hello everyone!!
So out of curiosity, i wanted to see whats new with SEG. I’ve read the various posts and not to my suprise there is alot of negativity toward SEG. At this point i don’t even think they are doing buisness anymore…guess that puts a final conclusion on how good/ethical they are!
I actually can add alot of truth to many of the questions due to being an ex employee. Obviously, if they did not treat thier employees with much respect why would they put much care into thier customers. They actually were not that big of a firm, usually avaraged about 5-8 sales people,(huge turnover w/ them) a team manager, two owners (one being john powell, but never mentioned due to his past lawsuits with oil/gas industry) and a couple of processors…anyhow i find no need to say much, due to the truth already said with them going under. Im sure of thier investors walked away ok, but obviously there were enough unhappy investors to put them under…
I’m never a fan of paying a membership fee. And this wreaks of a model where they unload bulk REOs from warzone areas. Bottom line is you must do your due diligence and confirm the property is in good condition, good area, value, cash flow, buyer and rental demand is all satisfactory. The numbers and facts must justify it as a safe and profitable investment. Do not fall for slimy sales tactics or follow, make informed decisions.
When doing business with anyone - not just Stone Equity Group - but anyone, expecially if you are new or are investing in an area where you do not live, here are some tips:
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Do some back ground screening on the company, google the name, call up the investor group in the area where they are selling houses.
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Do some back ground screening on the deal, don’t take their word for it. Look up a realtor on Realtor.com that has listings in the same zip code and ask their opinion on the deal, call up the local REIA group and ask their opinion on the deal.
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Join the local REIA group in the area around the investment and maybe find a much better deal that what is in front of you.
Some examples here - with what ever the group is
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When I google stone equity group I get a lot of info, and it seems to be negative. But google away to see if you can get any information good or bad online. If there is absolutely no information, they are probably a brand new company and may not have any track record.
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Take the deal these groups are offering and talk to a local realtor - I was contaced by someone with a house sold to them by SEG and the numbers they are quoting for a Kansas City house seem a bit high if you look at all the REO"s selling, but most rental houses get sold to out of state investors based on the cash flow today. Investors are our primary buyer for our urban core properties and you can buy a decent house for anywhere from $5k to $15k, spruce it up and put a tenant in it. But you still need a property manager to keep it up.
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And by talking to the local investors at the local REIA group you might find a better deal.
This approach could save a lot of investors (new guys and gals expecially) with these companies that buy, rehab and sell. And it works in any major metro area across the country.
I have read many nightmare stories. If the company you are working with is not on title when you purchase from them, beware.
If the firm wont give a propety and maintenance guarentee, run.
(Sales pitch removed)
It is the only honourable way of doing business.