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Equity Services, LLC Helps Nouveau Riche Students Acquire Properties

Nouveau Rich University (NRU) offers real estate investment classes to help investors break into the real estate investing industry. The students are also the sales people for the company and sell 2 products: a 15-volumn encyclopedia on real estate investing for $3,500 and tuition to the college for $16,000. Nouveau Rich has a brokerage firm called “Investor Concierge” which helps students acquire properties. The firm’s slogan is “click a mouse, buy a house.” According to an article from CNN Money Magazine (August, 07), “Investor Concierge typically sells students 100 properties a month, most ranging in price from $100,000 to $200,000.”

Equity Services, LLC Fills a Void for the Nouveau Riche Community.

Price: Equity Services, LLC has helped many Nouveau Riche students acquire properties who were not able to “click a mouse, buy a house.” due to the price of the properties. We recently had a 22 year-old Nouveau Riche student purchase a turn-key (fully renovated 700 sqft, 2 bedroom, 1 bath, basement, 1 car garage) single family house in Pontiac, Michigan with a tenant paying $650/mo. for under $30,000! He wasn’t able to qualify for financing on any of the properties offered by the Investor Concierge. Our turn-key properties average around $45,000, making it possible for new investors at NR to “get in the game,” while offering seasoned investors the ability to acquire several properties.

Cash Flow: We had another Nouveau Riche student purchase 3 properties at once. He had purchased several properties from the Investor Concierge but was attracted to the price and cash flow that our properties offered. He was able to acquire 3 properties for the price of 1 property offered by Nouveau Riche, making his combined cash flow his highest performing package in his portfolio. Even fully leveraged, our properties typically cash flow $150-200/mo (after mortgage, taxes, property manager, insurance). Some properties offered by the Investor Concierge have a negative cash flow even after putting a down payment of 15-20%. These investors are speculating appreciation in the near future. We encourage our investors to aim for a positive cash flow right off the bat, and to invest for the long-term and to look at appreciation as a secondary benefit not a primary.

Referrals: Most of our properties are sold through word of mouth. Nouveau Riche students benefit in 2 ways by referring other investors. First, we pay well for referrals that purchase a property from us. Nouveau Rich Students can earn money by selling the encyclopedia or tuition but do not receive any compensation for referring a buyer to purchase a property from the Investor Concierge. By paying for referrals, we offer Nouveau Riche investors another vehicle of income through real estate.

Secondly, referring other Nouveau Riche members to purchase properties for Equity Services, LLC helps Nouveau Riche members be more successful. Some Nouveau Riche members are involved for the education, some are involved for the marketing and income potential through selling the Nouveau Riche products and some are a combination. For those involved in the marketing, Nouveau Riche members have a responsibility to help their “down line” or the people they bring on board to successfully begin investing in real estate. Because our model works so well, we are not only assisting Nouveau Riche marketers with their teams but also helping them gain credibility when recruiting others to join.

This article was written by Jerry Norton.

Click to see a list of available properties or to learn more about investing in turn-key rental properties.

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