paid was twice what they paid for it just SEVEN days prior giving them an instant $30k profit. They sold at least 100 properties at that seminar. Do the math...

So now a couple of years later I need to sell these properties and I find that I'm going to lose almost $60k because they weren't worth what I paid. Both were inflated by $30k.

Yes this is my fault for not doing my homework and double checking the information they showed me. I have learned so many lessons over the last couple of years that this would not happen today but yes I was naive a couple of years ago. 

Some would say that my purchase was a good one because I did get 11% ROI with the 2 properties just as they said I would. And if I held onto them until I was retired I would likely have a great return just on the value of the property. This is all true, but I unknowingly took an instant $60k hit to my IRA because I was provided with false information and mislead on the value of what I was buying. They pocketed the $60k I lost. Not cool

The moral of the story is check all the facts before you purchase anything from Return on Rentals.

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, LLC. The public see's the companies as Success Path, Flipping Formula and others but they are simply Zurixx 'doing business as' or dba Success Path, Flipping Formula, Advanced Real Estate Education, etc.

Check out 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.

Right now I'm looking for someone to file a suit with Success Path Experience. It will help the overall case against them and my lawyer will file for a nominal fee because it will help an existing case. Right now we have 5 defendants with the primary being Zurixx, LLC. This is the parent company of all of these guru companies. Success Path, Flipping Formula, Advanced Real Estate Education and some others are Zurixx, LLC 'doing business as' (dba) the various companies. Let me know if anyone is interested. I'm going to start another thread also.

So far nothing has come of it. I have a lawsuit pending but it takes a while.