APIA president Andrew Bruce told the Weekend Herald this week he was not aware of the material's content and would review the video and withdraw it if the video was deemed offensive.
This morning Bruce said he had watched the video and it was being immediately withdrawn.
"Clearly we don't want to see people being taken advantage of. Clearly we don't condone that sort of behaviour.
"Now that we've actually seen what is in that material we'll stop that immediately and an email will be going out to our members."
Asked if the organisation would review Fong's sponsorship deal with APIA, Bruce said: "Clearly we're wanting to make sure that what he's promoting always aligns with our values, so we'll definitely be looking at what our options are."
Bruce added that APIA was a not for profit organisation that provided education and networking opportunities for landlords.
The video had not been viewed by APIA management. It had been provided free in membership packs and given out by Fong at seminars.
In a statement issued by the APIA shortly after noon, the organisation apologised "for any offence" the video may have caused.
"We are a non-profit education and networking provider that relies heavily on the support of sponsors and Mr Fong's company Ronovationz is one of them. We are also reviewing that relationship, having had the content of the video drawn to our attention.
"APIA's mantra is to build long term wealth slowly and steadily through property as well as provide excellent accommodation service to tenants. We believe in high ethical standards and do not endorse unfair exploitation of our business counterparts."
It added that "from time to time" products from sponsors - such as the video - were passed onto members.
"As we are an apolitical association, we do not endorse sponsors' products."
Labour's housing spokesman Phil Twyford labelled the material a training handbook for new APIA members on how to exploit and deceive homeowners.
He called on APIA to "publicly condemn and repudiate" in writing the messages distributed to its members.
"It is not enough for them to say they're withdrawing the video. They need to publicly repudiate all the things said and make it clear to their members that not only do they not support those messages but condemn the kind of deceptive and exploitative approaches that were used in this training video."
The Weekend Herald is seeking comment from other APIA sponsors and Consumer Affairs Minister Jacqui Dean.
In the video, Fong tells viewers: "Some places are already a bargain. That's simply because the vendor's a dummy. He doesn't know what it's worth."
But the tactics, which include working in packs to secure bargains and giving vendors fake names when making repeat offers, are under fire.
"We are appalled by the tactics advocated in the video and we will be reviewing our sponsorship of the Auckland Property Investors Association," ANZ's retail and banking business managing director Antonia Watson said last night.
"The advice goes against our ANZ values and the importance of ensuring fair outcomes for vendors and buyers."
After watching extracts, Twyford said in his opinion the video was "a con man's charter and how-to guide on exploitation and deception".
"Auckland Property Investors Association needs to front up and say whether they endorse this material, and if they don't, then they need to explain why the video is being circulated to its members."
Fong denied exploiting people and blamed real estate agents for advertising properties with "motivated sellers".
He said he encouraged people to "look for opportunities".
In the video, Fong tells viewers success is making big money on property investment, even at the expense of grieving families and marriage breakups.
Looking for the seven Ds would help investors secure bargain prices and maximise returns.
Deceased estates and mortgagee sales could often be picked up cheaply. Divorcees' properties were also a savvy investment option, Fong said.
"I've had cases in the past where husbands and wives have separated and for whatever [reason] one partner doesn't want the other partner to make any money out of it. So they'll sell it at whatever price they can just to pay the mortgage."
He advises people to put in low-ball offers - 20 per cent below what they're willing to pay. If their original offer is knocked back, make another offer under a new name.
"If the vendor recognises your name then sure, change your name. Use a different one. Put your name back to front."
Fong also encourages property investment groups to work in packs to drive down prices and secure bargains.
"The beauty of having a group like us is you can get all your mates to go put in lower offers to make your one sound good."
The tactic had proved successful in an earlier purchase, he said.
"In fact that vendor did comment that he thinks he was set up but he didn't know how. But no one is set up if they accept a price."
An APIA member who received the video said she was appalled by its content and the tactics being employed.
"They're just sharks going around looking for the seven Ds. These [investors] are being trained to deliberately go out and look for old people. People are likely to get ripped off."
APIA president Andrew Bruce had not watched the video but said the tactics were not condoned by the non-profit organisation.
He planned to review the material and would withdraw the DVD if its contents were deemed offensive.
Responding to the criticisms, Fong - an APIA sponsor - admitted the wording was inappropriate and said he would consider dropping reference to the seven Ds.
But he denied taking advantage of people and blamed real estate agents for advertising properties with "motivated sellers" or "divorcees looking to sell up urgent".
"We're looking for opportunities but we're not preying on people as such. We look for the advertisements but it's not like we're going through the death pages or divorce courts."
Dummies referred to overseas investors who were not aware of market changes.
"They're anyone who doesn't know the value of their own home."
Fong defended his advice to place low group offers, but only when sellers had unrealistic price expectations.
"We only do that in the situation where the guy wants to sell but he's living in fairy land.
"I'm a JP and I'd never promote taking advantage of little old ladies or people who are on their death bed. I think that's disgusting."
Consumer Affairs Minister Jacqui Dean said she would be concerned if people were actively trying to deceive consumers.
Anyone who felt they'd been misled should contact the Commerce Commission.
The revelations follow last Saturday's Weekend Herald story about sick Mangere pensioner Sarah Ewe, who sold her home to a no-commission house trading company without receiving advice from her family or lawyer.
The widowed great-grandmother's family reached a confidential settlement with investor Peter Lee this week, overturning the sales contract and allowing her to keep her home.
Lee - a life member of Fong's Ronovationz group - denies acting unethically.
Ron's Top Tips
Look for the seven Ds
- Deceased estate - dead people don't need property
- De bank (mortgagee sales) - can often be picked up cheaply
- Deadline - "motivated seller" facing looming deadline to sell house
- Divorcee - Ex-partner selling home cheap to prevent former spouse making money
- Dummies - doesn't know the true market value of their home
- Developers - may sell for below cost if facing bankruptcy
- Desperate - anyone desperate to sell their house before the bank steps in
