This Is How A Commercial Coaching Scam Works
By Duncan Wierman on Jun 29, 2010 in Duncan's Opinion
I am writing this so you know how to avoid a real estate investing scam at a seminar. Sure, mentoring is a good thing, but how you choose your mentor is another. Commercial real estate investing has the distinction of of being one of the few investments that enable skilled and well trained practitioners to make money regardless of current economic conditions.
Because of the recent soft commercial market and economy, hundreds and thousands of would be investors hoping to make a quick buck buying cheap property are entering the market. Lacking the expertise to find deals, these dreamy eyed investors turned to ” self professed” commercial gurus : (you know who I am talking about ) who made pie in the sky promises. These “want to be” investors eager to learn the trade dropped 10K – 30 K at her well hyped bootcamp. Unfortunately they have been taken by a huckster. They are very happy to relieve naive investors of their hard earned cash. If you ever consider any real estate training program, educate yourself first and avoid becoming a victim.
It is easy to be taken in by this sales professional. However, dig a little deeper into their back ground and you would be shocked. Have they ever personally invested in Commercial Real Estate before? The sad truth is NO. A sure sign of a scam artist is that they avoid specific questions around their net worth, and experience level is brushed aside because they don’t want the truth to get in the way of a perfectly good fraud.
Here is how it works
How many times did they use the tactic at the event and on webinars to mention certain “buzz” words like motivated seller, power of leverage, partnering, desperate lender? How many times did they refer to a NO Money Down Deal to get you to sign on the dotted line for her coaching program? They promised you the world, but I am telling you she /he/ they cannot deliver.
Did they start their presentation o with some “folksy” stories about “real” deals that he/she/they supposedly have done, (KH – deals from your previous employer are not your deals) and it was full of embellishments. Unbeknown to you, you’re being led down a path to a major up-sell. Before the big push, they will try to pre-qualify you for it by teaching you a secret technique that will allow you to make a “no money down” purchase. (Which was so old and doesn’t work anymore its ridiculous)
The tactic to part you from your money was that they will partner with you on deals. (After the event and your refund period is gone, they now say “OOPS , NO sorry no you have to qualify for the money” In other words this is not partnering , it is a LOAN!)
At this point, he/she instructed you to :
1. Call your credit card company and request a credit limit increase because you need to take advantage of limited spots going fast !
2. Offered a payment program.
Now instead of using your money to invest in real estate, you have been pushed to purchase more training. The excitement in the room increases and rose to a crescendo pitch and then many other attendees where like sheep to the slaughter . I bet you did not know there were probably PLANTS in the room to get the line moving!
Did you feel inclined to step up out on a limb and make a leap of faith, falling for the principal of “social proof” seeing others making the purchase, you too try to prove your commitment to your real estate investing future by following their lead? At this point .. Yes.. You been SUCKERED !
Here is the other item that annoyed me, The continuing pitch of “done for you” ! Real Estate investing takes time and work. Anyone who tries to say, just go find us a deal and we do all the work, and you get the money is a LIAR. They are deceiving you with false promises and false teaching so they can hide their true intent.. to sell you a worthless bag of goods! Don’t be a victim. You are deceiving yourself if you bought into her crap.
SO if you got suckered, chalk it up to experience. I hope you can get your money back, but I am sure you cant.
Here are the 6 Key attributes to a Good Mentoring Program
1. Does the coaching program offer personal coaching be a professional and experienced staff in a physical location you can visit? ( not a call center where some reads from a script )
2. Does the training program have additional materials you can borrow? I do know that Karen sent every real estate investor guru an email asking them to give one of their courses to her students, so that they would have the opportunity to sell to them later. – Not quite the same thing.
3. Can you network with other students to expedite the learning process and possibly forge relationships?
4. Will she provide you with a list of former students you can contact?
5. Does she have an established track record with the Better Business Bureau?
6. More importantly , are there any written guarantees that will be honored if you don’t do a deal?
So you probably fell victim to a good speaker who is more skilled at selling themselves then at commercial investing. Let me recap how you fell spell without even knowing how you whipped out your credit card.
UPDATE
What do you think of Karen going on vacation directly after selling 3 million in coaching ? Should she be not rather fulfilling the partnering she promised at the event ?
loading...
October 19th, 2010 at 1:04 am
@R Hounchell:
On her blog, Karen Hanover denies ever offering to partner or use her own credit (as if her credit is any good with all those liens and foreclosures) to fund deals with Fastrackers. But she blatantly advertises this on stage and on her website (below). Just more typical lies from her.
If you wish to file complaints with relevant agencies to possibly get back your money as well as have Karen thrown into prison, many people have to file at:
http://whoiskarenhanover.wordpress.com/
October 25th, 2010 at 7:29 pm
WELL, I most definently paid the big bucks to KAREN HANOVERS FASTRACK PROGRAM AND I GOT RIPPED OFF FOR OVER 30 THOUSAND DOLLARS. FYI for some of you that don’t know, KAREN HANOVER had someone (her brother?) call me and posed as a FEDERAL AGENT. Well, I received a call from a real FBI agent and told me that what happened is illegal and asked me to go to my local FBI Agency and file a report so I did. I just got back. They took the report and looked over the account that we wired our 30 thousand dollars into and also went over the contract etc. I told them I have recordings of her presentations that she sends out to her 30thousand dollar students. Boy, I got some good stuff that I sent in to the FBI. The Federal Agent I just sat down with and went over everything with asked me to go to the Westwood office where the call came in from when Karen had someone pose as a FEDERAL AGENT so I can sign a release form for my phone records so they can also investigate her posing as a federal agent and innterogating and threatening people. They are also going to take the case. I will let you all know what happens when I get back from the FBI office in Westwood too. But for now, please file complaints at your local FBI office and let them know that the FBI in westwood California has opened a case against KAREN HANOVER K. Rebecca 714-523-1546 ANY OTHER FASTRACKERS OUT THERE PLEASE CALL ME A.S.A.P
October 25th, 2010 at 7:35 pm
ANYBODY OUT THERE READING OR POSTING BLOGS ABOUT KAREN HANOVERS BLOGS CAN YOU LEAVE A PHONE NUMBER OR SOME WAY TO GET AHOLD OF YOU. IT JUST HELPS ME TO SUBMIT AS MANY OF PEOPLES CONTACT INFO. FOR THE FBI. THANKS! XO REBECCA 714-523-1546 OOH AND KAREN HANOVERS ATTORNEY CAN DO SOME WORK FOR KAREN AND CHECK FOR HIMSELF. KAREN HANOVER HAS A FEDERAL CASE COMING FROM WESTWOOD CALIFORNIA FBI. I AM SOO LOOKING FORWARD TO TAKING KAREN HANOVER DOWN!!! I WILL MOST DEFINENTLY BE AT COURT WHEN WE GET THAT DAY! SHE IS SUCH A PEICE OF SHIT!!!
October 27th, 2010 at 1:36 pm
Any fastrackers reading this blog please call me so you can talk with alot of other victims from KAREN HANOVERS FRAUD. I am a real fastrack student that got ripped off by KAREN HANOVER for OVER 30 THOUSAND DOLLARS and the FBI is now investigating KAREN HANOVERS FRAUD Please call in your complaints at: 1-310-477-6565. Also please look over DUNCANS blogs so you can see more factual information about KAREN HANOVERS FRAUD. also visit http://www.duncanwierman.wordpress.com
KAREN HANOVER also has a blog that has only 1 testemonial and she wrote it herself using me ONE OF HER VICTIMS as a testemonial. THAT IS PRETTY TWISTED AND REALLY SAY”S ALOT. Her blog link say’s : duncan off his med’s. Obviously you will see that it is a fake posting from KAREN HANOVER. I am the real Rebecca Smith and I am NOT a HAPPY CAMPER. Please call me if you have any questions or would like to speak to 27 other fastrack students that have been SCAMMED TOO. They may not be blogging but they are definently calling into the number I posted above to file their complaints. If you want to talk with me or any of them please call me at: 714-523-1546.
October 27th, 2010 at 5:12 pm
From Blogging I received 2 more calls from VICTIMS from KAREN HANOVERS FASTRACK FRAUD PROGRAM. I now have 29 VICTIMS. They are now calling into the FBI @ 1-310-477-6565. to file their complaints. Any other victims out there call me at: 714-523-1546. YOU ARE NOT ALONE!!
Please call all the business cards you have gathered from what ever event you signed up for this 30 thousand dollar fastrack program and get the information from the hourses mouth..then call me back please and give me any other numbers you may gather. There are MANY MANY OTHER VICTIMS that don’t even know about us. Thanks and PLEASE KEEP CALLING ME. Rebecca 714-523-1546
October 27th, 2010 at 7:33 pm
I got one more phone call from a FASTRACKER that got FRAUDED out of THOUSANDS AND THOUSANDS OF DOLLARS FROM KAREN HANOVER AND HER HELP….JILL< JANA< SEAN CARPENTER NOW and i'm sure there maybe a couple of more people involved in her FRAUD. YOU WILL ALL BE PULLED INTO THIS AS WELL YOU ARE ALL ACCOMPLISES. You may be living large off of OUR MONEY BUT…..It is temporary. The FBI is now receiving all these calls into their agency. The one that KAREN HANOVER HAD HER BROTHR? POSE AS A FEDERAL AGENT AND THREATEN ME.
I have 30 VICTIMS. with name and phone numbers. REAL PEOPLE THAT HAVE BEEN FRAUDED BY KAREN HANOVER WITH REAL PHONE NUMBERS. Karen has 1 testemonial and it's a FAKE!!! She is using me! ONE OF HER VICTIMS with a fake testemonial with no phone number. WOW
714-523-1546
October 28th, 2010 at 6:22 pm
EVERYONE PLEASE READ!!!! The FBI told me this morning they want you to call in at 1-310-477-6565. Regarding KAREN HANOVERS FASTRACK FRAUD CASE. When you call the FBI I believe you want extension 2. Under FEDERAL FRAUD COMPLAINTS. THE INVESTIGATION IS UNDER : KAREN HANOVER, COMMERCIAL INVESTMENT EDUCATION AND ALSO KHARMIC LIFE STRATEGIES. Please call me after you file your complaint. We have 30 FASTRACKERS THAT HAVE BEEN VICTIMIZED AND FILING WITH THE FBI. Please make sure you do it to. I would like to call and check in with everybody so I know who hasn’t filed if you don’t mind. Call me at 714-523-1546 Rebecca
ALSO….PLEASE CALL EVERY BUSINESS CARD YOU GATHERED AT THE EVENT WERE YOU SIGNED UP FOR THE FASTRACK PROGRAM….THERE ARE HUNDREDS OF VICTIMS THAT DON’T KNOW WHERE TO FILE. I FOUND 2 FASTRACKERS MYSELF GOING THROUGH ALL THE BUSINESS CARDS I GATHERED. IF YOU DON’T HAVE TIME TO CALL ALL OF THEM THEN PLEASE SCAN AND FAX THEM TO ME AT: 714-523-8125 I would be more than happy to call for you. xo Rebecca