Posted by Don Wilson on August 29, 2005 at 21:32:56:
Ericka:
I would proceed with caution and do your homework on this person. He may be legit…but I would want to see proof of his results over an extended period of time, 5 to 10 years. How many people is he currently mentoring? Can you contact them? Have you checked with the BBB? I’m sure you get the point. If your gut tells you something isn’t right…listen to it.
DW
Paying Mentor & Splitting Profits - Posted by Ericka
Posted by Ericka on August 29, 2005 at 21:22:26:
I am a potential real estate investor (I am in the reading and asking questions phase). I recently contacted a person in Chicago named Larry Cherry. He is affiliated with the Real Estate Investment Institute of Chicago. He is offering 22 weeks of partnership with me, meeting me personally and/or over the phone to learn his method of foreclosure investing/credit counseling for $2900. Averaged over the 22 weeks, it doesn’t seem that much, but I don’t feel good about the whole deal. He also will split the profits with me at varying percentages. I don’t believe he is scam artist, because he is actually teaching part of a seminar on Real Estate Development for continuing professional education for CPAs, which I received at my job. What do you think about this?
Thanks,
Ericka (CPA who is tired of counting other people’s money)
Re: Paying Mentor & Splitting Profits - Posted by Ericka
Posted by Ericka on September 10, 2005 at 15:44:54:
What do you think of this set up?
This is the second e-mail sent to me by Larry:
"Hi, I can present you with two alternatives to begin to master real estate investment.
Option 1 - Purchasing foreclosures the typical way plus many of the following added techniques.
You will learn how to use Sales Contracts, Land trusts, land contracts, assignee clauses, three way closings, mechanic liens, credit restoration techniques, short pay process, Bank REO’s, various deeds to obtain ownership, affordable housing programs, advanced property management techniques, and originating loans indirectly for yourself.
$1500.00 1 payment
Option 2 All of the above plus
In-depth understanding of how to assist those who are in foreclosure who have been wronged by a mortgage company or bank or their agents. This process involes much less upfront money in each deal but will require learning some advanced legal techiques and theory.
$2900.00 2 payments."
This is the first e-mail he sent to me:
“Thanks a lot for responding to my questions beforehand. Your answer helps me pinpoint how to be of best assistance to you. Most of your observations are quite accurate. Once you get involved wholeheartedly you may do much better than you expected. It is also wise of you to seek experienced guidance. Your people skills, negotiating ability, talent in making a piece of property desirable for a renter or buyer, and willingness to be mentored all play key roles in developing your real estate career. I have purchased over 80 properties. My main strategy has been to assist people in need and be sure that the deal is truly a win-win situation. In other words if the other party who may be in foreclosure is not excited about working with me, I don’t get involved. I have utilized my knowledge of credit restoration, finanacing, foreclosure defense, predatory lending prosecution, construction management, land trusts and many other areas to acquire property.
While my time is limited, I do love the idea of mentoring individuals who want to make a difference for themselves and the community at large.
The cost of my course is $2900.00. This would involve meeting with me in person or by phone for 22 weeks. Any properties that we find for you with equity, is divided between us. The per centage depends on the factors involved.
To use my method you must have true concern for those individuals who are losing their homes.
If this interests you or you have more questions, feel free to contact me.”
Larry Cherry
Thanks for your input,
Ericka
Re: Paying Mentor & Splitting Profits - Posted by Greg (FL)
Posted by Greg (FL) on September 03, 2005 at 21:49:53:
22 weeks for that money is no deal. Look for someone to build a lifelong relationship with. The 22 weeks thing sends up all kinds of red flags in my opinion. The $3k pales over time, if he’s helping you ramp up more quickly. But, 22 weeks is not enough time for that.
JMHO.
Greg(FL)