If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Reading the following post reminded me of how Real Estate investors have become victims of the many real estate investment networks and educational gurus that are promoting instant profits in real estate. I think of the hundreds (maybe thousands) of investors that have fallen victim to the Robert Allen Gang of Thieves. Many an investor relies on advice from groups like Robert Allen and Marshall Reddick and are now poorer and in many cases facing foreclosure on the investments they were steered into.
People often buy investment property. Even the internet has many real estate centers which guide investors in which property to invest. These days’ people are even very fond of online trading. Some people however still prefer forex trading. Many sorts of investment center provide help in this regard. Some people even give out their property as a rental property if high rents are offered. The role that a brokerage company plays is also very significant.
Biggerpockets.com had this recent post.
Marshall Reddick Real Estate Network, Inc. (MRREN), a prominent California-based real-estate-investment club, and 11 other individuals and businesses in the real-estate and lending industries based in Florida and Ohio were named as defendants in a lawsuit filed today in Los Angeles Superior Court relating to an alleged fraudulent real-estate-investment program involving the sales of homes in Florida.
In the lawsuit, filed by the Law Offices of Andrew M. Wyatt, a Los Angeles-based law firm, the Irvine, CA-based MRREN and its founder, Marshall Reddick, along with the other defendants were charged with 11 counts of illegal actions, including: fraud; Racketeer Influenced and Corrupt Organizations (RICO) Act; Untrue or Misleading Advertising; Negligent and Intentional Misrepresentation; and Unlawful, Unfair and Fraudulent Business Acts and Practices.
According to the lawsuit, Reddick, a retired economics professor, has built his reputation through seminars held at community colleges and universities. MRREN has 80,000 members, of which half have purchased property through its system of “armchair investing.” MRREN purports to have a network of high quality developers, builders and lenders who are professional and reliable, assuring investors of “worry free investing.”
In 2005 and 2006, Mosner and Hidalgo invested in the development of three single-family homes in Port Charlotte and Englewood, FL. The lawsuit alleges that the bulk of the loan money went to the defendants for commissions and “overhead” costs. Little of the money was used for construction of the homes.
As a result of the builder’s failure to start construction, the plaintiffs were declared in default by the lenders. Besides adverse credit reports, Mosner and Hidalgo are potentially liable for hundreds of thousands of dollars.
To Your Success
Mark Schwartz
Real Estate Technology Blog
All About Washington Real Estate Blog
Submit Your Link Exchange Here
3 responses so far ↓
1 John // Nov 21, 2007 at 5:18 am
Marshall Reddick Real Estate Network, Inc. (MRREN), a prominent California-based real-estate-investment club, and 11 other individuals and businesses in the real-estate and lending industries based in Florida and Ohio were named as defendants in a lawsuit filed is a great site
2 N. Stephen Schatz // May 27, 2008 at 2:19 pm
Not all real estate investment associations are fradulent. We have a good one in Baltimore that has over 300 members. I think it is important that the real estate investor club or association is recognized.
3 Jonah McKinney // Jul 30, 2008 at 10:09 pm
Another “guru” you need to watch out for is Adam Sachs. He has a large following of newbie investors, many of whom have lost large sums of money.
He partners with Ryan Harris and they head up an investment group called Greenlight. They don’t conduct good due diligence on their projects and often work with incompetent or dishonest developers like Johnny Frost of Orlando or North American Land. Many of the developers their investors bought from are nowhere to be found.
If you want to make money in real estate, don’t invest with these guys.
Leave a Comment