Stone Equity Group and The Investor's paradigm

[Mdhaas]

It never ceases to amaze me!  Whenever someone posts something negative about a company, 5-10 new members join and their very first post lauds how wonderful their dealings have been with the company in question. Then they mysteriously disappear and never post again.........

[juano101]

So what. If it helps someone to decide for them selves to invest or not to invest  in something being talked about on this site. Its good that investors with experience post positive or negative information.

I visit web sites that have information about an investment I am interested in or am checking up on and it helps me to decide what to do.

Just because I only posted one time, on this site, does not make my experience and or information worthless. I have been successful dealing in real estate and I don't expect others to fallow my lead. I feel that each person must do their own research and due diligence and come up with their own conclusion as to what to invest in.

Again, just because something sounds to good to be true, sometimes it is a good investment. Do your homework!

I for one, believe that luck is when preparation meets opportunity.

Lots of luck to all

[Mr Investor]

It doesn't give you credibility either.
 

[Bluemoon06]

juano101 just to prove us wrong post something about anything on this site.  You chose, just anything at all.

That is the credibility gap we are talking about

How can sombody be so involved with this business and only have intrest in this one single thing...not one sigle type of thing but only this one thing?  That doesn't make any since at all.

[FL JACK]

Here is the employee list for Stone Equity Group, perhaps Juano101 is actually  http://activerain.com/stoneeg   Juan Mares

And watch this video and then read the headline. http://www.sandiego6.com/mediacenter/local.aspx?videoId=620743@xetv.dayport.com&navCatId=5
Something fishy is going on here. They will not get any of my hard earned money.
http://www.sec.gov/litigation/litreleases/lr18182.htm

I know from attending one of their seminars that John Powell claims to be a laguna beach resident and this is a small community of residents, too bad the SEC doesn't have pictures.

[Mdhaas]

juano101 just to prove us wrong post something about anything on this site.  You chose, just anything at all.

That is the credibility gap we are talking about

How can sombody be so involved with this business and only have intrest in this one single thing...not one sigle type of thing but only this one thing?  That doesn't make any since at all.

Boy the response was overwhelming!!   

[juano101]

I came back to view this site again and was still amazed at the negative attitude some people have when it come to investing in real estate.

I do not work for SEG. I am retired and invest in real estate as something i enjoy doing. I retired from a government top management position and invested in real estate part time.

I learned early in my real estate investing that there are a lot of negative people that found fault in everything I was doing and kept telling me how I was going to lose money or it was not a good time to buy or it was too good to be true or if it was that good of a deal why didn't the seller keep the property or why would someone offer me an opportunity or information that they could do themselves if it was so good and so on and so on. If I had listened to them, I would not have made the amount of money I did and I would not be living the kind of life I am enjoying today.

This will be the last post that I will make about SEG or my experience with them. I don't care if anyone else invest with them or not. I did and I will again. I have and will also invest with others that offer me a good deal. I don't care if anyone be leaves me or not. I know who I am and what I have accomplished.

I know those that want to invest in real estate and become successful will not pay any attention to those that are negative and do there home work before investing in any investment. They will take the opportunities presented, do their home work and end up enjoying life while other will continue to doubt that there are good deals. 

I was given some good advice by a successful real estate investor that I met when I first started. He said that one secret to becoming rich is to watch what poor people do . . . and don't do that. The reason they are poor is because of what they do. Instead watch what rich people do and do that, because the reason they are rich is because of what they do

I will still read real estate forums, because I am still learning and enjoy reading about others that have succeeded and how they did it.

[contractor t]

Nothing to say

[jerseyboy]

Wow

Talk about "Drama"

Very entertainig though.

[Giuseppe]

I usually don't read blogs or write in them, but I felt like i had to start doing that.
I had a bad experience with Stone Equity Group and the fact that I am still dealing with them and they are not delivering what they promised so many times is what has made me join this group and post here;
I bought a property from them last year almost a year ago and paid $23900 believing all the promises that they made at their presentation; after the property was "repaired and fixed to standards" and ready for people to move I was cited by the city where the property is, with a bunch of violations to the city code and took many many calls and solicitations to have them taken care of from Stone Equity Group; after putting a person in the property, the company that finds these renters took a $1000 fee (this was nowhere written in the contract) and I never got the background check paper about the renter even if I asked for it many times ( did they do one?);
then the renter stopped the payments.     
So, after many months and after being cited by the city for a list of violations, and being billed for the property taxes, I am still not receiving any money at all.
After complaining with the Stone Equity Group many times and also complaining with Marshall Reddick people, because they are the ones that sponsored this group at their seminars,
the Stone Equity Group said that  they would take care of me rebuying the property back within 30 days (I also signed a contract for that); after months they still haven't kept their word: they say that they are still trying to evict the person from the property.
I already contacted the BBB Better Business Bureau with this story (and discovered that I am not alone),
and I did contact a lawyer ( he already send them some papers).
So my experience with Stone Equity Group has been a nightmare so far.
My advice to everybody......... do your research before investing..........

[rumberobueno]

Hello everyone !

I just wanted to share my experience with SEG.

I met them at one of the seminars of Marshall Reddick where they explained how their process works and how you can make money buying their homes. I assume people on this forum are familiar with their system details so I won't go into details.

What is notable is that they present it so nicely that it makes you wonder what's in it for them. They use expressions like "revitalizing communities", "we buy whole neighborhoods and rehab the homes", "we just want to help americans to achieve the American Dream", etc.

While talking on the phone with Danielle Oyhancabal which is their Real Estate Consultant me and a friend of mine were asking lots of questions just to make sure we understand how the things work and what are we getting ourselves into.

I asked Danielle to send me a few properties as example so we can get an idea of what kind of properties we are talking about. She told me that she cannot send me properties that are part of an existing client portfolio unless I am a member. Ok, so I signed up and I gave her my credit card number to be charged for $1000 which she claimed that it will be charged only at the end of the following week. The transaction was pending the next day 

She sent me the properties as promised. After a bit of googling, I found listings for two out of the three properties. A property from CA was listed for $10500 (which they would sell me back after being rehabed with $59900) and another property from IN was listed for $15000 with an estimate of $5k-$8k in repairs for some drywall damage (which they would sell me back for $34900). Good deal, huh ?

As an aside, I emailed the listing agent of the property in CA to see if it's still available. The next day I got a reply confirming that the house is still available and I can see it at any time. So much for sending me houses from "existing client portfolios" 

These findings explain many things and among them the need to pay cash. It is obvious that the properties are not worth as much as they claim so taking a loan on it would not work. Once you are in escrow they will use you your money from "escrow" to buy and rehab the property and sell it back to you and keep the profit.

BTW, their sales pitch is brilliantly designed to make you believe the whole thing. They sprinkle various items throughout that makes you believe that you are getting a good deal (you'll be getting a property for pennies on the dollar, the houses are valued for much more that we are selling them for, we are also waiting in the same round-robin queue to buy a house as our clients, etc) and that they are doing this just because they want to help people (the video with the house that they just donated, revitalizing communities, etc).

Needless to say, I canceled my "reservation" the next day.

The following day I get a call from Danielle asking me what's going on. I told her about the property that was listed for $10.5K. She said that this is because this is a foreclosure and it is before being rehabed. I replied by saying that they'll have a hard time to make me believe that they'll put in $40K-$50K worth of remodeling into the house before selling it to me. I told her that I can do that myself and get the house for a much lower price. At this one she replied that I'm a real estate investor and I was just trying to extract information from them and hung up the phone.

I tried to keep this post as factual as possible in the hope that I can help other investors make an informed decision.

Regards,

    rumberobueno

[joshuahost]

Morning REI Club Members,

I will be the first to say that we are not perfect and mistakes happen from time to time, which we go back and fix. I also understand that real estate investing can be stressful because there are so many variables and tenant default is one of the variables. This is a risk of home ownership and part of the down side of real estate investing. Here is a summary of Mr. Sabatini's purchase.

PURCHASE, SALE, POST SALE
In summary the home was purchased by (deleted) for $23,900 and then sold to a land contract buyer for $50,050 within 45 days on 08/01/2009. We emailed the contract on 8/14 to (deleted) along with loan servicing set up docs for a 3rd party loan servicing. The land contract buyer contacted us 10/20 and said that they have been trying to make the  October payments but the account number for the loan servicer is not working. We contacted the loan servicing company and they said that they still had not received the loan setup paperwork from (deleted). Additionally Del Toro would not release the September payment because they did not have paperwork from (deleted). 11/2 We spoke with Jessica at Loan Servicing company and apparently buyer tried again to make payment online but it was kicked out because she entered the wrong account number, we called buyer, no answer, left message. 11/5 Yusuf, a VP at our company flew out and went to home, (deleted)(buyer) was not home, left note. 11/16 Del Toro informed us that the tenant still had not paid so we referred to a local property manager for eviction.

In closing we are disappointed that the tenant defaulted as this hurts our relationship with (deleted)and has now become a public scene. I think its important all readers understand that we don't take financial responsibility for tenant default, and that if this is an expectation than our company would not be a good source of properties. Our clients understand that this is a risk of real estate investing and comes with the territory. At the same time we are always interviewing property management companies to find the best local representation for our clients.

Thanks, jph

[christopher w]

Joshua,

First and foremost I would say it is NEVER a good idea for you to post personal information about one of your customers in an online forum.

Second, it seems as if your business model is set-up to be a turnkey investment operation. If that is the case then why are you pushing properties on people that you don't even have under contract (stated in the above posting). The blame is totally on your shoulders because your company's sole purpose is to make the real estate investing experience as low stress as possible. How can you not take financial responsibilty for YOUR buyer backing out? Especially if it was in the contract that you would repurchase the property? It is one of the primary responsiblities of your company? To make sure that you are putting qualified buyers into the homes you are selling? Did your "tenant" put down any money? If so was that forwarded to the property owner?

At this point I would not waste anymore of your time posting here on an internet forum. I would suggest that you make your sole focus fixing your business model and your company because from what i have read it sounds like BOTH are broken.

p.s. I am going to delete the buyers name from your previous post.

[joshuahost]

Chris,

The customer initially made it public which was the reason for my response. I would hope that readers appreciate my responses as we value our reputation. Chris, we are not a turn key investment company as this word is incredibly misleading. To me this word implies that clients do not need to take an active roll in their investment, it implies that nothing will go wrong. You will not see this word in any marketing or on our website. The fact is in real estate something is almost bound to wrong over the life you own a property. Whether a hot water heater goes out, it takes longer to fill a home, or the tenant defaults these are all risks of investing.

If a property manager rents your property and 4 months from now they default they will help you refill the unit but not cover the expenses. They would be out of business. The risk is with the owner as they also have the upside of cash flow and appreciation. That may not be a popular statement, but its the truth.

SEG has 4 full time post sale relationship managers that assist clients with service tickets and rehab tickets post sale. Our post sale services should in no way be considered turn key, rather they are commitment to our clients that we will remedy warranty issues and assist where possible to give the best chance of success.

Also we have never sold or marketed a property that we did not own or have under contract. Our profit is created by adding value through rehab.

I hope this shed some light and I appreciate your open mindedness.

jph

[rumberobueno]

Also we have never sold or marketed a property that we did not own or have under contract. Our profit is created by adding value through rehab.

joshuahost: I can provide you with proof that your statement is incorrect.

Regards,

    rumberobueno