Gulfstream Realty and Development, a tentacle of Russ Whitney and the Wealth Intelligence Academy, is offering property development "opportunities" in southwest Florida. Whatever you do, proceed with utter caution or you may be ruined financially.
When I bit on this scam, I was told the cash flow would be about a positive 75-100 dollars per month, but the real gain was going to take place in the appreciation of the property. With the bursting of the housing bubble, the appreciation part is not really there anymore, and that's not Gulfstream's fault. It's their deception on the cash flow estimate that is the problem.
They advertised insurance to run roughly $900 per year—that's correct, but they didn't bother to mention the "optional" flood insurance would be around separate and cost around another $1000 per year. They advertised the rent would be about $1100 per month, but after the management company fees get deducted, I'll be lucky to net about $850. They grossly understated the mortgage costs, even though prevailing interest rates are actually a bit lower than when I started this deal several months ago.
Bottom line... My cash flow will be a negative $500 per month per house, and that's with renters on board. If the housing market stays flat, then there won't be any appreciation, which locks me into this monthly loss for an undetermined time. This deal stinks—and when you ask for help, all they'll say is, "Our phone system is down today... We'll call you back."
If there's any interest in a class action suit, I have checked the block that says I'm willing to participate... Assuming I'm not broke by the time this deal is done.
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