Big money made in Kamloops at a recent 2 hour event. Here’s how it happened.
There was a call at suppertime from an unknown number.
Usually I ignore these calls but for some reason I answered.
I was about to tell the caller to add me to the do not call list, when I heard “free event to learn about wholesaling right in Kamloops.”
“Sure, sign me up.” I replied.
After all, I didn’t know that wholesale deals existed in Kamloops, and I didn’t know much about this Real Estate strategy so I was intrigued.
Plus I thought it would be a great chance to meet other like minded investors.
Before hanging up, I gave my email address, and the caller referenced “Scott Yancey from Flipping Vegas” many times. Before now I did not know about that TV show or who Scott was, but I was interested to meet him and in his model of investing.
Flash forward three weeks. I get a reminder phone call, and am asked to dress in business casual. I’m promised just for showing up I will get a free book, digital camera, and a real estate resource CD.
Wednesday night at 6 PM, I arrive.
There is a video playing with a guy talking, I learn this is Scott Yancey. So, he is not going to be here tonight…
I think “Great, another US guru pitching his programs. Oh well, I’m here anyway so I may as well see what he has to say.”
The event then played out exactly like the CBC Marketplace episode that covered the Rich Dad Poor Dad seminars that toured Canada a while back. If you don’t know about that story, check out the link above or just keep reading.
You can read lots of blog reviews of Scott Yancey events online, but this one is spot on accurate to what I observed.
The execution at the event here in Kamloops was fascinating. It was tough not to get sucked into the charm of the speakers, and the use of psychological triggers was genius.
Here are a couple that impressed me:
– The seminar was scheduled for a weekday at 6pm, normal dinner time for most people. That means you ate early, or showed up hungry. Since hunger is a “hot state” of emotion, and hot states increase impulsivity, the chance of making a buying decision is increased.
– A chocolate granola bar was placed on the seat. The law of reciprocity is a sales technique where “if I give you somethings, you will give me something in return.” In this case it was 2 hours of our attention, and some bought the program.
Since there are thousands of real estate gurus that do the same thing and share best practices, no doubt these triggers have been tested over time. i.e. 8pm meeting time vs 6pm results in bigger sales.
Anyway, on a whole the audience did not stand a chance, I detail the rest of the meeting below.
The speaker spoke about how much money the audience could make with various strategies:
Wholesaling – buying distressed properties cheap and selling for a small profit to another investor who will flip or rent it
Buy and hold investing – buy a cheap US property and rent it out
Flips – buy a cheap house, fix it up and sell it
People asked some questions:
Q: “Where will I get the money to invest?”
A: We lend money to our students without need for income, credit checks, and no upfront fees.
Q: “Where do we find properties?”
A: There is too much content to go over here, but we have a course coming up.
The tone was a soft pitch the entire time, many times the speaker said “we are a training company and make money by training you, but if you make money isn’t it ok that we make money too”.
They even had a “real Canadian” named Myrtle Antao there who had completed 9 deals since May. She stood up in front of the group and gave a brief speech about how great the company is and how much she had learned.
The speaker closed Myrtle’s testimonial by asking a leading question that sounded like “are we as awesome as we say we are” or maybe it was more like “have we delivered on everything we promised to you.”
Myrtle of course answered “yes.”
Before she was ushered away by the speaker who asked for a round of applause, I yelled out “How much money have you made?”
The speaker quickly answered: “We are not allowed to make earning claims in front of the group, you can ask her in private afterwards.”
The sale pitch for the course now began in earnest.
“There is way too much to know, and I cannot possibly teach you everything here tonight. We do however have a $1997 course that is three days long. Who wants to make money?”
Most hands go up.
“Common, if your hand is not up your a liar.”
All hands go up.
“Who thinks program will make you money?”
A few hands go up.
“Who is going to make the commitment right now to their financial future?”
6 people raise their hands and two assistants ushered them to the back of the room where they fill out forms and put down their credit card. I’m thinking “wow, they just made $12,000.”
Meanwhile, the other 40 people in attendance are told not to go anywhere because a second speaker is going to give them another opportunity in case the last offer was not for them.
The real testimonial
I took this time to get up and I asked Myrtle about her experience with the Yancey group. She told me:
– her husband did not want to invest in the US but she convinced him with the help of the company
– she is glad she found this company
– she has not done any wholesaling yet, she needs to pay for that course and wants to do it soon
– the company helped her sell her rental property in Toronto and invest the money($300,000) in 9 US rental houses
– the company helped her set up a three tier corporation to hold her US real estate
– her accountant did not understand what she was doing and neither did she, so she asked the company to call her accountant to explain it
– after the 3 day training she was sold more courses
The second pitch
The second speaker spent a lot of time getting us to like him. He showed photos of his family, then talked about getting a family home for cheap through a U.S. tax lien, but because he is a nice guy he didn’t kick out the family, he rented their own house back to them.
He then discussed buying US tax liens and that 18-25% returns on your money is guaranteed by the government. This time the course being offered was $1500, but you could take the course online through their website instead of attending a 3 day seminar.
But wait! That’s not all! The course is only $1000 for those who already purchased the three day training!
I watched in amazement as half the previous buyers, and new buyers, lined up at the back of the room. There was least $4000 of additional training sold.
So there you have it. $16,000 in sales(probably more) in 2 hours.
However, the event was not a complete waste of time.
I was inspired to learn the truth about tax liens(I never would have looked into them otherwise) and that they are an advanced strategy, certainly not for inexperienced investors like the speakers pitched, and there is a real risk of losing money.
I also got the opportunity to meet a very nice woman from Vancouver, Jackie. She works in charity law, with some education in interior design. She had driven all the way to Kamloops just for this event(that’s how good the marketing was), but also saw through the overpriced training programs. We will likely talk about investing and staging in the future, so I’m glad I went just for the opportunity meet her.
To be clear, there were no outright false statements made, however on a whole the presentation was misleading to say the least. Here is a story to illustrate the point:
A man’s house burnt down while he was on holidays.
When returned, he talked to his lawyer about handling the insurance claim.
The lawyer asked “are you covered for this terrible disaster?”
The man replied “yes of course, I have a policy for fire and theft.”
The lawyer said “that is too bad.”
The man was puzzled and asked why.
The lawyer said “you should have been insured for fire or theft.”
The distinction is subtle to most people, so although the salesmen at this event did not tell any overt lies, the content and promises were misleading.
This is indeed a dishonest scheme, and the Scott Yancey event I attended meets the following definition.
I wish I had read online reviews before attending, and I really wish the buyers of the programs Wednesday night had as well!
Please share this article with as many people as you can.
Perhaps some of those headed to Vancouver for the December 12,13 and 14th Scott Yancey event will see this article and be warned against spending an additional $20K-$60K on the further training that will be pitched to them!
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Until next time,