I attended the "Free" Training seminar with a friend in October. We then split the cost of the paid 3-day training course in which we were told that we would learn The Financial How To of becoming successful real estate investors.
The first day was 10 grueling hours of the moderator having us repeat buzz words and phrases over and over again. The hotel picked for this "training" was one of the airport hotels so that it would be difficult to leave the premises.
After 4 1/2-5 hours he gave us an assignment at lunch time to call our credit card companies and ask for credit line increases of $30K. About 12 people called their credit card companies and two got new cards with $10K or $7500 limits through American Express.
He gave us no step by step process just kept talking in circles. At the end of the day we were sent home with home work to purchase our tri-merge credit reports and again asked to apply for more credit cards and increase our credit limits on our current credit cards.
The idea being to purchase foreclosed properties using credit card convenience checks that would be deposited in our bank account and then play a balance transfer game until the property could be resold for profit or while we are waiting for the transaction to close to play middle man by assigning the purchase contract to someone else for a fee.
The moderator showed us a HUD statement and copy of a check that supposedly he had closed on and received $37K, however nowhere did his name appear on the Settlement Statement and he never saw the property or attended the closings.
They also claim that this is backed by the SEC however they did NOT provide an SEC #. They also did not allow any recording devices of any kind at the training. At the end of the Friday class they mention that the additional advanced training courses are $900-$60K. And we were to pick 10 sources of advanced training for our return on Saturday.
We were also instructed that if we could not complete our homework assignments we should not return on Saturday. My guess to weed out those of us who do not have the credit necessary to purchase any more of their "training" materials or play their game.
Most of the attendees seemed to be former employees of mortgage brokerages, self employed individuals, a few realtors, a few elderly individuals, recent college grads, and about 10 or more were immigrants.
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