This blog begins a new series of “We Read This Crap So You Don’t Have To.” The purpose: To read the e-mails with the “amazing” subject lines from real estate gurus . . . and then to look at what these folks are peddling. Every once in a while, the subject line and e-mail text are actually worthwhile, and we’ll cover those, too. I promise. But 90% of the time, it’s pure hokum. And 8% is just plain dishonest.
Ready for the first one?
Greg Clement E-Mail "This Is New To Me . . . "
So what precisely is so new to this savvy real estate investor? What is one of the “coolest investing strategies” he’s ever seen? What is “a TOTAL new concept to me”?
Here’s the top and the bottom of the sales page:
Beginning of REO Rockstar Promotion
Bottom (with price) of Greg Clement's REO Rockstar Sales Page
I read the copy and watched most of the tedious videos (watch this blog for a rant against time-wasting videos!). From the sales page itself:
Effectively we have solved the real estate investing community’s biggest problem … how to flip bank-owned properties without taking a dime out of your pocket.
And now we’re ready to reveal the exact same system that the REO Rockstar uses to flip 10+ houses a month in this f’d up market … to YOU. Like I always say … “I go? You go.”
That’s it? For $997 plus $97 a month? (And maybe more–it’s difficult to tell whether there’s any continuation pricing on some of the items. There likely is for the REO leads and access to the REO Rockstar himself. Woo hoo!) And most of the course is online.
Look: The course may or may not be worth $997 plus $97 a month (or $1,164 a year forever plus other add-ons). As is said elsewhere: We report. You decide.
But c’mon. A savvy real estate investor talking about wholesaling REOs: “I had no clue you could even do this. I’m not kidding. This is a TOTAL new concept to me. You’ve not seen this before. It’s simple and soooo smart. . . P.S. It’s one of the coolest investing strategies I’ve EVER seen.”
And frankly I don’t know what technique’s being promoted here. (That’s part of the reason I call this “crap.” Greg’s not revealing the concept; he’s not showing us what it is, as his e-mail suggests. Instead, it’s just a link to a sales page.)
But there are plenty of ways to do what’s described here: Flip REOs with none of your money. You borrow money–from a variety of lenders–to buy REOs. The only catch, in many cases, is that the property be priced far enough below the market. (And even that doesn’t always apply if you’re borrowing privately.) And as far as flipping, a lot of investors will put the property into a newly-created LLC, then sell the LLC itself. Or, heck, just buy and sell. There are a bunch of other ways to flip REOs.
On our Crap-O-Meter, let’s give this a 9 out of 10.
Real Estate Solutions 
Thanks for the heads up on REO Rockstar
Thanks for the info everyone is pedding some crapola out there for us folks that are struggling and trying to better ourselves.
I paid 37 bucks to take a look. I’ve been investing for years and one thing I’ve learned is that not all people have all answers or solutions. I don’t know if the VIP program is worth it or not, but the 37 I paid sure was. These guy’s are experienced wholesalers, with a lot of energy and proven success. There salesman. So don’t be offended by the e-mails that direct you to a sales pitch. I’d be more offended at the gorgeous blond snorting a big mac. Not everyone is a con man. So far these guy’s have shown me a lot for very little. i would consider that ethical.
I agree: Not all are scam artists. Some of what they sell is worth it. I’ve posted a few examples of what I consider honest and ethical promotions. they do exist. But a lot of what they’re offering/pushing is overpriced, and most of it is over-hyped. Because it’s so difficult to separate the wheat from the chaff without spending a lot of money ($37 for almost anything in this arena is a bargain), I welcome comments on products that are worth the money. So: Thanks for commenting.
Thank you very much, this is just another example of theives, predators and shady internet operators trying to steal your hard earned money. This unscrupulous operator IS TRYING VERY HARD TO CONVINCE YOU THAT THIS IS LEGAL and MORAL. Legal maybe, moral absolutely not! you are using and abusing people that are in distress. God forbid that some day you have these same kind of problems and you are approached by one of these vulchers, these so called gurus, are the scum of the earth stay away from these shysters.
Hi, this is Hillard Thomas from Snook Texas. I read your page and I was happy when I was done. I personally am tired of these so called millionairs selling their new and improved ideas to the poor and idiotic. I say that because I was also one of their victims. I had been unemployed for so long that I was just kept hoping ne of these promotions was true. I finally woke up one day and thought to myself If these guys were truly that successful, then why would they bother selling anything. Why would they not just give their product to people that are struggling. That is why I check out web pages such as this. I truley respect Individuals like you who do the research and try to help inform people like me who have been down and are just hopeing for that one break that can change our lives for the better. With all that being said I just want to say thank you.
Benjamin A. from SLC, Utah. I always do a Google search on anything and everything that I do to try to better myself and situation in today’s life. I am disabled and on SSDI (fixed government income) and its very very hard to raise children on this kind of money so this is why I read pages like yours. Thank you so much for shedding the light on the REO Rockstar program before I wasted my money and was able to do nothing about it. I have been burned so many times trying to improve my life. Even the 30 day guareenteed dosen’t always pan out like they say it will. I have never recieved money back from anyone over the internet, that I tried buying a get rich idea. I want to say thank you in so many ways I can’t express it here it would take hours of typing, so real qucik from me and my family’s heart for saving us the money. God Bless and I hope everyone out there will read your blog like I did.
Benjamin
Thank you for your comments and feedback. I wish you all the best.
i was interested in the program but I had a problem with the recurring 97 monthy charge ..exactly what is that for? that is the only thing I had a problem with. no mention of a website for the *97 or even a 12 month coaching session for 97. what are you going to do with my 97 dollars every month that i will be charged for. Can any one you especially reo rock star answer that question
The recurring payment technique has become increasingly popular. The “gurus” (and most folks who use this technique) keep very close track of how long a person stays enrolled in the program. Let’s say it’s 8 months. (Just a made-up number, but probably fairly close to accurate.) And the gurus know that relatively few people will cancel during the first month. So let’s say you have 100 sign-ups. 10 cancel within the first month. The other 90 go for an average of 8 months. That means total revenue of $69,840. (90 x 8 x $97) So each sign-up is worth $698 ($69,840/100). And during that time, the gurus have a chance to “upsell” you on various other products and services.
On top of that, a lot of those $97 a month services–while providing some useful things–are constructed to lock you in . . . to make it difficult to change. For instance, some programs offer one or more websites. And the websites are (sometimes) quite good, with lots of bells and whistles. But once you set everything up, it becomes increasingly difficult to say “No. I don’t want that any more. I’ll set up my own websites and autoresponders and bulletin boards.” It can be done, but not without some hassle and expense. It becomes easier and easier just to go with the flow.
The gurus have already thought this out long-term. It’s important for customers/buyers to do the same.
Great comment. Thanks.
Personally I keep a prepaid debit card for these things. The balance is ZERO until a few minutes before I want to order something. Then I transfer the correct amount from my bank to the card and place the order. Balance drops to zero (or a few cents if I don’t know the exact price because of a discount or something) This way if, perchance, I hit a bad site, all they can rip me off for is what I sent them. No access to my real accounts. And, if I DON”T want a monthly bill, I send them notice, and the card simply has ZERO for them to steal. I never have to try to get a refund of an “accidental” charge.
That’s a creative idea. Thanks for suggesting it. I’d just be concerned whether the bank that issued your debit card would assess any penalties for a charge showing up greater than what you owed. Otherwise, though, I like it.
Thank Goodness for sites like this one. . …
I spent the $37 to get the online version and then downloaded it to a cd for back up. I cancelled the monthly fee and sent a certified request to cancel the service the same day. I got a return reciept without any problem. I figure any thing that I might have missed or that jogs my memory a little is worth $37.00. It does work BUT here is the REAL PROBLEM with the system. Texas has some very good bankers and 99.99% of them will not let you put in an offer through an agent or with the without putting money in escrow. I made 194 offers in 20 days and not one was accepted using his system. I made 1 offer using the system but attach an earnest money check for escrow and it was accepted. The offer was $109,000 and the required earnest money was $2,180. So the idea that most banks will accept offers without earnest money in Texas is not very truthful. And the no money needed is NOT TRUE on 99.99% on bank owned deals. They will deal on price but they want to know you are not going to walk without any recourse. Eddie in Dallas
Thanks for detailing your personal experience. And for your tip on how to really get deals accepted.
That is a fairly standard practice…Earnest money is “good faith money” and I do not know of a single seller, bank or private, that will consider an offer without earnest money. I am a real estate agent in Arizona, so of course this “system” was intriguing but clearing a scam to get $97/mo out of people. I have never seen a deal accepted with less than $500 “down” (earnest money), in Arizona it usually depends on the asking price of the home. I have had banks accept $500 as the earnest money though, so it is possible. The homes that are sold around here that are bank-owned need serious repairs/remodeling so the only real way to buy a REO home is to have an investor that puts up the money to purchase, do the repairs, then sell it. I would strongly advise anyone to have a real estate agent involved because if you buy a home thinking there is value, and you put money in to fixing it, then put it on the market to sell, it better be priced right…and that price needs to include closing costs and commissions (you can try to sell it yourself, but at least offer a co-broke which is paying a buyer’s agent a commission to bring in a buyer). I have seen many investor try to sell a flip, just to barely walk away breaking even. There is a lot more to buying and selling real estate than any of these scams will tell you. You CAN do it alone, but the bank will pay the commission for a real estate agent when you buy…so why not have their expert advice that doesn’t cost you anything? It is a myth that you will get a better deal without using an agent. The commission it budgeted it, and the bank or seller simply makes more money when you don’t use an agent, and negotiating and protecting a buyer is a Realtor’s JOB. Make sure to get legal/professional advice before playing the real life monopoly game….and good luck to everyone because you CAN make money with a little common sense and help.
Horse shit! If you are the least bit savvy about real estate investing everything in this intro is not going to be worth your $37. All this is designed to do, is to draw you into another program to get your money, nothing more. I also invested the $37 and I have been trying to cancel. This has proven to be a real challenge. These guys are good. I am going to dispute the charges with my credit card company and file a complaint with the authorities. I am amazed the BBB has not shut down this scam. Just try to call the phone numbers listed on the sites promoting the REOrockstar program and you will find the numbers have been disconnected. If anyone knows how to cancel the program please email me at tj.thetoolman@gmail.com, I will be thankful for your help.
If I decide to “Try” a program out I use a credit card and if I decide to cancel anytime and there is any kind of delay I cancel the credit card and get a new one in about 5-8 days. Stops all of the continues hassle of calling trying to cancel while xyz gurus are dipping into your money box.
That can work, but I’d hate to cancel a credit just for that. Couple of reasons: Your credit score is based in part on the length, timewise, of your credit lines. Having a card, say, 10 years is very good for your credit. Having a new card, one you got last month, isn’t. Also, each credit inquiry (each time you’d apply for a card) “dings” your credit. Not by much, just by a few points. Still, it’s not a positive thing. And finally, if you have recurring charges from legitimate companies (for example, automatic renewals of websites with GoDaddy), then you have to go to the hassle of contacting each of those companies and updating your records. I wouldn’t reject your strategy, but just use it as a last resort. Still, thanks for the input and suggestion.
It is not that hard to call the credit card company and get a new card. It doesn’t effect your credit. You get a new card and have to redistrubite it to any reoccuring bills you want to stay active on that account. But that is the only recourse other than a small charge depdendant on the company.
Article writing is also a fun, if you know after that you
can write if not it is complicated to write.
Does it work if you use their money at the cost of $197?
Thanks, had to weed through a lot of fake scam reporting sites to find this real one…you just saved me $300! They are good salesmen….
LOL, all of you here…are CLEARLY broke idiots.
I am so happy I researched this REO company scam on your site through google search! How these greedy hurtful people can steal from honest down and out people is shameful!
I am forwarding all this material to the Attorney General, They have to be stopped. Thank you so much for your hard work Investigating this scam. ATTN: People, Always research anything before Buying!
These guys are just another take on a classic….Tom Vu
I tried to purchase the course and they said that I had previously done so, but I’ve never seen the program. They said if there’s any problems to call them but I can’t find a phone number. Does anybody have one?