Well, the seminars are not exactly a scam but they can be misleading. They hold x number of seminars a year with 100+ people in them. 1 or 2 people manage to put a deal together and they hold those few people up to show that the seminar works.
Here is how the no money out of your pocket real estate deals work (in broad strokes).
- You find a property for pennies on the dollar.
- You get other people to give you the money to buy and fix up the
property (it will surely need fixing if it is pennies on the
- After fixing it you flip it (sell fast) or rent it out.
Here are the issues with that:
- If the property is for sale for pennies on the dollar, there will be
issues with the property. Do you know enough to know if it will
cost less to fix those issues than you are saving on the purchase price or cost more? Many sellers and most realtors know what they are doing so actual deals will be few.
- Who will invest their money with someone green? Many seminars teach
you to present yourself as someone who has a lot of experience;
turning you into the con man.
- Do you know how to fix the property properly and inexpensively?
Many contractors can smell a sucker. Do you know enough to make
sure the contractor does what they say they will? Do you know how
to sell or manage the renters for the property?
Also, here is the general pattern for free seminars:
FREE: Why? Why invest your time and money this way? Why trust this person or group to teach you properly? If this system works so well, why are they wasting their time giving a seminar? (that last one is just my commentary)
$100-$300: What? What are the steps that you need to do to a accomplish the task? They give you enough info here to let you know just how much you need to learn to get the job done.
$300-$10,000: How? This is where they actually give you the information on how to actually perform the steps they outlined above.
$????: Tools, coaches/mentors, offers to do most of the work for you, etc. They trot these out once they show you how much work you will actually be doing and your brain goes into overload from all the stuff they taught you that you may or may not be able to remember. This is where most of their success stories come from.