Scott Rowe Real Estate Scam … or not?

Is there a Scott Rowe real estate scam or not? Just because something is an MLM or uses some ‘creative' marketing strategies does not make it a scam. A scam, as defined by the Oxford standard dictionary is a “dishonest scheme; a fraud”. So let's investigate both the dishonest party and the fraud part of what people are calling the Scott Rowe Real Estate Scam.

Scott Rowe Real Estate Scam

Simply said Scott Rowe works in conjunction with Renatus. What is Renatus? It's what's left after the fall of Nouvea Riche (a MLM real estate education company, which had a rather high turn over rate, rather high complaint rate and lots of other issues that attributed to it's demise). I've previously written about Renatus and one of it's top members here when I went to several of their local chapter meetings: Honest, 1st Hand Experience Review Of Renatus & Real Estate Mastery Mentors Meetup.com Group Hosted By Bob Tierney.

Bob Tierney is a senior member of Renatus and works closely with Bob Synder (former co-owner of Nouvea Riche who jumped ship as it was sinking) who is the CEO of Renatus. They both also work with Scott Rowe who is another top/senior member. Bob Tierney, at least back when I met with all three, seemed to be a bigger player than Scott and more group oriented (and a rather nice guy) while Scott seemed more of the bring in sales type of guy.

So is there some conspiracy or a Scott Rowe real estate scam? The simple answer is: no. The long answer is: “no but …..”.

Let's first, and quickly, go over Renatus:

  • No matter what anyone says: It IS a company who sells their product through MLM only.
  • The training you can get from the products is on par with pretty much any other real estate training product. Translation: it's nothing special.
  • You can get the same quality information (or better) else where and possibly for free through: blogs, podcasts, youtube, real estate & entrepreneurship forums.
  • The big benefit of Renatus is not their product (in my opinion): it is the network you can get access to. There are a good number of people there who are also there to make real estate deals, and some people there who can invest in your deals. You CAN find some extremely good deals and partnerships there. I've seen it happen many times (while there).
  • Renatus is made by the same guy who ran Nouvea Riche.
  • In a well run Renatus chapter you will find some very darn good people to network with and learn from.
  • This really is a big important thing to know: You will get out of it what you put into it! I don't mean money, I mean effort and energy. If you network, connect with people and actually take the training to heart you will have a good chance of making money.

This is cheesy but let me repeat:

It's very possible to earn money with/through Renatus though you will have to put a lot of effort into it.

Most people don't take the time nor effort to make programs like that work. Now, this brings us to the Scott Rowe real estate scam topic. Scott Rowe is just like any other MLM member in the group except that he's done rather well for himself and he's employed some rather interesting strategies.

One very controversial campaign was his FreeLambo.com. His pitch is, more or less, that you can get a ‘free' Lamborghini if you get through his stuff. If I remember correctly I think he still offers you a free ride in one of his, though I don't know if he still does that.

The controversial part is that no, you won't really get a free Lamborghini: you'll have to earn it by signing up people like he did and have them earn the money for you (MLM) and thus you get ‘free' money to pay for your ‘free' Lambo.

While I don't agree with the campaign it is effective and going through there stuff it is possible to sign up enough people under you to fund your new ‘free' lambo, but as with most people: MLM just doesn't work for them.

Scott Rowe as a person, as far as I've known him (which isn't that much so take this with a grain of salt), seems like a nice guy though he is very sales oriented. He is also a bit more pushy on his sales and more forward about though kinds of things. Some people (like me) are rather put off by that. Maybe he's changed since the last time I met him … *shrug*.

Though is there a Scott Rowe real estate scam? No. But it is an MLM scheme through and through and it does have a pretty decent group of people attached to it that you can network with. If you learn from their training material it is possible to get rich with real estate. Though their meeting mostly focus on the MLM part … though they'll never ever admit it's MLM.

I've made good money with real estate so it's very much so possible, though I didn't use the Renatus stuff: I learned from my parents and material from libraries and the internet.

Some people had different experiences, so take a read on some of these other sites about what others have said:

http://www.biggerpockets.com/forums/79/topics/131045-renatus-and-scott-rowe-and-chicago-business-development-group

http://www.indeed.com/forum/cmp/Foozy-Investments/Foozy-Investments-Salaries-Bonuses-Benefits/t11318

http://www.ripoffreport.com/reports/directory/scott-rowe

    • Hey Sam,

      Renatus has two things they actively sell:

      1) The real estate education video course. This is what they mostly peddle.
      2) The sales of said education course … which is done via MLM.

  • I personally listened to the pitch for a friend who wanted to put a but in the seat for the MLM aspect. I have invested in real estate for 20+ years and was quite disturbed by the fact that someone spending 20K on the program, puts 10K into the pocket of the person who brought them there! That is disgusting! Asking someone to spend 20K so you can have 10K in your pocket makes me sick,,, and I am a true network marketing professional! I learned real estate by getting around investors and research. There is no secrets with successful investors. They will help you for free if they see you are serious. Stay clear! go ask a successful investor to coffee. For the price of a cup of coffee, you will make a great friend and mentor.

  • You are incorrect. An MLM has Multiple levels and legs, or some other type of structure to ‘build’ Renatus does not have either! It is a direct sales model. If you make a direct sale, you get a commission. There are not earnings for 5-10-whatever levels down. You should really be clear about facts before putting articles like this online.

    • Seth, have you been to one of their pitches? Have you actually listened? Yes you do get comission many levels down. That’s how Renatus built it’s money, and Phoenix University before that, and nouveau riche (same owners!) before that. All MLM. They build teams (and teach people higher up) how to do that so that their ‘team’ can sell the training and everyone up the food chain get’s a cut.

      Do you remember the intro pitch for the sales course? You have to pay for the course, and then you have to get two people sold before you can get your own profits (because those two sales ‘go’ to the person who brought you in), and the person you brought in also has to do the same (if they want to be selling). That is textbook MLM.

  • I was just about to sign up with Renatus and Scotts team and thought I would do a bit more due diligence. I would like to thank you very much for this review. I actually thought this was the review that was being the most objective and honest. I was expecting to be discouraged about joining. But, now I’m more excited to join than I’ve ever been. After discussing with my father this opportunity. One of the key things that he made me realize that was important was having a mentor to help me in the process. You yourself said “I’ve made good money with real estate” through your parents. You also said the ” big benefit” is the “network I get access to”. You were blessed with parents that knew how to invest in Real Estate. Not all of us have lived the same life. I also noticed that you offer a “coaching”(mentor) business. “looking for highly motivated people who understand this is a relationship business and are willing to commit to making our work together a success”. I really like what your consulting page. So, I’m not sure why you would be so against Scotts approach. Isn’t that the only way any business can grow.(bank account) 😉 You said NO to it being scam and NO to Scott Rowe being a scam. The kickers for me in the end were when you said “This really is a big important thing to know: You will get out of it what you put into it!” That’s exactly what my dad said. He said most don’t put in the effort then complain.(blame others) Plus, I think I have better than just a good chance. Especially since Real Estate has and always will be in demand.(gotta live somewhere) If, you know(education) what you’re doing.(right guidance,mentor/teacher/parent) And, believe it or not the cheesy was the nail in the coffin! While typing this message it was as if time stood still for a moment. I could feel and hear my heart pounding through my body. It was quite a surreal moment. I knew and know that this is the correct decision form me, without a doubt in my mind. Also if it wasn’t for Scotts approach I never would have found you, since I googled his name. I truly believed your review was genuine after this statement. ” I’ve seen it happen many times (while there)”. One last thing(sorry so long). I think the reason they don’t see it as an MLM is because you don’t have to keep buying any products. There are only 3 products and you can’t buy them again. Also I can start for only $125/yr. and put in the effort to learn marketing and R.E. investing. I’m not sure why Dave M.(comment) would be disgusted that someone would pay $20K for an “education” with a Mentor/Teacher/Network/Support where I have the ability to influence(create) my time and income. And, not just have a job(with a BOSS) with enough money to pay the bills. And, unfortunately many don’t even have jobs, instead they have school loans(debt). Most with JOBS, appear to be unhappy/miserable with the choice that they made. And most of us only get two weeks out of the year. I’m done with that life! Lets us thank our parents Mr. Krzyzek for their guidance and support in helping us make better choices for future and our families. Thank you again for your BRUTALLY Honest review. Take care and God Bless!

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