I have been scammed. I have been in real estate for over 25 years and have worked with a hard money lender. I want to buy and hold. My experience started when I received an invitation to Scott McGillivray’s real estate seminar. I attended and of course they pump you up with failed promises for the 3 day workshop training. The instructor stated that you could purchase property with no money down with their program so I signed on at a cost of $1997.00.
At the 3 day event I received CD’s and booklets to read. I did not want to sit in class for 3 days. I wanted to take action. They told me to buy into a package where instructors would fly out to my area (Group Boots on the Ground) and help you buy pre-foreclosures, look at properties to purchase, go to Vegas and buy properties with Property Direct. I purchased the Platinum package at a cost of $24,997.00. I attended Boot Camp where they took a trip to Lowes, an education on estimating jobs for remodels and they also took us to a couple of bank owned properties to estimate costs. After many years of flipping houses this was a waste of time for me.
When I got to Vegas for the “Buying Summit" I realized that the salespeople were taking the people with money first to sell them properties from Property Direct. The best inventory goes first. When the salesperson called me to look at properties I told him I had no money. I told him if I hadn’t given my money to Leading Financial I could be buying an income property. He worked a deal with Insiders Cash for me. I needed to put 50% down and Insiders cash would finance the balance at 12% interest only. I purchased the property from Property Direct in January. I have not received a rent check as of today, June 7.
The other hook was that to do business with Insiders Cash you had to have an LLC. How convenient. Veil Corporate, asset protection was at the next booth. They set you up with an LLC. I gave monies in the amount of $5995.00 to Veil Corporate for asset protection. The next booth was Sean Keegan Walker, Invest in Tax Liens and the other booth existed for students who wanted to purchase properties with their IRA retirement funds.
These companies make sure their people are well trained and organized. They are vague with their answers to your questions. Most students I met paid a different amount to further their "so-called" education.
I specifically joined up with this company to purchase homes with no money down. One of their favorite sayings ‘use other peoples money”. Bottom line
is that hard money lenders want 40-50% down and banks want 20% down. You need money to make money. The instructors suggest leasing options, rent to own and wholesaling and it isn’t as easy as it sounds. Rent to own - lease option - you need $10K to 20K down payment.
Wholesaling? They tell you to add $5,000 then resell. $5,000 won't even cover most closing costs.
I kept thinking it was going to get better. When PMI called me I was told there would be “one on one”, “take you to another level”, personal plans to reach my goals – none of it ever happened.
I paid PMI $14,997.00 in January and never even received some items until I called them on April 25 and asked them what specifically I purchased for $14997.00. FSBO e-mails, Foreclosure alert – items I could have purchased for a few dollars on my own. I went four plus months without any of these purchases – then PMI told me I had to call these people to activate them.
PropTrend (Pre-Foreclosure Tool) was sold separately at the 3 day seminar for $2,000.00.
I purchased the package so it was included. It has problems. I finally accessed PropTrend after hours on the phone with tech support.
I found a property on PropTrend that states that last month there was a foreclosure deed. When I researched the property myself it was sold at auction in 2011.
I have left 3 messages with Lindsey Thompson, sales rep who sold me PMI=EG McGillivray-Leading Financial. He has not returned my calls.
I spoke with Thayne Gooch, Quality Assurance at PMI several times. I told him I did not want to go to Vegas for the “Inner Circle”. My gut was telling me that I was not one of the top 2%. Whoever had money was in the “Inner Circle”. Thayne said getting a refund was “not going to happen” so go to Vegas. I returned from Vegas more than disappointed - it was awful. It was a repeat of the Edge Buying Summit in Vegas and now they were trying to sell you advertising.
What I do know is that these instructors such as Robert Shemin, are multi-million dollar players. Their net worth doesn’t compare to most students.
Why buy in Detroit if you can buy in your own backyard I heard from one PMI coach. On the other hand, another PMI coach said what does it matter where you buy if you are receiving monthly income. Well, in New England property prices are extremely high compared to the Midwest and the South. I don’t have monies to fly to a city and hire contractors for a flip
It only gets worse. I was told from an investor on the advisory board that I could deduct the investor seminars on my tax return - Schedule C, sole proprietor. Absolutely not, I was told by five (5) CPA's. When we were in Vegas we were told keep all your receipts for write offs. You can't write anything off for those trips.
To receive a refund for all these courses you needed to cancel within 3 days. Well, how could I if “Boot Camp” was weeks down the line and “The Inner Circle Camp“ was in Vegas in April (3 months after signing with PMI). More importantly, this is a case of misrepresentation not mere sales talk. I relied on PMI’s statements, as did other reasonable people. This is intentional to induce us into signing their contracts. I had expectations of them. They are clever. I can’t believe I purchased products not knowing what I really was purchasing, from which company and how they were connected.
(Leading Financial LLC, The Evolution Group LLC, Professional Marketing Int’l)
My phone bill has almost tripled since my contact with all of the above and I have had to change my phone plan. Every time I call someone direct at PMI I get voicemail. The expense and time involved trying to reach people and solve issues relating to this program is excessive. Also, the time difference is 3 hours (Pacific and Eastern Standard) which created a problem. Phone seminars or PMI reps were calling at 8 or 9 in the evening.
I am in the process of dissolving the corporation and the LLC's with Veil Corporate.
I don't have enough income to substantiate the opening of a corporation.
I was doing what they suggested and I was working very hard from early morning to late at night every day for weeks when they said all you needed was about 10 hours a week. This program consumed my life. My expenses went up. I was dealing with problems all the time.
I need to get back to where I was before I got involved with all these people.
Note: I recently received an invitation to Dean Graziosi’s seminar. When I asked at the April “Inner Circle” event how Dean and Scott McGillivray were connected I was told they are partners.
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