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LarryCabading

Junior Member
Registered: 03/25/05
Posts: 22
Reply with quote  #1 
Chief Denney was pitching a 2 day workshop on foreclosures thru his webinar, specifically REO's, more specifically purchasing REO's in bulk and selling them to us for 70 cents on the dollar. Just wondering if anyone had any experience with this guy??? Appreciate any feedback/comments.

Larry
rickencin

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Senior Member
Registered: 06/20/06
Posts: 708
Reply with quote  #2 

Go to the home page and "Listen To Meetings" and listen to the April, 2006 meeting.  Sounds like an experienced investor. 


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Rick
rlfrerye

Junior Member
Registered: 05/07/07
Posts: 21
Reply with quote  #3 

He's incredibly knowledgeable and personable and has run the Real Estate Gammet extensively.  His partner is equally as talented. He's a marketer, but they both know their stuff.

manga

Senior Member
Registered: 09/13/07
Posts: 57
Reply with quote  #4 
Quote:
Originally Posted by LarryCabading
Chief Denney was pitching a 2 day workshop on foreclosures thru his webinar, specifically REO's, more specifically purchasing REO's in bulk and selling them to us for 70 cents on the dollar. Just wondering if anyone had any experience with this guy??? Appreciate any feedback/comments.

Larry


He is an excellent marketer. I would be EXTREMELY cautious. I do not know many that have positive results investing with him. I have lost money in his Go Zone deals, and do not know of anyone (other than himself) that actually profited from the deals he was pitching. Please look at other posts in this forum with his name on the posts. He used to post here but realized there are knowledgeable people on this board I think he moved elsewhere. Please listen to him and the next speaker (Bruce Norris) and draw your conclusions. It is also unfortunate that the end of the discussion was omitted in the recording as a lot of angry investors confronted him after the meeting - others members who were present at his talk can confirm  what I am telling you. I am certain he will not be speaking here again.

This is just my opinion of course.

Good luck.

http://www.websitetoolbox.com/tool/post/sdcia/vpost?id=1774990&highlight=zone&trail=90

http://www.websitetoolbox.com/tool/post/sdcia/vpost?id=2052723&highlight=zone


norcaldelta

Junior Member
Registered: 10/11/06
Posts: 30
Reply with quote  #5 
I'd guess it's been over a year since I attended Chief Denny's GoZone seminar, flew down from Sacramento with great curiosity. The presentation exceed my expectations, as did Chief's real estate knowledge. He's a very good speaker, apparently was a TV infomercial spokesman in another life. We had a great time and put down a deposit on several properties in MS and ALA.

Further investigation and risk assessment left me with some heartburn about whether these would be 'right' for me. Upon request they returned my deposits - no questions asked, no games - I thought it spoke to the integrity of the individuals.
larrywww

Senior Member
Registered: 08/29/06
Posts: 1,613
Reply with quote  #6 

The 2 recommendations are deficient, I think.

The first one is perfectly general. (Gamut is mispelled, BTW).
Although the 2nd poster praises his Gozone seminar, neither poster actually states that they made money on the Gozone deals.  The question remains: Did anyone who bought their Gozone properties actually end up making any money?

One other question is what they are marketing these days.  I do notice that Chief Denny gave a lecture at Socalcia on 7/24/08.  He also gave a lecture at Nsdrei on 10/21/08 that had the same name.  Did anyone attend either lecture?

 



MJohnson

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Senior Member
Registered: 06/15/06
Posts: 494
Reply with quote  #7 
Chief was selling based on the tax benefits and the hope of appreciation.  A few issues with that:

1. The tax benefits are dependent on having RE Professional status, which the IRS is cracking down on in a major way.  Investor-type activities no longer qualify, you need to be wearing a hard hat and yelling at contractors for at least 750 hours/year. 

2. Another issue I had with buying in the GoZone is the exit strategy.  When the tax benefits run out, who do you sell to?  I could be wrong, but it seems to me the way they set this up could create a flood of investors all looking to sell at the same time. 

3. Chief's properties did not cash flow (for which he offered an up-front payment of a few thousand to cover your losses over the first few years).  While you should definitely time your purchases around the market, I don't believe in buying properties based solely on hoping the market goes up (especially since the areas he was pitching had already seen 20-30% appreciation). 

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simonw

Senior Member
Registered: 05/11/06
Posts: 110
Reply with quote  #8 
Be wary of the GoZone.

MJohnson pointed out several problems.

I believe if your exit strategy is 1031, you can only 1031
in the same area for the next 10 years.
So if you want to 1031 back into CA or other states you are SOL until 2018 if you bought this year.

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ISamson

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Senior Member
Registered: 06/02/05
Posts: 2,302
Reply with quote  #9 

1031's  are not area specific.  They are type and timeline specific.

simonw

Senior Member
Registered: 05/11/06
Posts: 110
Reply with quote  #10 
Yes normally 1031 are not area specific but if you are claiming the 50% tax depreciation in the GOZONE they are.
This is recent change to the tax code earlier this year.


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rlc

Senior Member
Registered: 05/01/06
Posts: 1,084
Reply with quote  #11 
 manga wrote: "He is an excellent marketer. I would be EXTREMELY cautious. I do not know many that have positive results investing with him. I have lost money in his Go Zone deals, and do not know of anyone (other than himself) that actually profited from the deals he was pitching."
 

simonw

Senior Member
Registered: 05/11/06
Posts: 110
Reply with quote  #12 
Caveat emptor
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larrywww

Senior Member
Registered: 08/29/06
Posts: 1,613
Reply with quote  #13 

The best gurus like Bruce Norris and Ward Hannigan don't sell you properties, normally.  They point you in the general direction of deals and encourage you to give it a try.  They may even give you advice from the sidelines. And No, they aren't trying to sell you a bill of goods, 24/7.

However, whenever a guru is selling you a property (think especially of someone like Marshall Reddick), you always have to assume there is a serious profit margin.  Also, that they may have a conflict of interest in encouraging you to buy.   Especially when they are selling you out of state properties.

The problem is that there are so many hidden profit centers.  They get kickbacks from the mortgage broker, the listing agent, the property manager, the title company, the home inspector, the leasing agent, the insurance agent, the home warranty company, the property disclosure company, the builder, the contractor who is rehabbing it, the supplier who is selling supplies for the rehab---the list just goes on and on.  And if the property is commercial, there is a whole new range of service and product providers from whom you can also get kickbacks.  There is absolutely no way to know for sure what kickbacks are being paid to whom.  And this is in addition to whatever markup the guru takes on the original deal (which they don't reveal to you).   

As you say, it's caveat emptor time in a situaton like this.  Most investors get skinned at least once on out of state properties before they wise up.  Since there's no way to unravel the kickbacks in a situation like this, my advice would always to walk away unless you are getting a spectecular deal.

I hate to say it, but California buyers look like prime pigeons to most of those selling out of state real estate.

topgrouprealestate

Member
Registered: 07/02/10
Posts: 2
Reply with quote  #14 
This guy pitches on out of state properties. He buys them in bulks mark it up ridiculously and sell it out individually to newbies out of state. He has Go Zone, Houston, Tx, and some in the south. He has in house mortgage broker, own appraisers, and a bunch of others in house. Also, you'll be using RPM or Real Property mgmt once you buy prop. out of state, they're both sucks.

Here are a list of ppl who can give you more accuracy because they bought from him: Check out for yourself:

 Alisa Foster ;
Lisa Roduner
;
Shirley
;
Gabriel Carcamo

; William Ghali
;
Phil Warren
;
naveen@ascending-solutions.com;
Nina Komlik


topgrouprealestate

Member
Registered: 07/02/10
Posts: 2
Reply with quote  #15 
Alisa Foster alisafoster@me.com;
Lisa Roduner
lisa7910@yahoo.com;
Shirley
;
Gabriel Carcamo
carcamo.gabe@gmail.com;
; William Ghali willghali@yahoo.com;
 Phil Warren
phillipwarren@mac.com;
naveen@ascending-solutions.com;
Nina Komlik
nina_komlik@yahoo.com
carloslubin

Member
Registered: 10/03/11
Posts: 6
Reply with quote  #16 
Quote:
The best gurus like Bruce Norris and Ward Hannigan don't sell you properties, normally. 

bruce norris sold properties in texas to california investors (the developers offered me less than norris's prices without me trying), bruce assumed under the theory californian would moved to other states based on past history and there texas appreciates.

i know 4, 5 people brought into that went through foreclosures, bankruptcies and divorces.

Quote:
However, whenever a guru is selling you a property (think especially of someone like Marshall Reddick)


what is interesting, if you hear the old cd series of bruce's bottom fishing - real deal series on live coldcalls (2003), bruce and marshall reddick are buddies. 

sdcia library still have the cds.
CGabhart

Senior Member
Registered: 03/20/05
Posts: 2,074
Reply with quote  #17 
I don't believe anyone who tells me they are going to sell me a property at 70 cents on the dollar. 

You know what they say about to good to be true?

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