Saturday, June 29, 2013
 
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From the Better Business Bureau

Beware of house-flipping seminars

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[June 29, 2013]  PEORIA -- If you've had the radio on lately, you may have heard an interesting ad promoting a free seminar on flipping houses.

Than Merrill, one of the hosts of A&E's "Flip This House," tells listeners the Peoria area is ideal for flipping homes for profit, but the Better Business Bureau is warning people to be wary of traveling home-flipping seminars.

"My team and I are looking for a handful of people in the Peoria area who want to learn how to consistently make a lot of money, per deal, in your spare time without using any of your own money," Merrill tells listeners.

Merrill says the system can work in any market.

The Merrill-promoted seminar is slated for 12:30 p.m. and 6 p.m. on Monday in East Peoria and on Wednesday in Peoria. More information is available for viewing at the link below:
https://www.fortunebuilderstickets.com/
PEORIA/2.0000/Index.dtm?MID=4192510

The Peoria seminar is put on by San Diego-based FortuneBuilders Inc. A Better Business Bureau rating for the company was not available, as it is currently being updated, but reviews for the seminars were unfavorable.

These events serve to introduce people to real estate investing, both the potential and the risk. When you teach people how to invest and make money, many people think you can learn everything at the event.

Companies offering this type of workshop often claim there is little or no risk in the investment process, according to the Better Business Bureau. Consumers are encouraged to attend the seminars for free, then offered a longer training at a discounted rate, usually for a few hundred dollars

In August 2012, Merrill's seminar made stops in Ohio, Cleveland.com reported. The Cincinnati Better Business Bureau sent staffers to one of Merrill's seminars and found that organizers told the crowd the company's three-day real estate investment course costs $1,200, but those who signed up that day could get it for $200, the report said. "People who buy into that are then pitched additional programs that can cost thousands of dollars."

The Better Business Bureau reported that a similar seminar promoted by Armando Motelongo, another host of "Flip This House," canvasses the country conducting "free" events that then solicit attendees to purchase additional educational resources for up to $25,000. This seminar was given an "F" rating by the bureau.

"Be wary of high-pressure sales tactics," the Better Business Bureau said in a release. "Free 'flipping homes' seminars will include a sales pitch to get you to pay for more materials and workshops. Be prepared to read contracts thoroughly, look for hidden fees and know exactly what you are signing up for. Get all promises and earning claims guaranteed in writing."

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The BBB is offering the following advice to consumers who are considering entering a real estate investment training opportunity:

  • While the initial seminar is free, additional seminars and training materials can cost thousands of dollars.

  • Don't fall victim to high-pressure sales tactics. Take the time to carefully research the opportunity carefully, and don't sign a contract until you fully understand all of the terms.

  • Check out the refund policy and be sure to get all promises in writing.

  • Many inexpensive homes on the market have been empty for long periods of time or may have been vandalized, which will make for costly repairs and will make it difficult to sell quickly.

  • If you purchase a home with violations, you could face fines or criminal penalties for failing to fix them.

  • If you plan on financing the purchase of a house, be sure to budget for the appraisal, filing fees, insurance, taxes and maintenance of the house until it is sold.

  • Check out a company with the BBB before doing business. Be sure to check out a company's BBB grade and complaint history. BBB Business Reviews are available at www.bbb.org.

___

For 100 years, the Better Business Bureau has been helping consumers find businesses, brands and charities they can trust. In 2012, consumers turned to BBB more than 100 million times for reviews on more than 4 million companies and reports on 11,000 charities, all available for free at www.bbb.org. The Council of Better Business Bureaus is the umbrella organization for 114 local, independent BBBs across the United States and Canada, as well as home to its national programs on dispute resolution and industry self-regulation.

[Text from file received from the Better Business Bureau of Central Illinois]

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