An AD I received from Carlton Student

I received an email from this guy. Can anyone check it out and give me feedback on wether this is a scam, an is it completly legal, it sounds good and I am tempted…


Earn $10K – $30K every 3 Mths. w/ Your Credit

This is perfect for those who have at least a 620 CREDIT SCORE and want to flip money in Real Estate without using their own money.

How does this work?

My Name is Pierre and I am an Independent REI (Real Estate Investor). I started in this business when my father and I ordered the Carlton Sheets program back in 1997. It has been a long hard road since then but I have developed a formula that works for tod! ay’s Real Estate market. It is a simple formula used everyday by Real Estate Pros and brokers; the hardest part is finding MOTIVATED and EAGER sellers with GOOD Real Estate Property.

Thats what I do. I have the right tools and a network of people that enables me to find those type of sellers in FLORIDA, NEW JERSEY,

NEW YORK (Some Parts), DOMINICAN REPUBLIC, and soon many other CARIBBEAN COUNTRIES. I find sellers that are willing to sell their home for about 5 - 10% less than the Appraised Value of their property which enables the buyer (us) to receive that 5 - 10% discount at the closing of the deal. After the property is purchased, minor improvements, and other work is done to raise the value of the property, afterwards the property is rented and/or sold for a profit. Money is made up front at the closing of the deal (Average $5K - $10K) and on the back end once the house is resold (Average $10K - $25K).

Why do I need you?

I am 25 years old and my credit is not the best, and unfortunately I don’t qualify for 100% financing. This formula ONLY WORKS for those who qualify for 100% financing. I use family members to do deals but for tax purposes they can only do 2 deals a year without getting killed with TAXES. With 100% financing, we as the investors DO NOT INVEST ANY MONEY OUT OF POCKET, yet we RECEIVE CASH BACK AT THE CLOSING (purchasing) of the DEAL. This cash back covers minor expenses, and improvements on the property. The remaining amount is then considered as initial profit and is divided 50 / 50 between you and me.

What do I need from you?

At least a 620 CREDIT SCORE, 650 is preferred but we can work with lower scores too. If you are interested we will get you pre-approved through my partner, who is a loan officer for the 3rd largest lender in Florida. She will pre qualify you for 100% financing and generate an Approval Letter based on your credit score. With that approval letter, I can begin making offers to sellers desperately looking to sell their property. If they accept the offer, we then move forward on processing the loan and closing the deal. Closing costs, Appraisal fees, Underwriting fees, and any other miscellaneous costs will also be financed or paid with the “Cash Back” received at the closing of the deal. YOU WILL NOT SPEND ANY MONEY OUT OF YOUR POCKET.

The “Cash Back” received at closing will also cover the first mortgage payments unless we buy property that is already being rented and is generating POSITIVE MONTHLY RENTAL INCOME; or if we decide to rent the property to cover the mortgage payments that will have to be made before we can resell the property.

Is this illegal?

THIS IS NOT ILLEGAL IN ANY SHAPE WAY OR FORM. There is absolutely nothing wrong with buying a home cheap and selling it for more then what you bought it for. There is also nothing wrong with buying a home, fixing it up, and selling it for way over market value. If your buyer wants to pay you way over market value, and they have the means to pay, then it is their choice to do so. They can do it, and so can you without any recourse.

The problem with “Illegal Flipping” is when investors, mortgage brokers, loan officers, appraisers, etc… get together to “create” a better picture of a loan package to a lender. They do things such as inflating appraisals, gifting down payment, drawing up false w-2’s, manufacturing pay stubs, writing credit letters, etc…

We HAVE NEVER and WILL NEVER use any of these tactics. There is no reason for us to do any of those things. When we find a GOOD Real Estate Investment, we first do a PROPERTY ANALYSIS to figure out the approximate APPRAISAL VALUE, based on that we make an offer to the SELLER 5 – 10% lower than that amount. If SELLER accepts our OFFER, the lender will then conduct a REAL APPRAISAL. All my associates know the risk of losing their license and career if they were to use falsified information and would NEVER take those chances; not with so many LEGITIMENT DEALS out there waiting for us.

Again, what do I do?

I utilize my tools and network of associates to find “For Sale By Owner” properties with EAGER, DESPERATE, or MOTIVATED SELLERS. I then ANALYZE the property or pay to get the property appraised. Afterwards I negotiate with the seller to reduce the SALE PRICE of the property 5 – 10% off of the Appraisal Value. If SELLER accepts our OFFER below the market value of the PROPERTY we AUTOMATICALLY MAKE A PROFIT, which is usually received as “Cash Back” at the closing of the deal. I and a few handy men then do some cosmetic work and overall improvements to improve the value of the property before putting it back on the market. We can event rent the property at this point and earn POSITIVE MONTHLY RENTAL INCOME while increasing the value of the property. Our Real Estate Property then becomes the SAFEST and MOST PROFITABLE STOCK that you can ever own; not to ! mention it did not COST YOU ANY MONEY OUT OF YOUR POCKET. Once we decide to list the property for sale, I then find the best buyers and try to start a “Biding War” to get the highest price possible. Once the property is resold, and all costs and fees are paid, the remaining profit is divided 50 / 50 between you and me.

Other Services That I Do:



They REFINANCE clients with interest rates as low as 4%, with 10, 15, 20, 25, or 30 Year Loans.


They work with ALL types of CREDIT; GOOD, BAD and even CH! APTER 11s.


I am also a NOTE BROKER. I find NOTE BUYERS and SELLERS the BEST DEALS on the market.

Again, I utilize my tools and my network to connect NOTE OWNERS who are EAGER, DESPERATE, or MOTIVATED to sell their NOTE with the right buyer offering the right amount of CASH for the NOTE.

This is a scam to get your personal financial information. Do I know this for a fact, no. But it is a scam. Stay away from it.

If you like this deal, I can forward you emails I get that I have $100,000,000.00 in some foreeign bank, but I have to send a certified check for $15,000.00 to have it processed.

Enough said.

Well I read the responses from this forum, and I should of told you all that this is not some random spam mail from some stranger, I sort of know this guy, he used to date my sister. This email is content from some website he is starting, cause I know personally he makes a living off Web Designs not Real Estate. I called him after I read the first responses and asked him if he spams this email to a bunch of people. His response was “Hell No, I would never be able to handle that many responses”. He then told me he is preparing this website onky for his contacts and future people he will be networking with, and he can only manage a few deals at a time. He did admit that although he is not a newbie, he has been out of Real Estate for a while and has decided to get back into it. Anyway I told him about this website and this is my first time, but it seems like you guys are very helpful. He said he’ll check it out. So do you guys make money like what he is talking about doing?

Not sure exactly what this particular guy is doing, but the concept isn’t a scam.

The concept I’m speaking of is simply a note purchase combined w/ a lease/option strategy.

I know of one group that does it that requires a 680 credit score. No down payment, no docs, no income verification. Just DL and SS# and a qualifying credit score, and you’re in. Claimed earnings of $20k over a 12 month period ($10k cash at closing). Seasoned investor group runs the show.

Can make referrals if anyone has serious interest.

I know someone who got involved with someone who’s message was different but was doing the same thing. Most likely this guy is looking for new investors to fund his previous promises to other investors. Just like a kiting scheme.

I thought Carleton taught no money down tactics for people with bad credit.

The process I’m speaking of is definitely not such a scheme, though there are certainly many too good to be true scams out there.

I was just describing something I saw first hand. Same type of guy who was using other peoples’ credit. I knew there had to be a reason and it surfaced. Fortunately, the party involved got all his capital back. Just wasted 3 months and really almost got burned very badly

Well he told me this is what Carlton advises people with BAD CREDIT to do, to find investment partners with good credit. I dont know but I trust what he is telling me, he is a very honest and successful business man. He emailed me a FSBO listing with many great deals in Florida and NJ.

Are there any legal contracts to protect myself if I decided to do a deal with him?

How do you know he is honest and successful? Do you know this guy, or did you get solicited by him. A good story can suck in trusting people.

Here is the only advice I can offer you.

If he asks you to purchase a property in your name be clear on how the entire deal works. Do not accept generalizations. If he says there will be tenants, make sure there is a lease and that funds are coming to you to pay the mortgage.

In the scenario I saw, my friend thought this guy was a great guy too. Turns out, none of the rehab work was being done and the houses that were supposed to be empty actually had friends of this guy living in the house. No gas or water. They were heating the house with the stove.

The houses with tenants always had an excuse why the rents weren’t being paid to my friend.

He finally just got the houses sold on his own and that was the end of that dream

Actually the only advice I can give is to avoid this guy

Yeah I know him… he grew up in Bayonne NJ with us. He dated my sister, and he has always had money. I know he makes good money designing websites, and he has had a few businesses in Dominican Republic. He has always been a cool honest guy… never heard any negatives about him, not even from my sister.

But are there any contracts that can protect me and legally be used in court? just incase.

well he tried starting in real estate when he was 16?..if hes 25 now and bought the program in 1997…I’d say its a scam…

yeah I believe that… he was 17 and when he was 18 he started 2 businesses in Dominican Republic and lived there for a few years. When he came back he dated my sister, and he seems to be a very successful web designer, he did a website for a resort in Dom Rep and has been doing Real Estate eversince. I know he has money to back it up. Nice house, nice car, very expensive wardrobe…

I’m going to give it a shot. He has some nice FSBOs, and he will send me all the info along with a Profit Forecast. He said he wont run my credit until we find a property that I am absolutly positive about. I would appreciate any legal advise you guys can give me to protect me. Any legal contracts, or websites I can download or copy some sample contracts?

Sounds like I need to talk to your friend. His situation is like holding a mirror up to mine. How did he finally get rid of the houses? I’m trying my best to get rid of mine. >:(

Nice house, nice car, very expensive wardrobe...

That tells me he knows how to SPEND money. Does say anything about his ability to manage it.

He owned them, his cousin is a judge overseeing a case involving the scam guy and my friend was a character reference for him (before he knew). So a number of things were put into play, but bottom line was he owned the houses and we got them sold quickly. Too bad this guy doesn’t know how to do the same. GREAT RE investor!

This is quite entertaining. Did you guys notice that hytechceo is using exactly the same response to answer the same thread in two forums (Beginners forum and this one). I also find it interesting that the “AD” hytechceo received started out from someone that appeared to be nearly anonymous and through a series of posts it turns out that hytechceo is friends with the guy and the guy even dated his sister! I’m wondering whether he is really looking for advice (which he seems determined to ignore) or is actually a shill. I’m betting on the latter!

There’s a sucker born every minute!


Yep, PM, definitely something to be curious about, isn’t it?

How did he even get 2 of the same posts since that is against forum rules?

Yep, there are some suckers here. Unfortunately, it’s us, because not only has hytechceo managed to get us to advertise his (excuse me, his friend’s) scam (sorry. I meant deal) to the reiclub community, he got us to do it twice.

Personally, I’m impressed.


I noticed this too. I actually thought a moderator was deleting my posts!

OK… I’m lost… I didn’t know that I couldnt post the same thread…I’ll delete the other thread.

And Prop. Man. I am taking advise for this guy, he is now my good friend, and I plan to become his REI partner.

I had dinner with my accountant and some guy last night. Now I am getting mixed opinions, some peopl esay that my friend and even I will have to get a license if we plan to do several deals a year. My accountant said legally if we receive more than 25$ for a deal we need a license. The guy that sent me the stuff said we can legally do 2 deals per year, with no Tax problems, and even in Carlton’s course they teach you about finding partners and using their credit.

So what is the correct way to be a REI?

Perhaps your account is referring to the 25k limit on losses offsetting your income? If he is, then you need to listen and take notes next time. If not, get a new Accountant! If I buy more than one car a year do I have to get licensed as a car salesman? Show me in the IRS tax code where I am limited on the number of homes I can buy and sell within in ANY period. I have never heard of any laws that say you cannot sell a home you own without a license.