My husband and I had read some of Robert Kiyosaki's books, played the CashFlow game, and even gone through the $6K Rich Dad coaching (a 16 week course that provides you with a coach and weekly assignments designed to get you ready to "get out of the rat race").
We agreed with many of his philosophies and information regarding the importance of taking charge of your own financial future. We still do agree with these things. However, I now begin to question his company's integrity and the methods they are using to improve their own wealth.
In March of this year we recieved an invitation in the mail to a free 3 hour seminar on real estate investing - to be put on by the Rich Dad Education arm of his enterprise. Normally, I would toss an "offer" like this into the trash right away. But I had respect and trust for this company. Additionally I thought that pehaps we were receiving this because we had spent approximately $6K with his company - like when I get a discount or thank you item from a store where I am a loyal customer.
We attended the seminar which was largely a few great stories of success, a few tidbits of information and a masterful sales pitch to attend a 3 day workshop in our area. This was supposed to be an intensive learning experience to give you some basic information so that you could venture into the world of investing. I want to make it clear that neither my husband nor I thought we would be experts at the end of the three days. I did expect intensive information.
The 3 day course was $495 if we signed up that day, about $1700 if we didn't. I should have walked out right then and there - I didn't because of the supposed reputability of this particular company. When presented with the dates of the workshop, we realized we couldn't go. Not to worry, the 3 day course could be purchased now and we had 6 months to attend. "We'll be back in 6-8 weeks to put on another". So we paid. This is where the compaints started:
1. The seminar didn't return until this past weekend - August 10th - 12th and it was pure hell finding out when it would be. Because we have a full schedule we called the number given to find out when they would be back. No one knew - it was a brand new program, still figuring it out. Call back in two weeks. This went on and on.
2. One of the success stories - a girl who played the Cashflow board game for the first time and had no experience with the concepts taught - went out and made $25K within weeks of her game session. I figured she just had dumb luck. No. She was the daughter of one of the key company reps. I am sure she had been exposed to these concepts and the details for some time, if not outright walked right through the "deal".
3. We too were given the 3 day right to cancellation - but unless you just plain decided to not spend the money - you're screwed. The workshop is months later!
4. At the 3 day workshop the entire 1st day was endless repetition of Rich Dad philosophies, a long Cashflow game session, and countless trips to the microphone for class members to reitereate the same things over and over. I was so frustrated but likened it to college classes that were easy for me but moved frustratingly slow due to the inexperience of other students. All the other people at my table were equally frustrated.
5. The first homework was to call our credit card companies to increase our limit - decrease interest rates. I said to my husband, "I bet the only reason they are doing this is so that everyone has plenty of credit and therefore no excuse to not purchase additional training". I was right. The next day the poor individuals who had done the homework were called to the mic for another lengthy session of stating how much credit they now had. The "coaches" in back observed this carefully.
6.information regarding real estate was provided the 2nd day - amidst sales pitches for the additional training that ranged from $9K to $64K, and more lengthy trips to the mic. Just enough info. To pull you in. Of course there wasn't enough time to discuss the actual subject very much.
7. Then a very long, step by step, drawn out description of each of the packages available at Advanced Training - complete with a handout of the packages. The prices were filled in by the students as we laboriously went over them.
8. We were instructed to arrive early the next morning to meet with our "coaches"/salespeople to select our package.
9. Our coach, Ann SanFelippo, after being approached by a person in the class, acknowledged that the company was being investigated by the SEC and perhaps going to be named in a few class action suits by "some ambulance chaser lawyers". She then went on to say it was no big deal, weren't we glad she had told us the truth, and that we should decide with our hearts not our heads. She encouraged us to stay off the internet with it's packs of lies. It was at this point that I told my husband we needed to leave - we did not go back the 3rd day. Now I wish I would have so that I could have warned some of the really great, honest and trusting people we met there. If I can help anyone else from making this mistake - I will be glad.
Below are several tips to help you avoid scams - the irony is that I already knew all of these but was still duped out of $495 b/c I put some of these aside in my mind thinking I was dealing with a known company I trusted.
Beware of free offers in general - if you take advantage of them be sure that you know they are generally intended to get you to purchase something else.
NEVER be forced into a purchase that is presented in a way to require you to make a decision right now. Legitimate companies will honor the price they quote you for some time. "On site" or "today only" prices are designed to make you afraid you'll miss out on a great deal if you don't do something NOW.
Since most people can spot outright lies or omissions, scams will often use truth mingled with deception. For example, Ann publicly acknowledged the investigation and potentional lawsuits.By bringing it up she portrays that she is forthright - and avoid frauds charges by so disclosing. But then immediately tells us to decide with our hearts, and stay off the internet.
Beware of contradictory statements. She told us that she graduated high school, took 5 years to get a 4 year pre-law degree at college, met her husband and started a business. After 10 years of marriage she found herself divorced and standing on the courthouse steps with 185K in debt. Do you see the math problem here? If she met her husband after 5 years in college - this couldn't have happened at age 29. Who is she? Doogie Howser? College at 15?
Also, a Rich Dad concept is "Due Dilligence". Don't buy an investment without thorough invesitgation. Yet at the "workshop" we were forced to buy now or pay a huge amount later - no time to thoroughly research the courses, no opportunity to talk to others who had taken them, no statistics re: success rates. Just a few printed testimonials on the brochure. And told to avoid conflicting soursces like this. That is not due dilligence.
Ann repeatedly stated she had taken our very course 3 years ago. Yet she said she had done real estate for 18 years and it wasn't until 8 years ago when she had these classes that she started making money.
The blank price sheets are a psychological trick designed to get you to "own" the courses.By going through the classess step by step and filling in the prices yourself you are more likely to accept them - after all you're the one who just wrote it down. It's as if it's your idea. If the price was already there - you may have sticker shock and put it aside. Remember, you have been taking notes all morning of actual real estate investment information from the "teacher" (saleslady). She writes it on the oeverhead and you copy it down - careful not to miss anything. Now she writes it in the board, you carefully copy it down. Your brain now treats this information as importantly as the other. Do you understand???
There are too many more to name. Please avoid this company - find another legitimate way to wealth. This class had 180 people in it - 90 of whom would have paid the tuition (you could bring a guest) of $495. That is $44,550 made for this workshop that probably cost less than 10K to put on. Yet they were telling us that it was really expensive to put on but did it for us - that is crap.
They are financilly rich I am sure, but couldn't the world use a few less con men? Don't be fooled.
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