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July 4, 2007
Ever notice the constant stream of “Real Estate Investor Seeks Apprentice” signs littering the offramps of most highways here in the west. These signs are generally cheap placards with nothing more than a promise of $5-10k monthly income, and a phone number that often goes to an equally vague voice mail.
These signs are the brilliant marketing strategy of a non-accredited school known as NRU, the Nouveau Riche University…. I know, I found their French method of spelling Rich offensive as well.
NRU is expensive. Casey Serin spent $16,000 to attend a few days of classes, which happens to be more than many people here in the midwest spend on a year’s tuition and board, and in some cases, an entire degree. Part of the reason these classes are so expensive results from the huge commissions (up to 50%) they offer to students who refer others to this ’school’.
Cleverly, NRU doesn’t seem to actually pay any commission until a student has referred three others. Just two, like in Casey’s case, means not a dime.
A quick glance on the internet will reveal many websites outlining the scam and mlm tactics of this school should be enough to dissuade almost anyone not already put off by the ridiculous signs littering the highway. Surprisingly, it doesn’t, as a steady stream of signs continue to appear.
As PT Barnum once so eloquently put it, there is one of them born every minute…
Now don’t get me wrong. NRU is like the magic tiger rock on the simpsons. They encourage their students to buy real estate in bulk, and throw every spare dollar into it. Many people have made their fortunes doing so, and so it is not entirely illogical that some people could very successful at this. That said, you don’t need to pay $16,000 to learn this. You’ll likely learn more about real estate reading this blog than attending any crazy MLM seminar. In fact, I will now proceed to explain a strategy that if followed, will make you significantly wealthier.
Step 1: Save $16,000. In order to do so, you should avoid any MLM scams, enrolling in nouveau riche university, or buying a new car.
Step 2: Actively walk around your neighborhood for exercise. Talk to neighbors to be friendly, all the while keeping an active eye for any homes that might be on the market, soon to be listed, or for sale by owner. Find a home that you can negotiate down to at at least 15% under market value.
Step 3: Use as little of the $16,000 as the bank will permit to buy the home. Proceed to either fix it up and flip it, or rent it out as finances and situation permit.
Step 4: Repeat step 2 and 3 until the $16,000 is spent. Hopefully Step 3 will lead to the occasional profit, permitting you to eventually own several properties that are cash flow positive from rent after expenses.
That’s it. Simple. Are you going to do it? Chances are no. You’d rather have that new car, besides…what rational person buys more than one home? Only wealthy people try to be landlords right?
Well if that’s how you feel, then maybe going to Nouveau Riche University is the right thing to do. If it takes wasting $16,000 to convince you that buying real estate (along with hard work) can be profitable, it may well be worth it. But if you can come to that realization without wasting spending half a year’s wages…more power to you.
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