Have you seen ads for Capital Syndicate and wondered if it’s a scam or could actually help you earn passive income through real estate? With promises of easy money, no experience required, it all sounds too good to be true.
You’re smart to do your research before jumping in. Today we’ll take an in-depth look at Capital Syndicate to see if it delivers on its claims and is worth your time and money. Read on for the real truth about this private money broking opportunity.
What is Capital Syndicate?
Capital Syndicate is a training program founded by Lee Arnold that teaches “private money brokering.” Essentially, you refer real estate investors who need capital to private lenders and earn a commission if the deal goes through.
Lee Arnold is the CEO of Cogo Capital, a private financing company for real estate investments. Through Capital Syndicate, you’d be acting as a broker between investors and Cogo Capital lenders, facilitating deals.
The sales pitch is that you can tap into the lucrative $71.6 billion private lending market without getting your hands dirty as an active real estate investor. Simply connect the dots between investors and lenders, provide some documents, and watch the passive commissions roll in.
But is it really that easy? Keep reading to learn what’s actually included in the program and whether Capital Syndicate delivers on its promises of easy passive income.
Who Is Lee Arnold?
Before diving into the course itself, let’s look at the credentials of founder Lee Arnold. He’s a well-known real estate investor and finance expert.
Arnold has over 20 years of experience in private real estate lending. He’s the CEO of Cogo Capital and an international speaker and author on real estate topics. Impressive media outlets like Forbes, Reuters, and Boston Globe have featured him as a real estate authority.
Clearly, Lee Arnold has an extensive background in the niches that Capital Syndicate covers. But impressive credentials alone don’t guarantee that his training program is worthwhile.
Breakdown of the Capital Syndicate Course
So what do you actually get if you join Capital Syndicate? Let’s look at the structure and content of the training:
The 5 Module Course
The core of the Capital Syndicate program is a 5-module video course. The topics covered include:
- Module 1: Overview of private money brokering
- Module 2: Key roles in real estate investing
- Module 3: Marketing your services
- Module 4: Qualifying leads
- Module 5: Getting paid
The course provides a high-level introduction to becoming a private lender middleman. While light on details, it covers the basics of the business model Arnold promotes.
Additional Materials
Along with the 5 video modules, Capital Syndicate also includes:
- Tools, scripts, and templates to streamline getting started
- Legal documents and resources
- Access to Arnold’s rolodex of potential lender contacts
These bonuses help new students hit the ground running instead of having to create all their own materials. Of course, quality may vary.
Certification Offered
An appealing aspect of Capital Syndicate is that it offers “certification” after completing the program. This certification means you’re approved to broker deals specifically between investors and Cogo Capital.
While not an official license, this certification gives you some legitimacy in representing Cogo Capital. However, it limits you to just one lender instead of being able to work with other lending companies.
Overall, the Capital Syndicate course provides a cursory overview of private money brokering, along with some useful additional materials. But 5 modules seems light for the premium pricing, a point we’ll expand on next.
Costs of Joining Capital Syndicate
Here’s where things start to get sketchy. Capital Syndicate does not disclose pricing upfront. You have to set up a consultation call just to get ballpark numbers.
Reportedly, the introductory fee can be as low as $97. But one-time fees around $2,500-$10,000 seem more typical based on reviews. And total costsballoon to the $100,000+ range once you purchase all the upsells.
With so many add-ons and hidden fees, Capital Syndicate ends up costing an arm and a leg for what amounts to very basic training. This exorbitant pricing casts doubt on whether it can actually deliver enough value to justify the cost.
Pros and Cons of Capital Syndicate
Before making any final determinations, let’s break down the key pros and cons of Capital Syndicate as an income opportunity:
Pros
- Access to lucrative real estate deals: Brokering lets you profit from real estate without owning property.
- Commission-based income: You earn from successful closings without any upfront investment.
- Low barrier to entry: No prior experience is required to get started.
- Passive income potential: Arnold claims this is a hands-off business model.
Cons
- Still employed by Cogo Capital: Despite the work, you don’t fully own the business.
- Revenue sharing: You don’t get 100% of the commissions from your deals.
- Unreliable income: No closings means no payday.
- Exaggerated ease: Closing deals involves much more work than advertised.
- Prohibitive pricing: Entry costs are disproportionately high.
The pros mostly focus on passive income and easy entry to real estate. But the cons reveal more significant issues around the sustainability of the business model and fairness of the profit split.
Reviews and Complaints
Only a small number of Capital Syndicate reviews are available online. Here are some excerpts that provide additional insight:
“Their entire sales team engages in bait and switch tactics including their leadership team. Over promise and under deliver.”
This review suggests Arnold’s team overhypes the opportunity to get sign-ups then does not deliver the support promised.
“People go on vacation and don’t care about your construction draw or any email that is sent whatsoever.”
Another warning that you’re left high and dry once you pay your fee. Support is lacking.
Most available reviews follow this same pattern – highlighting misleading claims from the sales team and poor follow-through. While these shouldn’t be taken as gospel, they align with many of the cons mentioned already.
There are also concerning reports about Lee Arnold’s lending practices in particular:
“Lee Arnold failed to provide private funding for all his deals. I lost a lot of money.”
This complaint does not inspire confidence in Arnold’s businesses. It also contradicts his selling point of access to ample lending capital.
So far, the evidence is mounting that Capital Syndicate overpromises to make sales, then fails to fully deliver. Next, let’s give a final verdict on whether it’s legit or a potential scam.
Is Capital Syndicate Involved in Capital Credit Programs?
Capital Syndicate is not directly involved in capital credit programs, but they play a significant role in understanding capital credits concepts. These programs are typically managed by utility cooperatives and provide members with a return on their investment in the cooperative’s infrastructure. It’s important for members to understand how these credits work.
Verdict: Is Capital Syndicate a Scam?
Based on all the information, I do not believe Capital Syndicate is a blatant scam. The training itself provides some value, and graduates can potentially broker real deals and make money.
However, there are some dubious practices that should give you pause:
- Free alternatives exist: You can get certified to broker deals on your own without paying Arnold.
- Arnold has faced complaints: Investors have accused him of not funding deals as promised.
- Upselling courses: The exorbitant fees suggest an intent to profit from the courses rather than graduates.
- Unrealistic claims of easy money: Plenty of work goes into brokering each deal.
While Capital Syndicate has some legitimacy, it exhibits many red flags common among overhyped business opportunities. The high fees combined with Arnold’s checkered track record make it risky.
You must decide whether the reward potential truly outweighs the risks based on your personal financial situation. But for most, I believe better money-making alternatives exist.
Alternatives for Making Money Online
Rather than dump thousands into Capital Syndicate, you’re likely better off starting a simple online business. One proven model is affiliate marketing.
With affiliate marketing, you earn commissions by promoting other companies’ products and services on your website. When visitors click your links and make purchases, you get a percentage.
The upfront investment is extremely low – usually just the cost of a domain name and hosting account. You don’t need degrees, licenses, or experience either.
Affiliate marketing also allows you to be your own boss. You have 100% ownership over your business and choose which products to promote. The earning potential is uncapped based on your effort level.
Thousands have built highly profitable affiliate sites and escaped the rat race. If easy passive income is your goal, affiliate marketing provides a much better chance to achieve financial freedom.
After reviewing all aspects of Capital Syndicate in detail, I cannot recommend it as a passive income opportunity. Between the exorbitant fees, overblown claims, and questionable practices, it carries far too much risk.
You’re better off exploring more honest, sustainable online business models like affiliate marketing. Capital Syndicate preys on unwitting people lured in by dreams of easy money. But the reality almost certainly will not match the hype.
Trust your instincts. If an opportunity seems too good to be true, it probably is. With some due diligence beforehand, you can avoid costly mistakes and find proven, ethical ways to generate income aligned with your dreams and values.
I hope this thorough review of Capital Syndicate provides the facts and insights you need to make an informed decision. Wishing you the best of luck on your entrepreneurial journey!
