Posted by Ab on May 27, 2008 at 16:07:45:
In Reply to: Re: Cherif Medawar posted by Diane on March 31, 2008 at 02:39:46:
I just came from one of their seminars I understand the mechanics of the how they do the deals.
What concerns me:
Is the emphasis on "creative and aggressive financing which we can get you access to". I heard this phrasing over and over. This leaves an odd flavor of where have I heard this before? sub prime? S&L? And when they put up the internal access site, the listing lists commercial and hard money lenders. At no time was there a discussion about the differences of the two nor are any specific lender names shown. Why would you even need to tap a hard money lender if there would be so many commercial ones who found your numbers so compelling?
Moving along, there is an abundance of how one can write off meals, trips and the cost of even this next seminar. I understand that conceptually. My accountant is conservative and although I have not talked to him, I suspect he would not be thrilled with this level of aggression. That is not the kind of thing focused on in Millionaire Next Door.
I didn't hear or see a lot of specifics about particular deals or deal locations. I did hear and see a fair amount of 'you would recognize the name'. Thick on pictures but thin on details (locations, dates or verify anything).
I understand how to one could structure the deals to avoid any liability. I know about the LLC owning other LLCs and Nevada corporations over all. At no point was there any discussion about business taxation other than cap gains or unrealized gains. There can be local business taxes which can seriously lower the profitability of a deal (and I suspect it could happen more and more as cities/counties/states look for ways to make up the lessening national money flow). Another thing to consider is that it costs a certain amount to do an LLC even if they could give the state specific forms. Those costs add up, so you need to make sure that the value of what you are doing on a corporate level is really financially worth all the jumping around.
Take a look at John T Reed's website and look through the BS detector. One of the things he lists for you to be on the watch for is the emphasis on how easy this is, no problems and the lack of mistakes made by any of the speaker gurus. I never heard tell of any mistakes that could be made other than just not doing the deal.
http://www.johntreed.com/Reedgururating.html
Another thing to keep in the back of your mind when you look at the Reed site is that institute which actually offers the classes is owned by Business Systems which is owned by Telligenx which also offers classes by Robert Allen and the No Money Down type of real estate investing. Take a look at some of that because there is not much on Cherif himself (which leads to questions like why not if he's got so many properties and he's been doing this since the early 90's?).
Some of the other comments made by the others are worth mulling through.
- Re: Cherif Medawar Vince Silos 08:28:41 09/03/08 (0)
- Re: Cherif Medawar Burnett Birthwright 09:41:39 08/27/08 (0)
- Re: Cherif Medawar Steve 20:42:28 06/04/08 (0)