It was just about three weeks ago that I told you about he Federal Trade Commission (FTC) and the Utah Division of Consumer Protection suing Zurixx, LLC, a company that puts on real estate seminars in which attendees were supposedly told how to make large amounts of money buying houses, quickly updating them and then reselling them at a substantial profit, a technique referred to commonly as “flipping.” The FTC alleged that Zurixx’s seminars are a scam. They start with a “free” seminar that really is merely a sales presentation for its three-day workshops that cost $1,997 despite Zuixx’s representations that you would learn everything you needed to know to profitably flip houses from the “free seminar.” In fact, according to the FTC, even the three day workshops act as a beginner course and people enrolling in the course are lured into paying as much as $41,297 for more detailed products and services.
Now the FTC and the Utah Division of Consumer Protection have sued Nudge, LLC and companies affiliated with it for a similar scam involving seminars that purported to teach people how to flip houses for “amazing profits” to use Nudge’s words. In their free seminars, Nudge promised to teach the secrets to making huge profits by flipping houses, however, according to the FTC, the seminars were merely intended to lure people into paying $1,100 to attend an additional three-day workshop where they were told they would receive information about a system to use to earn lucrative profits flipping houses. The three-day seminar, however, did not provide that information and was really just another attempt to lure people into paying as much as $40,000 for what Nudge called “advanced training.”
Always be wary of seminars that offer get rich quick schemes that indicate that little effort or investment by you is required. Do your research with the FTC and your state’s attorney general to see if there have been complaints against any company that puts on such seminars. As for flipping specifically, it is important to remember that the people you see doing this on television shows are experienced contractors and designers who do this full time and have done so for years. Flipping is not a simple job for part-timers. Additionally, the celebrity flippers you see on television also often get special prices for labor and materials by suppliers in return for the publicity they receive on the television shows. You won’t get those breaks.
When considering attending seminars such as those put on by Nudge, you should be wary of representations that you can earn tremendous amounts of money regardless of your experience or training. Also watch out for representations that the program being touted is a “sure thing” and one that you can easily do working part-time.
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