“Free” Foreclosure For Sale Seminars Are Never Free

Late night TV advertising designed to sell you on the foreclosure for sale investment opportunity will make you millions if you’ll only attend the “free seminar”.

Russell Whitney, CEO of Whitney Information Network, Inc. is the promoter/owner of the TeachMeForeclosure.com infomercial, “free” seminar, and website peddling this new foreclosure for sale “opportunity”.

For those of you not familiar with Russ Whitney’s reputation in the get rich quick real estate investment circuit, please pay very close attention!

John T. Reed has exposed this real estate “guru” for exactly who he is so I won’t go into it here. Reed has a very popular website which evaluates all the real estate investment gurus and is a must read if you’re inclined to believe what you see on television.

Reed says about Whitney, “If I had numerical ratings, I would give him a lower rating than any other guru.”

Just be sure to read this about Russ Whitney.

Whitney’s new problems stem from a press release dated July 2, 2007 where 2 major investors in his Whitney Information Network, Inc. stock are asking for his removal!

It’s pretty telling to be asked to step down from your own company by shareholders. Hudson Street Capital and Kingstown
Capital Partners who own 4.5% of the outstanding shares are the investment geniuses who risked their money with Whitney.

The press release states,

“We are writing to the independent directors to express our concern that the RUSS Board of Directors, as currently configured, lacks independence from Russell Whitney, Chairman of the Board, CEO, and the Company’s largest shareholder. We believe that other shareholders’ interests have been surrendered to the self-interests and personal enrichment of Mr. Whitney, while shareholder value in general has precipitously eroded.”

The press release goes on to tell why Mr. Whitney’s million dollar plus compensation, $6.9 million private jet, and propensity for attracting every type of government investigation known to man is killing the company simultaneously decimating their investment.

Didn’t these savvy Wall Street types do any kind of investigation or due diligence before investing in Whitney’s company?

They are just as stupid as those attending the “free seminar” which quickly turns into a hard up-sell seminar costing thousands. And don’t think you are any match for these professional hucksters at the seminar…they will get your check if you bring a checkbook.

So don’t bring the checkbook. Better yet, don’t go at all and here’s why.

There is no money in foreclosure for sale…at least not yet.

“All that glitters is not gold”.

The current foreclosure for sale market (unlike those in the past) was created by lax lending standards that allowed 100% interest-only home loans, stated income loans for first-time real estate speculators, and dropping home values.

So where’s the profit on a home bought 2 years ago with no equity at the time, saw no principal reduction in the intervening months, and is now worth $30,000 less than the original purchase price?

It doesn’t exist. (And of course, this is the same reason the buyer stopped paying. Contrary to what the seminar sellers will tell you, people don’t capriciously fall into foreclosure…at least not the foreclosure for sale today. Many of the foreclosure for sale were caused by former real estate investment seminar attendees who got in over their heads with 100% loans on can’t miss quick turn speculation on multiple properties.

What does exist is your drained bank account or ballooning credit card balance…and that’s if you just get ripped-off by the seminar promoter.

If you actually try to implement what they teach, you could land in court or even in jail. We know of multiple folks who thought equity skimming the foreclosure for sale market was without legal consequences.

It isn’t.

They are now doing 3-5 in Federal prison. You won’t see that on a late night infomercial!

Instead of globe-trotting in your private jet, you’ll be figuring out how to go without a shower for 36 months.

Meanwhile, Mr. Whitney will be the one on the private jet laughing at just how gullible people can be…seminar attendees and stockholders alike.

Remember: “Free” real estate investing and foreclosure for sale seminars are never free.

Good Luck!

Author: Rob K. Blake
Published July 8, 2007