Some buyers call ‘Flip’ classes misleading

Associated Press

NEW YORK

For Doug Stephens, the free event seemed like a good way to learn how to flip homes. An online ad for the December gathering sported pictures of Tarek and Christina El Moussa, the stars of HGTV’s “Flip or Flop” who buy rundown homes, renovate them and try to sell them for a profit.

The El Moussas, however, did not show up. In a prerecorded video, the couple told attendees that they were busy working. Undeterred, Stephens paid $1,997 for three days of classes and $1,000 for real-estate software. But the classes turned into a sales pitch to buy additional courses that cost thousands more, said Stephens, a pastor and teacher from Havana, Fla.

“They weren’t really teaching at all,” he said.

The El Moussas, like many reality TV stars before them, are capitalizing on their fame by offering pricey classes. At free events in hotel ballrooms, instructors tell attendees that if they pay to enroll in three-day courses, they’ll learn how the couple flips homes and also gain access to investors who will give them cash to buy properties, even if they have low credit scores or a weak job history. They’ll earn back their money quickly, the instructors say, and will get refunds if they don’t flip a home within a certain amount of time. But about a dozen people interviewed by The Associated Press said those promises did not pan out.

Stephens said his instructor avoided answering questions, told attendees not to speak to each other and spent a lot of time hyping the program. The homework on the first day was for attendees to call their credit-card companies and increase their credit limits, he said. On the last day, Stephens said, the instructor pushed them to buy training sessions, some of which cost around $26,000.

The classes featuring the El Moussas are run by Zurixx LLC, an education company based in Utah. Zurixx has partnered with other reality TV stars to create education programs under different names, some of which also have been the subject of complaints from students. The El Moussas’ program, Success Path Education, is Zurixx’s most popular, and the couple receives a percentage of the Success Path classes sold, the company said. The El Moussas are a big draw, with “Flip or Flop” ranked as HGTV’s second-most watched show. Roger Behle, the El Moussas’ attorney, said the couple did not have time to be interviewed for this story.

The U.S. Federal Trade Commission, which aims to protect consumers against unfair or deceptive business practices, has received 50 complaints about classes connected to Zurixx since 2013, according to documents reviewed by the AP.