Kris Krohn Real Estate: A Scammer? (2024)

Originally Syndicated on September 4, 2024 @ 2:09 pm

Kris Krohn is a real estate guru who has garnered some celebrity via his YouTube videos in which he boasts about the investment properties that he acquired at a young age to produce money for himself.

However, would Kris Krohn’s direction lead to a major increase in wealth in the real estate market? Is it possible to achieve all that Kris Krohn Real Estate claims to be possible with only rental income? The question is, how much does the whole amount wind up costing in the end? It would be beneficial for us to have a look at him and learn more about his story. 

Kris Krohn Real Estate: Allegations by SEC

(i) August 2012 Financial Fraud Alert

The Securities and Exchange Commission was the plaintiff in the aforementioned case, and the defendants were Michael Krohn, Stephen R. Earl, Kris Krohn Real Estate, and The Companies, LLC. 

(Source)

Kris Krohn Real Estate: Synopsis of the Case

The defendants were accused of participating in dishonest behavior related to the offer and acquisition of illegal securities to invest in troubled real estate. Plaintiff claims that the Defendants came up with a scheme to purchase real estate-owned properties (REOs), which are places that have undergone foreclosure and are bundled together for resale; donate or sell off the houses that are in complete disrepair; fix and rent out some of the houses to generate cash flow; and then sell the houses at a profit when their market value rises.

The defendants launched four private offers to raise capital to purchase these REOs. The plaintiff claims that throughout these transactions, the defendants withheld certain facts from the investors and provided them with substantially incorrect information.

They are accused of withholding information about several things, including the existence of significant problems and encumbrances on the REO properties owned by the defendant Kris Krohn Real Estate, and of valuing the REO properties using RealQuest software without mentioning the limitations of the program’s capacity to ascertain the real estate’s current market value.

According to the complaint, the defendants paid a third-party real estate assessment company for broker price opinions (BPOs), which indicated that the combined worth of all the properties in defendant Kris Krohn’s REO was around $2.9 million.

However, the defendants also reportedly used RealQuest software, which led to the creation of REO property evaluations totaling $12,272,986, which is almost $9.4 million more than the BPO values altogether.

The lawsuit claims that since RealQuest estimates did not account for the significant liens or debts on many REO homes, they inflated their value. 

(ii) The SEC sued a Utah crypto asset startup, its creator, and a revenue-sharing salesman for registration and fraud violations

Wright W. Thurston, the company’s creator, and Kristoffer A. Krohn, one of the company’s promoters, have been charged by the Securities and Exchange Commission (SEC) with defrauding investors by promoting crypto asset securities via an unregistered offering.

Thurston and Green United, LLC, doing business as “Green” or “Set Power Free,” were accused in the SEC’s complaint of raising at least $18 million by selling investments to investors under the names “Green Boxes” or “Green Nodes” between April 2018 and at least December 2022.

Investors were duped into believing that these products were used to create a virtual currency known as “GREEN” on the purported “Green Blockchain.” Investors were also led to think that the value of GREEN may increase if Green United succeeded in creating a “public worldwide decentralized electric grid.”

Using an Ethereum smart contract, Thurston was tasked with creating all of the GREEN tokens in October 2018, which Green United then distributed.

However, as stated in the lawsuit, the Green Boxes mined Bitcoin instead of GREEN, and the Bitcoin that was mined was not given to investors. Furthermore, the Green Nodes were just basic software that did not produce GREEN coins; they did not mine GREEN.

According to the lawsuit, between April and October 2018, promoter Kris Krohn—who had previously been found guilty of SEC violations—continually deceived investors regarding the value of the GREEN token at that time and the possible returns on their investments.

Green United, Thurston, and Kris Krohn are being sued by the SEC for allegedly violating the Securities Act of 1933 Sections 5(a) and 5(c), which prohibit the offering or sale of unregistered securities.

Green United is also accused of violating Securities Act Section 17(a), Securities Act Section 10(b), and Securities Exchange Act of 1934 Rule 10b-5, all of which address misleading behavior in connection with the acquisition or sale of securities.

Thurston is charged with violating Sections 17(a)(1) and (3) of the Securities Act in addition to Sections 10(b) and 10b-5(a) and (c) of the Exchange Act. Krohn is accused of violating both the Securities Act and Sections 15(a)(1), 17(a)(2), and (3) of the Exchange Act.

The SEC is seeking multiple remedies against the defendants, including penalties, restoration of ill-gotten earnings plus interest from the period before the judgment, and indefinite and conduct-based orders. True North United Investments, LLC and Block Brothers, LLC are also named in the lawsuit as relief defendants.

Under Tracy Combs’ direction, the SEC’s investigation into the event was carried out by members of the Division of Enforcement’s Crypto Asset and Cyber Unit as well as the Office of Investigative and Market Analytics. Michael Welsh and Casey Fronk will oversee the prosecution of the defendants.

Reviews of Kris Krohn: Scam Revealed by Clients and Victims

In light of the remarks I discovered, which highlight the unfavorable parts of Kris Krohn’s personality, let us investigate the genuine qualities of this individual. 

#1. Kris Krohn is a Scammer

In light of the review that was just stated, it would seem that there is a person who has been linked to a commercial activity that has been causing problems. As far as I’ve been able to determine, they may be participating in activities that some individuals consider to be similar to pyramid schemes.

It would seem that their approach consists of making phone calls and portraying the information they get as financial advice. On the other hand, it seems that some individuals are reluctant to formally address this matter and are instead expressing their concerns in a more subdued manner.

#2. A Trustworthy Real Estate Investor to Recommend in the Age of Scammers 

According to the reviewer, they believe the individual in question is deceitful, much like the majority of real estate “gurus” nowadays, including Kris Krohn.

The user does, however, suggest that anybody interested in following a real investor who does not support questionable mentoring schemes or courses stick with Brad Askren.

Being a landlord and an investor might be tough, but they look to him as an honest and trustworthy partner. 

Kris Krohn: A Brief Overview

Brigham Young University alumnus Kris Krohn is a contentious figure in the real estate investing industry. Despite his claims to be a speaker, team leader, and business coach, his approaches and assurances have sparked grave concerns. His main sales pitch, which many experts find to be very deceptive and dangerous, is that he can assist clients in purchasing real estate with little to no down payment and even with negative credit.

With a claimed net worth of up to $65 million, Krohn takes great satisfaction in helping people use real estate investment to achieve financial independence. On the other hand, serious questions exist about the morality and validity of his actions.

He has almost a million followers on YouTube as of 2023, and he provides free lectures that are understandable and straightforward. However, these free classes often act as a springboard for upselling more costly and dubious coaching packages.

At 26, Kris quit his previous profession to devote all of his attention to being an investor. He began by paying $110,000 for a home that he said was worth $260,000 in the fair market, giving him notional equity of $15,000. After that, he leased out the basement to pay off the mortgage. He then leveraged the equity in his first house to purchase a second property, making $600 a month in profit.

He went through this procedure again and again, using his assets as leverage to get more loans and buy other properties. After purchasing his twenty-fifth house, he left his position four years later, allegedly making $12,000 a month.

Even with these striking figures, a lot of people doubt Krohn’s integrity and openness about his profits. His approaches’ viability and ethical ramifications raise the possibility that they are not at all reliable.

However, do you believe that all of his profits are truthful? I don’t believe so, however, after conducting some investigation. It isn’t reliable. 

What Services Are Offered by Kris Krohn? 

Numerous applications that Kris Krohn claims to be accessible are available.

He formed the Strongbrook Group, a group of companies that assist one another.

The members of the Strongbrook Team are as follows:

• A real estate company
• A property management firm, an insurance company, and a mortgage company
• A Company

Kris Krohn: Is He a Fraud? 

So, can we trust Kris Krohn as a real person?

Making money with this method is possible, but it’s not as easy as Kris Krohn makes it sound.

Investing in real estate requires a lot of work upfront, offers no guarantee of success, and, most importantly, has very low actual earnings ratios.

Doing the task now and being paid later is not inherently bad.

After three months of searching for bargains, sending out proposals, and negotiating with the owner and lender to purchase a rental property, it’s hardly worth it if your prize is just approximately $100 per month in earnings. 

What Has the Web Said About This? 

In this review, one commenter shared their negative experience with the Recession-proof American Dream bundle. Given that the program boasted a full refund policy, we were hoping for the best. However, it seems that the organization’s refund process was convoluted for several reasons and conditions, which made it hard for you to get your money back.

It is frustrating when companies use misleading tactics to get customers to buy their products, only to later reveal hidden costs or terms. Users may feel deceived and cheated because they were encouraged to buy additional products while using the software itself.

Krish Krohn: Policy on Refunds

Many reviews say Kris Krohn isn’t great with refunds, even though the website seems to say that there are typically 30-day guarantees.

Because there were only three days according to some reviews, you should make sure you’re ready for this journey before you spend.

Kris Krohn: How Much Money Is He Making? 

You can see in the screenshot up there that the connection doesn’t come cheap—anywhere from $10,000 to $25,000.

If you’re only interested in testing the waters with Kris Krohn—his courses start at $197 and his books are said to be far cheaper—there are alternative options. 

Conclusion

Popular real estate investor Kris Krohn has made a name for himself on YouTube with his promises of massive money creation in the real estate market. Still, I have serious doubts about his reliability. According to the SEC, he was involved in a crypto asset scheme and misled investors about the worth of troubled properties. 

His many victims have accused him of being a con artist due to his deceptive advertising, trouble processing refunds, and upselling of useless coaching packages. Oversimplified and ignoring the underlying dangers and difficulties, Krohn’s methods for investing in real estate with little to no money down are common. 

On top of that, his Strongbrook Group offers dubious services, and customers have complained about long and frustrating refund procedures. Given these considerations, it’s wise to be skeptical of his services and think about getting counsel from other reliable sources.