JAMES SMITH REAL ESTATE INVESTING

James Smith real estate investing plan was once regarded as one of the best investing plans or offers around. The James Smith real estate investing group worked up a pyramid scheme that made some investors in it rich and the James Smith Real estate investing group very rich as well.

A pyramid scheme works out this way: A person has an idea to start a pyramid scheme and advertises for others to join. As people are recruited, they are placed in levels with the person who recruits at the top of the person he recruits. The new members are also expected to recruit others to have people in a lower level under them and thus increase their own levels. When a new member is brought in, by an existing member, he has to pay to join the pyramid. The money he pays is split into parts. One part is given to the old member that recruited him; other parts are shared as specified proportions to other members in higher levels. The organizing company or group gets a share too. This implies that the more persons you recruited, the more money you can be paid as a bonus for bringing them in and that individual is still able to receive another bonus for more people that they brought in as well as the people that their recruit brings in. The structure would thus have fewer people towards the top and more people in the lower levels thus the name ‘pyramid scheme’. The scheme is also popularly known now as ‘multi-level marketing scheme’ and is popular in the internet. Such a scheme was introduced by James Smith real estate investing and it proved very successful for them.

The James Smith real estate investing is more favorable to the people at the top of the structure. Only the people who fit in among those at the top really made good money. The structure later became too large and there were a lot of complaints until it was labeled a scam and was stopped.

Related Links:
IRA Real Estate Investing
Real Estate Investing Resource