At their presentations, the Nouveau Riche University folks claim that they will teach you how to become financially independent by investing in real estate that provides positive cash flow-- meaning that you will get cash each month because the amount the property rents for is more than the amount of the mortgage payment and the other expenses associated with owning the property. This is a well-known and very popular method of increasing your wealth, especially because if the value of the property increases while you own it, that increase is also yours (if you sell the property). And your renters are essentially buying your house for you, since it is their money, not yours, that is going to pay the mortgage.
Nouveau Riche's database of properties that you may buy is called Investor Concierge, and you can go look at sample deals in the database by visiting InvestorConcierge.com (if you click on the "Guest" button next to the "Login" button on that page you'll be able to see some sample deals). Each of the properties is displayed on a fairly detailed page listing the price, possible financing arrangements, total amount of cash required to close the deal, and estimates of the cash flow possible.
Examination of these sheets shows some very exciting figures for the nouveau real estate investor: the "Estimated Market Value" of the property is frequently 10% or so more than the purchase price, producing instant equity ("Estimated Equity") of $20,000 or more! And the yearly positive cash flow is $2400, all for a property you buy with a cash outlay of only $12,000. Why, you've made $8,000 as soon as you close the deal, right?
Upon closer examination, the flaws in the deal begin to surface: that $2400 a year in annual pre-tax cash flow is only $200 per month, and doesn't include any maintenance or allowance for any vacancy of the property. As long as you don't have any big maintenance needs, you might possibly break even-- and all the while, you're building equity while your tenants pay the mortgage, right?
Wrong. The deal Nouveau Riche shows to you invariably is built around an interest only mortgage-- you won't build any equity at all for the first 10 years, after which your mortgage payment will jump up to a much higher amount. If the deals were structured with conventional principle and interest loans, none of these deals would have any positive cash flow at all.
"But I still have instant equity, right?" Probably not. The "Estimated Market Value" is not an appraisal, but rather just someone's guess at what the property might be worth. And if it is worth that, why isn't it being sold for that? Can you really buy these properties and immediately sell them for 10% more? I doubt it.
"Okay, but the market will go up, and I'll be rich!" If the market continues to skyrocket, it's true, you will be rich. But across the country, in nearly every housing market, this is not what is happening. The correction has begun. The real estate "bubble" will deflate, and then likely stay constant for a while. All the while you'll be paying interest only on a property that is slowly becoming worth less than your loan is for-- a loan you have to pay off if you want to sell.
After all, if these were truly good deals, why would the founders of Nouveau Riche want to train you to take advantage of them? Why not just invest in the properties themselves? The sales presentation claims that the founders made their fortune and now altruistically want to help others make theirs. If altruism is the motivation, then why charge $16,000?
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«Oldest ‹Older 401 – 455 of 455I have a friend who's being sucked in by NRU right now. She doesn't see it as a scheme in any way. Look, I'm all for people teaching others how to become wealthy, problem is this costs 16,000 bucks and the one who referred her is going to get half of that. It seems to me that if these people are making soooo much money, they could afford to
a. not charge the full 16K, but rather half, since they're already so insanely rich from this awesome company.
b. pay for this person underneath them to go to school since it will benefit them in the long run.
Any company that charges this much money to get invovled in it is usually a scam. This is no different.
I am not here to run a smear campaign against NRU. I also suggest you not waste your even 2 hours of your precious time listening to some heartfelt, tearful testimonial about how wonderful and life changing it is.
The following advice is not from "negativity" but only out of genuine love and compassion for my fellow man, so here it goes .
Run people....RUN FOR YOUR LIVES and THE LIVES OF YOUR CHILDREN ! DO NOT LET DESPERATION OR DREAMS LEAD YOU DOWN THIS DESTRUCTIVE PATH OF FINANCIAL RUINS. RUN !
There is clearly more money being made here from slimeball "marketing" than there ever was from investing in real estate ventures, even if the courses are crammed full of legitimate "education".
God's Messenger
A M E N !
To Gods Messenger,
Great post. Right to the point.
A good friend of mine is getting seriously burned by Nouveau Riche right now. Nineteen months ago, they arranged for him to buy a condo in a nice area of Phoenix. And they arranged everything! 100%financing and a 1-year lease guarantee from Nouveau Riche. He was so proud saying “I am making a 5% cash on cash return”. The return was on the $3,000 in closing costs, so Nouveau Riche was sending him $12.50/mon! For 12 months. $150 for the year! Whoopee!
It turns out the rent was $1200/month and the fully amortizing loan payment is $2152.50/mon, plus HOA, taxes, insurance, etc. The place went “vacant” when the twelve months “lease” was up and the "starter rate" jumped to fully amortizing. The last 7 months, my friend has been coming out of pocket huge dollars. It is killing him and Nouveau Riche Management says “Oops, the market is a little soft for tenants right now!”
The Phoenix market is in the tank. The property is worth much less than $200,000, the vacancy rate is 15% and rising. Nothing is selling. I had a business associate in Phoenix look into the transaction. He believes Nouveau Riche was paid huge fees on the backside for the sale and the loan, perhaps $25,000 to $30,000 (real estate and mortgage broker fees). It is possible they even received huge “rebate” proceeds from the seller.
In the high flying days of easy money, Nouveau Riche could stay ahead of the wolves. I don’t believe they will stay solvent for long. And all the defenders stating “How could they stay in business for 5 years, if they were a scam?” is weird nonsense. Bernie Madoff screwed people for 10 years ($50 billion lost). Nicholas Cosmo with Agape World did if for 8 years and he was a convicted felon, with 1000’s of people warning the public it was a scam. ($400 million lost).
Get real people. You are all getting sucked into a scam. My friend is likely to have his credit ruined and lose $30,000 of hard earned savings. He is lucky to get away without more losses.
This is too your friend Wadin-in, Your friend is a "idiot" I looked at the same condos in Phoenix and I knew in 10 minutes they were high risk. He should have been better with his numbers and long term outlook on the mortgage and the market with rents and expenses. I have 5 rentals and cash flow over $3000 a month with $190,000 in Equity because of Nouveau Riche. I will show you my huds and rental agreements for proof... My grandmother used to say "Stupid People Shouldn't Breed"
Clearly, when stupid people stop breeding, Nouveau Riche will cease to exist!
NR pressed him very hard to take the deal. It was a joke from the start. I was nearly sick when he told me about it a few months later.
Randall, I have 6 houses and lots of positive cash flow too. I also have about $20,000 more cash than you do, because I did not pay a felon to teach me stuff I learned as a teenager.
The problem I have with NRU is they are indiscriminatly wrecking a lot of lives and the message needs to get out. I believe they offer false hope in a declining ecomonomy and don't care about your success. They do care about their tuition, fees, rebates, and scams.
Why would they create & structure such a suckers deal and so forcefully recommend it, when someone (like you) could so easily see it was a very very bad deal.
Stay away from Nouveau Riche. They have burned my friend. It will take him years to recover. Just ask Randall. He is an NRU graduate and says it was a bad deal from the start. Curious, yes?
The education is the best any Real Estate Investor could ever receive, there is no arguing that in any situation with any professional or educator. The facts are on the table for anyone to view for FREE. As for your friend, well, I know if I have a deal I can bounce it off of my friends and they know the same thing I do, Why did you let him buy the property if you are educated and have assets that pay you what you say with your life long education you received as a teenager? Really, as a teenager, half the strategies I use today were not around 5 years ago... I think he should be the one spouting off not you and you should be there to assist if he and you are such good friends on future deals to get him out of the hole he got into.
Everyone is entitled to their opinions but yours purely has no substance. Without Nouveau Riche I would still be in a 9-5 job making 40k a year with little or no retirement and no time to spend with whoever I want to spend it with. I say to all that read this find your nearest Nouveau Riche meeting and go check it out you will not be disappointed by the education, teachers or those that are doing, Smart, Real Estate within your local Nouveau Riche Community.
I have been to a NRU meeting the information is basic and historic. It can be obtained for free through books. The people that teach the classes are completely unimpressive. It they were successful they wouldn't be associated with an unacredited scam factory like NRU. Anyone with an ounce of ethics wouldn't be lying to potential victims to capture half of their unprofessional seminar fees.
The above poster is poor, stupid and broke. That is why he is here making up stories about his fake education from the NRU stupid factory. He can't verify anything all he can do is lie and troll for uneducated marks that will fall for his idiotic sales scam.
These people are the scum of society and will steal your wallet if you don't keep an eye on it.
Run, run as fast as you can from these scum bag Nouveau Rich idiots.
Yes Anon 10:38 AM,
I agree with you. Randall is probably a sham. Anyone who bought real estate in the last 5 years is most likely seriously underwater.
The real point is this: If Randall can sign you up for a $16,000 NRU program, he KEEPS $8000! Why would NRU have to pay 50% of the tuition to a recruiter? Because the program has no value, beyond a book you could get at the library.
My friend is $30,000 poorer for having become involved in NRU. Don't make the same mistake.
nrenroll@gmail?
I just wanted to say thank you for your honest, insightful, OBJECTIVE posts you have placed in here.
I drank the "kool-aid" over a year and half ago, and I'm here to say the opportunity has and is changing my life.
My mentor was completley honest with me in telling me that it would take work and that I wouldn't be rich over night. I to am as honest as I can be when explaining the OPPORTUNITY to others. I profess that I will not do the work for them, but I will work with them.
After being certified and having a best day of $16,000.00 in commissions I have been able to bring my wife home from her day job, start my own business and now have a real chance of being something more in life.
I'm sure I will be blasted for being a "shill" and suckering others, but the team I have established have been excited even in the "low's" of making it work. My mentor has been absolutely fantastic in offering his support. He no longer makes money on my efforts, but I can attest to this day his home has ALWAYS been open, and I find myself impressed with his assistance in my success even though it may "profit" him nothing monitarily.
I urge ALL nr associates to carry this same torch. Be honest with people, help them no matter what, and you will be richly rewarded in life.
NR is NOT for everyone, but if you have a desire to achieve more in life, in all areas of life, it CAN be a powerful opportunity like no other!
Thanks again!
Anon 10:25 AM
Here is the kind of "care" NRU shows you. As long as they can make money and keep selling you, they win, you lose. Go here and read the 2007 article. Then call the agent who was quoted in Michigan and ask her how those deals are turning out. NRU is a SCAM! Many, many, many people are getting hurt and taken, all for the benefit of a few. The founder is a felon. Get away.
http://money.cnn.com/2007/08/06/maga....fsb/index.htm
The way Investor Concierge structured the deal in its prospectus, the buyers put 10% down, borrowing the rest using an interest-only loan. Trouble is, the rents on the condos won't cover the total cost of owning them. No problem. Investor Concierge explains that it has arranged for the seller of the condo complex to subsidize the rent for as long as two years at above-market rates. The seller will also pay all the management fees and real estate taxes for two years. As a result the investors should be $145-a-month cash-flow positive. But what happens when the subsidies expire, and the buyer discovers he is losing money every month? Will he be able to unload his property or command a higher rent?
The way the Michigan real estate market is headed, it might not be so easy. According to Judy Brant, a broker in Fenton for more than 20 years with Coldwell Banker, the inventory of homes in Genesee County, which includes Fenton, averaged 2,000 units in 2005. Today it is 8,000, up 300%. When Brant heard that Nouveau Riche students had bought 60 condo units in her town - sight unseen - she said, "I'm speechless. The housing market here is tied to the auto industry, and prices are falling faster than you can imagine: 10% last year and another 10% this year. Who knows when it will reach rock bottom? As far as rental properties, it's hard to rent anything here now. Houses and apartments sit empty all over town. People are leaving because there are no jobs here. We're really suffering."
So now we can see that NRU is scamming 60 people at a time on these condo deals.
Anyone reading these posts needs to ignore the nrenroll@gmail entries.
This person is a typical NR recruiter who is broke and cannot verify any of the fantasies that he writes about.
nrenroll@gmail does illustrate the total lack of education and experience that NR recruiters display. Go and talk to a fee only financial planner and then compare their language to the NR recruiter.
The total lack of professionalism and general lack of intelligence regarding investing in anything is glaringly apparent.
Please consult with licensed investment professionals not cheap uneducated, used car salesman NR recruiters.
Be smart and avoid NR and their lying ways at all costs...
In response to Wadin-In. You make a great point regarding the seller subsidizing the rents so that the Concierge properties look like positive cash flow.
It is really a nasty trick that NRU plays on its victims. The victim thinks that he is getting a positive cash flow property when in reality he is subsidizing the rent himself not the seller. The buyer brings the money to the table and gives it to the the seller and the seller allocates it to the renter. What a scam!!!
After the two years the subsidies expire and the buyer is left with a property that has lost 20-40% in value. These NRU victims are experiencing financial devastation.
This happens because of the extremely low level of amateurish advice dispensed by NRU in combination with the self-serving greed that results from the high pressure sales tactics used to recruit.
AVOID THESE AMATUERS!!!!!
You'd have to be a "Nouveau Douche" to sign up for this crap.
I used to check in on this site every week or so and there would be many posts. Looks like the chatter has dissipated. That makes me think the NR enthusiast have thinned out.
I know my friend who first pressured me to join NR is now long gone. Now he's peddling Mona Vie. For those who don't know, Mona Vie is $40 grape juice that cures everything from cancer to hemorrhoids.
It's so sad. All these MLMs feed on the simple minded.
To Anon, April 9, 10 AM,
Yes it appears NRU is DOA. Someone told me the other day the founder may soon be filing BK. I don't know if that is true, but evidently they have run out of greater fools.
All these scams run their course and fade away. The fact your friend is on to Mona Vie seems appropriate at $40/bottle.
I wonder how your friend feels about throwing away $16,000 on the NRU classes. And did he recruit other victims for the felon founder? It is sad....
what "university", what "education"? what kind of degree do you get for $16,000? probably same as your "teachers". what a joke! IT'S NOT ONLY A SCAM, IT'S ALSO ANOTHER PYRAMID, which it's illegal. you only make money when you sign up more people to take their courses, not from their lists of real estate investments.
i feel sorry for all those that were brainwashed by NRU and post their "educated" comments to proof us wrong.
what "university", what "education"? what kind of degree do you get for $16,000? probably same as your "teachers". what a joke! IT'S NOT ONLY A SCAM, IT'S ALSO ANOTHER PYRAMID, which it's illegal. you only make money when you sign up more people to take their courses, not from their lists of real estate investments.
i feel sorry for all those that were brainwashed by NRU and post their "educated" comments to proof us wrong.
what "university", what "education"? what kind of degree do you get for $16,000? probably same as your "teachers". what a joke! IT'S NOT ONLY A SCAM, IT'S ALSO ANOTHER PYRAMID, which it's illegal. you only make money when you sign up more people to take their courses, not from their lists of real estate investments.
i feel sorry for all those that were brainwashed by NRU and post their "educated" comments to prove us wrong.
So i have been reading the volley for the last hour and am somewhat torn, but there are some inescapable facts that must be faced. One of the most common arguements against is that the information can be learned from a book(s) and that what is being taught at this institution is a complete farce. The fact is that ANYTHING taught in school can be gathered and learned from a book and people in their respected field, maybe thats why schools use books and people. What a concept right?
One of the other retorts against nouveau riche is that have been people who have failed at the system after being taken in by it. The important thing to remember is that these are isolated incidents, mistakes do happen, and we listen to people that we shouldn't. If we didn't we wouldnt learn anything. However, it is very important to hear their side because the road is long and winding, and fortunately and unfortunately there are people along the way to give the one human constant of advice derived from their experiences. You will be sold on something, regardless if you are for or against it. I am sorry to hear what these people have to had dealt with it, but it was their decision. Nothing we can do about it.
So what is the point? I have never, ever seen or came across an organization with caliber of people that this organization has. It is staggering the amount of attorneys, real estate agents, real estate brokers, hard money lenders, doctors, pilots, bankers, financial advisors, and millionaires are in this organization which i have been looking into for about a month now. Who better to learn success from?
Another fact is that people who produce will get paid, no matter what the subject, job, career, etc. is. Marketing is in every successful business and is essential. So if you are really interested in nouveau riche (which i think is a stupid name, but doesnt matter), find a representative, and do your homework. If it isn't for you, great, if it is, fantastic, but so far they (nouveau)have produced much more success stories than failure woes, and think about, how many people went to college and haven't used their degree, but people still go there?
I will not respond to any retorts because on the internet, it is not worth arguing with someone that finds it necessary to bash someone elses opinion instead of keeping their own. If they have to correct their stance because of a rebuttal on an opinion based website, they're not worth listening to. Get over yourself. Its okay if people disagree with you.
Research, make your own decisions, be accountable, and remember that everything is subject to that little grain of salt. Its life people. I am an economics and psychology major with a history minor in my fifth year. Cheers.
P.S. Whoever said that these people are stealing from the bank, needs to be taken out back and beaten. Do you have any idea how much fraud banks do? Even the "good" ones? Their job is money and its run by people. Think about it.
i bought and sold houses before i went to a NR "seminar". what more could they teach in a "university" that will help me?
NR IS A SCAM AND A PYRAMID: YOU DON'T MAKE MONEY WHEN YOU INVEST IN REAL ESTATE. YOU MAKE MONEY WHEN YOU SIGN UP NEW RECRUITS FOR THE $16,000 "COURSE". THEN THE "STUDENTS" REALIZE THAT THE ONLY WAY TO GET THEIR MONEY BACK IS BY RECRUITING NEW SUCKERS. STAY AWAY FROM THIS, PEOPLE! AND DO NOT READ THE POSITIVE COMMENTS: THEY HAVE THEIR OWN POEPLE WRITING THEM.
NRU is not a school and it is not a business. It is another scam that derives its income from "recruiting". If you want to learn how to be a snake in the grass lier than please join up, it perfect for the unethical and stupid. Pay attention here. ALMOST ALL OF THE PEOPLE AT NRU LOSE THIER MONEY. Only a few who are great at scamming people make money.
To the poster who is in his or her fifth year studying economics. Please get out in the business world and get some real experience. You are very naive and have a lot to learn if you have been brainwashed by NRU. The opinions and information that you write about is what you learned from NRU. And it is not information it is MISINFORMATION. Please unlearn what they have taught you and run for your life before they ruin a perfectly good human being.
Everyone stay away from NRU and tell everyone you know the same!!!
LOL, your a idiot!
You mean "an idiot" not "a idiot".
Your uneducated grammar skills are typical of NRU members. It would be easier to scam people if you were educated. Maybe you should stop lying and go and earn your G.E.D.
Good Luck.
My husband got dragged to one of the Nouveau Riche meetings.
Red flag #1
They recommend you get the $16,000 by applying for financial aid at a real school and using it for Nouveau Riche "University". I think there's a word for that. Fraud?
Red flag #2
The rich investors are sooooo nice and they just want to help people become rich like them.
Uh huh.
Really, that's all the red flags I needed to know this is a scam. If these people are so stinking rich and want to help people so bad, they could hold seminars in their spare time for free. If they are the ones who don't have to work like the rest of us suckers, then surely they could spare some moments to teach the lowly people who actually work for a living.
Our friend got sucked into it. It's constantly, "Nouveau Riche this, Nouveau Riche that". But he's dirt poor! He actually believes that any moment, he's going to be rich like these investors who probably had money to begin with.
You can learn all of that stuff for free at the library. Don't waste your money. Work hard, save, and later invest your money on a good deal. Little by little you can become a real estate investor minus the title of scam artist.
My posts are intended help potential victims avoid being scammed by NRU. If one person reads my posts and keeps his or her money in the bank I am happy. I am not here to advocate or discuss anything else. This blog is dedicated to NRU being a scam. The usual off topic, red herring, uneducated responses that we see from the NRU salesman go unanswered because they are not worth of anyone's time. They are usually mindless ranting from the deranged minds of the NRU salesman recruiters.
We are also not here to discuss, who is successful and who isn't. We are not here to discuss or debate the legitimacy of the legal system, capital markets, real universities or how medical doctors make their money. Most of these topics are far too complex for the average NRU salesman. We are not here to debate the viability of whether or not real estate is a good investment. If someone decides that real estate is a good investment, than by all means move forward; just avoid the NRU idiots who want your hard earned money.
Lets stick to the basics. NRU is a fake UNACREDITED University whose primary mission is to recruit victims into paying $20,000 to learn how to buy a house. Anyone can learn better information for free by working in the field and reading, (NRU doesn't advocate reading or books). The NRU information is historic at best. The NRU salesmen are horribly misinformed hacks that are always making up stories and fantasies about income and deals. None of it is real. It is all made up. To this day not one NRU salesmen has been able to verify anything.
I don't believe in paying NRU idiots $20k to go to an UNACREDITED fake university to learn how to buy a house in a declining market. And I sure don't believe in doing business with a bunch of fake, uneducated idiots whose only motivation is to get my $20,000.
I am here to help the potential victims avoid being scammed by NRU. If one person keeps their money in the bank instead of giving it to the fake wanna be professionals at NRU than I have helped.
My take on this is that they are not being overly upfront with what they are selling.
They want you to invest $21,195.00 to get the regents and other programs. If you don't have it you can get a loan if it's cosigned by someone with over 680 credit score (yeah right).
In my opinion, if they really were looking at giving their ideas to others to make money then they need to help you with your first investment so you can make the $21,195.00 to pay for the course and start doing it on your own.
I offered to spend the $75 to become a recruit and was told if I wasn't interesed in spending at least the $1,695 for the SEEK program that I really wouldn't be considered part of the office and would be dropped by Scott the regional manager for Chicago.
So basically even if I was working for them for free I wouldn't be considered part of the team because I wasn't giving them thousands of my dollars even though I'm laid off work and don't have it to spend.
This program is not above water for someone without money wanting to get into the real estate market, but it's perfect they say for someone with plenty of money to spend on the Investor Concierge portion of the program.
And to think I was recruited thru Careerbuilder while I was looking for a job...not another scam like this one...Scott at Chicago even said he had people perusing such websites looking for people they can sell to...even though those websites are usually for people looking for jobs and employers looking for employees.
I hate this bullshit, and Scott can kiss my ass I won't spend a dime on his lies.
Where are all the NR propaganda artists? I noticed the chatter has quieted. Has the soft RE market finally exposed this scam?
It's been so quiet because NR has been having COLLEGE all this week in Scottsdale, AZ.
Oh that's right, it's college. I forgot. How'd you get accepted? Your SAT scores must have been excellent. How does the grading work? Any term papers? You must be exhausted from pulling all nighters getting those projects done. Not to mention the hours spent trying to recruit others. All respectable universities pay you thousands to get others to join don't they? That seems like a legit "university" practice.
If I only knew about NR back then, I wouldn't have wasted my time at a fully accredited well known university and joined NRU. I'm sure your future employer will be very impressed with NRU on your resume when you finally catch on to the scam and get a real job. (Although you're probably one of the many NRU employees who pose as a student and check the blogs to try to defend this scam. This market must be killing you guys).
No, I am not an employee....but I was guilty of greed, you see I signed up by asking family members for money to get rich quick! I was in early enough to make alot of money on marketing. Also pulled family members in on RE deals. You see my family TRUSTED me. The market crashed and so did my investment with my family member...now they will have to file bankruptcy because we used their credit and my money. Everything you have mentioned in your blog is true.....NR brainwashes you...and I fell for it! Giving testimony with everyone cheering me on, the dressing up in suits, the charged trips to AZ, it was like slipping into a deep whole! It feeds the ego........it does create pride, arrogance,greed, and damages lifes along the way. I am no longer a part of NR. But alot of lifes were effected and is wasn't for the good. STAY AWAY FROM NR!
I can't believe what NR has done on the internet...your blog is about the only one that is not set up by NR. That is no free speech or discussion, they just flooded the internet with their garbage about how wonderful they are. NR needs to do an audit/study of everyone that has ever purchased their education package.......I can guarantee they KNOW how many people gave up, probably after defaulting on student loans, loans from family members, and maxing out credit cards. They are too afraid to provide the numbers. There is either greed for those making it in marketing, or shame for those who lost everything and don't want anyone to know. We will all stand before God's judgement throne and give account for our actions! Wake up NR, confess and change before its too late!
I wish my girl friend had of read this blog. She just put down the $16,000 for this course and is in Arizona now. Dropped out of medical school to do this and left her kids with her parents.
I feel badly for her now after reading the stuff here on the blog. Thank goodness I didnt buy into it because coming out of the mortgage industry after being laid off for the 4th time, I wanted nothing more to do with the industry and told her that the industry is not a good place to be right now, but of course she's young and didnt want to listen.
I FEEL SORRY FOR ALL THOSE PEOPLE THAT THOUGHT THAT $16,000 WILL BUY THEM AN EDUCATION AND WEALTH AT THE SAME TIME. FOR THOSE THAT STILL CAN, I URGE EVERYBODY TO GET THEIR MONEY BACK RIGHT AWAY. IF IT'S TOO LATE, DON'T TRY TO CONVINCE MORE PEOPLE TO MAKE THE SAME MISTAKE YOU DID -TWO WRONGS DON'T MAKE IT RIGHT!- BUT TRY TO RECUPERATE YOUR MONEY RIGHT NOW IN AN UPSIDE DOWN MARKET: GET INVOLVED IN REAL ESTATE INVESTING, FLIP A FEW PROPERTIES, BUY A FEW NONPERFORMING BANK NOTES, BE CREATIVE AND MAKE SOMETHING GOOD OUT OF A BAD SITUATION!
I personally know three people who have been seriously fleeced by NRU. They paid the tuition, followed the advice, worked with Inverstor Concierge and here are the results:
They have dropped over $25,000 in cash, they own Pac Man properties they have to feed each month with $275 to $800/mon (assuming they are occupied, which is another problem) and the recourse loan amounts exceed the asset values by over $50,000 to $80,000.
They have no way out and NRU has ruined their lives. One is ready to file BK shortly and all three, who once had a zest for life, are now walking zombies. It is sad.
I report this information so others will not be scammed by NRU and will know the real risks. TSuccess always claims I have a hidden agenda and must work for another MLM scam. Not true. I am a hard working person with a regular job which I enjoy and make a very good living.
first of all i think that you dont have the balls to even try this method. you do come out with equity. do your homework the correct way. asshole. the market will come back up. every ten yrs the country goes into a depression on the 11th yr. the economy is back up. i just think you are a loser due to the fact you have nothing else to do and you don't have the balls to get off your ass and attend a session. grow some balls thats if you have any. and i don't care if you are a woman or a man
Every time an NR disciple writes something, it becomes clearer why they bought into this scam.
Last week I went to a meeting for the first time. All I saw was typical hype of MLM at its worst.
Personally I think this is a big scam. They lure people into spending over 20K to become educated to become a REAL ESTATE INVESTOR. Half of the money goes to somebody up the ladder as a commission for selling the education. Before you become fully qualified to have to generate at least 3 sales of 1695$ (SEEK), 3 Sales of $3500 (COACHING), 3 sales of NR University 120 Program for $16,000 each. This generates a total of at least 32250$ to your mentor before you see one penny. IF you do not have people below you to do the same thing you do then you make no money.
I have no idea on how good the quality of the education they provide is. People who are involved will say they are making tons of money as investors but probably they are making more by bringing in suckers who pay over 20K to either get educated or to become sellers of the program. They claim this is not MLM. NOT your typical but pretty creative. In my case i will rather try to find a property at a good price and invest the 20K in the down payment and closing costs. I am am smart enough selecting the property, I may see cash flow. Do I recommend it? i would say no. The way the product is sold, I don't like is a big time MLM. Maybe you would be better off finding a successful Real Estate investor and pay him per hour to get trained.
I went to one of these seminars. Another real estate broker dragged me there. The information is extremely poor at best. I asked some of the Nouveau people very basic real estate questions to see where thier knowledge level was and they below novice. But they did have all of thier fancy sales responses memorized.
This is obviously just a way to steal money from desperate people who want to become wealthy.
Alas and lackaday!
I was introduced to NRC/NRU by a friend who had been hooked.
Before I made a move I did my 'due dilingence' and even spelled it correctly unlike the 'anonymouse' sleepers from the NRCorp that use their monotonous 'defence strategy' everytime someone suggests that they might be as crooked as a sackful of corkscrews.
If you were familiar with the Communist Comintern of the 1930s to 1950s you became accustomed to a stultified form of sentence structure that was more than a century old. Just reading an abstract that did not state the origin of the lines would ring the bell that this was straight out of the Kremlin's Encyclopaedia of Strategies to Win None-Educated Workers in Europe over to The USSR's brand of Communism.
Reading the spiel from the 'defenders' of NRU, the same churning enters my sensitive gastric regions, and it is evident that when a slue of writers employ a particular set of prepeared defences, that the defender is niot speaking, but is merely copying and pasting from the NR Corp's "They Don't Believe Us, Dammit! - So Hit Them With These!"
I am not saying whether this MLM [it looks like MLM and so it IS MLM!] is a scanm or not, but the web is crawling with the comments of the discontented, and also with almost as many frantic but failed defenses from the Corporate HQ Zombies whose idea of being honest in business is when the NR Corporation buys you, you stay bought.
Do the math, due your 'due dilogence,' which will not be easy since 'due diligence' is a legal term that refers to the attitude of professional such as lawyers, Estate Agents, and all those whose actions in a business relationship, whether paid or not, can impact a customer or potential customers success or failure.
You cannot 'DO' Due Diligence, a person can apply due diligence - that is the diligence due from him or her in ensuring that the client is well served and not directed in any direction that could have adverse results without warning them of the danger of an unsatisfactory and possibly a disastrous outcome.
I would hesitate to enter into any business relationship with any company whose top echelons and paid defenders make so many common orthographical errors.
I have done my Due Diligence and me and NR Corp/NR Unive will not be claspinmg hands in this life, and I doubt that we will meet in the next.
Caveat Emptor - and still they come, standing in line to be introduced Madame Guillotine!
The primary business of NRU is to get your tuition money, then get you to bring in other peoples tuition money.
I come back to this site periodically to remind people I personally know 3 people who have been seriously fleeced by NRU. They paid $16k for the programs, then followed Investor Concierge advice and bought condos in Phoenix (Dakota Condos). IC set up the whole scam with sub prime loans, 12 month above market leases, false appraisal values and a lot of hand holding of the "investors". It was a scam. These people have lost over $25,000 including tuition and negative cash flow, and the condos are worth $60-80k less than IC promised, bleeding $300 to 800/mon negative cash flow.
Nuveau Riche is a SCAM people. They have done this to people all over the country.
Google the following words together: "Nuveau Riche University Michigan Condo Money"!
You will find NRU has been working this same scam on hundreds of people for many years. The Money article is from August 2007 and Jim Piccalo says "This is the perfect time to buy." And he is right....2007 was the perfect for HIM to get YOU to buy, so HE received a commission, a loan fee, a rebate spiff from the stuck builder, etc, etc., etc., all at your expense. The reality is 2007 was a TERRIBLE time to buy real estate.
So for the 20th time in the last two years, I will say it again:
Nuveau Riche University is a SCAM. Please pay attention.
You guys do realise that people who make negative comments, are the ones that are not doing any better.It is easy to put someone or a business down, than to uplift them.
I was part of NR for over 2 years. I really thought it was ligite. I found out otherwise. The money is made on the comissions, not the investing. I went to the meetings and the trainings etc... I put literally hundreds of hours in with the leaders of this company. Take my advice. Run the other way or lose your money and time. If they have convinced you otherwise then remember I told you so. Godspeed
Anonymous Said
"You guys do realise that people who make negative comments, are the ones that are not doing any better.It is easy to put someone or a business down, than to uplift them."
I am here to say I am doing very well. I have a great income a solid net worth and a wonderful marriage. Life is not perfect, but it is good. It would be worse if I had gotten into NRU, as several friends suggested.
These friends who have been seriously burned by both NRU and Investor Concierge. Nouveau Riche University is a huge scam. They made back door deals for profits from sellers, putting students into the bad deals. NRU & IC made commission, points and seller rebates. My friends are getting negative cash flow after 12 months, no help, and now bankruptcy and foreclosure. Stay away. It is a joke.
I'll offer my story.
Was in LA for a weekend, met a girl at another conference who gave me the NRU pitch (unsolicited). I wasn't about to drop any money at the time, but gave her my number, told her we'd talk, etc.
Did some research, discussed everything with her, etc. About 3 months later, I decided to sign up - only for the $10K package, not the "Regents". I was skeptical, but thought it'd be cool to spend a week in Phoenix at a resort while learning about real estate investing.
Here's the problem - each "class" is basically a free seminar in itself. The only reason these "teachers" come to the "school" is for the opportunity of selling THEIR backend products to the motivated, price-insensitive "students". I actually quite enjoyed one class - Multi-Family Dwellings, by John Dessauer - but the other 3 or 4 that I went to were pure crap. John's class was good, but, again; JOHN WAS THERE TO SELL YOU ON HIS CONSULTING PACKAGE, which cost about $20K.
That was back in the summer of 2007. I had no interest in being a "recruiter", and I told no one of my involvement with them until I knew that my investment was wise and I'd feel proud recommending it to people. That never happened, because it's a bush-league company that makes its money on tuition, not real estate. So, in sum, I spent $10K to spend a week in Phoenix (fun) and learn not very much at all (besides John's class) about investing in real estate.
Thankfully, I never bought any properties through their Concierge, and I can only imagine how horrible the lives are of those who bought a bunch of NRU's offerings in some of the most depressed markets in the US; Arizona, Michigan, and Nevada. Good luck EVER seeing your money with those purchases.
Young people reading this - I was 25 at the time, had/have a good career, but I always wanted to be one of those "phenoms" that get rich very young. I thought NRU's teachings in REI would've got me there. It didn't, and it will NOT to you. RE is not a get rich quick game, not at all. These guys are getting rich through commissions and tuitions. Ask your ISA how many properties they own. That'll tell the real story.
Walk away. For $16K, you could start a good business yourself.
Well the financial timebomb has now gone off in our area for NRU. I know 3 couples who got into this 3 years ago and are now in bankruptcy, in foreclosure or both. What's funny is one of them is still hyping how great of an oppurtunity this is even while thier house is due to be in a foreclosure auction in 2 months. Another one was still hyping this scam even while they were trying to short sale their house for 70k under what they paid and it is now foreclosed and the auction is next week. I loved thier website too because they were touting how they were helping people out of bad situations through short sales and creative financing methods, I guess they couldn't use those creative financing methods to save themselves. The other people I know ran up huge debts on plastic and are in bankruptcy. They were using the fake it till you make it method. You know in order to be a succesful real estate investor you have to look like one first, they had the fancy cars, the fancy clothes, hired a coporate image/PR company. Maybe this is all part of how this scam works, you know run up a bunch of debt transfer the assets to another entity and then go bankrupt, which is what I suspect happened in at least one case. I know of some of the people they recruited and they got screwed also. One guy bragged about buying a business with no money out of his pocket 1 1/2 years ago and the business has now been closed for 6 months. I knew the person that owned the business 4 years ago and he never made any money and sold it to someone for the value of the building and assets just to get out, that person lost money and then sold it to this loser. The only person I know of that did ok in this scam was the person who signed all of the above people up and he is a real piece of work, he's a mixture of a used car salesman an amway salesman and your creepy uncle that you wouldn't trust alone with your kids. The first time I met him the first thing that went through my mind was "oh what's this a$$hole going to try and sell me"
Well i guess I need to update/edit my comment above. The people that are still promoting this crap filed for bankruptcy which has stopped the foreclosure on their residence, but I also found out 2 of their rental properties were in foreclosure with 20k in arrears so that process has halted also. The lender has filed objection to the repayment plan since they cannot afford to pay the rental property mortgages, the arrears payments and their primary mortgage. The other person that I thought was foreclosed on has managed to work out a deal and is now trying to short sale for 120k less than they owe. Creepy uncle/ used car salesman didn't get out unscathed either and is now being sued in bk court for fraudulent transfer of assets he received from another scammer while they were under bk protection and now the trustee wants the full value of what was transfered of 200k, can you say ouch.
"Anonymous said...
You guys do realise that people who make negative comments, are the ones that are not doing any better.It is easy to put someone or a business down, than to uplift them.
November 18, 2009 12:22 PM"
I come on this site from time to time to let people know NRU is a scam. I have 1 friend and 2 aquaintances who have had their lives financially ruined by NRU.
My life is great and I have a very successful career. I often pick up litter on the trail when I go for walks in the evening with my lovely wife.
I do the same thing on this web site: pick up litter like the above post from "Anonymous" in November 2009.
NRU is a scam. Google Nouveau Riche Scam. You will find a lot of good information.
Here's some interesting tangentially NRU related information. Chris Record, one of the NRU shills (I believe he worked in the Sacramento, CA, Raleigh, NC, and Washington, DC areas), was originally named Sun Falcon by his hippy father because he was born in a teepee near a tree with hawks in it or something. His dad saved his umbilical cord because he was going to make it into a "plunker" (some kind of hippy instrument) but left it outside to dry and during the night it was eaten by coyotes. It sounds like I am making this up, but I am not. See here:
http://ronrecord.com/Stories/births.html
http://www.nouveauriche.com/about/record.htm
Anyway, just thought I'd share this interesting tidbit about one of the NRU hotshots. I'm sure you guys already know that Jim Piccolo is a convicted felon? http://www.johntreed.com/Reedgururating.html#Anchor-Nouveau-35882
Well it looks like Jim P and some of his business partners settled with the Arizona corporate commission for close to 6 mil in restitution and fines for claims of fraudulently selling land to people that were attending real investing seminars. They were never actually provided with deeds of trust to the property they supposedly bought. They were also found to not be registered to even sell securities in Arizona and the one guy who was licensed had his license revoked. http://www.cc.state.az.us/Divisions/Administration/news/110217Securities.pdf
It is a scam.
Me and my wife speak from experience.
in the early stages of the school, just before they even put class lectures online. we joined. paid our total 40k.... we were promised help and education.. we received neither. we were convinced to attend the schools at these rediculous 5 star hotels in order to be fed information thru a firehouse.
but when it came time to use that information, and you needed your mentor to help you thru your first steps.. they were no where to be found.
when it became obvious we were failing, they further distanced themselves from us.
the only thing we kept hearing was "keep attending the school sessions" at more ridiculous hotels.
Because of the economy, we haven't even been able to put a scratch in our "student" loans. me and my wife will no doubt spend the next 10-20 years trying to pay it off.
When we finally left. No one even asked where we went. there was no sign of any kind of concern for us.
They take your money.. after all the promises and then after that they do not care at all.
its taken me about 5 years to gain the courage to even see how this "university" is faring. anytime i hear my wife talk about the student loan i get angry.
and then i get scared for people who are being tricked into joining.
if you get in, and it works for you.. then good.. But it is a HUGE risk. too big of risk that anyone with a family can afford in my opinion.
There are plenty of other business opportunities and entrepreneurial ventures to try that are no where near the risk as this.
thanks for nothing NRU. i will spend the majority of my life trying to lift this debt that you tricked me into with promises of prosperity, education and "support."
2014 Final Thoughts.
Nouveau Riche is proven to be a scam. They have been shut down and everyone who bought into them have gained nothing for their money!
finally!
finally!
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