How To Avoid Real Estate Seminar Scams

At Rapid Realty we work diligently to help our clients avoid unscrupulous situations. Whether its a sketchy renter looking to cause a landlord problems or a shady landlord trying to take advantage of an unknowing tenant. Unfortunately there is more than one way to skin a cat and more than one way to separate an innocent person from their money. Real estate seminars have become an easy way to bilk hundreds of people of their money in one swoop.

Real estate seminars are offered throughout the country – some legit and some too good to be true. If your gut tells you that something is amiss, you’re probably right. At Rapid Realty, we are cognizant of the types of scams in our industry and we want to help you avoid falling into any traps.

There are real estate seminars that claim to guide people on how to buy property for next to nothing and are put on by supposedly best-selling authors. Take Dean Graziosi of Dean Enterprises, for example. Television and online advertisements of Dean’s seminar claimed “free 90-minute seminars” teaching attendees that they will learn “how to make a fortune in real estate – right now” (bbb.org). The Better Business Bureau of Minnesota and North Dakota planted a secret shopper at one of his seminars to suss-out their claims.

The secret shopper reported that neither herself nor any of the attendees learned how they could make any money buying and selling real estate. What they did learn, however, was that it would cost them $2,000 on the spot for a 3 day future training. And if they didn’t sign up on the spot? The price would conveniently rise to $6,000 the next day. Furthermore, attendees without enough cash or credit were told that Dean’s Enterprises would extend credit at a 22% interest rate.

As if the unexpected costs weren’t enough pressure, attendees were faced with extreme sales tactics and complexity that the average person would not likely sort through successfully. The pressure and the confusion were clearly aimed to get an attendee to make rash decisions and create an atmosphere of peer pressure to conform.

Real estate seminar scams like that alleged of Dean’s Enterprises and others  have a lot of tactics and characteristics in common, here are some tips from Rapid Realty to consider when exploring any offers to get rich quick:

  • Check out the business at bbb.org or by calling 800-646-6222.

  • Ask the following questions:

    • What information is required in order to attend the seminar?

    • What is the basis for their claims?

    • What is the total cost of the seminar? How does that breakdown?

  • Get everything in writing and read the fine print.

  • Read what others have to say online about their experience with the firm or seminar
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s