A U.S.-based mentorship company offered workshops on real estate flipping over the last week in Vancouver, a development that has led the Better Business Bureau to issue warnings to the public against such seminars.
Aside from allegedly proliferating “misleading and manipulative” industry practices, the workshops have also been tagged by over a hundred complainants as fronts for fraud.
“This warning comes out of the United States. BBB's there have heard many stories from frustrated clients who paid thousands of dollars on promises of real estate secrets and tricks, only to come away disappointed,” BBB spokesman Evan Kelly said in a statement, as reported by CBC News.
At least 157 consumers from the U.S. and Canada alleged that the seminars offered by Success Path Education forced participants to register for a longer workshop period for $2,000, with more exhaustive classes available for $10,000 and as much as $40,000. The complainants claimed that they have been ripped off as the seminars offered little value and new knowledge.
The company contested the BBB’s warning, saying that the number of complaints is far less that the total number of people—which they estimated to be at around 200,000—who have already completed the workshops.
“If you were to ask all 150 of those people that complained how much work they put into it, you would find it's very few that actually tried,” Success Path Education spokesman Shane Andrus said.
“Many of our customers see and hear real estate and think it's going to be easy money. The truth is, it takes a lot of work to be successful in real estate,” he added.
Source: Real Estate Professional, Ephraim Vecina, May 25 2016