ED Magedson – Founder
Lloyd Segal2450 Colorado Avenue Santa Monica, California USA
Lloyd Segal - California Foreclosure Institute, Flipping Houses Workshop Breach of contract, Bad faith, Con Artist, Scam Santa Monica CA, TX, MO
My complaint is the same as the 2nd and 3rd posts. What has prompted me to finally make a complaint is the number of people I now personally know who have had the same experience I did in 2011. In the interest of full disclosure, I do not know the people who made the first few complaints, so that only shows there's more people out there than I'm aware of, but I probably know some of the people who will post after me.
We've decided to post on Ripoff because we know Lloyd has overstayed his welcome in California and is searching for new victims in other states.
As a newbie to real estate investing, one of the first people I met was Lloyd Segal through his California Foreclosure Institute workshops. I signed up for his coaching program and entered into a Joint Venture agreement with him to do a fix and flip. His coaching at that time was $1000/month. That was way too much for me, so he modified his arrangement with me. I do know others who payed him $1000/month for months on end with no results and ended their coaching program after losing thousands. That was one good thing about my arrangment is I only lost $1000 on the coaching, BUT it didn't end there.
As part of the joint venture, I looked up properties on my own in addition to properties Lloyd sent me to look at. I viewed properties from San Bernardino to Ventura County...most properties I found on my own. The properties Lloyd sent me were not deals at all. Many of the properties weren't even for sale. He would just send random lists of properties and I would do all of the due diligence and number crunching. As I became more knowledgeable on the cost of doing a fix and flip, I came to realize there was no way the $20,000 I had set aside would allow me to do fix and flip with all the deposits, closing costs, rehab costs, holding costs, etc. I know Lloyd knew this.
Since I had been laid off in 2010, I just couldn't risk doing business with Lloyd anymore so I dissolved our joint venture and asked for the $2500 deposit back. The deposit was not a fee or retainer for Lloyd. The joint venture expressly stated the deposit was part of MY capital to fund the deal. Since no deal was ever done, those funds were due back to me. I went round and round with Lloyd for months. To be honest, I was overwhelmed and bamboozled so I decided to chock it up to a lesson learned and the risk of being an investor. Had I known then what I know now, I would have sued him. If the statute has not run out, I may still.
Even though we are in Los Angeles, real estate investing is still a small world and I met more and more people who knew Lloyd and had gotten ripped off. I met with one of those people to brainstorm on what we could do and we started with a Google search. Boy, I should have done that before I got involved with him because it would have prevented a $3500 loss. Do your own Google search and check the California Bar Association and you will see what I mean. I was stunned. I never could have imagined his past (and present) was that bad. The word grifter comes to mind.
I may not be able to recover my losses, but I can do what I can to prevent others facing the same loss, especially in these tough economic times where many of us have to take the leap to create our own businesses. Scamming hardworking people should not be profitable. Real estate investing is a legitimate endeavor and Lloyd could do it right, be very wealthy and help others towards success if he had chosen to do so. Why he doesn't speaks to his mindset. Beware!
This report was posted on Ripoff Report on 07/05/2013 05:59 PM and is a permanent record located here: http://www.ripoffreport.com/reports/lloyd-segal/santa-monica-california-90404-3576/lloyd-segal-california-foreclosure-institute-flipping-houses-workshop-breach-of-contra-1064730. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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