Please be sure to read my DISCLAIMER

 

From the Original OFP Infomercial Info page

From all I've read, John Beck's Free and Clear System is a way they can get rid of poorly written books, which some people called "pamphlets with large print and wide margins", and most of the information is hopelessly out of date. It sounds like it could be one of those books you get at lectures where they show slides or PowerPoint Presentations on the screen, then give or sell you the same presentation in book form.

John Beck's system has to do with Tax Sales, where the people who own the property have not paid their property taxes and the state or locality has basically threatened them with putting the property up for sale for the back taxes, or for auction for possibly MORE than the taxes.

Don't forget there's still a mortgage involved. The infomercial states that the government has priority to collect the taxes over the mortgage. This is true. However, after talking with my father (who just recently retired from almost 30 years in the real-estate business, and who owned a bunch of properties in Lafayette (and still owns some, to his chagrin) and reading a few websites, I need to point out a few things:

• Let's say YOU own a house worth $100,000 and you're selling it to someone under contract (read mortgage, here). They are to make all property taxes and insurance payments. If you don't get the bills for these yourself, you're the fool. If and when they fall behind on the taxes, the state MAY give them one more chance. If this is not paid in a "timely manner" (and this can vary, state to state, locality to locality), they will put the property up for sale to recover those taxes.

  Now, if you knew about this (found out they hadn't paid taxes on the property), would you allow the state to sell YOUR $100,000 house for $252.55 (made up number, but the amount is close to some of what John Beck says you can buy houses of this or higher value)? No... You'd pay it yourself and charge the contractee, or you would pay it yourself and foreclose.

  Well, guess what banks do? Duh!
   

• In almost all states, there is a "recovery" period, where the current mortgage owner of the home is allowed to pay the taxes and penalties. These range in time - I saw one message that said their state allowed up to THREE (3) YEARS.

  What this means is that while you may be able to get a lien on the property, meaning they must pay you first when they sell it, you must wait that period of time before you can take ownership of the property. And at any time during that period, if the mortgagee pays those taxes (or you, if you have the lien), you no longer have ANY interest (financially) in that property.

  In other words, if you DO buy a property this way, you CANNOT "flip it" or sell it to anyone else until you take complete ownership. Again, at any time during that period, the bank and/or owner can pay that tax and it's over.

  In other words, the only properties that you can do what the infomercial(s) say you can with tax certificate properties are those that have "slipped through the cracks" at the bank, the original owner of the property, or even those who are paying on the mortgage. DO NOT COUNT on it. Most of the properties on which this would happen are ones NO ONE wants.

Also, think about this... What if you, yourself, "fell on hard times" and could only pay for the house and not the taxes for a short time. What would you think of the people who attempted to "buy" your home for "pennies on the dollar", right out from under you?

Yes... They may not care because they are making money, but...

Now, if the house or property is empty and has been for some time, that's a different story. But THEN remember that not only will you pay the "back taxes", but the current taxes, and you will be responsible for those taxes until you sell it.

As for the insurance I mentioned, above...

MAKE SURE, if you are selling a property on contract that the buyers HAVE and continue to carry insurance on it. What happens if they don't and the house burns down? You can no longer collect from them, therefore YOU may no longer be able to pay the bank or taxes and be in the situation of the people, above. AND, in this lawsuit-happy age, what happens if someone actually falls and gets hurt in the house/on the property? They will not only sue them, but YOU (since you are ultimately the owner of the building), and anyone else they can, and ... You get the idea?

Mentoring of America

Something else, John appears to at least partially OWN Mentoring of America. A couple of weeks after you receive your package, you will get a call from them. They will ask numerous questions, and tell you that you need the information they give you to succeed with the system. (Apparently, any "free support" in the package doesn't include this coaching - It's probably more access to the sites, you were "also" given.)

Please be sure to check out my Business Opportunity Coaching and Mentoring Services page.

I suggest that even if you decide to purchase John's system, DO NOT under any circumstances accede to Mentoring of America, and pay for "coaching".

The Infomercial

John Beck's "Free & Clear System" or "Free and Clear Real Estate System"

The Product

As with many of these Biz Opps (Business Opportunities), the owner/author/CEO/whatever has usually be extremely successful in what they are selling. In this case, xxx says he started out xxx, his business "took off". And then (of course), he learned an amazing secret that boosted his sales even higher. And he wants to share his "secrets" with us.

Again, as with others, xxx became the expert, started doing seminars, and writing books to go with them. He's expanded the books he originally wrote by adding new ones to the mix.

The package includes

From my understanding, most of this information is at least 2-4 years old (a life-time in Internet-land), and most of the details don't really apply in today's world. The principles, of course, are still valid, and if you've never done anything xxx at all, it MIGHT help.

There are also numerous sites on the internet with free articles and information to help you start a business. Some are xxx-specific, many xxx-specific. (See General Information (Real-Estate Investing) links, below for some of these pages/sites.

Product Websites

Following are links to what appear to be "main" sites for the product.

• http://www.johnbeck.tv/
• http://www.johnbeck.net/
• among others. (John Beck may also be affiliated with the mentoring company (he SHOULD be), the tax company and various other companies they "recommend".)

Reviews and Warnings

This section lists the sites where I found "negative" comments about the people and company, and/or the product. Some of the terms "sham", "scam", "scams", "flim-flam", "complain", "complaints", "rip", "rip-off", "fraud", "warning", similar words, and maybe just "review" were used in searching for negative comments.

 

PLEASE be sure to check out this site before you even THINK of ordering this system - NINE (9) PAGES (07/15/2006) of complaints at:

• http://www.infomercialscams.com/scams/john_beck_free_and_clear (defenses link, too)

Apparently, there are SOME cases where they don't have problems, but there are many others who have found/stated that though the infomercial says you get everything you need for $39.95, apparently, they mean $39.95 A MONTH!

Here's there start of 15 pages (as of 05/15/2066) on the RipOff Report (BadBusniessBureau) forums:

• http://www.ripoffreport.com/results .,, John+Beck
  • One of the (longer, more detailed) stories - http://www.ripoffreport.com/reports/ripoff177451.htm
• http://johnbeck.my-onlinemarketing-jcs.com/John-Beck-Scam.htm
• http://www.mazu.com/offline/johnbeck.php (hasn't reviewed, but makes some good points)
• http://www.johntreed.com/Reedgururating.html#anchorJBeck (formerly very good guru... Now... .No)
• http://www.intellibiz.com/beck.html (Read what they say that Beck never states in the infomercial...
  Be at least a little leery, because they are attempting to sell their own books and programs.)
  It DOES "appear" they are more honest than the TV gurus are (see:
  • http://www.intellibiz.com/taxcerts.html for info about tax sales/auctions/certificates
  • http://www.intellibiz.com/foreclose.html for info about foreclosures and preforeclosures
  • http://www.intellibiz.com/covered.html for info about some of the things they cover
    (About half the page covers information about preforclosures -
    Be sure to read that and not just their... "ad".
    JUST REMEMBER, they are trying to sell their own program.)

News Articles

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General Information (Real Estate Investing)

There is a LOT of FREE stuff out there in Internet-land. I included a number of sites online where you can find FREE articles on Real Estate Investing on my Links page. In these links you can find products, reviews, and other articles that may help, whether you have bought the system or not. Be sure to check it out.

Legal Problems

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