Secured Investment Corp.

Complaint: ***
I am rejecting this response because: CoGo Capital knows exactly what this is all regarding, to whom it regards and they know perfectly clear that they were extremely deceptive in their business practicesWe want our refund immediately and we will take this to the highest and all levels of investigation until we get the rightful compensation for the damages they have caused us
Sincerely,
*** ***

Revdex.com - What is preventing this claim from being completely "Resolved"Please let us know so it can be addressed immediately. Secured Investment Corp

Revdex.com,
I have reviewed the response made by the business in reference to complaint ID *** and have determined that this does not resolve my complaintFor your reference, details of the offer I reviewed appear below
First of all the company lied to you because I have not received a refund as of this dateI went through a round robin with their accountant Caleb C*** which was a colossal waste of timeThey said I made a negative comment on the internet when what I actually did was file another complaint with the CFPB because I had not heard from the Revdex.com and felt the Revdex.com was not going to do anything and turns out I was rightSecured wanted me to sign a waiver stating I would not make any negative comments about them before mailing the check they have stated they mailedI told them I needed proof I did it before I signedThe proof was actually my CFPB complaint where I cited the exact words of Caleb C***The negative comments were hisI will not sign any waiver to get what I am dueI told them to mail the refund on 1/or I will file a claim in small claims court.I intend to do that if the refund is not received by 1/What Secured continues to proof is they have no integrity because they have not kept their word to send the refund!
Regards,
*** ***

The customer information provided in this complaint does not match any customer information we have on file. We do believe we have identified the appropriate client account, but would need to confirm the contact information (likely of the mentioned fiance) and purchase details before we are able to...

address your concern in its entirety.  We do wish to resolve this matter expeditiously. Please reach out to Nicole M. at our corporate offices and she will ensure a timely resolution.  Thank you for your patience, we look forward to hearing from you soon.

The client, [redacted], called in for a refund request on 04/28/2017 and he was transferred over to Nick F[redacted]. Nick said that [redacted] was now okay and did not need a refund. Those are the only notes that we have in our system for [redacted]. I am sorry for this inconvenience. I will process the refund of $1,395.00 today and [redacted] will receive the payment within three to five business days.

To whom it may concern,In November of 2013 [redacted] purchased our Broker Certification Program. The Lee Arnold System's Broker Certification Program is a 3-day intensive, LIVE training that teaches prospective real estate investors and brokers how to properly structure a loan package. Those...

LIVE training opportunities are held quarterly in major metropolitan areas across the United States, hitting all regions annually. We take pride in showing our clients hands-on how you can succeed investing and real estate. At the time of purchase, [redacted] paid $500.00 toward the $2,997.00 LIVE Broker Certification Program. On multiple occasions following her purchase, [redacted] committed to, and uncommitted to different locations where she planned to attend our LIVE Broker Certification Program. In order to provide our client the training she so strongly desired, but was consistently unable to attend, we made an exception for [redacted] to watch the training via LIVE Stream without being paid in full. Mind you, the client has still only paid $500 toward the purchase price of $2,997, which is 17% of the purchase price (83% discount). While we believe there is inherent value in attending the training LIVE, we do offer a LIVE Streaming option at no discount for those clients that simply cannot find a way to be there live.  It is understood that viewing the BCP via LIVE Streaming is in fact "rendering services" to the client, and providing that LIVE Streaming to each client comes at a cost to the company. Again, [redacted] paid $500 toward a $2,997 purchase and was provided the services as though she had paid in full. Unfortunately, what action she has taken to implement the training she received is out of our control. [redacted] continues to interact with company by attending webinars and opting in as interested to upcoming events. In order to resolve this matter we have agreed to refund the $500 [redacted] paid toward a program she committed to but never followed thru with. We hope this will allow her to focus her energy on revenue generating activities in her real estate business and do intend to be here to support [redacted] if she is ever in need of education or financing for real estate investing activities in the future.  Secured Investment Corpdba Lee Arnold System of Real Estate Investing.

Revdex.com,
How could you close the complaint without verifying whether I did received a refund from the company? Well the company has not sent me a refund and want me to sign a waiver to get my refund for no justifiable reason and I am not giving up my right to free speech for a refund they have already agreed to send. This matter is far from being closed as it appears now that I have to take them to court to get the refund.
Regards,
[redacted]

[redacted]:Thank you for your inquiry.  Please know that Secured Investment Corp dba. Lake City Servicing is a service provider contracted by the lender of Private Money Mortgages.  Our team enjoyed doing business with you and enjoyed servicing your loan.  Unfortunately your lender...

created a relationship with a different mortgage servicing provider and chose to transfer all their loans to this provider.  We have no control over that decision: It was not our decision to transfer your note.  We did not sell the note nor do we gain any benefit in your note being moved to different provider.  Please know that you are not the only one that has been unhappy with the new service provider. Lake City Servicing offers a lot of customer service where we have found that the new provider is less accommodating.  We have received numerous complaints about the new provider, but are unable to do anything about it because it was your lender's decision to transfer the service.  Due to our lack of control over the situation your Revdex.com complaint should be against BSI rather than Lake City Servicing.Below is the information for the new service provider.  I have attached the letter we sent out to you on 06/30/2015 informing you of the new process and the new company contact information.  Please continue to reach out to them for information on your loan.BSI Financial ServicesCustomer Care[redacted]Monday through Thursday 8:00 AM - 8:00 PM ETFriday 8:00 AM - 5:00 PM ETSaturday 8:00 AM - 12:00 PM ETI wish we could be of more service.  Unfortunately this is not something we are able to assist you with.Sincerely[redacted], CFO

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.
Sincerely,
[redacted]

Review: I have been misled by false pretenses and inflated promises undeliverable. The program of the 'Inner Circle' costs over $25,000. I was promised I would receive money for many deals. I was promised money for flips, long-term financing, and financing for commercial property. I was promised that I would receive unlimited funding of up to 65% of the appraisal value. What they don't tell you is that how few properties qualify for that number since their appraisers appraise property conservatively. For example, a [redacted] home appraised for $35,000 by [redacted]'s own appraiser. However, Cogo's 'independent' appraiser from nationwide appraised the home at $22,000 representing a 38% gap in 120 days. Which appraisal is correct? How can they be so different? I was originally assuming I could loan around $22,750 based on the Appraisal done in April. However, based on the appraisal done in September, I could only borrow $14,300 leaving me thousands of dollars short and the deal falling through causing me to lose more money. I should've been educated and warned of the appraisal in and outs. I then receive a mentor. I was told he will spend 3 days with me and we will make some deals together. We made ZERO deals in the end. I was very hopeful about this and thought it would help make up for the mess and loss of thousands of dollars. Instead, I got nothing here as well. As per the education of my mentor via the inner circle, he states that as an investor, one needs to look at CAP rates and the NOI. These homes provide 20% or higher CAPS. Nationally, the average cap rate during the first quarter of 2013 was 7.08 percent. Furthermore, my mentor has taught that the Cap rate for rentals is high in areas where there are a lot of rentals. Typically, in high rent areas, ownership and sales are low. Thus, result in a lower appraisal value. On the flip side of the coin, in an area where the market is strong, it is a near possibility to find a home that is 65% of the appraisal value. There is much more.Desired Settlement: I have been misled about my loan to help finance this deal as well. I was told I could borrow $18,500 to finance this deal. I received a check for a little more than $3,000. Without a single mention in any phone conversation, email or letter, this loan had mysteriously and illegally became a "rehab" loan. Shouldn't have I been notified of this? Shouldn't have I been warned? I was cheated in this matter as well. I want a refund and out of the deal with my loan cancelled and my title clear

Business

Response:

December 6, 2013

Thank you for allowing us the opportunity to respond to [redacted]s’ complaint regarding the services we provided to him. We take our responsibility as a business very seriously, and want to make sure we provide our clients with the knowledge and experiences they pay for, and that we provide the educational tools they need to be successful in real estate investing. We love our clients, and we had a great experience with [redacted]s, as did he per his testimonials. We apologize for the delay in getting our response to you. We received your complaint the day before Thanksgiving, and since we have so much information and so many interactions with [redacted]s it has taken us several days to compile our response. We wanted to make sure and investigate everything in this complaint so that we could respond with the most accurate information.

At issue here is that [redacted]s feels like he was misled into purchasing our consulting package, and that by purchasing this package he was promised financing for his real estate investments. He also feels he was misled to take out a loan to purchase this consulting package. From the beginning of our relationship with [redacted]s, we have been extremely upfront and clear on what products and services we provide, and under what circumstances our loan financing is available. From the beginning we have emphasized the products we offer are educational in nature. We prepare our clients to find financing both through our family of companies in Cogo Capital LLC, through private investors in their local market, and through their business contacts by networking. Because our mentorships provide our consulting clients with the tools and knowledge they need to make wise business decisions, our funding division, Cogo Capital LLC knows these borrowers are highly educated real estate investors who are focused on building net worth through real estate. Because of this we are able to offer our consulting clients with the opportunity of having specialized financing structures that work for them. We do not offer a program to purchase preferred pricing individually. All of our consulting packages are education based and that is exactly what was represented, sold, and agreed to with [redacted]s.

[redacted]s became part of our Inner Circle by purchasing our Diamond Fast Track Funding program on June 4, 2013. [redacted]s closed a loan with us in May 2013, with the intent of using the proceeds of the loan to pay for his mentorship package. Because the property securing his loan was uninhabitable, and [redacted]s already had the materials available to finalize the rehab, the proceeds of the loan were put into Escrow to make sure the rehab was completed. When the loan closed, [redacted]s signed several documents that indicated the funds held in Escrow were governed by the Escrow Agreement, and he also signed the Escrow Agreement, which clearly indicated the use of escrow funds, shall only be used for the rehab and renovation of the property. After the loan closed, [redacted]s then signed an additional promissory note, indicating that once the rehab was completed, the funds would be released to SIC to pay off the balance due for his purchase of the mentorship package. [redacted]s was in full agreement with this strategy and signed important documents with legal ramifications to this effect. This loan did not mysteriously and illegally become a rehab loan.

Even though his mentorship package was not paid in full because the funds were held in Escrow and would not be released until the rehab was complete, our Executive Committee made the decision to act in good faith and move forward with fulfilling [redacted]s’ mentorship. We wanted to get [redacted]s moving, and our Executives made an exception to our normal requirement that the mentorship must be paid in full. Even though the funds to pay our company were held in Trust, it was not a guarantee we would get paid because the rehab needed to be completed first. If the materials [redacted]s had on hand were not sufficient, or if there was any need for additional funds to complete the rehab, those funds held in Escrow would be used for the rehab, NOT to pay our invoice for his coaching package. Our Company moved forward and fulfilled [redacted]s’ enrollment in our Diamond Fast Track Funding program based on a handshake that he would pay his balance due when his rehab was complete.

We thought that getting him started with the mentorship process was the best way to make sure our client was taken care of. We focus on taking care of our client’s needs and thought that was the best way to make sure they were met. We fulfilled his enrollment and mentorship per the terms of the agreements, and provided an educational experience that even he himself called valuable. [redacted]s still has not paid for his coaching program in full, and will not finalize the rehab on the property so the Escrow funds are released.

The mentorship process started with a phone call from our office welcoming him into the program and reviewed the materials that go along with our Diamond package. We welcomed him and he was anxious to get started. Our Director of Mentoring contacted him to customize his mentorship package based on his needs. [redacted]s was assigned our mentor, who was in contact with him before the three day onsite visit and helped him organize a listing of properties to visit when he was onsite. When our mentor went to [redacted]s’ local market, [redacted]s had nothing but rave reviews for our mentor. We have these testimonials available for anyone to view by contacting our Customer Service department at [redacted]. His biggest complaint at that point was that he wanted to spend MORE TIME with his mentor! His experience with his Mentor was eye opening, and set him on track for real estate success. And, our educational program has made him successful! Our program is designed for our clients to find good real estate deals, and find funding for those deals, even if it is outside of our family of Companies. [redacted]s has represented to us that he was able to find financing for other deals. The fact that [redacted]s found funding for his real estate transaction outside of Cogo Capital, shows that our mentorship program provides the education needed to make real estate transactions happen. It is unfortunate our funding division could not participate on the lending side of this transaction because this deal did not meet our underwriting guidelines to qualify for the preferred financing option when the property went under contract.

It is true that preferred financing options are available to our consulting clients. In order to qualify for this preferred financing option, our clients must submit deals that meet our underwriting guidelines. As a peer to peer lender, we also have clients that are lenders that fund deals. Our guidelines are designed to protect our lender’s investment, and that is why it is necessary to have these guidelines in place. [redacted]s thought that by purchasing this mentorship program, he would be entitled to financing where he could call our loan officer up and we would wire him the money, no questions asked. On several occasions it was explained to him that there was NO WAY to purchase preferred financing. The only way to be eligible for the preferred financing was to go through the specialized training our mentorship program offers. This is the only way we can guarantee our clients understand the real estate transactions they engage in. For [redacted]s to allege that he was misled is unfortunate, and simply not the truth. We fully explained that purchasing the consulting package was not a guarantee that we would fund his loans, and there was NO misrepresentations or inflated promises that we would.

[redacted]s also alleges our “appraisers appraise property conservatively” and that he had a deal for a [redacted] home that appraised in April for $35,000. Several factors can contribute to the appraisal done six months later. Appraisers have a fiduciary duty to present a value in accordance with very specific guidelines. Appraisers will assess the most conservative value on a property so that they themselves will be protected from a claim they inflated value or assessed a property value higher than what it actually is. We use a third party nationwide appraisal firm so that we can be sure we are using an independent analysis of property valuation. We do not have control over the value the appraiser establishes. An appraisal review is always an option when we think the appraiser got the value wrong. We can always submit a request for an appraisal review when we have additional documentation of properties that better match the subject property than the comparable properties in the appraisal. Unfortunately in this case, we did not have such information available, and [redacted]s could not provide our offices with a copy of the [redacted] appraisal so that we could ask for an appraisal review.

It is unfortunate that our Mentor spent fifteen hours a day, for three days coaching [redacted]s, and now he is not willing to uphold his end of the deal and pay for that experience. On the loan we funded, we have a responsibility to the lender, and to the tenant, and the community, to make sure the property is repaired and made habitable. At the time of the mentorship, [redacted]s was happy with his experience and knowledge he gained. We would greatly appreciate [redacted]s’ participation in finalizing the rehab so that his funds can be released from Escrow. Although [redacted]s has not completed his payment for the Diamond Package, and although he has received all the training, materials and onsite coaching, our company has not once placed a collection call to him asking him for payment. We do believe there is a solution to this matter and look forward to resolving it with [redacted]s as quickly as possible.

It is not our intention to have a client that is unsatisfied by their purchase and fulfillment of our consulting programs. We are saddened that [redacted]s found his success in real estate through our mentorship program and now has changed his opinion of our Company because he found funding for his deals somewhere else. We celebrate his success! We want our clients to be successful. We train our clients to be successful. We get more of what we want by helping others get more of what they want.

Our office will continue to be in contact with our client until he is once again satisfied with the relationship we have cultivated together. Our Director of Mentoring and [redacted]s mentor are both in contact, and [redacted]s has all the resources of our Company still available to him. We will continue to be with him on his path to real estate success. We are willing to give [redacted]s a discount on the remaining balance due on his consulting invoice. If he is able to provide evidence that he has completed the rehab, we are willing to waive 50% of the balance owed to us for his consulting package. Once the remaining 50% is paid in full, we will instruct the Escrow Agent to apply the balance of the Escrow funds to his loan.

Our success is predicated on the success of our clients. We hope our solution is appealing to [redacted]s and we look forward to continuing this dialogue so that we can continue to be successful together. I encourage anyone who has any questions regarding this matter, or any matter regarding our Company, to please contact me at [redacted].

Kind Regards,

Controller

Review: I have been misled by false pretenses and inflated promises undeliverable. The program of the 'Inner Circle' costs over $25,000. I was promised I would receive money for many deals. I was promised money for flips, long-term financing, and financing for commercial property. I was promised that I would receive unlimited funding of up to 65% of the appraisal value. What they don't tell you is that how few properties qualify for that number since their appraisers appraise property conservatively. For example, a [redacted] home appraised for $35,000 by [redacted] own appraiser. However, [redacted] 'independent' appraiser from nationwide appraised the home at $22,000 representing a 38% gap in 120 days. Which appraisal is correct? How can they be so different? I was originally assuming I could loan around $22,750 based on the Appraisal done in April. However, based on the appraisal done in September, I could only borrow $14,300 leaving me thousands of dollars short and the deal falling through causing me to lose more money. I should've been educated and warned of the appraisal in and outs. I then receive a mentor. I was told he will spend 3 days with me and we will make some deals together. We made ZERO deals in the end. I was very hopeful about this and thought it would help make up for the mess and loss of thousands of dollars. Instead, I got nothing here as well. As per the education of my mentor via the inner circle, he states that as an investor, one needs to look at CAP rates and the NOI. These homes provide 20% or higher CAPS. Nationally, the average cap rate during the first quarter of 2013 was 7.08 percent. Furthermore, my mentor has taught that the Cap rate for rentals is high in areas where there are a lot of rentals. Typically, in high rent areas, ownership and sales are low. Thus, result in a lower appraisal value. On the flip side of the coin, in an area where the market is strong, it is a near possibility to find a home that is 65% of the appraisal value. There is much moreDesired Settlement: I have been misled about my loan to help finance this deal as well. I was told I could borrow $18,500 to finance this deal. I received a check for a little more than $3,000. Without a single mention in any phone conversation, email or letter, this loan had mysteriously and illegally became a "rehab" loan. Shouldn't have I been notified of this? Shouldn't have I been warned? I was cheated in this matter as well. I want a refund and out of the deal with my loan cancelled and my title clear. TY.

Business

Response:

December 6, 2013

Resolution Moderator

Phone: ###-###-####

Thank you for allowing us the opportunity to respond to [redacted]’ complaint regarding the services

we provided to him. We take our responsibility as a business very seriously, and want to make sure

we provide our clients with the knowledge and experiences they pay for, and that we provide the

educational tools they need to be successful in real estate investing. We love our clients, and we had a

great experience with [redacted], as did he per his testimonials. We apologize for the delay in getting

our response to you. We received your complaint the day before Thanksgiving, and since we have so

much information and so many interactions with [redacted] it has taken us several days to compile

our response. We wanted to make sure and investigate everything in this complaint so that we could

respond with the most accurate information.

At issue here is that [redacted] feels like he was misled into purchasing our consulting package, and

that by purchasing this package he was promised financing for his real estate investments. He also

feels he was misled to take out a loan to purchase this consulting package. From the beginning of

our relationship with [redacted], we have been extremely upfront and clear on what products and

services we provide, and under what circumstances our loan financing is available. From the beginning

we have emphasized the products we offer are educational in nature. We prepare our clients to find

financing both through our family of companies in [redacted], through private investors in their

local market, and through their business contacts by networking. Because our mentorships provide our

consulting clients with the tools and knowledge they need to make wise business decisions, our funding

division, [redacted] knows these borrowers are highly educated real estate investors who are

focused on building net worth through real estate. Because of this we are able to offer our consulting

clients with the opportunity of having specialized financing structures that work for them. We do not

offer a program to purchase preferred pricing individually. All of our consulting packages are education

based and that is exactly what was represented, sold, and agreed to with [redacted].

[redacted] became part of our Inner Circle by purchasing our Diamond Fast Track Funding program on

June 4, 2013. [redacted] closed a loan with us in May 2013, with the intent of using the proceeds of

the loan to pay for his mentorship package. Because the property securing his loan was uninhabitable,

and [redacted] already had the materials available to finalize the rehab, the proceeds of the loan were

put into Escrow to make sure the rehab was completed. When the loan closed, [redacted] signed

several documents that indicated the funds held in Escrow were governed by the Escrow Agreement,

and he also signed the Escrow Agreement, which clearly indicated the use of escrow funds, shall only

be used for the rehab and renovation of the property. After the loan closed, [redacted] then signed an

additional promissory note, indicating that once the rehab was completed, the funds would be released

to SIC to pay off the balance due for his purchase of the mentorship package. [redacted] was in full

agreement with this strategy and signed important documents with legal ramifications to this effect.

This loan did not mysteriously and illegally become a rehab loan.

Even though his mentorship package was not paid in full because the funds were held in Escrow and

would not be released until the rehab was complete, our Executive Committee made the decision to act

in good faith and move forward with fulfilling [redacted]’ mentorship. We wanted to get [redacted]

moving, and our Executives made an exception to our normal requirement that the mentorship must

be paid in full. Even though the funds to pay our company were held in Trust, it was not a guarantee

we would get paid because the rehab needed to be completed first. If the materials [redacted] had

on hand were not sufficient, or if there was any need for additional funds to complete the rehab, those

funds held in Escrow would be used for the rehab, NOT to pay our invoice for his coaching package.

Our Company moved forward and fulfilled [redacted]’ enrollment in our Diamond Fast Track Funding

program based on a handshake that he would pay his balance due when his rehab was complete.

We thought that getting him started with the mentorship process was the best way to make sure our

client was taken care of. We focus on taking care of our client’s needs and thought that was the best

way to make sure they were met. We fulfilled his enrollment and mentorship per the terms of the

agreements, and provided an educational experience that even he himself called valuable. [redacted]

still has not paid for his coaching program in full, and will not finalize the rehab on the property so the

Escrow funds are released.

The mentorship process started with a phone call from our office welcoming him into the program

and reviewed the materials that go along with our Diamond package. We welcomed him and he was

anxious to get started. Our Director of Mentoring contacted him to customize his mentorship package

based on his needs. [redacted] was assigned our mentor, who was in contact with him before the

three day onsite visit and helped him organize a listing of properties to visit when he was onsite.

When our mentor went to [redacted]’ local market, [redacted] had nothing but rave reviews for

our mentor. We have these testimonials available for anyone to view by contacting our Customer

Service department at ###-###-####. His biggest complaint at that point was that he wanted to

spend MORE TIME with his mentor! His experience with his Mentor was eye opening, and set him on

track for real estate success. And, our educational program has made him successful! Our program

is designed for our clients to find good real estate deals, and find funding for those deals, even if it is

outside of our family of Companies. [redacted] has represented to us that he was able to find financing

for other deals. The fact that [redacted] found funding for his real estate transaction outside of

Cogo Capital, shows that our mentorship program provides the education needed to make real estate

transactions happen. It is unfortunate our funding division could not participate on the lending side of

this transaction because this deal did not meet our underwriting guidelines to qualify for the preferred

financing option when the property went under contract.

It is true that preferred financing options are available to our consulting clients. In order to qualify for

this preferred financing option, our clients must submit deals that meet our underwriting guidelines.

As a peer to peer lender, we also have clients that are lenders that fund deals. Our guidelines are

designed to protect our lender’s investment, and that is why it is necessary to have these guidelines

in place. [redacted] thought that by purchasing this mentorship program, he would be entitled to

financing where he could call our loan officer up and we would wire him the money, no questions asked.

On several occasions it was explained to him that there was NO WAY to purchase preferred financing.

The only way to be eligible for the preferred financing was to go through the specialized training our

mentorship program offers. This is the only way we can guarantee our clients understand the real

estate transactions they engage in. For [redacted] to allege that he was misled is unfortunate, and

simply not the truth. We fully explained that purchasing the consulting package was not a guarantee

that we would fund his loans, and there was NO misrepresentations or inflated promises that we would.

[redacted] also alleges our “appraisers appraise property conservatively” and that he had a deal for

a [redacted] home that appraised in April for $35,000. Several factors can contribute to the appraisal done

six months later. Appraisers have a fiduciary duty to present a value in accordance with very specific

guidelines. Appraisers will assess the most conservative value on a property so that they themselves will

be protected from a claim they inflated value or assessed a property value higher than what it actually

is. We use a third party nationwide appraisal firm so that we can be sure we are using an independent

analysis of property valuation. We do not have control over the value the appraiser establishes. An

appraisal review is always an option when we think the appraiser got the value wrong. We can always

submit a request for an appraisal review when we have additional documentation of properties that

better match the subject property than the comparable properties in the appraisal. Unfortunately in

this case, we did not have such information available, and [redacted] could not provide our offices with

a copy of the [redacted] appraisal so that we could ask for an appraisal review.

It is unfortunate that our Mentor spent fifteen hours a day, for three days coaching [redacted],

and now he is not willing to uphold his end of the deal and pay for that experience. On the loan we

funded, we have a responsibility to the lender, and to the tenant, and the community, to make sure

the property is repaired and made habitable. At the time of the mentorship, [redacted] was happy

with his experience and knowledge he gained. We would greatly appreciate [redacted]’ participation

in finalizing the rehab so that his funds can be released from Escrow. Although [redacted] has not

completed his payment for the Diamond Package, and although he has received all the training,

materials and onsite coaching, our company has not once placed a collection call to him asking him

for payment. We do believe there is a solution to this matter and look forward to resolving it with **.

[redacted] as quickly as possible.

It is not our intention to have a client that is unsatisfied by their purchase and fulfillment of our

consulting programs. We are saddened that [redacted] found his success in real estate through our

mentorship program and now has changed his opinion of our Company because he found funding for his

deals somewhere else. We celebrate his success! We want our clients to be successful. We train our

clients to be successful. We get more of what we want by helping others get more of what they want.

Our office will continue to be in contact with our client until he is once again satisfied with the

relationship we have cultivated together. Our Director of Mentoring and [redacted] mentor are both

in contact, and [redacted] has all the resources of our Company still available to him. We will continue

to be with him on his path to real estate success. We are willing to give [redacted] a discount on the

remaining balance due on his consulting invoice. If he is able to provide evidence that he has completed

the rehab, we are willing to waive 50% of the balance owed to us for his consulting package. Once the

remaining 50% is paid in full, we will instruct the Escrow Agent to apply the balance of the Escrow funds

to his loan.

Our success is predicated on the success of our clients. We hope our solution is appealing to [redacted]

and we look forward to continuing this dialogue so that we can continue to be successful together. I

encourage anyone who has any questions regarding this matter, or any matter regarding our Company,

to please contact me at ###-###-####.

Kind Regards,

Controller

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.

[To assist us in bringing this matter to a close, we would like to know your view on the matter.] Please read the letter below.

Regards,

Dear [redacted] and [redacted]

First of all, last Feb. 2013, I spoke on the phone with [redacted] and [redacted]. in regards to skipping the mentor program and receiving funding only. I have already understood the real estate market quite well and did not need “mentoring”. I needed funding not training. I have purchased numerous properties prior to Private Money Exchange/ Cogo Cap. The difficulty that arose was obtaining funding for the deals I found. I was told that there was unlimited funding available by [redacted] of "I am the Solution" out of Sandy, Utah. I was also informed that I would receive money for rehab loans to flip homes as well. I was informed I had to purchase the inner circle membership in order to qualify for the funding which I sought, unlimited. I attempted to procure a loan in Nov. of 2013 and was told that funding was limited and it would take time, a very distant opposite of that promised. I have failed on many loans attempts. I attempted to get financing 4 times and failed on all four counts.

Again, regarding the loan for the property in Hoquiam Washington there was not a single mention of a rehab loan being offered. It was mysterious and illegal because there was not a single phone call, email, or regular mail prior to closing. I challenge you to come up with an email stipulating such. It is not there. I did, however, misread the [redacted] statement and other docs that I signed during closing. The reason for the misreading was because I was misled. Those documents were not prior to closing, they were the closing documents! I would never sign an 18,500 loan for 3,000 some odd dollars. Who would? In addition it was a high interest/interest only loan. There is no one I know who would sign for a $3,000 loan at the tune $18,500. Let common sense be applied here on this matter. I had been cordial and patient for so long; however, I felt so wronged here. I was very clear with [redacted], [redacted], [redacted]., and [redacted]. I have emails supporting this, I worked primarily with [redacted] on this. Additionally, I worked with 3 loan officers on this one deal as others suddenly “left” the organization. The purpose for this loan was to leverage the $18,500 towards the $25,000 needed for the inner circle unlimited funding (not mentorship) and I would come up with the remaining amount of $6,500 of which I prepared. Suddenly the loan did not go that way and there is written record of that account with [redacted] and [redacted]. [redacted] said initially that it was a mistake and asked me to send him a CMB (cover my butt) email and he would send all of the funds directly to the inner circle. That never happened. The letter stated that I signed on June 4th. True. But, actually, I was waiting for weeks as no one notified me and told me that they were owed a balance. I, having spent all this money, was desperate for funding signed a promissory note after many many weeks of complaints. I was foolish to sign the promissory note particularly because they didn't have to sign for their promises.

I find it interesting and was saddened that my own testimony was used against me. I made numerous complaints of the program in my testimony. Not one of my complaints was ever addressed in your letter of reply. Please address those complaints and don't mislead using my statements. I was hoping that my "mentor" would help me with a deal once he left. The reason I needed him to stay was also mentioned on the video testimony. He had changed directions on the path we were to go and there was insufficient time to change. He had me prepare and chase down good deals on commercial property. Then, we suddenly looked at rehabs. We spent time on loopnet looking at million dollar apartment buildings and trailer parks on the phone and on Day One to run-down homes selling for less than $100,000 after day one of mentorship. I had to cancel appointments aligned for day 2 and 3. None of deals or offers my mentor made worked nor was successful. All of the methods failed and what was I to learn of this? Was I to learn how to fail from my mentor? Furthermore, I learned some new terminology. Was it worth 25 grand? No and Never. I have a diary of the 3 days and what was done, where we went, what we said, which agents we met and so forth. One agent called me afterwards concerned that I was mixed with a deal she called fraud. I have a copy of the same testimony for purposes to be mentioned. Use all passages of the testimony and let's not play the pick and choose game here. It is not proper nor is it honest. It would have been better to have honestly dealt with my complaints than to have ignored them for 3 months till I lodge formal complaints. Why was I, as your inner circle client, ignored? That is the question to address here.

The following are quotes taken out of the “I am the Solution: Mentor Review” spoken of in their letter of reply and in the paragraph above. Unless otherwise mentioned, all quotes are written by me.

“I don’t recommend PME’s program. The mentor’s teachings of a good deal are not finaciable by PME.”

“From a monetary standpoint, I’m in debt and have yet to procure a deal as 3 days is too short.”

“lack of funding”

“Need to find/create my source of funding due to Cogo Capitals lack of capital for our deals.”

Goals of mentorship.

My reply: “to make some deals”

Other areas could use further assistance.

My reply: “In the area of Financing good deals...65%of appraisal value works in limited areas. I’ve failed to obtain financing on 3 deals through PME/PMB/Cogo Captial. Useless”

Do you feel comfortable with the process of: prospecting new sellers, setting appointments, completing a walkthrough for repair costs…

My reply: “I already felt comfortable with this prior to becoming an inner circle member.”

Of the properties evaluated, how many did you determine to be good opportunities worth submitting an offer?

My reply: “Nearly all were “EXCELLENT” opportunities worth submitting an offer. However, PME won’t finance those deals so they become worthless opportunities.”

Cogo’s replied letter included the following: “When our mentor went to [redacted]’ local market, [redacted] had nothing but rave reviews for our mentor. We have these testimonials available for to view by contacting our Customer Service….His biggest complaint at that point was that he wanted to spend MORE TIME with his Mentor!” *See below for a better understanding of my own wording in its proper context. See previous paragraphs for my rave complaints of the program for a full understanding. Also, I was dependent on and nervous that [redacted]. would leave me hanging if I said anything too negatively of him as I was desperate and excited to make deals to pay off my debts for this program.

More Notes on the testimonial reviews brought up by Cogo Capitals letter of reply:

Up to this point how do you feel this mentoring experience is going?

Day 1 “Feeling positive and hope to make a deal or two on day 2.”

Day 2 “ Feeling nervous- No deals yet. Am optomistic for Day 3.”

Day 3 “Wish [redacted]. could stay at my home for another week.” THE REASON I wanted my mentor to stay longer. (Cogo Capital took my own wording out of its proper context)Keep reading.. “Insufficient time to make deals. They all were declined. I really was looking forward to having at least one deal.” This was the reason I wanted him to stay longer. I was told I would have a deal and I wanted it! I attempted to provide a more “clear and accurate” picture as I was improperly misquoted by that reply sent by Cogo Capital. I have all quotes positive and negative that can be supplied as well by contacting me at 971-678-2675! I have a file on hand of all emails, contacts and phone records of calls made and received. I have kept meticulous records in case if I were to run into such a situation as this. They did not take their time to get to know their clients. Their clients have masters and doctorate studies and have been successful and self employed for nearly nine years. Their clients run two other businesses as well. One located in Portland Oregon and one located overseas in Republic of Korea. They should understand that their client made repeated attempts to make clear that they wanted funding not mentoring.

However, due to their structure, I had to choose mentoring along with funding. I have the times and dates that these questions and inquires of seeking ‘funding only’ took place. I am rebutting the fact that Cogo Capital continues to emphasize that I signed up for mentorship program when in fact I spoke and corresponded with [redacted]., [redacted]., and [redacted]. stating clearly I was seeking funding.

On the 3 phone sessions we had prior to his arrival, my mentor, [redacted], told me he would come and we would make some deals and some money. We made none. I was mislead, literally. He was not familiar with the Portland market. On day three he said he had a better grasp of the market, but it was too late. He told me that he would get something together and he would try to finance the deals through his connections and he also stated the weaknesses of PME’s finance structure. However, he did not call me again regarding making any deals. The letter of reply also falsely states that he spent 15 hours a day with me. That is not true. We spent less than 12 hours a day. We left at 8:30 a.m. and was back before 8 pm. The last day when he was downing shots of liquor, yes, we spent time beyond 12 hours. That was not mentoring time. It was time spent at a restaurant and [redacted]. getting drunk. I felt pleased because he said he would help me make some deals but none were made so my evaluation and review forms had been sent too early. He pleaded for me to fill out the forms and give them asap. He did not help me get deals after he left. Above mentioned complaints and concerns should not have been ignored as an “inner” circle member. I feel like an outsider and the word “inner” was also misleading.

The Cogo Capital reply statement said the following: “The fact that [redacted] found funding for his real estate transaction outside of Cogo Capital, shows that our mentorship program provides the education needed to make real estate transactions happen.” Cogo Capital grossly lacks information because they did not understand that the loans were desperate loans from my in-laws as Cogo Capital would not finance the loans promised so after pleadings with my wife, my in-laws stepped up. Otherwise, I was to lose additional money, i.e., earnest money, inspections and appraisals. How do you attribute this desperation to borrow from my in-laws as a sign of me being “successful” in your mentorship program? This needs to be addressed as well. I was ashamed and embarrassed to ask my wife’s family for funds and you have the gall to label this as a success of your mentorship program.

Cogo’s letter of reply is further evidence of how they even attempt to mislead and misquote to the Revdex.com.

They are not being transparent here. Furthermore, they stated that they were “From the beginning upfront and clear on what products and services we provide, and under what circumstances our loan financing is available.” They were not upfront nor clear. I asked [redacted] to repeatedly send me some documents or information about the organization, what they offer, and what they do. He did not. He only directed me to look at Revdex.com ratings. I did not receive documents prior to sending my money. I did get an agreement document which was signed on the 20th of June called a consulting agreement. It would’ve been nice to receive something like this prior to my money being sent. I sent all of the funds about a month earlier in May. Why wasn’t I sent this to review before becoming a member? Or something clear? Something written? Even here in the agreement the section entitled “100% financing Program” is misleading and doesn’t explain clearly the process of 65% or appraisals. Seven pages of this ten page agreement is to protect them with no promises or protection for their clients with the exception of two sentences in section 2 of the agreement. “They shall work with the client until the client has earned income in the amount of the consulting program that the client is enrolled in.” This is what I expect. I wanted to make at least that much and would feel satisfied as a client of theirs. This statement gave me assurance to move forward as I was preparing to back out due to the fraudulent loan case. This never happened and I had expected Cogo Capital to keep their end of the bargain to their “inner circle” member. I kept my end of the bargain and have detailed evidence of the hours spent and property found. As a client, I feel it is my responsibility to hold them to it. They have not helped me to earn income in the amount of the program. Not one cent.

In the initial complaint filed and in this letter, not all case arguments have been addressed. I will submit those later to authorities if need be. At this time, I’m touching on some basic complaints that should be enough cause alarm and require correction.

Three months ago, I first my complaints known to Cogo Capital. I made further complaints in the month of October and November. After being ignored and Cogo Capital not addressing these matters directly, then the next step at the Revdex.com began. I appreciate Revdex.com and have learned how invaluable this institution is. However, if not resolved, this matter doesn’t end at Revdex.com.

I don't wish to waste further funds of mine taking this matter to court. However, I have prepared a file packet of information for the District Attorney's office in the state of Idaho the location of Cogo Cap and two other packets for the states of Oregon and Washington, my residence and the property of loan and Cogo Cap branch of Spokane. PME/Cogo Cap can fight those states DA's office if that is what they want to do. I know that it is a very costly and lengthy process. Additionally, complaints will be registered with the SEC, U.S. Securities and Exchange Commision and beyond. I have been wronged out of more than $25,000 and will do all I legally can to make this wrong right.

I believe they will find it beneficial and cost effective to settle this matter with their client rather than at the state & Federal levels.

Business

Response:

Review: THIS COMPANY WAS THE SERVICER FOR MY MORTGAGE AND THEY HAVE TRANSFERRED MY LOAN TO ANOTHER COMPANY AND I HAVE NOT BEEN ABLE TO GET THAT INFORMATION ABOUT THIS "NEW COMPANY" BUT THE NEW COMPANY HAS NO IDEA WHO I AM OR ANYTHING INFORMATION ABOUT MY MORTGAGE LOAN. THEY KEEP TELLING ME IM BEHIND ON MY MORTGAGE AND THAT I HAVE TO PAY THIS NEW COMPANY BUT I DONT THINK THIS NEW COMPANY IS A LEGIT PLACE OF BUSINESS. SO NOW I DONT KNOW WHAT TO DO BECAUSE I DONT WANT TO LOSE MY HOUSE AND I DONT WANT TO JUST BE SHELLING MONEY TO A COMPANY THAT HAS NO RECOLLECTION OF WHO I AM!!!!Desired Settlement: I WOULD LIKE COGO CAPITAL TO CORRECT THIS MISTAKE AND REVERSE THE CHARGES. I WOULD ALSO LIKE THE INFORMATION ABOUT WHOM MY LOAN HAS BEEN TRANSFERRED TO. I WANT TO STAY IN MY HOME AND I CANT TAKE THE STEPS IN ORDER TO DO SO UNTIL I HAVE THE PROPER INFO.

Business

Response:

[redacted]: