Real Estate Riches! You know the one with the obnoxious loud mouth radio ads all the time? Turns out a bunch of former "students" have filed an Attorney General complaint against their "mentors", what a surprise! Here's the link to the CBS news story:

http://www.whptv.com/content/specialreports/story/Special-Report-Real-Estate-Riches/HX00HYJDT0SwexA4lqTxTA.cspx

They are on the radio constantly with loud-mouth, obnoxious spokespeople with their get-rich-quick mantra. It doesn't look like the guy who organized the attorney general complaint was a angel by any stretch but after speaking with several people who took the program they essentially confirmed what was in the news report- the stuff they teach hasn't worked for years, you can't get help when you need it, the provider list is out of date, and really after the seminar it's just a matter of just trying to wholesale properties to the few students with money, those that put the $9500 on their credit card are essentially hung out to dry.

What's even funnier is that every time the report shows up a flurry of pro-RER comments comes through - but if you look at the comments in this news release you can tell that it's RER Prez Jeff Rubin just emailing the sheep, I mean supporters to put comments out.

Sorry Rubin, you can't hide from the truth anymore.

My two cents. I see Craig's name tossed around in mostly an evil light. Here is my story. Went to a seminar late 2006, didn't have the resources, or self confidence to buy in, wife had other priorities. Situation did not improve, in fact went down hill. Got back in touch with RER folks as a single father August of 2009. Came up with the money, went to the 3 day seminar, did a little dabbling, bid on some properties, didn't get any. Craig contacted me about a property, I looked at it, saw I was way under bidding which was why I didn't get any properties. Craig and his partner Brad walked me through buying one of their properties. Closed on it in November of 2009. Contractor took longer than he should have, but gave him the benefit of the doubt with the holidays and deer season, and a custom window in the mix. Rehab done and within $300 of estimate in January. Property Manager started marketing property and I had tenants March 1. Did not know a bank would not refinance less than 50k, so, the 21k I had invested in purchase and rehab is still in the property. After taxes, insurance, and utilities I pay, I have a positive cash flow of $314/month. Now I'm no math wizard, but I think that comes out to about an 18% return on my investment. Ideal? No, Ideal would be getting a mortgage on my 29k property to get the 21k back out to reinvest while still having a positive cash flow, or breaking even. Complaining? Hell no. If you have your money invested in something that is bringing you more than 18% interest, please contact me so I can get on your boat. Is this the norm, I doubt it, but if you do your research and work the plan intelligently, and not blindly, you can make it work. It's not rocket surgery, just due diligence.
Kev
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