Russ Dalbey
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This was a tough review to do, for a couple of reasons. For one thing, note brokering
is not one of the usual "get rich" schemes. Also, the Dalbey organization is good at
what we call "non-speak" - not telling both sides of a story.
According to customer complaints received,
the only "cash flow" in the Russ Dalbey "Cash Flow" business appears to be from your pocket to his. This
may or may not be a simple case of "sour grapes" from those who were
unsuccessful. We only report what customers write. Note: no matter how
good a program may be, there will always be dissatisfied people ready to
complain. That said, there should not be this many complaints, of this magnitude.
Russ Dalbey markets a $99 "note network" program called
"Winning in the Cash Flow Business", where you supposedly find notes, list
them on a website, and sell them. Seems simple enough. But actual Dalbey
customers have complained that in order for you to
have all the tools and info necessary to start, it can cost you $2000-$14,000
or more, and high pressure callers
call daily, trying to sell you another "necessary" (and costly) "back-end"
item.
When queried about this, the Dalbey people did not dispute the calls to upgrade,
but they did say that
different people have different needs, and they want to make sure each
customer knows about
all the optional upgrades, so those who "want to invest in some additional
tools" may do so. Our concern, of course, is that do not make this information
available up front, before customers have already laid out some money. It seems deceptive.
They also state, "The course contains all the information someone
would need to become a success in the note business." Of course, if that were really true, there woould be
no need in pressuring people to buy into so many expensive "upgrades".
Of all those who
have written in, none seem to have made a dime from his program, but that is not unusual -
if they made money, they would not be complaining. This does not mean no one
makes money with the Dalbey system - it only means that many have not, and
they are unhappy about WHY it has not performed as advertised. In all fairness, the Dalbey
folks say they have numerous "success stories", and you may find some on
their website (link is below). Be aware, however, that "testimonials" that do
not include both name and address are
probably phony. And those that do could easily be "paid testimonials." That is why it is
always wise to check things out on your own, by visiting your favorite search engine and typing in something like "Russ Dalbey Scam".
In short, you may have to pay out a ton of cash to become little more than a "bird-dog", doing all the work
of locating notes, while risking that you may never earn your investment back.
Maybe you will, likely you will not. The competition is fierce in the "paper
biz". But we can tell you in all honesty that this business does not require
any major investment, so we would probably not recommend buying into any
expensive up-sells, as they ae pretty much useless.
Some of the complaints
say that more often than not, the "America's Note Network" owned by the Russ Dalbey folks reject many of the notes even if you find them. However, the people I contacted at the Dalbey network claim that almost all notes are accepted. You would have to decide for yourself - we can only report what others tell us. We try to give both sides here. And both sides are apt to be biased, so the truth is probably somewhere in between..
NOTE: It has been implied by many that Mr. Dalbey, Mr. Allen, Mr. Beck and some other "gurus" farm out their
mentoring (which is very expensive) to
other companies such as PMG and "Mentoring of Utah", which appear to also goes by PMI and about 40 other names.
Such companies are to be avoided at all costs. They have been alleged to drain
credit card balances, and provide little, if any, mentoring of any value.
But the Dalbey folks, while not denying the use of
such "mentor companies" say that they now do "MOST (90%)of their mentoring in
house" at this time, which has to be an improvement, and shows they are trying to provide a higher quality of service.
Their record at the BBB is mixed - in all fairness, it does
appear that they have resolved most of the 165 complaints filed with the BBB
in the
last three years. It is good that complaints get resolved. It is not good that
there have been that many complaints that made it to the BBB, when they
should have been resolved sooner.
The investors who developed "The Simple Man's Guide to Real Estate" were among the first in the country
to use notes for investing in real estate. We have been using notes for over 30 years. And we can say, in our opinion,
that Mr. Dalbey's "system" is, for the most part, unworkable for many people. Because notes are a security, like stocks and bonds,
trading in them may require a license as a note broker, which is regulated by
the SEC (Securities Exchange Commission). Dalbey's method of using notes requires such licensing. The methods taught in "The Simple Man's Guide to Real Estate"
do not, as both the purposeful use and method differs. Furthermore,
many notes are worthless, and most good notes are sold directly to investors
- not through any "note network".
In our opinion, the small chance of any substantial success is not worth the
possible substantial cost. Just our opinion. Visiting the Russ Dalbey site,
you may find out more, from their viewpoint, and perhaps check out positive
testimonials.
If you are truly interested in really learning how to make
money in notes and real estate, pay under $70 complete (no expensive
"back-end" items to purchase) and
receive the benefit of free, unlimited coaching from in-house members of
their own investor group, "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.
"The Simple Man's Guide to Real Estate"® has a very good section devoted to
buying, selling and trading notes. You do not "bird-dog" for anyone - you get the full benefit of any notes you find.
You need not put up any cash, either, and there are no expensive "back-end" necessities for you to purchase.
And their instant download allows you to start right away!
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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