My first thought when I looked at Flipping4Profit is that it was too good to be true. Becoming a member costs you $100 and it's not overly clear what the minimum investment is. It's all very eye friendly the website but there's not enough proof of purchases - documents and the like.
I would not like to say that it's a scam for sure, as I have no proof but websites that specialise in flipping real estate profits are often based on a pyramid scheme. What they do is pretend that the house was sold for a higher amount than it actually was, investors are happy with their returns and word spreads, more people plough money in until one day it eventually collapses.
As with all pyramid schemes, if you get in early you can actually make a profit, regardless or not of it's legitimacy. If you recommend it to your friend's or business partners, you could potentially lose those ties when it all goes pear-shaped.
I would not like to say that it's a scam for sure, as I have no proof but websites that specialise in flipping real estate profits are often based on a pyramid scheme. What they do is pretend that the house was sold for a higher amount than it actually was, investors are happy with their returns and word spreads, more people plough money in until one day it eventually collapses.
As with all pyramid schemes, if you get in early you can actually make a profit, regardless or not of it's legitimacy. If you recommend it to your friend's or business partners, you could potentially lose those ties when it all goes pear-shaped.
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Thanks for this post. I wish more people would come to see this site for what it really is. If you watch their webinars, they speak about property about 5% of the time, the rest is just about their "referral system".
They claim they have high returns in such a short period of time with little investment. That sounds too good to be true. It is.
Hi Ally and dangaroo.
I assume you are talking about flipping4profit.com
If the answer is yes, these guys are fine. There are definitely a few dodgy sites companies out there but thankfully F4P are one of the good ones.
I personally didn't join because of the referral system. When I was weighing up the due dilligence on this company, I also, on face value, thought this was some BS multi level marketing system.
You need to think of it as two investment models. The first is the realestate syndicate model (ie you're in a pool that buy, renovate and sell ie flipping); the second is the referral style marketing model which is basically a multi level marketing scheme.
Both offer profits and incentive.
I don't particularly care for joining an MLM where the only way to make money is via the MLM process. Like I hinted earlier MLM doesn't rate highly on my things to invest in.
So how do you really know if it's a good thing..you dip your toe in the water.
I'll tell you my short experience with F4P so far.
Long story short, I did my due diligence and saw merit in the property profits and from what I could tell the business model was sound enough. I joined 4 months ago and took the gamble of investing a $1000 in plus the membership fee of $250.
It took about a month for anything to happen (I was checking almost daily and the money was still there - phew brow wipe) and then one day I saw an email that part of my $1000 account was allocated to a property. In the end it was divided into 2 properties. $345 per property. The balance stayed in the pool.
I must say this is the cheapest 2 properties I ever bought. haha.
About 3 months later (just under in fact) the 2 properties sold after renovation and a NET profit of $82.08 and $87.22. Is it a huge profit? Well it works out to be about 24.5% of the capital that funded the purchase of the properties. Remember I only put in $1000 and of that only $690 was used in the 2 property transactions. And this was over 3 months. So annualised is around 75% pa. I'm actually fairly exited by that even though I still haven't recovered my membership fee. It has given me enough info to put a sizable capital investment into the pool.
From what I've learnt so far, you can make good money just by becoming a member, paying the $250 membership fee, and putting some investment capital into the "syndicate" to trade property.
Everyone who joins the "syndicate" needs to pay a membership fee of $250 for the first year and then $50 for each year. The company makes money out of those fees.
You need a minimum of $100 capital to invest but seriously why do that? If you're going to test the water, do it with $1000. Simple argument - you paid $250 to join. Assume best case you make 75%pa on your capital pa. If you only put in $100, congratulations you made $75 and you are still $250-$75 behind the 8 ball. Now do the same calculations with $1000.
Obviously to drive advertising they made the referral system which looks and smells like an MLM system. To be frank, it's a bonus if you make money in that machine. I'm not that great at selling. Those who are good at it are making an attractive bonus. If you are wanting to join up though, www.flipping4profit.com/sullisolutions (tongue in cheak :))
Look if you don't want to use the link above, fine I not fussed. But, I mean, even if you go to the main site you are going to be asked for a referrer anyhow so it might as well be someone who has the experience, right?
Oh by the way, they've become much more transparent now with the property transactions. They put all paperwork up in the members area.
Hope this helps.
From 2 weeks ago , nobody answer to support , so I guess the game over
There are few online businesses that don't get both good and bad reviews
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