What the Federal Trade Commission says
The FTC has released a formal document warning consumers to beware of real estate seminar scams. The advertisements for these seminars may appear on television, on an infomercial or in newspapers or magazines. Promises of success stories and insider secrets, seem to show that anyone who attends the seminar can make money from the investment and business program they will be selling at the seminar. Some seminar promoters may even say they’ve gotten rich from their own program.
What to look for in real estate seminar pitches
The FTC has identified claims most often made by real estate seminars that wind up being false.
- The program or business opportunity is offered for a short time only.
- The deal is a sure thing that will pay out for years to come.
- You’ll have financial rewards for working from home or part time.
- You’ll be coached each step of the way to success.
- The program worked for other participants, even the organizers. If this is the case, why didn’t the organizers sit back and get 20 times as rich?
Avoid getting hit by the real estate seminar pitch
If you do attend a real estate seminar, you should avoid buying into their business plan offering. Here’s how:
- Don’t be rushed into buying anything. Avoid high-pressure sales talk situations that require you to buy now or lose out on the opportunity.
- Investigate the business that you’re being offered the opportunity to invest in. Talk to other people in the field (not involved in the seminar) a before you do anything.
- Beware of success stories or testimonials about success. The seminar organizers may have paid people to create false success stories.
- Avoid buying anything from seminar representatives who do not want to go into further detail other than their marketing pitch. Legitimate businesspeople should be more than willing to give you any details.
- Ask about the company’s refund policy. Get it in writing. Keep in mind that you may never get back the money you give to a representative of such a seminar, despite their stated policies. Taking precautions before you invest is more effective than trying to get a refund.
However…
The Realtors Association in many states now offers members the option of attending real estate seminars as a way to fulfill their continuing education requirement. The key difference is that these seminars put on by Realtors Associations are not advancing a get-rich-quick scheme, and do not provide participants the opportunity to invest in a particular business or scheme.
By Virginia Zignego