Realtor's Road Blocks to Investing in Real Estate

General Real Estate Investing
1

Hey yall, I’m new. My name is Kevin Kim and I am a realtor.

Long story short, I am thinking of joining Nouveau Riche because I want to get into real estate investing. What are you guys’ thoughts? I am not joining the university before I “sell their” university since I have been a realtor and I KNOW that what they teach is useful stuff.

Anyway, as a realtor I’ve seen/heard it all, but here are some main road blocks that have prevented/scared me away from investing in real estate myself

  1. HOMEOWNERS. I search the MLS and public postings ALL DAY and RARELY do I see a homeowner looking to sell for significantly below market value. Where do you find these guys? It seems pointless to know how to do Subject To’s, lease to purchases, wholesaling, etc. if you aren’t able to buy low with homeowners. For example, wholesaling is basically like listing and selling their property and getting commissions. Why would a homeowner come to an investor as opposed to just getting an agent to sell their home?

  2. FORMS. I have yet to find really good forms that cover Subject To’s and Wholesaling.
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  3. WHOLESALING. I refuse to charge assignment fees outside of escrow as I find that fraudelent. However, I have been told that if everything is diclosed on a HUD-1, lenders are not likely to approve of an “assignement fee” for anymore than a few thousand dollars. Is this true?

I’d appreciate some feedback…I want to be a part of this community and will do my best to share what I’ve got with you guys. I am from the greater Seattle area.

Thanks
Kevin

2

You might want to use the search button at the top of the page to research Nouveau Riche. There are a lot of stong opinions about them here (I’m being polite).

Good Luck,

Mike

3

You don’t find deals in the MLS ever. Maybe once a year.

You need a marketing system.

4

Hi Kevin,
In general there is no system for investing in real estate. Nouveau Riche, Trump U or anything. It is a business and what you need to do is understand how money is made in real estate. What I did is I found a person that had out of life that I wanted. He had the time with his family, the health the wealth etc. What I did was ask him hat he did. I then did exactly what he did. I didn’t reinvent the wheel. Since real estate is local and Nouveau Riche is not, then everything that they teach is not going to be applicable everywhere. So doing this will save you some money on “programs” as well as provide you with a road map that works where you are.

5

Do you guys believe the education to be worth $16,000? The ONLY reason why I would not join this company is if I begin to feel ETHICALLY WRONG for selling a product if its widely seen as TOO EXPENSIVE…

How do you guys do on mass mailing preforeclosure candidates? (I’m talking PHYSICAL mail)? I have LISTS and LISTS of people who are about to go into foreclosure but I’ve had little success with mailers

Kevin

6

Nouveau Riche is very extremely expensive. Do you get value for the money? I don’t know. But I do know that all the information you need to make money in real estate is available for free.

All I’ve seen of them, is their graduates out trying to sign more people up for the program, and they are very aggressive and high pressure about it, which means that a big chunk of your training is about how to sell their program.

Personally, if I take a course in real estate and pay a huge fee for it, I want to learn how to make millions in real estate, not how to sell their program to more people. If you are making lots of real estate deals, why would you have time to peddle a real estate program, or even want to?

7

Kevin, what kind of mailings are you sending these people in preforeclosure? Are you offering to list their house or buy it?

Tatertot makes a great point (as usual)… “All the information you need to make money in real estate is available for free”.

8

NR must be making a big push because they’re bringing a lot of suckers on board. There’s a lot of ways to get started in investing. $16-18k is a lot. You can find a mentor to split deals with you instead of going through their program.

From what I’ve heard, it’s a rip off, but you can spend your money any way you want if it makes you feel more comfortable or like you learned something that you couldn’t have otherwise.

9
If you are making lots of real estate deals, why would you have time to peddle a real estate program, or even want to?

Damn straight, tatertot. And that’s one of the biggest questions one will have to evaluate about being a part of Nouveau Riche.

Is $16,000 too expensive to learn about real-estate? That depends. How lazy are you? If you’re as lazy as I am, you end up paying the $16,000 so that they can do all the scheduling and coordinating and bring all the instructors and you to the same place at the same time. Yes, yes, you guessed it; I’m a member. Once you are a member, they will never stop bugging you about selling more Nouveau Riche. They. Just. Won’t. Stop. Bugging. You. About. How. Is. Your. Real-Estate. (Selling). “Business”. They. Just. Won’t. Stop. How many people did you invite? How many people did you (cold) call? How many fliers did you distribute? How many signs did you post up? How many people did you sign up? How many people did you sign up? How many people did you sign up? How many people… ARGH!!! SHUT-UP SHUT-UP SHUT-UP! :banghead

Ahhhhhh, that feels a little better.

Believe me, I really can’t stand about 90% of the Nouveau Riche marketing minions because they can’t say more than about two sentences in a conversation without getting in something about marketing more Nouveau Riche. Seriously try this the next time you speak with any Nouveau Riche marketing minion. Try and have a conversation with them and see if they can actually hold that conversation without trying to sign you up or trying to discuss how you’ve been at signing others up.

Having been there, done that, if you are truly gonna go for Nouveau Riche, I would only buy the R2E2. I, personally, find that to be exceeding valuable and useful. I am truly grateful that I spent my money on that and I use it constantly. By the way, do you want to buy it from me? Haha! :biggrin If, after you go thru the R2E2, you make the $5000 - $15,000 - $50,000 they talk about, then consider buying more. Most likely, though, you won’t need to buy more Nouveau Riche because of the “potential” of “generating income” :rolleyes from investing in real-estate “should” supersede investing in more Nouvea Riche. Please be sure to surprise and impress us all if you actually do via the Nouveau Riche way.

Now, consider this. If you bought all the products from this REIClub website, you’d be pushing over $25,000. Is that too expensive? Like I, and most everybody else here said, you can get all this stuff for free. You just have to put forth the time and effort to track it down and then learn it from studying and practical application. Or, you can pay someone to bring it to you and spoon feed you. The practical application is still up to you.

2. FORMS. I have yet to find really good forms that cover Subject To's and Wholesaling.

Specifically to your post, the Nouveau Riche class for Subject To’s really is that good and has what you’re looking for. However, the forms are of a general nature, but good enough to work. The instructors do mention that they are trying to teach in a general way - they have to. People going to the classes come from all 50 states. Thus, you will need to verify with the specific laws of your own State. As has been said, though, you can find it all for free. You’ll have to do a good deal of foot work to compile it all together. If you’re lazy, like myself, you pay someone else to do it all for you. Laziness costs money. So, decide for yourself what will work best for you.

Dean

10

On NR. Search and read. Bad MoJo. Simple as that.

As to being a Realtor and investor:

First thing’s first. You have to forget what you’ve already learned. Get out of the RE agent box of thinking or you’re never get how investing really works.

Know your state laws concerning agency and their duties. It the very least, you’ll have to disclose you’re an agent, but make sure you know what you have to do as an agent.

Contrary to popular belief, you can find good deals on MLS. You just have to know what to look for (and it helps to know what YOU are looking for).

Why would a homeowner come to an investor as opposed to just getting an agent to sell their home?
This is part of getting out of that RE agent mindset. Homeowners that need to sell TODAY aren’t going to wait around for an agent to take 3-6 months to sell their property.

Sub2’s: If you are a Realtor, forget it about it. The Code of Ethics prevents you from doing sub2s.

Wholesaling is nothing more than buying a property at a big discount, so the “form” would be a standard P&S agreement. Same with the re-sale unless you are planning on just assigning the contract.

It’s not fraud to collect an assignment fee outside of closing. In fact, it SHOULD be collected as soon as you assign your contract, as what you are selling is your position as the buyer. As to adding to the HUD, the end-buyer should have the already taken care of with their lender, so it shouldn’t be a problem. Most investor end-buyers would likely be dealing in cash, so no issue. As to the dollar amount, for an assignment, frankly you shouldn’t be collecting more than $3-5K max anyway. Don’t see the issue.

Raj

11

Jared…

It’s mostly been to list & sell their houses, but now I may offer my services “as a foreclosure specialist” just to simply PURCHASE their houses and save them from foreclosure.

If they have equity in the house, however, I’d be more inclined to coordinate a work out program for the homeowner and list & sell, simply because if it’s not a short sale, I’d feel extremely bad low balling them AS IF THERE IS NO OTHER OPTION other than my offer or foreclosure.

As far as wholesaling forms, I have talking about the form between myself (the assignor) and the assignee. I remember seeing one of those forms with an investor here in Seattle which spelled out how the assignement was going to take place. It’s THAT form I do NOT have

IN TERMS OF NOUVEAU RICHE, LOOK I AM LYING I HAVE BEEN A MEMBER FOR 20 YEARS AND IT CHANGED MY HEART AND MADE MY KIDS LOOK BETTER. lol jk. Point blank, I am all about “doing unto others as you would have them do unto you” and I would never sell an education that I personally did not find worth every single penny, let alone $20k.

12

LMAO!! Good one Kevin!