On July 21, 22 & 23 of 2017 I attended a boot camp RE investing seminar with Armando Montelongo group. The main speakers were Chris Sanders and Brian Estey.
The assistants were Fred Solomon, Armando Montelongo Jr. and a lady named Amanda who came in later. One of the main topics discussed was on private money lending versus hard money. It was explained that with the private money, there is no points charge on the loan, they fund 100% of the purchase price and also for the rehab cost, the interest rate of the loan can be better than the hard money, there is no monthly payment and the interest of the loan is paid after fix and flip & resale of the property at close of escrow.
The speakers themselves and the existing successful members are also private money lenders, they said. Also, it was mentioned that they have sub contractors in any major cities of the country and they can get materials and appliances in wholesale prices compared to buying from retailers like Home Depot and/or Lowe's. I really like what I heard during the first day. As a Realtor myself who had experienced of doing fix and flip of single family residence properties I know how expensive it is to use hard money sources.
Esther who is also a Realtor and a friend whom I invited was present with me in the seminar. However, she did not attend on the last day of the seminar. Before I proceed further, before the first day session started, this was outside the classroom, Brian Estey approached my friend and I, and introduced himself as one of the Armando's team. I explained to Brian that we are actually doing commercial real estates as Realtors.
However, since we have resources of getting REO and discounted single family properties, we came here hoping to raise some money wisely because we do not have funds to buy these bank owned properties. In between topics, we have group sessions and our team leader was Fred Solomon. On the second day, I told Fred that I will need a partner not only for the financial obligation to afford the total amount of $33990, but also partner/s to do the business. On the last day of the seminar, prior to joining.
He advised attendees to call credit card companies to ask for the increase of credit limit so that we can use them to join their program with the total cost of $33,990. During the last day of the seminar, I spent my time calling credit card companies as advised by Brian to get a credit limit increase. Fred Solomon filled out the application form for me while I was on the phone with the credit card companies. He had the application form filled out in his hands during the entire day.
I signed the contract that Fred Solomon handed me to sign it at the last minute on the 23rd afternoon when everyone was rushing to leave to go home and he did not explain to me about the 3 day cancellation notice. He told me just sign here and initial here. That Sunday also I shared to Chris Sanders, one of the speakers, about a great 274% ROI luxury property in Holmby Hills. He said to “bring it in, let's do it.” I also spoke to Brian about the opportunity and he asked me to forward the property information.
I forwarded the detail information to both Brian and Chris. Because of their platform as partner to use their private money and they are lenders themselves, that really motivated me to join. In fact Brian said to the students that if we have a property ready and has at least $25K net profit, we want to close a transaction soon before the boot camp on September 15 to 18 next month. Based on the 3 properties I sent, there are more than $100K gross profit each property.
During the course of the week on the 24th, I emailed Brian that private money is very critical for my funding. In the seminar Brian explained that finding the property is much harder than finding the money. I told him in one of my emails that mine is the opposite scenario. He supposed to call me on the 25th as he mentioned in the email that week.
Unfortunately, his pet dog was sick and he had to put him down. He did not call me until August 1st . He left a voicemail message that I need to prepare my asset protection first, before their private lending source will be available after the bus tour in Miami next month. That contradicts on what he said that if we have a property ready, we want to close a transaction prior to the bus tour.
I told him on the 23rd that I already have a LLC corporation that is active and I will use it for the business. Their program time frame is 90 day from the purchase to the resale after the renovation of the property. Therefore, it takes more than enough time to worry about asset protection. In my mind the first thing to do is close a transaction by purchasing a discounted property that I sent to Brian on the 23rd, 26th and on the 29th .
There were 3 different great potential properties that I missed to make an offer. My friend finally decided to join and Ashley, from Armando's office, charged her credit card on Thursday July 27 th , I was charged half of the total price and she was charged half of it also on that day when she joined. On the 28th we had a mentor on the call name Ronald Romo whom I asked if he can assist us to get the private money because I have good leads that I would like to make an offer. He said that the session he can only make an offer is information about hard money lending.
I told him that I already sent Brian the leads that I would like to make an offer. Unfortunately, he said that the private money source is only available after the bus tour in Miami on September 15 to 18th . I told him that contradicts to what Brian said that we students can close a deal before the bus tour. My partner informed the office via email to Luis Alanis, one of the coordinators and text message to Ashley Rose VIP representative that she wants to cancel the membership on the 29th of July.
She said that she is not ready for it. The dilemma here is that on August 1st, my partner & I on the phone with the supervisor Jordan Odiorne. He said that our ROR was passed due on the 26th. Their accounting department will not give us a refund.
While listening to their arguments between Jordan and my friend, my worst nightmare came because it seems like they are only after collecting student's money while the inconsistency of the seminar sales & misrepresentation were ignored and not addressed. I had no intention of leaving the program until my partner & I noticed misrepresentation of sales. Having said that, I did not read the contract in the first 3 days because I was busy looking for partners to complete the full amount. This 3 day cancellations is a deceitful practice by this company and I would like to bring this to the State and Federal level legislature.
When you found out the company's 3 days cancellation policy after you recognized their sales deception you have no right to take your money back even if there was no service done. This was within 2 weeks after the seminar. The service which I refused to go was more than a month before it occur. I doubt the bus tour occured because of the aftermath of the hurricane.
I did not do any of the other services because the lies and deception were already realized. However, among the 4 credit cards I used total of $16995, Discover Card was the only company that did not give my money back. Be careful public, discover card is collaborating with fraudulent acts and unethical practices of these merchants. On the last day of the seminar the speakers said that the negative ads against Armando Montelongo company are done by competitors and are false fake news.
Unfortunately, I believed them. Please to all future boot camp attendees do not listen to their lies. I am not their competitor and not paid by their competitors to publish this article.On August 3rd I emailed Brian Estey to give me my money back because I found inconsistencies of their sales speech. I asked him and the other team members in an email about my complaint.
I asked specifically, what if there is no private money available after the Miami tour bus seminar. Until this very minute of today's date 10/14/2017 they never replied my question. Penfed credit card dispute department motivated me to proceed to file dispute because during the call complaint I raised he said that this company has lawsuits and tons of complaints.
However, Discover Card will not help you but is only after of collecting interest on the charges. Be very careful with credit card companies that collaborate with crooked merchants.
Product or Service Mentioned: Armando Montelongo Seminar.
Reason of review: misrepresentation of sales, deception of policy.
Monetary Loss: $16995.
Preferred solution: Full refund.
I didn't like: Need to be prevented from scamming more victims.