Real Estate Investing 101

Today, I caution you from a company called Noveau Riche, a MLM in real estate investing.  There are many inexperienced real estate investors and unlicensed people who pretend to practice real estate in this organization.

Recently, I acquired new clients who have fallen victim to ill advice by Noveau Riche distributors and/or members.  This company has taught my newly acquired clients about making 'fast money' by flipping properties.  There is no such thing as making 'fast money' when it comes to real estate investing.  Just because the current market is a strong buyers market and residential income and/or single family houses are below market does not necessarily mean that it is a good buy.

Eight months ago, my newly acquired clients purchased an investment property learning the Noveau Riche way and they have LOST money in the process of flipping their first investment property.  As a matter of fact, there going to have to 'short sale' their property.  

There is NO SUBSTITUTION for knowing your numbers.  The investor must know down to the dollar what they will walk away with when  purchasing an investment property.  There are several factors involved in buying investment properties, ROI (return on investment), cash on cash, after repair costs, appreciation, depreciation, cash flow etc. 

Due your due diligence with Noveau Riche or any other company who teaches real estate investing and before doing business with these individuals, ESPECIALLY as an important decision as real estate investing.  Work with a experienced real estate investor that has a solid reputation and/or extensive portfolio.  Connecting with the wrong individuals can place you in financial ruins and of course, connecting with the right people will help you build a very solid financial future!  

You should also consider a real estate professional, licensed in the State and has a track record of happy clients.