I am an ex-employee of Advantage Financial Group (now Loomis Wealth solutions) founded by Lee Loomis. When I first started working there, my initial thought was that the whole thing was a scam. I soon realized though, that it wasn't a scam, but just a very un-organized, poorly planned sinking ship. If you attend one of Loomis's seminars and are sold on the program, you can sign up knowing that it isn't a scam and that you won't loose any money in this program. However, know that there may be some ill effects to your credit, and that you will be pushed into investing money with them. Let me explain.
The plan is designed so that you will purchase homes in your name, but all of the closing costs are reimbursed to you as well as the money to put down on the property. The benefit for the company is that you are essential taking the name off their line of credit and opening a mortgage in your name. There are pros and cons to this which I won't get into. However, the problem is that Advantage/Loomis doesn't have any money. The company is drowning in debt to the point where they have IRS agents showing up at their offices unannounced and demanding payments on the spot. The pay bills late, if at all and have a financial crisis every time payroll comes along.
Plan members are told that the mortgage on the homes that are in their names will be paid, as well as utilities and property taxes but that sometimes the grace period (15 days) is used for cashflow purposes. However, there have been many times where the payment has gone beyond the grace period and is now showing up as a late mortgage payment on a person's credit report. Another part of this program is that once the home is purchased, repairs are done and it is rented to a tennant. The "investor" will earn a rental income and will also get a quarerly distribution based on this. When I worked for Advantage, these payments were consistantly late. Members will eventually get them, but I have inside information that they are currently about 3 months behind on these amounts.
Advantage/Loomis also offers/requires their members additional investment tools. One of them is a non-secured high yield savings fund. This fund is operated by a related company that is operated by Lee Loomis's father in law. The company offers members a fund that members can put money into and use it for closings. The money has to be returned to the fund within a couple of days to maintain the interest earned. The interest payout is very high; I believe at 15% each month. However, the problem is that the money is in an unsecured note and that as soon as the company tanks, which it will the members who have money with them will loose it. Several of the Loomis devotees who are completely brainwashed have their life savings with this man and I fear what will happen to them when they loose all that money. The non-secured fund is not a required investment tool for members, but it is one that is strongly pushed. The life insurance that the previous poster spoke of is now a required part of the program and you will not get into it without signing up for a life insurance policy.
Before you are earing the monthly rental income through the program (the money that never comes on time) you will be on something called an assurance plan. The assurance plan will essentially front you the money to pay for the life insurance premium. Then once you start receiving your rental income you will pay the assurance plan back any money that you have borrowed to pay your life insurance and then you will pay your own life insurance. This is fine if you want life insurance, but many people don't. It is just another way for Loomis to earn money to fund his nightmare comapny and keep it afloat a little longer. Many times the money that he gets from people signing up for these policies go to pay the company's payroll, tax payments and other operating costs. Without this he would be sunk.
Overall, if I had money to invest - I would stay away from this company. It is only a matter of time until it takes a nosedive and anyone left with money in the program will loose it. If you can sign up and only collect the rental income, it is free money. However you have to be resistant to any of Lee's other suggestions of how to "grow your money". The only place it grows is in his pocket. He cares nothing for his members and nothing for his employees. I worked there for quite awhile and have never seen a higher turnover for any company I have ever worked for. His staff in Illinois are sitting ducks waiting for the whole thing to full from underneath them. He has already ventured out into California and my guess is that the office in Illinois will not exist much longer.
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