I’m probably going to get a bad reputation in the world or real estate trainers but, oh well! Listen folks, I have no problem with the real estate gurus of the world if they really are gurus. I’m just not settled with the market of selling informational materials and ripping people off at the same time. I’ve befriended an individual that I’ll probably partner up with in the future. Let’s call him Frank. Frank is very new to real estate investing and would like to get started in this market. A month prior to meeting me (around July of 08), Frank bought a package for about $1000, which is great! He really wants to learn to invest in real estate and are taking steps to do so. With that package, Frank is able to talk periodically with his real estate trainer. Frank also likes to surf the web a lot and usually gives his email and phone number to receive free information. A 3rd party company got his contact information and gave him a telemarketing call on September 14th about real estate coaching. During that call, this “Real Estate Guru” (supposedly a business mentoring worldwide group), convinced Frank to purchase a package for $1500 that evening with the promise of training him to build wealth within 6 months. Frank has every right to say yes or no to this offer. Apparently he said, yes. If you have ever been to real estate seminars or been a part of free conference calls, you know they can be very persuasive and aggressive when trying to make a sale. Again, no problem that Frank reluctantly agreed to buy.
One may ask me, how did I know Frank was reluctant to buy if I was not on the call? The answer is, that night, September 14, 2008, he called me right after making the purchase, left me a message sounding very uncomfortable. Frank message asked me to call him back as soon as possible. Unfortunately, I was not able to return his call until the 17th. At this time, I had no idea what he wanted or what had happened. While talking to Frank, he said, “I bought this package for $1500; It’s a real estate coaching course; What do you think about it.” I asked, “what do you think?” Frank immediately expressed his discomfort. He said, “I tried to call you but you weren’t around; Couldn’t you hear my voice; It’s not in me to be the mean guy, I like to make people happy!” Granted, that is a problem Frank need to fix but OK, he bought this real estate coaching package 3 days ago and no longer wanted it. I told Frank to call the company and ask for his money back and tell them you no longer want to enroll in the group. He said OK and made the call. I got a call back 15 minutes later from Frank and he said, the company said it was too late. At that point I was baffled. So I said, (among other things) let’s call on 3-way and this is how the conversation went (see below). The contact person’s name was Jay.
Ring-Ring on September 17, 2008
Jay: Hello
Jersey Girl: Hi, my name is Tamara and I’m calling on behalf of Frank. He purchased a coaching package from you all but would like a refund. Frank said he just spoke to a Jay who informed him it was too late to get the refund. I do not understand what that meant. Can you please clarify? Frank is also on the phone.
Jay: Who is this for again?
Jersey Girl: Frank “Beep”.
Jay: Oh right, It’s too late to get a refund after 3 days.
Jersey Girl: The transaction just went through on his card on the 15th and it’s only the 17th now so he’s well within those 3 days.
Jay: Oh right, OK, if we process a refund for him, he will need to pay 20% in fees.
Jersey Girl: What fees are those?
Jay: We already sent him to a coach and he’s had coaching…that cost us money.
Jersey Girl: He hasn’t been coached yet.
Frank: Jay, I didn’t do the coaching yet. I haven’t even gone through orientation.
Jersey Girl: This transaction just took place 2 days ago.
Jay: Oh, he hasn’t been coached yet?
Jersey Girl: No
Jay: Well there will be a 10% fee
Jersey Girl: 10% for what?
Jay: 10% for swiping the card. Our merchant account is expensive.
Jersey Girl: You don’t pay 10% for a merchant transaction!
Jay: Our merchant account is top of the line and they charge us for swiping the card.
Jersey Girl: That is ridiculous!
Jay: OK well the 20% will apply.
Jersey Girl: You just said 10%, why is it back up to 20%?
Jay: It’s 10% to charge the account and 10% for the refund.
Jersey Girl: You got to be kidding me! So before it was 20% for coaching now it’s 10% to charge him and 10% to give him a refund!
Jay: Yes, again our merchant account is top of the line and it cost us to do the transaction.
Meanwhile in the background I hear something that sounds like, Hi, can I help you?
Jersey Girl: So can we process this refund now?
Jay: Do you want to process this refund or does Frank? It sounds like you are doing all the talking.
Frank: Jay, I really didn’t want the coaching in the first place.
Jay: Well I can’t do it now. I had my calls forwarded and I’m not in the office. Can I have a cheese burger and fries please.
Jersey Girl: What is going on??
Jay: I’m not in the office, I had my calls forwarded to my cell phone, I’m trying to get something to eat.
Jersey Girl: This is crazy. When can you process the refund?
Jay: I can’t take my office with me so it will have to be tomorrow. Call me tomorrow morning and I’ll be able to process that for you.
Jersey Girl: What time tomorrow?
Jay: You’re on the east coast, correct?
Jersey Girl: Yes
Jay: Well I will be in the office at 11AM your time. Call me then.
Frank: OK
Jersey Girl: OK
Jay: Bye
Jersey Girl: Bye
Frank: Bye
We were pleading Frank’s case to get 1500 bucks back over a burger and fries at a drive through window. Folks I can’t make this stuff up! I don’t have the time or energy to do so. That’s why I’m not big on these real estate training gurus. There are good ones out there but in my opinion, too many bad apples. We are talking $1500 that this company wanted to take 20% of for credit card transactions. They really didn’t want to give the refund as you can see from the conversation. Is this a bad or good apple? You be the judge!
Happy Real Estate Investing!



