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Real Estate Investment Scams, Cons & Frauds
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John Beck John Alexander Carleton Sheets Ron LeGrand Russ Dalbey

Warning! There are countless real estate money making strategies which may be pure SCAMS!

Real Estate Investment & Other Scams

Is John Beck a Scam?
Is John Alexander Real Estate a Scam?

Is Carleton Sheets program a Scam?
Is Ron LeGrand program a Scam?
Is The Real Estate Arena a Scam?
Is Russ Dalbey Cash Flow a Scam?
Is Jeff Paul a Scam?
Is Direct Buy a Scam?
How to get your money back

E-mail Scams

Warning for Sellers
Is the email I received a scam?
What if you receive an offer
How can I protect myself?
Check Overpayment Scam
Nigerian Scam
E-mail addresses of known scammers
Example e-mails received
Contact the Federal Trade Commission





Is John Beck Real Estate a Scam?

John Beck's real estate program called BUY REAL ESTATE FREE & CLEAR FOR PENNIES ON THE DOLLAR claims to show you how to purchase homes all over the United States and Canada for as little as 2 or 3 cents on the dollar.

For $39.95, customers receive several books and information including:

Amazing Profits
Free and Clear Real Estate Directory
Free and Clear Properties By Mail
Pennies On The Dollar Tax Lien Edition
Pennies On The Dollar Tax Deed Edition
Making Money On The Internet

and the Bonus materials...

Quick Start Video
Free and Clear Making - Money On The Internet CD-Rom

It sounds like interesting information, but critics say these products are only loose guidelines on John Beck's real estate investment strategies with unintelligible legal and tax jargon that only a real estate lawyer could understand.

The ordering process is completely automated (with no live person). After each step, you are prompted to make another purchase and then another and another. Many people who ordered the books said they declined the prompt for "property vault membership", but were charged $39.95/monthly anyway. Buyers who tried to cancel the 30 day FREE Trial of PROPERTY VAULT were left on hold for 30 minutes or longer before being hung up on. E-mails to their customer support are returned as "undeliverable". Meanwhile, credit card charges continue.

Some customers and critics claim that you will not get 1.8 MILLION Properties on JOHN BECK'S PROPERTY VAULT, nor will you see any homes as he has advertised on TV. They say John Beck is charging you for a list that you can obtain for FREE from the Tax Office in your county.

After purchasing a John Beck product, many people have claimed to have been repeatedly harassed by John Beck's real estate sales staff to buy higher priced products such as real estate coaching. The odd thing about the coaching is the price range which may be as low as $2200.00 or as high as $13,800.00. This is because the John Beck representative who calls to sell coaching to you will determine how much you can afford by asking how many credit cards you have and what the limit of each card is. This is scandalous! If someone asks you these type questions, you need to hang up on them no matter what company they are with.

The John Beck program is most definitely a scam! The absence of customer service via phone or e-mail is outrageous. There is no assured way to contact these people about getting the monthly credit card charges stopped! You could quickly run into some serious credit card debt if you enroll into this program. Some people have even claimed to have their credit cards or debit cards MAXED OUT!

Read thousands of e-mail complaints from John Beck customers on InfomercialScams.com.

Their website: John Beck Free & Clear

If you've had a sour dealing with John Beck, click here to see how to get your money back.

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Is John Alexander Real Estate a Scam?

John Alexander has founded a real-estate training company called 14-DAYS TO REAL ESTATE RICHES. For $39.95, you will receive a number of things including a DVD lesson and a 14 day action plan. Does it work?

Some former participants in this program were disappointed with their purchase, which consists of a CD-Rom set that includes real estate purchase contracts, training manuals and a 20 minute quick start DVD of a John Alexander seminar.

The program encourages you to spend more money and buy 10 phone-coaching sessions for $12,500.00. There is a money-back guarantee, but many people were not able to collect on the guarantee.

The end result is an inferior product and a worthless guarantee. Click here to see how to get your money back.


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Is Carleton Sheets Real Estate a Scam?

Carleton Sheets NO DOWN PAYMENT Real Estate Program promises to teach you how to invest in real estate with no down payment. It is a kit which includes:

Step-By-Step Quick Start Guide
3 Hour Course Video
3 Course Manuals
12 Course Audio
Creative Options Guide
Real Estate Forms Portfolio

and many Free bonuses to "enhance your success"

The problem with this program is that it doesn't teach you how to purchase real estate with NO DOWN PAYMENT. Many have claimed that the program teaches you creative ways to get the down payment, but you still have to come up with a down payment. If true, this is false advertising, but it does not make this program a "scam". A more accurate name for the program would be LOW DOWN PAYMENT.

Customers have purchased the No Down Payment program and actually learned something from it. Even seasoned real estate pros have been enlightened by information in the material.

In summary, Carleton Sheets program is not a scam. His course may be a good start into the real estate investing business. While it doesn’t offer every detail of how to implement every technique as claimed, it will definitely set you into the right direction, which is just as important.

Be careful of the sales pitch about the "free trial" phone service and mailings. Some customers have claimed that once the "free" period is over, their credit card was charged monthly anyway.

The majority of reasons the Carlton Sheets program receives complaints is due to the Return Policy and Customer Service. People claim to have a real hard time getting a refund. You have 30 days to return the product if you are not satisfied. If you wait until the 31st day, you are not going to get a refund. It's as simple as that.

Read e-mail complaints from Carleton Sheets' customers on InfomercialScams.com.

If you are having problems obtaining a refund, click here to see how to get your money back.

Carlton Sheets' products on Amazon.com:
Carleton H. Sheets Investor's Edge - How to to Triple Your Profits No Down Payment No Down Payment Step By Step Manual and Cassette Tape Library
Carleton H. Sheets Investor's Edge - How to Get Cash At Closing When You Buy Real Estate (DVD)
Carleton H. Sheets Investor's Edge - How to to Triple Your Profits in One-third the Time! (DVD)

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Is Ron LeGrand Real Estate a Scam?

Ron LeGrand is a real estate expert who teaches a real estate technique for buying distressed or foreclosed properties for no money down or very little down... similar to that of Carlton Sheets. A good part of his teachings seem to be outdated and no longer effective.

While buying a distressed property is a good deal, the problem is actually finding these distressed properties and competing with other buyers to get a good deal. It would be more beneficial to learn how to find these properties before anyone else and purchase them for the best price.

Ron LeGrand has training seminars teaching the 'no money down' techniques which are priced from about $1,495.00 to $6,000.00. As time runs out in a seminar, there is a "sales pitch" to talk you into buying the next seminar. A no-risk 30 day guarantee is also strongly pushed at the seminar. However, we found many people had a very hard time collecting on the guarantee. Many seminar attendees feel that the seminars focused more on the sales pitch than on the content of the seminar itself.

Ron LeGrand also sells training books. People have complained that the books were too expensive at $600.00/each. However, the book prices I saw were much cheaper. Below are some of his books and audio CDs available on Amazon.com. Many people claim that the books are like a paper version of an "infomercial" and that the books waste many pages plugging Ron LeGrand training seminars which costs thousands. On the other hand, some people have found the books to be beneficial.

Is Ron LeGrand a fraud? It sure sounds that way based on all the complaints we have read. If you decide to attend a seminar, BEWARE! And don't plan on getting your money back anytime soon, if at all.

Ron LeGrand's products on Amazon.com:
Ron LeGrand book Ron LeGrand book Ron LeGrand book Ron LeGrand book
How to Be a Quick Turn Real Estate Millionaire: Make Fast Cash with No Money, Credit, or Previous Experience Fast Cash With Quick-Turn Real Estate: How Anyone Can Quickly Turn Single Family Houses into Cash

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Is The Real Estate Arena a Scam?

The Real Estate Arena posts employment ads for “Property Locators” in major newspapers around the country.

One employment ad is:

Become a “Property Locator” Today – and Make $100,000+ a Year in the Greatest Real Estate Career that Only a Few Insiders Know About!

The Real Estate Arena claims you can make up to 100K or more once you're "certified" by going through their training. The company has changed its pricing many times since the website began in Jan. 2006. The cost of certification used to be $399. But they have slashed their price to $19.00 Registration and $19.00/per month.

The company offers to train you to be a "Property Locator" and hook you up with interested investors. You get "live & online training, resources, access to the members-only website and support."

They claim that "you may cancel at any time with no penalty or further obligation."

We found a few subscribers had difficulty canceling their membership or had their credit card charged after being told they would receive "2 Free months". Click here to see how to get your money back.

Basically, as a "property locator", you go out and look for great real estate deals. If you find a great deal, you report it to the Real Estate Arena. The Arena sends an "Investor" to check it out. If they buy it, you'll get a commission like a "finders fee".

The flaw we found with this is as a Property Locator, you would have to be able to trust the Real Estate Arena to pay you the finders fee if one of their "investors" buys the property you located. But what is to keep them from saying they'll send an "investor" out in a couple of days, but actually sending a covert investor out immediately who buys the property. For all you know, someone else bought the property before an investor from the Real Estate Arena looked at the property.

If you never make a dime on closing a deal, you will at least get training for your $19.00/month. Some of the things they train you on is:

  •  How to identify properties you can make money with
  •  Which deals to reject
  •  How to find "distressed" properties
  •  How to find motivated sellers
  •  How to identify under-valued properties
  •  How to negotiate the best deal
  •  How to structure deals to maximize profits on every deal

I would not call The Real Estate Arena a "Scam", but I would not call it a job opportunity, either. It is probably a waste of time for the majority of people. It could be an "intro to real estate" or a "training course" for people who want to get into real estate investing but have little or no experience. Many people who subscribed had similar thoughts of, "It's only $19.00. What is the harm with trying it out for one month?" The "property locator" side of this may or may not be a waste a time. We really didn't see any evidence either way. No complaints is good, right?

They put a lot of importance on getting "Property Locators" to recruit more "Property Locators" in which you make a commission if someone signs up. In that respect, it could be considered a "Pyramid Scheme" or simply a way to con you out of $19.00/month until you decide to cancel your membership in the Arena.

Their website: http://www.therealestatearena.com

 

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Is Russ Dalbey's Winning in the Cash Flow a Scam?

The Cash Flow Program: Three Steps… Find ‘Em, List ‘Em, and Make Money.

Find ‘Em – Find someone who wants cash instead of a Cash Flow Note.
List ‘Em – After you find someone who wants cash, fill out a one-page form in the Russ Dalbey Free Note Network Listing Service where DOZENS of investors can look at your note. Russ Dalbey investors "love" to buy Cash Flow Notes and they could make an offer minutes after you submit the information.
Make Money – After the deal closes, the investor will give you a referral fee of a few hundred to TENS OF THOUSANDS of dollars. The average fee (they claim) is between $2,000.00 to $5,000.00!

What is a Cash Flow Note?

A cash flow note is nothing more than a mortgage between two individuals – instead of between an individual and a bank.

Russ Dalbey's "Winning in the Cash Flow Business" system claims:

Russ Dalbey’s #1 best selling Winning in the Cash Flow Business course is considered the premier source of information for newcomers to the $350 Billion cash flow note industry – producing more than 350,000 professional note finders with over 15 years of success.

Americans from all walks of life have learned how to build their fortunes with Russ Dalbey's Winning in the Cash Flow Business system. This comprehensive text, audio, and video package teaches others how to potentially make huge profits with cash flow notes.

Complaints:

  • Letters to leads were returned from the Post Office with the wrong address
  • Many on the "property owners" list had been deceased for several years
  • Many clients end up spending thousands of dollars in hopes of finding success, but never do. One client spent almost $9000 and emailed the Russ Dalbey company to tell them that they wanted their money back and were told that they just hadn't spent enough money and should spend more for the program to work. Then they were told that they were only entitled to $1000 in refund due to signing something that had only a 7 day return policy.
  • Signing up for the basic package is designed to set you up to receive very aggressive telephone calls from the sales department. They are persistent in trying to convince you to sign up for more programs.

The truth about the Cash Flow System is that it is a very inferior product with a very aggressive sales staff! The sales staff seem to know nothing about the Cash Flow Note business. They do know a lot about convincing people that they aren't spending enough money on their program and that they need to spend more money if they want the program to work.

Those who have tried the program say it is very difficult to do, time consuming and property owners slam the phone on you 99% of the time. If you do get into contact with a note holder, they are not interested in selling their note to you. They want to deal with professionals or licensed individuals. Why would someone with a $500,000 note, trust a waitress from Applebees who has no experience and no license to broker it?

Their website: Winning in the Cash Flow Business

Read e-mail complaints (and defenses) from Russ Dalbey customers on InfomercialScams.com.

If you've had a sour dealing with Russ Dalbey, click here to see how to get your money back.

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Is Jeff Paul Shortcuts to Internet Millions a Scam?

The Shortcut to Internet Millions Program includes:

  • Internet Marketing Toolkit
  • Internet Marketing Secrets Revealed
  • Guide to Internet Products on Demand
  • Shortcuts to Internet Millions Audio CDs Parts One & Two
  • 3 Clicks to Cash Websites, 10 FREE Websites!
  • Instant Internet Cash "Marketing Bible"
for $39.95 plus Shipping & Handling

The catch is that you aren't just ordering a $39.95 program, you are actually enrolling in a club with a $39.95 monthly pricetag.

Of course, coaching is available from the Jeff Paul group. Some customers have paid $1,000 for the coaching or as much as $13,000.

Jeff Paul preys on the technically deficient consumer promising an easy way to setup Websites. But the website companies appear to be links to more scammers.

Save your money! Don't waste your money or time with this company. Many people complain that their credit cards were charged multiple times. And after notifying their credit card company to stop the fraudulent charges from Jeff Paul and Mentoring of America, LLC., unauthorized charges from different companies (all owned by Jeff Paul) started coming through. You must cancel the credit card completely to stop these charges. Your credit card company can issue a new card and number to you.

Their website: Jeff Paul's Shortcuts to Internet Millions

Read e-mail complaints (and defenses) from Jeff Paul customers on InfomercialScams.com.

If you have been burned by Jeff Paul, click here to see how to get your money back.

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Is Direct Buy a Scam?

Direct Buy is not considered a real estate scam, but because they target new home buyers it is appropriate to include them in the list of businesses to be warned about.

You've probably seen the infomercials, television or Internet ads for Direct Buy. You may have heard prominent celebrities endorsing Direct Buy on the radio. Soon after you purchase a home, you may receive a post card from them telling you about all the money you can save furnishing your new home using their wholesale connections. Direct Buy claims to be the #1 way for consumers to buy directly from 700 brand name manufacturers or authorized distributors without paying the retail store price.

Products include:

  • Living Room, Home Office, Bedroom & Dining Room Furniture
  • Bathroom and Kitchen Cabinets and Fixtures
  • Carpet, Tile & Hardwood
  • Outdoor Patio Furniture
  • Lighting
  • Window Treatments
  • Home Improvement Products

How does it work:

If you respond to an ad, they will set up an appointment for you to visit the Direct Buy Showroom. You CAN NOT attend the appointment without your spouse and absolutely NO DROP-INS... you must have an appointment or you will be escorted off the premises! They also will not reveal the products, pricing or answer any of your questions over the phone. This is already sounding pretty suspicious and deceptive to me! However, I think it has the opposite effect on other people of being alluring and adventurous.

The "Showroom":

The Direct Buy "Showroom" is not what you think it is. You may have visions of thousands of square feet of hardwood flooring, furniture and Kitchen cabinets, but what you will actually see is a small business probably located in a strip mall, a couple or rooms, one which will have shelves stacked with hundreds of catalogs. You will be greeted by extremely friendly sales people and offered drinks and refreshments. What you thought was "your appointment time" is actually shared by 15 - 20 other people. The entire group will then be ushered to a backroom to watch a video (infomercial). The video lasts about 30 minutes.

After the video, you will be allowed to briefly look at the catalogs on the shelves that contain the products that can be ordered. There are no actual products to touch or look at, just catalogs.

Then, you will be asked to sit down at a table with a salesperson. This is where it gets crazy. The salesperson will tell you the membership cost which varies from location to location anywhere from $3,500 to $5,000 for the first year. After a year, the renewal membership varies at around $180 to $250 per month. Most people think the costs are insane! If you begin to show hesitation or reluctance, you will probably hear "If you don't sign-up tonight, you CANNOT come back, it is now or never!!!!!". If you have ever been to a timeshare sales pitch, then triple the hardcore selling tactics and that will be Direct Buy.

I would hope that most people RUN at this point and tell all of their friends to stay away from the madness, but unfortunately, there are some people who haven't been warned in advance and end up getting conned into signing up!

People who do sign up with Direct Buy find themselves wasting hours in the "showroom" searching through the catalogs. If you order any products, you still have to pay hidden fees such as a 8 - 10% "handling fee". Normal fees such as "shipping charges" and "measurement charges" may be 2 to 3 times the amount you would pay to other retail stores.

Keep in mind that even though many people have had really bad experiences with Direct Buy locations across America, Direct Buy is a franchise and each location is individually owned. There have been people who have had reasonable experiences with Direct Buy and believe they have saved money with their purchases. You may want to check with your local Better Business Bureau before dealing with the Direct Buy in your city.

Their website: Direct Buy

Read the hundreds of Direct Buy complaints on InfomercialScams.com.

If you've had a bad dealing with Direct Buy, click here to see how to get your money back.

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How to get your money back:

Trying to get your money back from unsatisfactory purchases from any of the above may be difficult. Calling the companies repeatedly and getting names of those in charge may get you somewhere, but it also may be time-consuming with no results.

If the first couple of calls or e-mails fail, immediately contact your credit card company's customer service department. Immediately have a stop payment put on and ask for a charge back. You will need to send to them copies of all documentation for your purchase. Be sure to send them copies of the "Money Back Guarantee" printed from the website of the company or any other documents you have. Send copies of returned emails, etc... You should get results from your Credit Card Company. They will investigate the purchase and then, hopefully, refund you. They will certainly be able to put a stop to any monthly recurring charges such as those imposed by John Beck's PROPERTY VAULT.

Don't settle for a partial agreement with the company such as getting 10 or 15% of your money back. Accepting a payment from them will affect your being able to make a full claim for refund with your credit card company. Wait for your credit card company to complete their investigation.

If you made the purchase with your bank debit card, contact your bank immediately to stop charges! Otherwise, they will wipe out your checking account and you may incur serious financial problems in a very short amount of time.

Good luck to you!

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