Our attendance to the Real Estate Intensive Scam / Course offered by Peak Potentials / New Peaks LLC: A free 3 day course. We are kept in secret of who will be teaching the course. Why? Maybe so we don’t have time to investigate the individual. We are told to raise our credit card limits and ask for a reduction in our interest rates. This is a very common practice at these seminars. It is to teach us how to negotiate. But the real reason is that it is being used to set us up to buy the course which sells for $20,000 on up to $40,000. Why the properties we are being sold in Detroit are a really bad investment: We are sold by real estate investment guru, Robert Shemin, the idea that Detroit is the best place in the United States to invest and Linda, who is there helping Robert, tells me that properties have been hand selected for me to make my investment for the course back. I fly to Detroit to look at properties. I have no idea what kind of properties or where they are. Our group gets on a bus and drives to 8 mile. An area known for drug activity and violent crime. During the day it seems relatively safe. Sean Whalen, who pitches the properties to us, says he usually carries a gun when going to the areas in Detroit in which he is selling property. Not a place I or most people would want to invest in. Look up Sean Whalen on the internet. He recently filed bankruptcy because he owed his creditors $8.5 million. Is he paying any of them back? What is up with this guy? We are handed property sheets with the properties promising us around a 15% return. I wonder where my 15% return will come from after my property is destroyed by vandalism upon it becoming vacant while waiting for a tenant. Where are the comparable sales for the properties sold in Detroit? No comparables sales were offered from Sean Whalen when asked multiple times. Upon our own research we found comparable sales of properties that were being sold for $45,000 by Sean Whalen at the price point of around $12,000. Sean insists that our comparable properties are wrong. When Ken Barrett drew on a board how to sell one of the $45,000 properties for $100,000 I knew there was something wrong. We are encouraged to flip the property to the next sucker. Ken Barrett was in charge of the program. He has since dropped out. I suspect he grew tired of the complaint by the students. Sean Whalen has the word “Quick Claim / Quitclaim” in the for sale contract to us. What a Quick Claim deed is: It is the transfer of all interests to the property, which could include back taxes and water bills. I asked about insurance for properties. It was politely dismissed. I am very concerned that when a property is vacant it will be stripped of anything of value. All appliances, copper wire and pipes, and windows. And then I run the risk of it being burnt down to cover any tracks left by the thieves. We are encouraged to buy properties without ever going inside to look at them or get a 3rd party inspection. Who does this? Nobody. We are also encouraged to buy tenant occupied properties without learning anything about the tenant’s payment history or if the tenant has destroyed the property. I have asked the instructors if they would buy in Detroit. They said no. If it was such a great opportunity then why not? Sean Whalen told us we would not find a better return on properties anywhere. Not true. We soon learn Peaks is getting a cut from the sales in Detroit. Haven’t heard back from Peaks CEO, Adam Markel, about how he feels about the Real Estate program. Not to happy about this. Properties being sold are Section 8 properties. Section 8 properties carry a lot of risk. Type in Section 8 properties in YouTube to see what I am talking about. We are offered financing with a company called “Seed Capital”. They secure credit cards for the investor with low introductory interest offers up to $100,000 or more. So you might have to get a dozen credit cards to buy properties. The introductory rate goes up after a year to a point in which it severely reduces your ROI. Not too many people are interested. Without financing one has to come up with $45,000 cash to buy a property. Kind of difficult with the expense some students have incurred to take the course. The course: We are given a guarantee of one year that we will be satisfied with the course or we will receive all of my money back if we are not. Dave McCoy of Intelligent Wealth is somehow connected to the program. He will not refund us any money. How students feel about the REI course: We feel that this course is grossly overpriced for what we are receiving and we do not trust the company for any further real estate advice.
This complaint and/or review was posted on HolySmoke.org on 22:59 pm, September 21, 2019 (CST) and is a permanent record located at: https://www.holysmoke.org/scam/peak-potentials-review/.
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