Tuesday, May 22, 2007

Learn how to get rich quick in real estate. Join your teacher in Bankruptcy Court. Or prison.

I'm indebted to "Investment U," a newsletter of a stock advisory service called The Oxford Club, from which I've stolen the following:

Of course, these “no money down” gigs have been going on for decades. And the results are generally not what anyone would call enviable.

Forget about the outcome for the students. Take a look at what’s happened to the authors who sold the books and promoted the seminars. According to author John T. Reed:

Albert Lowry, author of “How You Can Become Financially Independent by Investing in Real Estate,” declared Chapter 7 bankruptcy in 1987.

Craig Hall, author of “Craig Hall’s Book of Real Estate Investing,” declared bankruptcy in 1992.

Bill “Tycoon” Greene, author of “Two Years for Freedom,” was convicted, fined and sentenced to prison. (He later escaped from a minimum security prison and is believed to be living in England.)

Tony Hoffman, author of “How to Negotiate Successfully in Real Estate,” filed Chapter 11 bankruptcy for his company in 1986.

Wade Cook, author of “How to Build a Real Estate Money Machine,” declared Chapter 7 bankruptcy in 1987 and 2003.

Dave Glubeitch, author of “The Money Game,” declared Chapter 7 bankruptcy in 1987.

Dave Del Dotto, author of “Cash Flow System,” was charged by the FTC with misrepresenting products in 1993. He filed Chapter 7 bankruptcy in 1995.

Charles Givens, author of “Wealth Without Risk,” was successfully sued by a former customer for giving bad financial advice. He filed for Chapter 7 bankruptcy in 1995. He died pending trial.

Sonny Block, author of “Inside Real Estate,” was indicted in May 1995 by a federal grand jury for fraud and fled to the Dominican Republic to avoid prosecution. He was eventually deported to the U.S., but died pending trial.

Ed Beckley, author of “Million Dollar Secrets,” declared bankruptcy in 1987 and was sentenced to federal prison for wire fraud.

Robert Allen, the author of “Nothing Down” and “Creating Wealth,” declared Chapter 7 bankruptcy in May 1996.


Geff said...

Next up: "Free Dad, Incarcerated Dad."

Anonymous said...

LOL...that's depressing!! What I love is the name of some of those books...it reminds me of the days when I was sure my Reader's Digest "cheque" was just as good as cashed (the phoney teaser cheque that is).