Hi all: Good morning! I've been approached by the folks from Nouveau Riche University lately and was wondering what you know. To date, I've said no because I think it's important to stay focused on my business. There's a guy in my BNI networking group and he belongs to Nouveau Riche. I understand there are some great classes a person can take and they claim they're making money by buying distressed properties, etc.
The thing that makes me wonder if they're actually a multi-level opportunity is the fact that if they recruit anyone into the program they get a big cut of that. That's what happened in my BNI group; the Nouveau Riche guy recruited one of our other members. Now, we're down in membership because the other person will probably have to leave. I asked another Nouveau Riche person I met with recently if they were a multi-level company and he said no. But I've seen the literature and it looks alot like what Amway (Quixtar) would produce.
So what do you know? It seems to me that every time our industry hits a rough spot the other opportunities come calling. I prefer to stay the course but understand the need to try something else to make money. Please chime in with your thoughts on Nouveau Riche. Thanks and make it a great day!
Paul McFadden
Amway made many millionaires and i have heard some good things about quixtar
Dude...run, run, run...when you talk to them it is like talking to some JW's that show up at your door on Saturdays and won't take know and won't take reality for an answer. Run Forest Run!
While its not an MLM, it does overstate appreciation gains, and cash flow potential. When you figure improvements, vacancy rates, and insurance/taxes, very few of the properties will cash flow on a 30 year fixed, fully am. (by the way, interest only is virtually non existent on non-owner occ loans, those that still have them will be going away very soon).
In the puget sound, location is everything for a rental. The scenarios I have been running for investors show that to achieve a true positive cash flow, the property needs to be about 75% to 80% of tax assessed value, 25% down payment on a 30 year fixed. You have to figure at least 2 months vacancy, and 10% of yearly PITI for repairs and upkeep (so figure 3 months vacancy). With cap gains, etc, selling costs of 8% to 10%...the hold time horizon needs to be a minimum of 7 years. Wish it weren't so, but failure to advise clients with realistic expectations is foolhardy.
I'm advising clients to become a part of local investor groups that form LLC's that pay cash for properties. I have a information packet for them about the steps and protections that need to be built in.
Paul, I see the opportunities or supposed opportunities like you. Networking marketing is the catch phrase du jour. Anytime that a business model is based on compensating someone for recruiting new people under to then recruit and so and so on, it sounds like MLM to me. If it walks like a duck.......
The big question is there a level of integrity with product or service and do they require you to pay in?
Being good at one hing is hard enough and we can truly help people the old fashioned way. Motivating people to make money as a primary incentive for helping people should not be a reason for doing something.
Bo
Thanks, Bo. It seems to me to be another downline company. The presentations I've heard are all about signing up because that way the person who told you about it gets paid. I don't know about you but I'm going to stick with what I know! Take care.
Rich: Thanks for the breakdown. I hear all the success stories but have never ever seen an actual paycheck, etc. I just have a feeling that it's a recruiting organization.
Thanks for your thoughts. I agree with you. Amway and other multi-level organizations have made some people very wealthy. And they're good people. I also know it's not for me so I'm going to stay the course and do what I do best.
Have a great day all of you!
Paul multiple investments in investment property may or may not be a good thing, I think it would primarily depend on how much I needed to invest before I could would consider joining.
Eric: Thank you. The question is could a person do this on their own without joining a group?
tough to find like minded risk tolerant investors who are all on the same page and financial plan
Thanks, Robert. I appreciate your thoughts!
Paul,
There are many people that fail when they join Nouveau, but these are often people who either don't put the time and effort required or maybe they just didn't know how to run it like a business. I personally joined Nouveau Riche for the education itself and it has helped me tremendously. I didn't care too much about the business opportunity for a long time, but I'll tell you that I was missing out (personal opinion). Don't let people keep you from success, and take a closer look.
I'm doing well as an agent, and in my case, I have learned a lot in Nouveau Riche and have recouped my investment. I know there's people who unfortunately haven't done the same, but I did work full time and now I'm enjoying my success.
Good Luck!
http://www.youtube.com/watch?v=kuKzKTMnQu4
Paul-
Most of what I've heard about Nouveau Riche makes it sound like it's built on the pyramid scheme. But I've also heard (don't quote me here) that it's a $10,000 cover fee to get in that door. If that's the case then being in it might mean being a part of a network of contacts that could benefit anyone in any business. Again it's just a possibility.
Thanks, Doug, for your comment. I guess time will tell. It's true it's pretty expensive to belong and they paint it as a great opportunity to learn. We shall see where they stand in another couple of years.
Jorge: Thank you. I'm glad you're learning. Keep me posted on your success!