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Save Yourself From Losing Everything To Property Scams
It is such a relief that there are people out there who are willing to share their real estate investing secrets with the general public.
Everything taught in schools and professional academies are as good as irrelevant when there are gurus ever-so-ready to tell us where the secrets to wealth is.
These self-made property millionaires are so gracious and generous to share what they have learned through decades of trial and error via an exclusive workshop back by popular demand.
We see their full page advertisements in the finance sections of our local newspapers.
And if the publishing house is so ready to post these advertorials, they must have done some diligence to ensure that their reputation will not be dragged through the mud together with a scammy event organizer.
The key promoter of such events will show you how he is living it up by managing his 200-apartment strong portfolio from the serene deck of his private yacht.
And if he is targeting the younger generation, you are sure to see bikini-clad babes in the background while he is at it.
Your self-esteem is then attacked with invisible daggers with the notion of how stupid you are for letting inflation dissolve your savings.
The only way out is not to save money, but invest it instead.
That’s right! What a breakthrough!
Everything you will need to do to copy his success will be laid out step-by-step at his workshop for the introduction price of just $2995!
Be reminded that the course usually cost $10,000, which is packaged with material valued at $25,000. And if you don’t have that much money with you, don’t worry. Because you can choose to take up the special installment plan of just 12 easy payments of $300!
Still can’t afford it? Don’t fret.
Because you can opt to buy his downloadable online course for just $497. And you will get it on DVD if you like. Now of course you will have to pay for shipping too as $497 is already too much of a discount for a product worth $5,997.
$5000 – Value of secrets found in book
$8000 – Value of DVDs
$9000 – Value of guru’s individual time
$3000 – Value of Bonuses that come with your sign up
$5997 – The special once-in-a-century discount price if you sign up NOW
Does the above seeem awefully familiar to you?
Welcome to the world of real estate. To be more specific, these belong to the world of “get rich quick”. Just that the medium being used is real estate.
The 3 most common mediums for such operations are equities trading, online marketing, and real estate.
Real estate takes the cake as victims walk in fully knowing that houses and apartments costs big money. This means that they are implied to have more financial power.
People also have the impression that real estate being a highly regulated industry will have little likelihood of con artistes running their shows.
The biggest draw is that seniors or those who are new to investing have great reservations on stocks and the internet as they do not understand them.
Yet these reservations are almost non-existent when it comes to real estate.
They have been living in one all their lives and feel that they understand it implicitly. So real estate often draws the biggest crowds among the 3 as it appeals to a wider demographic audience.
There are definitely real gurus out there who would like no better than to teach students how to do what he does and leave a legacy. But when these things become successful and draw a crowd, scammers will enter the fray and devise a plan to take advantage of unsuspecting people.
This have given birth to the “workshops” I have mentioned.
Some organizers get creative and name their high pressure sales presentation as seminars, bootcamps, summits, conventions, etc.
But they all mean the same.
Some even fill their events and talks with guest speakers who are fully intent to sell you more stuff.
At least with hedge fund rip-offs that operate like pyramid schemes, you get the feeling that the victims are rich and will be able to financially handle the loss without losing their lives. But for real estate where the average individual participant is not considered wealthy, being a victim of such scams can result in total financial catastrophe.
Let’s take no money down (NMD) properties as an example.
No matter how many scammers have been exposed or how many times the public have been warned by the mass media, there will always be an up-and-coming scammer waiting in the wings to pick up the pieces.
The events then repeat itself all over again.
You won’t be able to avoid these scams no matter what you do. The relentless appetite of the public for “get rich quick” solutions doesn’t help the issue at all.
Common sense tells you that there is no way you can get a property for free.
But sales presentations emphasize the point that you can first get your hands on a house for nothing, then use rentals to pay for the upcoming payments due. This in effect gives you the house for free.
If only life is so easy.
So if this logic is applied, it means that you no longer have to work to afford a house. You can now get a house so that you no longer have to work!
Again, this defies all logic.
If you do buy into an NMD, I predict that you will not find tenants to feed your recurring obligated payments. Oh and have I mentioned that the promoter pitching these deals for you probably gets a juicy commission for the NMDs that were recommended to you?
I’ve attended not just 1, but a few of these things. And it was always because I was tricked into believing that the events were about something else.
I remember the power presentations that the speakers gave with a backdrop of a rock concert.
How they got the audience to participate in creating an energetic atmosphere. How they confided their poor upbringings with the audience and how they saw the light and rose from the ashes of poverty. And the light at the end of the tunnel was shining on real estate!
They will then promise to reveal every trick they have on how they did what they did.
These “seminars” usually end up in one of 2 ways.
- You will either be pitched to sign up for a full weekend “bootcamp”
- or be pitched on the exact type of properties that the speaker was talking about that made him a millionaire real estate magnate.
The most predictable part is at the end of the pitches when a few members of the audience immediately jumps up from their seats like a bunny on a stove and run up to the sign-up booth to hand in their checks.
And whatever the dish is served, the objective is the same. To get your wallet to spit out the cash.
Save yourself the hassle of finding out these things happening in the industry, and more importantly, save your money.
As long as you don’t have 100% certainty that a real estate “workshop” is not a scam, it probably is one. Finding it out the hard way is not the type of lesson you want.
You’ll have better luck doing your own investing. And might even catch a gust of beginners luck.