John Alexander

John Alexander: We really do try to find something good to say about each guru we report on. But like John Beck, in the case of John Alexander, that is not possible. Like John Beck, John Alexander appears to offer a program that no one recommends. From what we have found from multiple sources (including the BBB, banks, credit card companies, state attorney generals, customers etc.), it appears to be a scam - and a bad one, at that.

The Better Business Bureau gives John Alexander an "F" rating, and goes on to say, "We strongly question the company's reliability for reasons such as having failed to respond to complaints, their advertising is grossly misleading, they are not in compliance with the law's licensing or registration requirements, their complaints contain especially serious allegations," etc. Those are not our words - they are quoted from the BBB website.

About his "mentoring". Like Mr. Beck, John Alexander farms out his mentoring to "Mentoring of America", in Utah. This company has allegedly done more to empty people's accounts than banks did in the Great Depression. Visit any legitimate "gripe site" to learn everything you need to know about them (or just go to your search engine and type in "John Alexander Scam", or "John Beck Scam").

It appears that John Alexander either holds an interest in, or is otherwise associated with Graystone Mortgage, a company suspected of making dubious loans to otherwise unqualified home buyers, so they can charge higher interest, and when (not if) foreclosure occurs, they stand to make a fortune on the appreciation.

In his letter to us, he tried to explain away the bad BBB comments by saying those customers were not being honest. However, the BBB always asks for the merchant to respond to complaints before they post them, and if the complaints are not valid, or if the merchant tries to resolve them, the complaint is either discarded or marked "resolved". It appears that the BBB's real problem with John Alexander is in questioning his reliability and in what they call his "misleading advertising", or that he is not in compliance with licensing requirements.

We also told John Alexander (a second time, since we had been in contact before) that if he wishes to dispute anything on this page, that he may do so, and if evidence is provided that would show any statement is untrue, we will gladly correct it. Alexander has not taken us up on that offer, so the record stands.

The way we understand it, the crux of John Alexander's "inverse purchase" course goes something like this:

• You find a property to buy, at a bargain price (hard to do in some markets)
• You get it under contract
• You find a buyer who probably cannot qualify for a mortgage at most lenders, and get him to sign a purchase agreement for the property you have under contract. Ordinarily, the price difference is about $5000-$10,000, and Alexander suggests that will be your profit (it will not)
• You turn this over to Graystone Mortgage - they loan your unqualified buyer the money (at high interest rates).
• At closing, you pocket the profits.

Sounds logical. Except for a couple of things. At closing, you will have to pay closing costs, transfer fees etc. And even before closing, you will have costs - transportation, phone calls, advertising costs (to find a buyer) etc. When all of your costs are added up, you would be fortunate if you do not lose money, instead of making a profit.

But the part we really feel is lowdown is the plight of that poor buyer, in the hands of Graystone Mortgage. It is almost assured that his mortgage payment will be higher than he can afford, and will probably lose the home to foreclosure - ruining his credit for many years to come.

If you are truly interested in really learning how to make money in real estate, pay under $70 and receive the benefit of free, unlimited coaching, "The Simple Man's Guide to Real Estate"^®, is worth considering. Written by Bill Vaughn, the man who developed most modern "flipping" strategies in the '70's, and who originated the "reverse mortgage" in 1988 (which has since been adopted by many banks), the program is comprehensive, simple and their personal coaches are actual, practicing investors who volunteer (it's free) on a not-for-profit basis to help others.It is the only low cost program found that provides free, unlimited coaching from actual investors. And their instant download (full version) allows you to start immediately.

Of special note: IntelliBiz, publisher of "The Simple Man's Guide to Real Estate" has a good record at the BBB. This program is worth a look!

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