Rich Dad Seminar a Scam?

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CrashAndBurn

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#252872 15-Jul-2019 07:50

I went to the free 2 hours seminar this weekend and alarm bells went ringing. I felt the build up to sign up for the "limited slots" 3 day training worth 1.2k if you pay in full that day which they conveniently accept credit cards.

Has anyone been to these seminars? Can you really learn that much in 3 days?

So I searched a bit more after I got home and it seems, the 3 days is to sell you more "advanced courses" which can go up to 40K then it struck me as during the free seminar, they drove hard the message of using OPM - other people's money.

Is this their way of using our money? Us being the OPM. I also got curious about the other topics which is to find cash-positive properties but not using your own money. Based on my calculations, they are pretty much promoting to get interest-only loans. Can someone please enlighten me or share your experience.

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BDFL - Memuneh
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#2276673 15-Jul-2019 07:55

I don't know the answer as I never looked into it.

But talking about OPM, it reminds me of those single page websites where people have a very long copy and a 55 minutes video telling how great their lives are, how they manage to buy new cars every year, travel around the world and buy a new house with this one secret - and if you pay them $19.95 you will receive a book with instructions - buy now! And when you buy, the instructions are: setup a singe page website and sell $19.95 booklets to other people.

Good luck with that.

Linux

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#2276674 15-Jul-2019 07:56

What a scam! You pay the 1.2k for the extra training and then you quit

Thanks for the $1.2k buddy

CrashAndBurn

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#2276678 15-Jul-2019 08:02

I did a bit more reading and it seems the same feedback from those who attended in Canada. Apparently there were even "plants within the audience" that went rushing with their credit cards at the end of the free seminar to make it look more urgent for those around so as not to lose out on the "limited slots". I hope someone else who attended here in NZ share their experience whether its bad or good.

floydbloke

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#2276680 15-Jul-2019 08:05

Give me $100 and I'll teach how you to get rich quickly.

Did Eric Clapton really think she looked wonderful...or was it after the 15th outfit she tried on and he just wanted to get to the party and get a drink?

eracode

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#2276682 15-Jul-2019 08:12

Putting aside their sales pitch for further seminars, did you learn anything during the free two hours that you thought was truly useful or valuable?

It sounds like you already have a pretty strong gut-feeling about all this - trust that feeling.

Sometimes I just sit and think. Other times I just sit.

linw

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#2276690 15-Jul-2019 08:32

Yes, trust your gut.

You have to ask, if they know how to make all the money in the world, why would they want/need to 'educate' others about the process? It's the (very) old story.

CrashAndBurn

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#2276693 15-Jul-2019 08:35

eracode:

Putting aside their sales pitch for further seminars, did you learn anything during the free two hours that you thought was truly useful or valuable?

It sounds like you already have a pretty strong gut-feeling about all this - trust that feeling.

I guess in a way I did learn something. They also mentioned about getting 20%+ ROI on property without using any of your money but then followed this with the sales pitch of the 3 day seminar that apparently would teach you how to find those type of properties.

Speaking of interest-only loans. I have watched this documentary in AU wherein the investor had like 5+ properties which are all on interest-only loans but then due to the slowdown, the bank are now forcing the principal to be paid as well. Problem is none of the properties can be sold at a gain and the "investor" ended up with having to lose their family home as well.

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eracode

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#2276705 15-Jul-2019 08:51

CrashAndBurn:

eracode:

Putting aside their sales pitch for further seminars, did you learn anything during the free two hours that you thought was truly useful or valuable?

It sounds like you already have a pretty strong gut-feeling about all this - trust that feeling.

I guess in a way I did learn something. They also mentioned about getting 20%+ ROI on property without using any of your money but then followed this with the sales pitch of the 3 day seminar that apparently would teach you how to find those type of properties.

Speaking of interest-only loans. I have watched this documentary in AU wherein the investor had like 5+ properties which are all on interest-only loans but then due to the slowdown, the bank are now forcing the principal to be paid as well. Problem is none of the properties can be sold at a gain and the "investor" ended up with having to lose their family home as well.

https://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=12249413

In today’s NZ Herald.

Sometimes I just sit and think. Other times I just sit.

Fred99

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#2276718 15-Jul-2019 09:07

eracode:

https://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=12249413

In today’s NZ Herald.

Yeah but what would economists know about economics?
They've forecast 9 out the the last 2 crashes.

ben28

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#2276721 15-Jul-2019 09:09

All that they have to say can probably be learned from Google and reading a few books (as found in your Google research).

I guess this crowd ' add value' for those people that need some inspiration - a bit like a personal financial coach.

If you're interested in making money from property there are other ways to network with like minded individuals, eg Property Investor Assoc., various online forums .

You will probably come across ex clients , who if you 'befriend' them will be happy to tell you what they learnt from them.

Dratsab

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#2276736 15-Jul-2019 09:28

CrashAndBurn: Based on my calculations, they are pretty much promoting to get interest-only loans.

As others have said, trust your instincts - don't give these people a cent. Personally I wouldn't even bother going to one of their 'free' seminars - if I happened to get an email promoting such a thing it'd go straight in the trash without being read.

On the subject of interest free loans I'm sure I partially saw an ad on TV recently (during a break in one of the news programs) where someone appeared to be promoting paying off interest only (I think it may have been Fair Go) and I thought it'd be pretty dumb to do that. You'd be leaving yourself massively exposed by still having all the capital if the market crashed. The banks wouldn't want to be suddenly landed with lots of property to try and push through mortgagee sales but they'd do everything they could to extract every last cent possible out of you. My view is reduce personal debt as much as possible* and regularly overypay the principle on your loan as that's going to bring your interest down. You'd reduce your total debt (liability) faster and pay your house off faster.

* I haven't had credit cards for over 20 years and we got rid of my wife's credit cards 4 years ago. I do have a QCard but I've deliberately set the limit on that quite low.

Wheelbarrow01

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#2276738 15-Jul-2019 09:28

I went to a similar seminar about property investment in Sydney about 10 years ago, although that was a full on 2 day event. They had several guest speakers who waxed lyrical about OPM and various other tactics.

The whole thing revolved around them giving just enough information to get you hooked, but the ultimate goal was to create urgency to get you to the back of the room to sign up for their various mentoring programs at $5k-$50k a pop. I found it all very interesting but I didn't buy into the hype. But others were literally running and fighting to be the first to hand their cash & credit cards over.

It seemed to me that the best way to make money using other people's money is to write a book about using other people's money, then do a speaking tour about your book on using other people's money, with your lifestyle paid for entirely by the people who want to know more about using other people's money....

There have been recent news articles about investor Ron Hoy Fong and his questionable property buying strategies (the 7 D's). What every media outlet has failed to recognise is that Ron didn't create these strategies himself - they were being peddled by the likes of Brad Sugars & Phil Jones over a decade before that. I'd hazard a guess that Ron merely attended one of their seminars or bought their book (as I did), locked in the 'knowledge' and then set himself up as an all knowing property guru, charging others for his own wisdom. Rinse and repeat.

kobiak

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#2276771 15-Jul-2019 10:04

I don't remember how I end-up at one of these seminars 10ish yrs ago, but it was all about invest now and you'll get access to the funds to purchase share in assets, eventually leased to you. only allowed to be used if you bring new investors each year.

Been a broke student, I was not able to participate even if I wanted to, but it all looked so fake and scammy, that I laughed at one point. Nibbles were good at the end, can't fail free food when a student.

Yes there was a urgent call to purchase their 1-2 day course + pay just half of annual fees to access the scheme and blah blah blah.

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