True Gotham

Being that the Dirty Real Estate Tricks segment of TrueGotham gets the most visits per day and people stay on the site the longest when they are reading them, I couldn't resist sharing the following "multi-level marketing" licensing "course" being offered by Nouveau Riche University. (via Cockeyed.com).  It seems that Nouveau Riche University which is totally unaccredited by anyone is offering to take thousands dollars from wannabe "apprentice" real estate investors to "teach" them how to get rich in real estate.   Ok.  So another company is making promises about how much money you can make as a real estate "professional" by overpaying them for information that is already available to anyone who's interested in learning "the game."  It sucks but big deal.  Shame on those who actually pay this company for their classes.  And people are evidently signing up as cockeyed reports:

The recorded voice on the other end sounded serious, but didn't identify herself. The message invited me to become a successful real estate investor, and let me know that I could do just one or two deals per year and exceed my current annual income.

She continued that their program focuses on six main areas:
find, fund, fix it up, tenant, manage and sell.

She used "tenant" as a verb, meaning "secure a tenant".

She was looking to build a team, and was looking for someone who was "coachable", "teachable", could follow instructions, and was available for a group interview on September 2nd.

I didn't go to the group interview, but subsequent calls revealed the name and nature of this enterprise. "Nouveau Riche University" was signing up students. Real estate students.

That said, this is further evidence that the real estate industry is perceived by many as an easy way to earn easy money.   For those who actually believe that, get your real estate license and give it a shot.  Or don't even bother with the license.  Perhaps you, like Casey Serin, can figure out how to defraud the banking system and dig yourself into a deep financial abyss.  You have got to check this out.  Mr. Serin purchased 8 properties in 8 months with no money down and now may face jail time for admitted mortgage fraud.  Check out "Why Should I Go To Jail for Mortgage Fraud?" on his blog I am Facing Foreclosure.com.  Casey Serin is alleging on his blog that what he did was "gray area" that he believed most in the industry practiced.  Today's entry on his blog informs his readers that he found attorneys who have given him the green light to leverage some more.  Is this guy for real?  Unfortunately yes!  Reminds me of the guy who called me to boast that he had manufactured a multiple bid situation on his own home and 6 months later became a real estate agent.

I just had to add this from Housing Panic granting insight to how our brains determine that we should become investors.

Great post. I read Casey's blog. Can't believe he doesn't feel jailtime is necessary! Seems to be an alarming trend, the mortgage fraud business. Ralph Roberts is quoted in the Swanepoel Trends Report by saying that more and more people are being sent to jail on charges of bank fraud and conspiracy to commit mortgage fraud. I am concerned that this will get worse before it gets better. What do you think?

Thanks Lucy.

Good news is that more and more are "allegedly" going to jail for this type of fraud.

Bad news is that I suspect (and this is pure speculation) that as the housing market suffers across the country, some (I like to think a small minority) who remain in the mortgage industry will resort to desperate measures to pay their own bills (i.e. "selling" cash out refi's and lines of credit to desperate homeowners).

Seems it may indeed get worse before it gets better. But you have a better handle on a more typical real estate market as NYC continues to defy odds.

Thanks for the insight, Doug. I know, I have read the horror stories about the "cash back" scenarios as well. What sounds like a legit thing really is far from it!

Thanks for the info. I have been applying for a new job for the last 4 weeks. I send out 30-50 resumes a week. When I recieve a call for a job interview I never remember the company I posted my resume with. When I arrived for my job interview with a Nouvo Riche mentoror I did not realize what I was getting myself into. I could tell this was a scam but I wasnt sure. I did not realize until now, that these reps were selling an overpriced education. Thanks again.

Nouveau Riche University is ace recommended. it does not teach the basics there for not fully accredited

Unless you have actually attended NRU, be a little less quick to pass judgement. I have been a sucker for the late night guru's that teach you how to become successful in real estate. Try calling their "customer service" with a problem or question. They are quick to offer you mentoring classes for "ONLY" $2-3,000 more dollars. There are no credit card machines in the back of the room at a NRU information seminar.(not the ones I attended anyway.) No one twist anyones arm. NR offers premium knowledge with a network of actual investors that don't try to nickel and dime(or should I say 2k and 5k) you to poverty.
Brad? Overpriced education?!?! How much is a degree from Depaul University, Stanford, UCLA? How many graduates are walking around with one of these overpriced degrees and not even working in the field they majored? Ask my wife, she's one.
NR instructors have made their millions and are giving hands on training. Unlike a college professor that is teaching THEORY. Just call and ask one of the college professors how many properties he owns and how much he's cash flowing positive a year or his net worth.
I don't know about you but I'm trusting the guy with the millions in the bank instead of a man making $60k a year to tell me how to do it.(in theory)

I agree with Roger a 100%!!! Unless you've been to the college yourself, "Don't judge a book by it's cover." [Literally speaking] So, please... we all know that there are always risks involve with/in any business transactions even in real estate and if you've been told that there isn't, they are lying to you! With NRU, $16,000 for a regents tuition for 2 years of college and with the benefits of bringing a partner with you and the availability to retake courses for FREE are highly recommended. If you can tell me an actual University that would do the same as NRU, then prove me wrong.
If you've got an Open Mind... NRU is the way!

I can't help but be a bit suspect that "MCN" and "Roger" who both so strongly support NRU just showed up at my blog within the past 24 hours to trumpet this program??? With the national housing market in a slump, could it be that perhaps NRU is losing some business too and this is an effort to establish credibility? Just askin'?

It's funny the only sceptics are the people that have never been to a college. So all the skeptics keep working your 40-60 hours a week for a measly income and ask yourself is it worth it??? I have never met anyone who regrets spending the money to join NRU and that includes me.

What is up all of the sudden with all of the pro NRU comments on a blog post from last February? Thou Doth Protest Too Much???

NRU is growing very fast, and it is a fact that most of America's millionaires got there by doing real estate investments. NRU teaches valuable lessons from real estate investors who have made millions and are activly practicing what they are teaching. I've been doing alot of research on this company because I also want to make sure it is legit. This company is also very young, and now could be an awesome time to get in if it keeps continuing to grow. When it comes to real estate investment, if you have the knowledge you will make money. I just recently attended one of their 2 day real estate intensives out of curiosity. I also own 2 investment properties and thought I knew everything that I needed to know. After the intensive, I realized that there is so much information I still need to learn. The lessons taught at NRU are valuable if you use them. No, I don't believe NRU is a scam. Time will tell!

All I can say is that a real education would be accredited. Furthermore, from what I've been told by a friend they are trying to "recruit", they plan on giving half of his tuition to whoever recruits him. What kind of educational institution spends at least half their money on marketing??? For some reason, I can't help but see a pyramid here somewhere.
I'm searching for info on this alleged scam, so thanks for everyone's input. The supporters of NRU actually convince me it is a scam more than everyone else, because they sound like paid advertisements.

I couldn't agree with you more Tom. I'm amazed at all of the "proponents" who have shown up lately to comment on this post.

This post is directed at Mr. Heddings and Tom. This is the first post I've ever made to a blog. But, after reading your negative information about Nouveau Riche I felt compelled to type a post here. I found your blog after doing a search on Google for "Nouveau Riche Scam" to see what kind of garbage naysayers of Nouveau Riche were spreading. Which led me to discovering this blog Mr. Heddings. I'm disgusted after reading your comments about Nouveau Riche (NRU). It's apparent that you haven't done thorough research nor an unbiased investigation about NRU before passing judgment. Before you go spreading doubt or starting a dialogue about something you know very little about, I recommend you do more research on to subject. It's quite obvious that you haven't taken this approach with NRU. You owe it to yourself and the readers of your blog whom respect your opinion to conduct unbiased research about any subject before spreading innuendo and criticizm. Unlike yourself, I have done extensive research about NRU before I purchased the education. If you'd like some help with your research then email me. I'd be glad to assist you in your investigation. Then perhaps you can intelligently discuss your opinion about NRU. I look forward to hearing from you.

With all due respect Rick, the very structure of NRU incentivizing recruitment wreaks of a conflict of interest. About 15 years ago, I fell for a MLM scheme as all of it's current members who stood to make a considerable amount of money with each new "recruit" praised how wonderful the program was and how you couldn't go wrong by joining. If NRU was so wonderful, they wouldn't have to incentivize recruitment by current members. I have no doubt that there teachings are beneficial to some of their members but I remain skeptical about any institution that pays kickbacks to its members for bringing in new "blood." Makes all of your praise seem a bit disingenuous.

As far as "researching" NRU before making comments, this blog simply points to another NRU post on Cockeyed. My blog is my opinion. That's precisely what a web log (blog) is. My opinion continues to be that NRU seems a bit fishy to me particularly as so many of you who stand to profit when someone signs up are posting positive comments on this blog.

My husband and I didn't go into it to do the marketing. That is entirely up to you. No one says you must do that in order to make money. You can make that money back through learning to invest. Learning how to read the market, learning what neighborhoods are ripe for the picking, which ones are not, and the correct strategy to use for either.
The education has so much information and the support to get you from reading material in books to applying it in real life is there. Sure, you could buy a book or dvd, I'd say 90% of the time it ends up dusty and useless, whereas here we actually have knowledgable people guiding us through our deal and holding our hands. It's scary if you've never invested, and thats the type of support I needed to get me going.
The information we learned in the tax class alone is enough to offset entire cost of the education. NRU only has recommendation for accredidation because we dont teach basic math or english skills. Besides, where does "real education" take people. Working for someone else 40-50 hours a week. Even if you do make good money, when do you have time to enjoy it? Its called midlife crisis.
How many people go to college, graduate and then have no idea what to do with their lives and just take the easiest path to just get by?
Bottomline, how does posting this benefit me in any way? It doesn't. I just wanted to state my positive opinion on the compnay. Thanks

Thanks Nina. How did you find my blog? What I still find puzzling is that so many proponents of NRU have gathered here at TrueGotham to praise the company. Perhaps it is indeed because you love everything that NRU is doing and you just want to spread the word but I find it a bit suspect. This is turning into quite a nice advertising forum for NRU and I can't but wonder if somehow someone hasn't asked you guys to visit my site and leave positive comments.

Having said that, if there are indeed so many "real" proponents of what NRU is doing then good for them...and their students.

I still think the incentivized marketing is a conflict and lessens NRU's credibility in my eyes. Good news is I won't be studying there anyway so they're not losing my "tuition."

I'm curious to hear more about NRU student experiences as well as the credentials of its "professors." No doubt I'm going to hear more about it whether I like it or not, but I'm finding this all very interesting.

All the comments have piqued my curiousity even further so I googled NRU and some of it's "Alum" and "Faculty."

Most notable is the Wikipedia entry for NRU which has an entire section dedicated to "Controversy."

Nouveau Riche University is the subject of some controversy which states:

Inside Tucson Business claims that the students of Nouveau Riche University bear all the risk of investing, while the university collects non-refundable fees and commissions. Inside Tucson Business also claims that Nouveau Riche University is required by state law to be licensed by the Arizona State Board of Postsecondary Education, which it is not.[4]

Fortune Small Business points out that Investor Concierge markets properties as "positive cash flow", but the cash flow is often positive only due to temporary subsidies, putting the buyer at risk of negative cash flow after the subsidies expire.[2]

Founder Jim Piccolo filed for bankruptcy in 1990.[2] In 1991, he pled guilty to felony auto theft, which was reduced to a misdemeanor after three years probation.[2] Despite his enthusiam for real estate, Jim Piccolo claims to have not bought any property lately.[2]

Nouveau Riche University has some elements of a multi-level marketing scheme[1][4]. For instance, the commission for the first two sales by a student go to the student's "mentor" (who recruited the student), not the student. However, NRU claims [1] it is not a multi-level marketing scheme.

$16,000 gives you two years of "College"??? False, there is a 1 week class a couple of times a year for which the person who already paid $16,000, has to also pay travel expenses to attend. AND the training is in Arizona. Bum deal if you ask me.

And most of the information that is taught in these classes is easily obtained via the internet or books or at much less of a cost than $16,000. If you want to obtain real estate knowledge don't use Nouveau Riche, do some research and study up on this yourself. Save your $16,000 for your first down payment.

It looks like it's been a while since someone has added to the blog. This is my first time ever doing something like this.
I'm researching Nouveau Riche University through a friend of mine. Here's my take and no offense to any members of NRU. Education is worth as much as you want to pay for it and use it. Yes, use it. All the negative blogs I have read indicate some kind of failure. Failure on the part of a NRU member or the failure on the part of someone who has tried it.
I have been to a meeting to see what it's all about. One thing I learned is that if you do what they tell you to do the "system" will work. I agree with Joe's comments. Is the tuition worth it? I guess if I were to pay that much for an education I sure would want to make it worth while. If things didn't work out for you I would have to ask, what effort did you put in to it to make it work for you? Did you try to get your money's worth?
I also agree there are other sources to learn from and become educated in the real estate industry. But a one stop shop such as NRU may benifit someone looking for that type of information. Myself? I'm not interested because I don't need to know what tax breaks I can get for investing certain ways - my tax advisor assists me with that. I don't want to "sell" education to anyone else. Nor do I want to do the flip thing. Basically I want to be a straw buyer. I have a team already - I have access to properties in a desirable area and all I want to do is build and sell.
The fact that there is much web traffic about NRU - for and against - says to me that "something" is going on. I guess when you build your own business you have to represent it well, defend it if it's needed, but most importantly make it work for you. It's too bad there have been some folks out there that have been disappointed because of the choice they made "signing up". If you thought you were misled I hope you did your research first. Many excited young "recruits" have a tendancy to misrepresent themselves and/or an institution without knowing it; many times due to the excitement of their own successes. It's my estimation that folks try to get into things that they think may be a "get rich venture" and at 45 years of age I know that the only way to really make it in life is to do it the old fashion way - good, hard; honest work.
I turned on some of the VIPs at the meeting on to my partner in Washington State about that desirable property. We'll see if he calls and talks with him. I was telling him my situation about being a straw buyer and the contacts I had in Washington. I found it kind of ironic that "I was already there". That tells me I probably won't need NRU for my ventures.
Folks - NRU is basically a young entity. It looks as though they have went through some growing pains; maybe still are. Do your research and determine whether or not it is for you. If some folks are successful then something has to be working correctly.
Thanks Doug for this forum - it has been educating.

My husband and I attended the two-day informational on NR, and we're leaning towards "joining." In a way, it feels like we have to decide whether to drink the Kool-Aid or not.

The cons: everyone involved seems a bit too slick to me, I've heard about Jim Piccolo's criminal and financial troubles, the cost is SO HIGH and it irritates the hell out of us that 1/2 of our tuition lines the pockets of the guy who brought us to this Amway-like rah rah event...

The pros: we are timid, first-time investors and even though we know we could find all of the info through networking, reading and research, we just don't think we'd be able to DO all of that along with our regular, full-time jobs. An investment real estate agent I just met rolled her eyes when I told her we were going to sign up for Nouveau Riche. She conceded that the classes were actually really good, but when the most important part of the process is the BUYING of the property, why not just enlist the help of someone like her to do all the work for FREE (since buyer's agents are paid by the seller)? It makes a lot of sense....

But we are proably going to drink the Kool-Aid anyway....

By the way, the discussion about "accreditation" really doesn't have any relevancy. We've already been to grad school - and NR certainly isn't a Master's Degree! I think a lot of people are confused about what accreditation really means and why/if it matters when you're taking continuing education classes.

Thanks Kirsten,

I must say that all of the activity regarding this post has truly piqued my interest. That said, I still remain puzzled by NR and the structure in which students are given half of your tuition for saying the place is great...seems like a major conflict to me. For the record, part of the business of professional and successful real estate agents is to navigate the market for buyer/investors just like you and as you state, that service is free. Trick is finding someone you can trust with the knowledge of the market that interests you.

If you do decide to drink the Kool-Aid, please stop by and let us know how it tastes.

There are people that have stated that people should not post anything if they have not been to the college or have bought the package. Well we did, and for a year and a half we worked it hard. We did everythig the senior regional preisendt and her two VP's here in southern California told us to do (We were teachable). We were even told that if we bought the Regents package we would be included in the cruise to the Bahamas. No, no cruise, but we did get two properties. They are both undervalued and both took several months to rent, when the RME (real market experts) told us that they had people ready to be tenanted. A person can do the same or better doing their own deals in their comunity that buying something that they have never seen....and they really do not want you to go see. Yes they post pretty pictures but it is not what you are buying. It even state in the concierge for some of the properties that they have posted.
We decided to go to Colorado and take a look at what we had bought. Due to a sad circumstance when my daughter broke her arm before having the chance of seeng the second property, we needed to drive back home. Now I am finding out the that home has had electrtical problems form the begining and we are again strugling to get it rented.
The classes can not teach you anything or everything that you need to know about that subject. Three to twelve hours is not enough, especially when they are giving examples and stories of how they did their deals. Thing is, their deals only work in their states, and not in the states that you are investing in, through the Concierge. Also in their books they clearly state that the information is JUST a sample and it can NOT be duplicated or used without their permission. AND They will NOT Permit it. Why don't they have properties in the west coast. It's a hot market, just like Florida or up in the New England states. Then when you tell these guys that you are interested in comming to see your property(s) They are not able to be there because they are busy or vacationing.
That said, it also goes to say that your (upline) who are so called mentors, are not there because they are so bussy trying to make other deal. They do not want to deal with you, if you are not bringing in people for them. A year ago at the LA convention several dozen ISA's including my wife and I were walking around the conventtion with a "silver plater with homes" directing the croud to the NR booth, as we were told that out of all those poeople we were all going to get a good number of them . My wife and I worked both days all day including paying $100 each to get in, and another $100 to rent a Tux(required), Two to three weeks later, after constantly calling and asking for the leads that were told that we were going to get, we only got four. Two had nerever heard of NR, 1 was from the mid west and was not interested, and the last one was a bad number and e-mail. Later on at another two day intesnsive several Vp's were gloating that they had made several hundred thousands from these leands that they worked on and that everybody else can do the same.
If you are thiking or have the slightest negative felling of not being part of this, that is good!!! You are human. That means that you have instincts. God has given us this sense and sometimes we loose track of it or we shut it down because some of these deals sound so good and being hungry, which these people know that we are, they throw the bait and we go after it. We did. Now we are loosing everythig, like many other people because we did what they told us.
Tell you what. Go to these one or two day conferences/intensives and ask everyone that you can. "How long have they been part of this comunity?" You are going to find out that 95+% of these people have been there less than a year. the others are VP's or wanabees that are just giving you a line. Also, if they have been there a while ask them about their properties, they shoul not be ashaimed about giving you the info. It is public info that you can reference and see if its realy true. Dont take RE, legal, or financial advice from someone that is worst than you. Don't take my advise. Ask aroud, do your homework befvore you fork out those 20some K's PLUS, and I mean plus, because you need to pay for meetings, conferences, lodging (not cheap), so called training, etc. etc.

everything Victor Anaya is saying is correct. The whole system is based on getting more and more people to go to NRU. There are not many successful Realestate investors there. Most of the people you meet has been with NRU for less than a year? WHY? because the successful ones don't have time to go to seminars!? I don't think so. There is alot of lies and slick talk that these guys do. They try to be as slick as possible and they almost had me and a saint came to one of the seminar and saved me.

there are cheaper way to get info that they sale. Get it here http://www.johntreed.com/REIbooks.html

The founder of this "University" is a TWICE CONVICTED FELON within the past 5 years. One for Fraud and the other for Car Theft. How legit do you think they are? Come on. SCAM SCAM SCAM

I spent close to $20k on my NRU 'education', followed through with all the recommendations and services that are offered, networked myself...went completely by the 'book' with regards to my effort to make this work.

It is a scam. The university does teach real techniques/methods, however this is the same material that you can find on the internet or your local library. A problem with the education is that most of it trends on very thin ice - legally.

At it's very core, NRU is a MLM scam that is disguised by a sub-par education. Go to any of the learning events at your local recruiters office, and you can see the pyramid being built right in front of your eyes. I advise anyone that is even slightly thinking of attending or looking into this to take a hugh pass! I wasted a ton of money that I will be paying back for years, and in hindsight I should have done deep research and not ignored the naysayers.

I have been self-employed as a Realtor and also Mortgage lender for the past 21 years. I watched both my sister and brother whom one graduated from USC and one from CAL Berkeley with DEGREES. Only one of them is actually working in the field that they intended to be in and the other had to change careers after 10 years because they got discouraged because the industry they wanted kept saying they needed to have more experience? I never went to college. I have made more money then they ever have after they had to spend Thousands of dollars on these Accredited Schools. I only took a home study course.
I have met many successful people in my lifetime - and I mean ones who have achieved financial freedom and it wasn't because they went to college. They all just had a dream - a desire to succeed in life whatever success meant to them. To most of them it was to have financial freedom but not by having a 9-5 job, no time-card - no boss - and especially to have time with their families. No matter what business is out there that is being called a scam or MLM -theres always someone who has to say these negative things because that person does not really have a dream or a desire strong enough. Let me give you a great example -if you go online right now and google AMWAY OR QUIXTAR - you see the same negative as you see about NRU - but how long has AMWAY OR QUIXTAR or even HERBALIFE been around? Are they large corporations now? Aren't there alot of wealthy people from these companies that started last year or even 20 - 30 years ago? If anything - I mean anything - just being around any of these companies there is something they all teach and that is for YOU to become a BETTER person a better person in your family life and business. And they want to see you enjoy LIFE. So praise God that there are people out there that care about you - it is only you who sees the negative in everything and can't see what good can come out of it - don't you realize that someone cared about your success cause they took the time out to even share an opportunity with you? In whatever business it is - that person doesn't succeed unless you succeed.

here is proof that NRU is a scam and a MLM

http://www.scribd.com/doc/2023465/Proof-NRU-is-scam-N-MLM

you can read more about it here. http://nruscam.wordpress.com/

This has been a most interesting site I stumbled on by accident. I don't know whether NR is a scam or not -and really don't care. However, NR is not a MLM. And MLM's are not scam's. Most MLM's offer quality products and compensate their sales force according to their own compensation plans. MLM's offer the 'average Joe' opportunity to earn incredible money or just extra money - in their spare time. MLM's are built on sweat equity and you get paid according to your efforts. They are not "get rich quick scheme's" as they often take years to build into serious wealth. Corporations are true pyramids if you want to get technical. You will never make more money than the boss above you, or the boss above him, or the owner etc. You rarely will promote around the boss above you. In MLM's you are paid according to your own efforts and skills, not according to your degree or if you kissed the right corporate butt. So that being said, MLM's are often most attacked by the person who joined a company and then complained because sales did not fall in his lap while he was sitting on the couch eating his fried chicken. I don't know if NR is a scam or not, but MLM's are a legitimate business opportunity for everyone. You just have to find the product/company you can believe in and work with. Thanks for listening!

Wow! Very good comments Kimberly. I have a bachelor's degree in civil engineering and work for 12 years on a city government and found out that I needed to do something else if I have to get out of a 9-5 job and really become financially free. Most people look at an opportunity and hope that it will do magic for them - like a pill but it doesn't 'cause you still have to work on it. It's been about 7 years now that I'm out of my engineer's job! My parents thanked me that I didn't listen to them when they asked to keep my 9-5 job.

I am a real estate broker for almost ten years now and have been a real estate investor since 1989 and have taken so many seminars and classes to almost everyone that offers them. If you want to be successful, you'll have to check out every opportunity that comes your way! If your expenses is still higher than your passive income (that means if you quit your job - creditors start calling) you owe it to yourself and your family to do something new. I've checked out NRU and borrowed their Real Estate Encyclopedia and find that their educational product is way superior compared to others I went to. The workbook, CDs and DVDs were more informational and NO upselling on their next product or coaching. I understand that the tuition cost is your only investment with the college. I know some people mentioned about spending on their travel but that's the same with others that offer seminars.

Lastly, everyone that reads this blog should take time and compare NRU to other companies that offers real estate education with success ratio, quality, structure, systems, growth and support (and of course pricing)! Also check out if University of Phoenix is a scam :-)

My husband's friend is trying to drag him into this and I decided to do a google search fo "Nouveau Riche scam", as I suspected it was one. Thanks for the info! My husband is nice, but very trusting and easily influenced. He told the guy he won't do it because his wife won't let him. The guy said, "Why don't I bring her to one of the meetings?"

Um, no.

I had the same thoughts some of you here have had - that there are far less expensive ways to do real estate investing. If my husband is going to spend $16,000 on college, he might as well go to a real one and build on the skills he already has.

One thing I did not like - When he came back from the meeting, he said he was told they don't have financial aid because of being such a small university (and they said it is accredited and considered one of the best continuing education schools), but they said you can apply for financial aid at a community college and use the money at Nouveau Riche.

Does that strike anyone else as wrong?

I'm going to show this site to his friend and let him know he's being ripped off too.

Mandy

So I went to a NR meeting last night. I wouldn't have even gone had I not been invited by the most upstanding guy I know. He was already successful in real estate on a smaller scale before NR (4 rental properties with some cash flow). He's paid his tuition (with a student loan) and has been through a few courses. He says they're good so far. When you pay your tuition you can take a partner through the courses as well. I know a few people who's wifes are going through the courses with them. The guys work the real estate deals, their wives focus more on recruiting. Bottom line: I couldn't sleep last night because I can sense how much money can be made. Have you ever heard of 12prodaily.com? Ya, they eventually went under but I know 3 or 4 people that made tens of thousands of dollars before it did. And that was a full on Ponzi scheme! I may join NR. If they stay around long enough, I guarantee I can make money!
Thanks.

I just wanted to say that NR has changed my life in so many positive ways. It scares me to think that I almost didn't spend the under priced payment for the Regents Tuition. Not only have I grown as a person as a result of NR but I have surpassed my annual income in a little over 4 months with the company!
I thank the lord up above that I answered that ad for becoming a real estate investor!!

To all who say they are making Millions. Let's put your money where your BIG mouths are. Let's see some tax returns, HUD,s lease agreements and credit reports. What are the percentage of students making money compared to the number of students? How many have lost money? Just a queston. Flips, short sales, actions, buy and holds, etc isn't rocket science. It's knowing the market and buying right.

Napoleon Hill, one of the wealthiest men of his time, said; "Opinions are the world's cheapest commodity and that is why everyone is quick to buy into them." I am so amazed at the number of people that use a public blogspot as significant research. I am not hear to say that NRU is the best thing in the world and you will make millions, but i will say that it has grown and improved continually with the same problems that any company would face being represented by independents. Being a part of Nouveau has improved several areas of my life and it is because I focused on the company and the system, and not the stupid people that screw it up.

Well said Paul, or should I say Napoleon.

Rich.. email me. I can show you the stuff you are seeking... also we can talk about you getting started with NR a2theb311@yahoo.com

I joined NRU about a Year ago and i have seen many people advance in the Real Estate side and the Marketing side. It is just like any "JOB" that you would get the more effort and time that you put into the more you get out of it. Some may say scam others say MLM. I am very confused the marketing side is just like any sales job weather from insurance to a car salesman. You have to prove you are willing to make money before you can make money. Also yes you can find some of the info on the "internet" but will it actually answer %100 of your questions?

in response to bryce m and others that NRU is just like any other job, hard work makes money, how many jobs have any of you had that requires you to pay $16,000 up front and have to give up sales you make, four i think, before you can start earning money, sounds like a scam to me. HEY everyone send me some money then i will tell you how to make money. LOL LOL LOL

Scott.. StFu.. you are one simple minded fool. email jason and I guarantee you will join the NR community when you see what he has

Scott-
you really sound foolish. You should do your due diligence before posting such rubish

I am reading this wondering if any one has any real experience with these NR recruits on a macro level? I have the "pleasure" of dealing with these people everytime they come in to town. I am not sure what they are told by thier "mentors" but it is not acceptable to try to sell service employees on getting them out of thier "dead end" jobs and joining them to make millions. I have a hard enough time staffing a hotel with one of the most competative job markets in the country, why now must my staff be told they are only as good as what they are doing. What happened to personal pride? With the constant barage also comes theft. It is not appropriate to take a laundry bag and fill it with free food so that you can have sustinance for the days events. A buffet is not a take out service. If you are too broke to afford three meals a day,then perhaps 16k tuition was a bad decicion. Also whay if you are all sooooo financially secure do you nickle and dime every cost.
Can i get a reduced rate on the tuition? probably not. To all the Yay Sayes out there. It is not only in appropriate to solicit on the clock employees away from thier business, in the state of AZ it is also ILLEGAL. but i guess a company founded by a felon is bound to leave a trail of continued crime. He is just using you to do it for him. So far my experience with hundreds of NR people has been TERRIBLE!! Rude, Inconsiderate, Abusive, and CHEAP, people.

Well let me see Scott well in the insurance industry you have to give up more than that in sales also a car dealership you have to interesting huh weird. In so many different market places you see the first few sales go out the window. Also on the other note you do not have to buy to sell the product obviously you are so stuck in pinching your penny's .That or you want everything for nothing. Compare it to other Real Estate educational Products. You will see it beats the S**T out of them. Also what you learn and how you apply it are two separate things.

Bryce, you just said it yourseelf... Their PRODUCTS are better than anyone elses. That may in fact be a truism, Are we to belive that thier PRODUCT is worth 16 grand. If it was purely long term mentored teachings and not just 60% stories on who made millions quickly then perhaps they could get away with calling themselfes a college. who cares about the stories of the same people over and over again. I want to see a complete new set of "millionaires" everytime i attend a "learning seminar"
As with Amway, NAA and such companys, NR only has a handfull of unbelievable success stories and they repete them over and over. 16k to hear how rich someone else is and get a few books. do we now have to buy the tapes to keep us motivated, then the soap, and god help us if we need to start recruiting to make money and turning ourselfes into liars. Why after paying 16k do i need to recruit. Is that not the job of NR or will that bring too much attention onto the already tarnished image that thier great leader has.
Get a grip people and have an origional thought for once. Get into real estate as something to do that interests you and that you have always been curious about. Don't let some scripted, cool aid drinking zealot tell you that they have found the path to shangrila, and unless you want to be a failure and a looser then join the parade. This is one pijama party away from heavens gate. same principals of recruitment used in Waco, TX, The feds uncovered stacks of recriuting script that VERY closely resembles the script that is used for NR people to recruit. Very scary if you ask me. not that you did, but none the less i thought it important to let you all know the path your on.

Wow, very profound. WACO huh? I cannot believe anyone would make a connection like that. Obviously you haven't ever read the book RICH DAD POOR DAD. It might shed some light on why there is a marketing side also. My wife and I are doing great in this and I never sell this product, it sells itself. It is for those who are ready to change their lives. It is not for everyone and it is okay to be afraid of the unknown. I looked at it for 6 months and I saw what it did for others. Most started marketing then after a few months started into Real Estate.

The community is what helps everyone that gets involved. What other company out there has mentors and people to partner up with that help you on your first few deals until you're comfortable with what you're doing? Last time I checked all that is out there are the "GURUS" and all they do is sell you and leave you.

I'm sorry you didn't have a good experience with Nouveau Riche. I wish you the best in what you do, because you'll probably be doing it forever.

I've checked out NR a month ago and they are a pretty good company. The system, tools, support and most of all the quality of education they provide. With the quality of instructors they have its unparalleled! I went to the College on Feb 25-Mar 1 and have experienced the best college I've had. Having 2 bachelor's degrees and in master degree program - I'd say it's way better than I was expecting! $16k is a big issue and I understand it's not for everyone - It requires big people with big dreams to do it! In a month long I got certified and made $48k. That's $32k profit in 30 days and that's just the marketing side! I always thought that the marketing side of NR is just a bonus to students because the real value is in education. Helping students become a real estate investor!

Now, Being skeptical is healthy. But to be skeptical for the sake of being skeptical is deterrent to your success! I suggest that you do your due diligence and follow your own findings and studies. Be a student not a follower! take control of your future! Hope this helps at least one person :-)

Bryce well said thats all i have to say read rich dad poor dad. Far far from being a waco.Good luck to all of you i hope you find something that makes you happy so you dont have to be on here bashing good people and awesome companies.
God bless you may you find peace in your self and your lives.

This is for anyone who is considering joining NR.

The Rich Keep Getting Richer, the Poor Keep Getting Poorer, and Middle Class is Slowly Becoming the LOWER CLASS? WOW! What a BOLD statement. Let me tell you why it's true. Before I get into it though, let me tell you a little bit about me, and what I have discovered while getting where I am in life... I didn't start life with a Silver Spoon in my mouth. In fact, I was lucky to have a Wooden Spoon in my mouth. I grew up in Salt Lake City Utah, with a family of 6.
I had good parents, that taught me what they knew... As I grew up, I was taught to work hard, get good grades, and get a good job. Not only get a good job, but get a safe and secure job. So that's what I did... I worked up from customer service positions, to sales positions, to management positions, and back to sales positions (I learned that sales people made more than their managers). I had done quite well for myself. By the age of 22, I was making near $75,000 a year. I thought I was set. The next year I made more sales and was rewarded with a $20,000 paycut! That's right, $20,000! I had gone from making $75,000 a year to $54,000, and I worked more hours, and made more sales! Did I leave? NO! I kept working there for another year. I figured that if I 'worked harder', and increased my production, things would even themselves out. BOY WAS I WRONG!
I increased my sales again, and I went from $54,000 a year, to making $45,000 a year! Not as big a paycut as the year before, but WHOA! This is when I finally started to look for something new... Over the next few years, I experienced the same thing with other companies.
HMMM...I was starting to get frustrated!
I had made sales my career, and it was falling apart. How can companies do this? I was their life source. Without me, they made no money? HELLO... What's going on! Are these companies STUPID!?
Aren't they in business to make money?
That's when it hit me... There was ALWAYS someone else, right behind me, that would gladly step up to take my position, and a lot of times at less pay.
No wonder companies are cutting pay, laying off employees, cutting benfits, etc...It allows owners to increase their profits, while decreasing yours. THEY'RE THE ONES IN CONTROL!! NOT YOU!! OUCH! I was going to get out! I didn't care what it took. I was not going to let someone else control my future, and my outcome in life. Do you believe me? Look around at how many people you know personally that are looking for work, have recently been looking for work, or are talking about possibilities of layoffs. I was searching... I was not going to leave my future in the hands of someone else. I was on a mission to create wealth and independence for my family. FINALLY! A Break... I was invited by a friend, to "a meeting." Oh no, the dreaded meeting. I had avoided them like the plague before because of prior experiences in MLM...but for some reason, this time I went. I was surprised! This was no MLM! It was a group of people just like me, that wanted a better life, and they were getting it. But what about hard work?
These guys were working 20-30 hrs per week, and making $20-30,000 per month! WHAT?!? They were actually enjoying what they did, and enjoying the lifestyle it provided. I couldn't believe it. I wanted in! But who were they and what were they doing? It was Nouveau Riche and they were building up a lot of cash and where were they all putting that cash? into REAL ESTATE... Hmm...I had known for a long time that real estate was where the wealthy held their money. Heck, I had made $34,000 on my first home, and I only lived in it for 19 months (One would think I would have figured it out then, but I didn't). Finally...I had found a way out! I could take control of my life. So what's so different about this group of people? The answer is in the question. THE PEOPLE! I was not on my own. I had found a community of 'Like Minded Individuals' that were actually having the success that I wanted. They were changing the tides. No longer would I have to settle for the life I had. I AM IN CONTROL Here's the MOST important question... Can it work for you? Maybe.. The problem, is most people can't follow directions. They think they already know the 'Best' way to do things...I could show you everything that I have learned, and odds are you still won't do anything. WHY?!The reason is FEAR! Fear seems to be an epidemic in our society. We fear beginnings; we fear endings. We fear changing; we fear "staying stuck." We fear success; we fear failure. We fear living; we fear dying! You are no different than me, or any other successful individual, other than you have not moved yet, from your place of comfort...Think about that for a minute... I made $30K last month and am loking at $40K this month..I'm proof that it doesn't have to be this way. No matter what we fear, we CAN handle whatever happens! So... Are you ready to learn how to create wealth for yourself and your family?

We'll see...

Hey Blog master,

What happened? are you healthy? I have not heard your opinion in several months. I am one who has had past "adventures" in the MLM/Network marketing world and it is not for me. I am one who has decided to start a legitimate enterprise and work to build it with time tested values and work. It is growing slowly, but it also did not cost me 16K to learn how it is done either.
So the big bucks are there for those who are eager and willing enough to drop it to an "recruiter", I prefer to drop it in Vegas. I may not have something to show later, but I will enjoy the ride.
I was offered this opportunity several years ago, and again just recently-which is how I came to this blog-doing due diligence on the product since the propaganda is wild and rampant on the "net, have not found solid information...Yet! When I do you'll get the link. Positive or negative, the truth should be available somewhere.
Keep up the good work on this blog, your efforts will not go unnoticed. Morals, values and reputation are still what the majority of the human race seeks.

Hey Powderseeker,

Thanks for the kind words. Not sick at all just amazed at how this post has taken off as a bulltin board of sorts for NRU! I have no personal experience with the place so I'm leaving comments up to those with first hand experience and others who are skeptical.

I remain skeptical. I see that it works for some but I still suspect that those who post positive comments about their experiences are doing so to fill their own "hopper" so to speak. The more they rave about the place, the more likely they will be to convinve others to join thereby lining their own pockets. I don't know of any other "university" that pays kickbacks for "enrolling" friends and family.

I was approached by a family friend about NRU today and am just beginning research. This reminds me of the gold rush. It was the guys selling picks and shovels who made the millions, not the miners. NRU is selling shovels. One in one million miners found any gold. You either buy or you don't. I have been in real estate for the past 17 years and I can tell you exactly how to do what they are doing. I have done it myself. This is a wonderful opportunity, go get yours, just do it smart and hire a good, recommended real estate agent. My recommendation . . . buy apartment buildings, not single family homes. If a house goes vacant, you lose all of your income. If an apartment goes vacant, you lose 1/10 or 1/20th of your income. Good luck to all.

By the way . . . I would guess that Robert Kiyosaki is making way more money on his books and games than he ever did in real estate.

Some of the most successful entrepreneurs were "C" students in high school and didn't graduate or even attend a traditional college at all.(myself included). You see, we as entrepreneurs knew that we were learning much of nothing in high school. Isn't it funny that the majority of "A" students and college grads would sell their diplomas if given the chance? Think about that for a minute...

The "A" students are waiting tables at the restaurants I eat at, they are parking my hummer in valet stalls, they are catering food at the seminars I attend, they are working at gas stations and restaurants I own.

The "A" students are working at Wal-Mart or McDonald's at age 80 to make ends meet. It is truly a sad sad world. It is not their fault, IT'S ALL THEY WERE TAUGHT! God bless all of the "A" students for all your hard work and going through life making slave wages.

Adam,

Your post is completely absurd. However, even if we grant your claims, they have nothing to do with whether or not "attendance" at NRU is a viable path to entrepreneurial success.

Wow! When are you guys going to learn? Going to NR does not guarantee success which is no different than other university or colleges. NR provides a curriculum that teaches you to be a good business person and be self-employed using real estate. NR provides a complete guide from establishing a business plan and implementation to wealth creation, asset protection and saving taxes. NR provides the tools, structure, system and support to allow individual to be successful. As a bonus, they offer 50% commission on their educational products which is optional for students and on my personal opinion is a really good opportunity for someone to make money while learning the real estate investing. If you look around there's no other company doing it? Some people ask why is NR doing that? I don't know! I'm just glad they do :-) I'd like to speculate any reasons but the people here would make a big deal out of it as I realize that most of you are not really interested in knowing.

NR education is about financial literacy and if you're interested, do your own due diligence. I am a Real Estate Broker and in real estate since 1990 and has been investing since 1989 - very few real estate agents know about real estate investing, in fact 95% of them are not even producing and 90% don't have any real estate investment property and if they do look at their numbers. Also, you'd never want your financial future be placed in the hands of someone else.

You have a chance to take control of your future by educating yourself and it doesn't have to be at NR. But do something NEW today if you haven't yet!

Yet more obfuscation and red herrings from an NRU supporter.

"Going to NR does not guarantee success which is no different than other university or colleges."

The appropriate question to ask is always: "What's my likely return on investment?"

Getting an MBA from Harvard, for example, is, in general, a good investment. An MBA from the University of Phoenix? Probably not so much.

What about NRU? Where are the statistics that show how their "graduates" fare? Wouldn't NRU want to publicize them, if they were as positive as their promotional materials would have you believe? Why is it so difficult to get concrete, independently verifiable data from supposedly successful NRU students? As you can see from my own investigations into these questions (click my pseudonym's link), no one seems willing to provide such information.

In fact, all evidence points to repeated failure on the part of NRU ISAs, as you can see if you check out any of the MANY sites that the cockeyed.com article (linked to above in the original post) references. Most, if not all, of them are now dead. Why would they be dead, if the ISAs who put them up were still doing well?

If you can check out this websites hopefully it will help: graduateriche.com, nouveauricheuniversity.blogharbor.com, nruimin.com. It's education and your return is dependent on your efforts and implementing what you learn. The question should be what is the quality of education compare to others who offer the same classes? Based on my experience, its way better than a whole bunch of others I went to and I've gone to so many since 1989. Also check out nouveauriche.com and find out about our classes and the quality of instructors who are practitioners. Imagine what you can learn about finances and real estate investing... Also, the great thing about NR is the local community that provides support on individual that need help either in investing or marketing.

Also, with Harvard student application ratio at 10% acceptance - I don't know how many people could go and even as a student at Harvard, no employer will be willing to pay at a rate equivalent to your degree (if you could even graduate). Even Harvard don't have a 100% success rate. Though, I like the stats that shows 66% of the students that graduate are self-employed :-) At NR you could be a "C" or "D" students and make it to the top financially - it's all about self-development and right attitude towards learning and action! The only way I can think of any students that fail at NR is either didn't implement what they learn about investing or thought they were smart and didn't need support or both... The point is go where you see you have the most probability of succeeding and get the most return on what's available to you. If you want to work for someone else with a salary cap and restricted hours and can honestly say you're happy, then go for it. For some that's tired of making someone else wealthy - come to Nouveau Riche and check us out!

All of what is said is rather interesting but I think that feeding into Mr. Heddings skeptism is only making him sit back and laugh at all. Not everyone is ready to make a change in their lives. That is absolutely okay! The NR community is something to be amazed but like every thing else there are good people and bad. Nobody in the company says that you have to do the marketing! If you don't want to don't! Most of the instructors don't which is why they are teaching the classes. Nouveau University is in the final stages of becoming accredited. But you don't have to believe me and you probably won't. I have personally met Jim Piccolo and say what you will but he is the kindest most heartfelt individuals I have ever met. Everyone makes mistakes and pays for them. I do not judge people on what they have done but what they currently do. You can say that pro NRU people are only saying it for the money but the way I see everyone and everything has good and bad things and you just have to find one that fits you! I am sure that Mr. Heddings is a wonderful person but that does not mean that everyone will like him. Some people will and some people won't. Just like any relationship you get out of NRU what you put into it.

Well now I can't just "sit back and laugh" now that I have been named in a comment can I? For the record, I don't find any of this particularly funny.

This post from February 2007 has taken on a path of it's own with no direction from me. I'm not laughing, just posting comments from all of you who seem to know a lot more about this than I. I simply expressed an opinion last year and 57 comments later it appears that many people searching for info on NRU are visiting this blog and there is some good stuff on here having nothing to do with NRU...if I do say so myself.

I will continue to post comments but have none further of my own.

Good luck to all of you.

"...what is the quality of education compare to others who offer the same classes?"

I disagree that this is *the* pertinent question, but it's certainly a fair one.

RE Investor, I invite you to take a look at this web page, which is promotional site for one of the myriad NRU ISAs out there...

http://re-education.info/re101.html

My question for you: Is this site an example of the level of "education" and "financial literacy" that students can expect from an NRU "course"?

If your answer is "Yes" then I rest my case. NRU is a sham through-and-through.

If your answer is "No" then I am left to wonder: How can NRU allow that sort of rampant misrepresentation, oversimplification, and distortion, if its goal is to be taken seriously as a source of quality investment instruction?

Wow. Guess what?

"Nouveau Riche University is now Nouveau Riche"

...according to this web site:

http://www.nruniversity.com/

It's all about the education, huh?

Roger wrote: "Unless you have actually attended NRU, be a little less quick to pass judgement. I have been a sucker for the late night guru's that teach you how to become successful in real estate."

Sounds like you're still a sucker, Roger.

And: "Brad? Overpriced education?!?! How much is a degree from Depaul University, Stanford, UCLA? How many graduates are walking around with one of these overpriced degrees and not even working in the field they majored?"

True, a lot of people overpay for education. But at least a degree from an accredited institution means that there's been something of a well-rounded education by people with actual credentials in their fields, and carries some weight even outside of people's fields of study. And does anyone question that a degree from Stanford opens doors? I obtained a B.A. from Arizona State University and an M.A. from the University of Arizona in philosophy and cognitive science, and I quickly decided academia wasn't for me. Although I work outside of the field of philosophy, having an advanced degree hasn't hurt me any--the skills I learned about argumentation and reasoning are beneficial in most any endeavor. And I'm bringing up the average pay of people with philosophy degrees...

But I wouldn't consider paying $16K to an unaccredited school run by a guy with a criminal history who is clearly "living large" from his scheme. Seeing that doesn't make me think "If I give him money, he can show me how to be like him." It makes me think "This looks like Las Vegas, which wasn't built on the contributions of winners."

Well the reason for that is we are in the midst of changing to a fully accredited online college just like the university of phonex That is what we are turning into. But we will not ust teach you how to get a job then help run a company we will show teach you how to start up your own business.

Let me guess...

This accredited online college of yours... It's going to teach people how to start up a business that consists of trying to convince people to take classes where they'll learn how to start up a business that involves convincing people to take classes in which students learn ways to start up a business for which the main goal is to convince potential students that they can start up a business wherein they'll try to convince people to take classes that are about how to start up a business that's all about persuading people to start up a business...

Sounds like an awesome plan.

Listen, all you have to do is check the numbers online. 76% of NR students obtain properties as a result of attending our college (myself included). With a 76% success rate, NR is in the midst of become a fully accredited University. The same people that set up the curriculum for the "University of Phoenix" is currently working our curriculum. We will be the first ever FULLY ACCREDITED Real Estate Investing/entrepreneurial University in the next few weeks. The stats don't lie! enough said! O U T ! ! !

Well, at least some people are trying to make changes in their lives. I don't really care what people do as long as they are happy, and I am happy doing what I am doing. It really gives me a sense of accomplishment. There are some people out there who do nothing but complain and find nothing but the bad in everything. They are miserable and all I have to say is QUIT complaing and do something about it. It's really simple and NR makes it so you can get an MBA through them. It's awesome either way even if they do do a commission on it because it will allow you to start up a business in whatever makes you happy. Some won't like it but you are the ones who always have to be right I guess. I can defend NR and you will say Scam, Rip off, and numerous other things. You say because I am defending it there is a reason other than what I say.. But if no one defends it you would say Scam rip off etc. etc. THIS IS MY LAST POST SO I WILL SAY CHANGE YOUR LIFE, DO SOMETHING THAT MAKES YOU HAPPY AND LET OTHERS BE HAPPY WITH WHAT THEY DO. PEACE OUT

Einzige & others.

I am simply a student with Nouveau Riche, so I cannot completely speak on behalf of the company, but here are a few responses.

The name change, among other related comments, is to help introduce Nouveau University (http://www.nouveauuniversity.org/).

From the website:

"Earn your Associate of Science or Bachelor of Business Administration degress 100% online"

"Accounting, Finance, Marketing, Real Estate Investing, Small Business Management"

"Nouveau University is in the process of obtaining licensure from Arizona State Board for Private Postsecondary Education"

Nouveau Riche will still continue with it's current curriculum of real estate investing courses. There are many benefits for Nouveau Riche to NOT be a fully accredited college and there are many benefits for them to launch a NEW University that will be.

N.R. is great for students who wish to take a flexible approach to real estate investment education without the need for prerequisites, governed time frames, etc. Along with accreditation comes many regulations that make it difficult to offer quality real estate investment education. Plus, the career of real estate investing is not one that traditionally requires a degree, so pursuing the difficult task of accreditation might not make that much sense.

N.U. however is pursuing more of a degree based approach to business education tailored to students that wish to follow more of a structured protocol in their education. These classes will be offered online and will include the same testing standards currently used in obtaining degrees online. At the end, students will receive degrees that can at least potentially help them advance at their current careers, and at best can potentially help them to start their own businesses or grow as entrepreneurs.

By offering these two different paths for education, Nouveau Riche is really setting some new standards in the real estate investment education industry.

You can agree or disagree with them, but in the world of real estate investment education, they are quickly emerging as the leader and for those of us that have experienced the education, the vast majority of us have been pleased with the return on our educational investment thus far.

Jim Lippard,

I applaud you on your B.A. and M.A. I personally understand the time, energy and money that it takes. You wrote:

"Although I work outside of the field of philosophy, having an advanced degree hasn't hurt me any--the skills I learned about argumentation and reasoning are beneficial in most any endeavor."

I would like to echo that statement myself. I spent over $100,000 in student loans through my traditional education only to find it difficult to have success in that career path so I chose an entirely different career. To this day I still have over $50,000 in student loans that I am paying down, but I still feel that the education was valuable and made me who I am.

I chose to invest in NR because I sampled the video classroom and was impressed with the education. I was surprised to find that some of the NR instructors were actually better than my traditional college instructors, so I figured why not take the chance. After attending my first week of classes at NR I received validation that I had made the right decision.

"The NR education hasn't hurt me any--the skills I learned about negotiation and investing are beneficial in most any endeavor."

I can understand both sides to the debate of whether or not NR is right for someone, but it was right for me. I am currently working in the field of my education (real estate investing) and on the sale of my first deal I earned enough to pay off the loan I took for NR, and I was able to put over $20k towards my student loans!

NR has helped me to speed up my retirement by building a real estate portfolio and has given me valuable skills to use in my other ventures as well.

Someone recently asked me why I don't market for NR, and the answer is simple.

Passion.

I am more passionate about real estate investing, and the NR education is great so why not put it to use? There is plenty of money to be made through real estate investing and I was fortunate to start with some savings and a good credit score so I had no need to pursue the marketing aspect.

Bottom line, I value education. I also value entrepreneurship. If you are not on track financially for where you wish to be, then please do something. If NR is not for you, then what is? Find something that you have passion for and work hard to get the result that you desire.

For all the NR folks out there, please respect some of the individuals on comment strings like these because even if they don't agree with your company, they do value education and should be respected for that. NR offers GREAT education, so APPLY it and have some success! That proof is usually enough for most of the well educated, analytical, free thinking people that have a negative opinion of NR to potentially have a change of heart. And even if they don't, who cares?

I just watched the movie "August Rush" and a close friend said that the movie was no good, but I still decided to watch it and I loved it! Despite the negative criticism I heard about this movie, I found the exact opposite to be true for my own experience. With larger investments like education, definitely seek some quality opinions first, but you may be surprised how your opinion might differ from the others out there.

Here is a pretty good site for more NR information: http://www.graduateriche.com

Good luck on your decisions!

Adam says, "76% of NR students obtain properties as a result of attending our college (myself included)."

Source, please, Adam.

...But, meanwhile, let's think about that statistic for a minute. What does it even mean?

Presumably, 100% of the people who become students at NRU are interested in real estate investment - meaning they have every intention, prior to even starting up with NRU, of purchasing property. Apparently, NRU discourages 24% of those people from doing that!

I think a lot of people are confused.

It isn't a question of weather NRU is a scam or not. NRU is what it is... NRU is very open at what they do and how the people with the community are so successful.. no secrets... no rip offs... it's all out there.
Now if you're asking the question weather or not it is right for you, then that is understandable.

The fact is, read through this blog... you will notice that not one negative post about NRU has been from someone that has dropped the $20K for the education and feels scammed or ripped off.

What NRU teaches is to have a cash producing business that is bringing you $20k+ a month and then go out and buy real estate. We strongly urge people with our community never to obtain properties until you have attended our college (so you know what the hell you are doing) and also until you have a cash producing business to support your real estate.
How do you start a business that is producing that kind of income? ha.. funny you should ask!
NRU has two sides to its company. A marketing side and a real estate side. It is brilliant really.

You see, our college teaches a number different real estate strategies so you can be well versed in real estate for what type of strategy will work best for the current market. For instance, right now the short sale, 1031 exchange and rental market is huge. So if you are educated in them and you have a cash producing business you can feel confident in yourself to pull the trigger. The fact is, the market is going to fluctuate up and down and left and right. If you are educated in 10-20 different strategies then you can fluctuate with the market.

The June/July issue of Success Magazine will answer any questions you might have about the Nouveau Riche University and its accreditation.

As a preface, I joined NRU by purchasing the “Regent’s” package, I went to the "college", I tried to recruit, I have analyzed the Investor's Concierge deals, I went to the briefings, I have heard the likes of Piccolo, Snyder, Cheri Tree, Keysia and all the other NRU hacks speak, and I’ve met and talked to many NRU "students". So please don't tell me I don't know what I'm talking about. Here is my assessment of NRU. I have tried my best to be fair, but I won’t claim to be impartial. For those of you familiar with NRU, this outline follows the “EPIC” presentation some of you may have been subject to.

The Company

1. Piccolo and Bob "the General" Snyder, the founders of NRU, have MARKETING backgrounds. Look it up. They have no prior experience with real estate investing.

2. As a consequence of Number 1, NRU is primarily a MARKETING business. You can call it whatever you want, direct marketing, MLM, a pyramid scheme, a ponzi scheme, there may not be a perfect term, but it contains aspects of all of these concepts.

3. Real estate investing and education is an ancillary part of NRU. It is the "product" that they sell, but it might as well be long-distance phone plans, an internet web-based business, vitamins, or make-up.

4. NRU's success is a direct product of the real estate mania this country has experienced over the past 7 years, not anything inherently great about the company’s products or services.

The “Education”

5. For $16,000, you really don’t get very much. You receive a certain number of “college” credits that expire after two years, but the catch is that you have to fly to Arizona to use them and you can only do that four times a year for a one-week period each time. There is an on-line option, but it is sub-par for a variety of reasons.

6. The courses are amateur hour and taught in a seminar-fashion. They may dazzle people who don’t have a college degree, but will offer little to those who are generally versed in basic real estate and financial concepts. The educational materials are photocopied, hand-bound booklets, sometimes just an outline of the power point presentation. The instructors appear to be knowledgeable in their field, but they are mainly interested in consulting fees and fees for other services that they offer to NRU members (not altruism as many NRU shills would like you to believe).

7. NRU does not “teach” you anything you can’t learn by spending a few dollars on Amazon.com. There are no secret tips to learn that haven’t been published in the hundreds of real estate books you can buy on your own.

8. The “education” is primarily a vehicle for the direct marketing aspect of NRU, just as Investor’s Concierge is for members to have credibility when they market the course. The Concierge, however, is also another mechanism by which NRU extracts additional money from its students. More on this later.

Real Estate as an Investment Class

9. In marketing the tuition, a great deal of emphasis is placed on how real estate can make you rich. There is little or no information on how risky investing in real estate can be. At the “briefings” (the 2-hour presentation designed to lure new members), the presenter will talk a lot about how great real estate is because of the availability of leverage and certain tax benefits. At several briefings I went to, the presenter would literally make the representation that real estate prices only go up. Finally, the presenter will talk about how terrible it is to work for a corporation and how useless a college education is (ala Robert Kiyosaki). This usually manifests itself in the form of derisive acronyms, such as JOB, which stands for “Just Over Broke”, or how NRU is the best way to get an MBA, which stands for “Massive Bank Account” (crowd goes wild).

10. NRU never mentions the special risks inherent in residential real estate investing, such as problem tenants, financing and interest rate risk, structural and environmental risks associated with housing, the cost of maintenance, the prospect of asset depreciation or declining rents and the risk of litigation including via eviction and foreclosure. Bottom line, investing in residential real estate is very risky and comes with a host of hazards you would not find in other asset classes. NRU discounts all of this and presents real estate as a perpetual money tree.

11. We will likely never experience again in our lifetimes the type of appreciation in residential real estate that we have seen these past few years. There are several reasons that this is very likely to be the case: reversion to the mean, unsustainable public/private debt burdens, massive transfer of wealth to developing nations, slowing economic growth, an aging population, greater regulation in the financial sector, etc.

12. Historically, residential real estate prices have appreciated at the rate of inflation.

13. Real estate, like any other asset class, carries risks that are commensurate with the returns you are likely to generate. Leverage is great in good times, but people are quickly learning how easy it is for your equity to get wiped out a result of relatively small declines in home prices.

14. Investor Concierge deals are generally market-rate deals, but they are advertised to NRU students as amazing deals that generate positive cash flow. There are other sites that break this down, but generally speaking, the appraisals are usually 2-3 pages long and contain nothing more than a broker's opinion of value, the financing is almost always interest only or neg-am, the rents are inflated, and the only way you get "positive cash flow" is if you include certain seller incentives like pre-paid HOA or guaranteed rent, most of which will expire within 2 years. Additionally, maintenance and vacancy will eat away at the $100 of positive cash-flow a month you get almost immediately.

15. Investor Concierge deals are mainly located in historically depressed or undeveloped, sub-urban or rural real estate markets, you will generally not find properties on the system in established, urban markets. These properties are likely to experience declines in this market and will not likely appreciate much at all when the economy recovers.

16. Anyone who has purchased a deal off of Investor’s Concierge over the last two years has either lost all of their equity or is underwater. This is a terrifying prospect for many people in NRU because at the briefings, many of them go up to the front and brag about how they have bought 5, 10, 15 or even 20 properties over the past few months. Many of these people are going to have to walk away from their homes in the coming years, which will destroy their credit and eat up any ponzi money they made from the marketing.

The Marketing

17. The real estate investing component of NRU is used mainly to support the primary business of the company which is selling tuition packages. There are three options which cost different amounts, but most people are pressured to purchase the “Regent’s” packing together with the “Encyclopedia”, which total almost $20,000. There are certain commission and tuition-related perks you get for buying the most expensive package.

18. The commission system is what really drives NRU. NRU members can get a 50% commission for each package they sell, so sometimes that amounts to nearly $10,000 a pop, and there is an added wrinkle that causes that number to multiply very quickly if people you sign up also, in turn, sign up additional students. The mathematics make the commission structure extremely lucrative IF YOU ARE GOOD AT SALES.

19. Most people are unsuccessful at selling tuition packages. It’s akin to selling a used car, except you would probably get more value from a junker than the “education” that NRU offers. It’s obvious why the “education” NRU offers is not worth $20,000, most of that needs to go subsidize the commission system, which is needed to lubricate the entire NRU machinery.

20. The commission system places a lot of pressure on NRU members to sell, sell, sell. This is how all the top “producers” have made most of their money. This also creates a massive conflict of interest. More on this later.

21. The direct marketing aspect of NRU preys on the greed and naiveté of all sorts of people, but mainly lower-middle class individuals, young people just starting out, and real estate agents/brokers, many of whom don’t have a lot of education and work crappy jobs that they aren’t happy with.

22. NRU is tied in with the likes of Robert Kiyosaki and “The Secret”. I’m not going to bore you with the analysis, but try Google and you will find plenty of critiques.

Conflicts of Interest

23. NRU generates tremendous income directly from its students. They make money not only from the tuition, but also from marketing materials and services, credit services, mortgage brokerage services, accounting and legal services, special seminars, all of which cost extra, and they’re not cheap. You also have to pay for lodging and the plane ticket to get to the college. All of the NRU instructors also offer consulting deals and other professional services, which also cost extra.

24. NRU members are supposed to be “mentors” to the new members who they sign up, but what they really want from you is for you to sell the tuition to others, because they will get a cut of the first few sales you make. There is a huge conflict of interest here because there is a big incentive for NRU members to sell the tuition, irrespective of the quality of the product or the unique situation of people to whom they are marketing.

25. NRU encourages you to sell to friends and family, which destroys relationships when people are dissatisfied or feel cheated, which is often the case.

26. The most distasteful defense of NRU to me is that “it’s not for everyone, but it worked for me”. It may be that there are some people who are successful and makes lots of money in NRU, but the system cannot support a situation where most of the people in NRU make tons of money. This is the inherent, mathematical limitations of these types of marketing structures. I’m sure someone smarter than me can prove this. Likewise, the real estate market cannot support most people in NRU making money in residential real estate investing. Case in point is the short sale strategy, which NRU shills tout as the way to make money in a down market. Well, there is so much competition in short sales right now, and even more with each “college” I suppose, that short sale investors are bidding up pre-foreclosures pretty much to market. These fundamental concepts virtually guaranty that only a small minority of NRU members will make any money either from the marketing or the real estate investing, and REQUIRE everyone else to fail in order for the system to sustain itself. This is the biggest conflict of interest of them all and lends to NRU’s reputation as a “scam”.

Conclusion

NRU is a marketing business that encourages and monetarily incentivizes its members to use high-pressure sales tactics to sell a highly expensive real estate “education” package with questionable value to unsophisticated people with the lure of quick money and unlimited riches in real estate. Success in NRU is highly dependent on (1) a booming real estate market and/or (2) a unique talent in sales and marketing. What makes NRU so insidious is that it plays on the fear and greed of ordinary people, often friends and family, most of whom will go bankrupt by following NRU investment strategies during a severe and sustained real estate down turn such as the one we are experiencing now, and most of whom will fail in selling the tuition package because they lack the sales and marketing expertise, which is further exacerbated by a declining real estate market. Taken as whole, NRU may be perfectly legal, but many people will feel like they were cheated out of thousands of dollars by someone they trusted. If after reading this, you are still interested then by all means sign up. But just be prepared to live with it if at some point you find yourself either financially bankrupt, morally bankrupt, or even worse, both.

Epilogue

Finally, you’re not going to see a whole lot of posts like this from people who have joined NRU. Most are very disillusioned at the loss of thousands of dollars and don’t even want to give it another thought. The rest are out searching for marks. I’m doing this as a public service. People need to know what this company is really about. I can only hope that NRU won’t survive this bear market in housing, and if this post can hasten its demise, so much the better.

Congrats DEAN, Way to give up on yourself and your investment!

The fact is 76% of people that buy the “Regents Tuition" and attend the college obtain proporties.

96.2% of the people that decide to do the marketing side of NR and reach certification make the $20k back that they invested in the first place.

Dean obviously did not reach certification before he gave up on himself and his investment

numbers don't lie!

Jason, let's talk real numbers then, why don't you give us a break down of your current real estate portfolio with location, property description, acquisition date and price. Let's see what kind of real estate genius NRU has turned you into. BTW, have you've done what I've asked and called each of your NRU victims and asked them what they thought about NRU? I'd be curious about that as well.

I'm not sure where you're getting those stats, but even it they were true, all it tells me is that 76% of NRU Regents victims are in a world of hurt right now financially and 96.2% of people in NRU who succeed at scamming at least 2 people into joining NRU also succeed at scamming an additional 2 victims in order to make their money back. Sound right?

Justin,
It was a pleasure talking to you on the phone yesterday. I hope I gave you some solid information about NR. I am happy you are doing your due diligence before you drop the 20K. Again... if you attend our 2-Day intensive this weekend, you will know without a doubt that taking this on will be the right decision! You have my email, contact me anytime.

For anyone else out there that is currently on the fence about joining NR, we are having 2-Day trainings all over the US this weekend and next weekend where you can go for free and get a sample of our education before you join.

Anyone in Utah that wants to go to this event, click on my name to get a free printable E-thicket and reserve your seats. (seating is limited)

Thank you and good luck

It is interesting to me to see the fomenting on both sides. Ignorant people plaster platitudes without excercising due diligence.
I am not an NRU member nor am I an arragant Realtor. I am actually a real real estate investor, and as such have accumulated 7 properties. In the course of investing and learning from my peers, realtors (70% of whom own no real estate and only do 2.6 transactions per year= expert???? now that is a debate.) Financial planners, CPA's and everyone else in my wealth management team, i have come to conclude that i know less than i need to know to be successful.
My learning by trial and error and error is of serious concern to me. I have purchased Loral Langmire, and many other tape sets, i have purchased thousands of dollars of books by Kiyosaki, Trump, Edelman, Andrew, Snow and many many others. I have attended real estate and investing workshops and paid 10's of thousands of dollars trying to get access to the information and put inot practice. I have read and tried to implement strategies and come up with a plan that is not easy
With NRU they do offer mentoring which i think is worth more than the price of admission and the classes that i have looked at are taught by practicioners not professors.

Don is most likely an NRU troll. His email sounds a lot like other fake posts. They always start out with "I'm a real investor", "I have X number of properties", "I've tried all these other programs". Then they end with an NRU pitch, even though they are not an NRU member. Give me a f*cking break. Can you be any more obvious than that?

I ALREADY TOLD YOU, THERE IS NO MENTORING AND THE COURSES ARE GARBAGE. The ISA who signed you up likely has no real estate investing experience and just wants you to sell the tuition so that they will get commission from the first two sales you make. As for the "practitioners", they just want you to use their services or hire them as consultants. IT'S A SCAM PEOPLES.

Dean.. you are a fool The NR practitioners do not offer their services for pay

Jason, you are LIAR. Two examples:

You can pay Gavin McCaleb a monthly retainer to "coach" you in short sales.

Additionally, Mark Kohler makes a ton of money from legal and accounting services for NRU members.

This is exactly what I'm talking about, NRU hacks will tell you anything to get you to join, even straight up LIE to your face.

If you buy the college tuition you get 120 credit hours with our practitioners. Thats $66 per credit hour($33 if you bring a parter)

We are very open about what we offer... we have our price and it will never go up or down.. you will never get upsold.

THE PRICE IS WHAT IT IS BOTTOM LINE!!!

Jason, did you even read my post calling you a LIAR? This is exactly what I'm talking about, NRU is about obfuscation. RESPOND TO THE POST. True or false, do those individuals offer those services or not? You called me a fool, step up and prove it like a man.

Wow, this was some intense conversation. A lot of really cool name calling and stuff. Bottom line real estate is about people. The more people you know the more deals you do. NR pays you to know and meet more people and help them to be properly educated. Yes, if you choose to use Mark Kohler cause he is an amazing CPA and Attorney if you doubt read the book "Lawyers are Liars" oh wait theirs the scam, Mark not only teaches he actually does what he teaches. And if you need him to set up your entity because you know he is compitent then you pay for it like any other attorney, yeah that sounds like a scam.
Oh and Gavin has a coaching program that he doesn't talk about during the class. But if you went up to him and said hey I like the class and I know I get coaching calls two times a week for free with my tuition from one of NRs Coaches and a community that will support me most likely for free, but I like your style will you teach me more. Its wrong for Gavin to work out a situation. Sure, but I know a lot of people who have been successful just with the foundation of the class and support of the community. What you failed to mention is that most instructors will walk you through a few things the keep you movin at times outside of the college.

It is a system, and a business, you need a plan, you need capital, and you need a team. Isn't that what you are hearing from NR. It doesn't mean the deals fall in you lap, it just means you have every resource necessary to get there. I struggled for 5 years through the gurus and seminars. And I've been blown away by the support, in fact I have a short sale netting me more than the cost of the tuition this week. Thanks to Tony and Gavin's instruction. And I've made about over 6 figures helping people get involved in the school and have 4 students right now working on their first short sale. Man this definitely sounds like a broke system. If you want it to be. You get what your looking for.

The 80/20 rule always apply look around, 20% of the people are making 80% of the money, I just decided I'm going to be part of the 20% rather than the 80 in life and in Nouveau Riche. Good luck to you in doing the same. I hope the few crabs out there who struggled don't stop you from taking on your life.

And for any of you who paid your $20k and did not succeed.
As a fellow NR student I would be more than willing to help you get your first few deals going so you can make your money back. I really believe if you help enough people get what they want you'll have everything you want. Just shoot me an email, I'll ask you to confirm you purchased through a receipt, and I'll plug you into whoever you need me to and answer any questions you felt were missing. Its not rocket science but it helps to have support.

LOL! Dean.. buddy.. You are absolutely right. Every business on the planet is a scam. They are only selling iphones and flat screens for money. Can you believe that they would actually sell a product for money? It only takes a larynx to have an opinion. I still have yet to see a statue erected to a critic. Good Luck in all that you do.

Joe, go back and read my original post. Everything I say there is true. None of you NRU hacks have been able to refute anything I have written. The response is always, "well, it worked for me." Pretty pathetic. Hopefully it will put a crimp in your scamming.

Matthew Elmer:

Your post has made one of my other points exactly, except that for NRU, the 80/20 rule is more like 97/3, where 97% of the people get scammed and 3% make money. Congratulations that you're in the 3% (if you really are), but you have got to be underwater in the karma department if you've been selling this stuff to others and I'm telling you, it will one day catch up with you.

Do me a favor, please tell me of all the people you've signed up, how many are "certified", meaning they have been able to sign up two individuals themselves (which qualifies them to start collecting their own commissions)? If you don't know the answer, please make some calls would you? This small request and something you can do in 10 minutes if you cared to.

I just joined NRU about one week ago. It's amazing to read back and forth dialogue here. I'm also a licensed real estate agent who has 3, 30 year fixed, 700+ credit buyer, escrows open. Total commission at close of escrow, approx $12,000. Plus, I work as an insurance agent/financial planner for executive level staff. The truth is that most of these executives (local community and small business owners with 100 or less employeess) don't make as much as you think. They also are not that prepared for retirement. Since starting NRU, I've already received commitments from 10 execs to take a serious look at the school. Here's a truth: I don't know a lot about the many in's and out's of real estate investing! That side of the fence has many more variables than just selling a home.

I suspect that some of the comments here against NRU are from people that don't have much experience in marketing, may not make over $20/hour, or are just praying that their underfunded 401k plan takes them to a successful retirement.

Within buying and selling real estate, $20,000 (the cost of NRU), is not a lot of money. If you are sitting behind a desk and your take home pay every two weeks is $975.34, then $20,000 is a stunning figure. So if you are whining about the tuition, and how people may never make money, then perhaps you need to broaden your horizons.

If you don't know anyone who earns six figures or, better yet, has six figures or more in assets, then find someone in your community and ask them how did they do it.

Several things may happen. You may find out that what they did to achieve these assets are easier than you imagined. You may probably hear that some of the money can from real estate.

I really did not want to write anything here. I wanted to search for pro vs. con comments on NRU and definitely found the comments against NRU. Most of the neg comments are from people who will always be afraid to take calculated risks and from those people with limiting belief systems.

Is NRU a guarantee? Of course not. When I take a buyer out to look at a house, there's no guarantee that the buyer will: 1) like me, 2) like the house, 3) change their minds, 4) die tomorrow, 5) get lost in the Sierra Nevada mountains before close of escrow, 6) decide to buy a sports car instead, 7) buy braces for the cat, 8) develop a some weird California phobia, 9) and on and on.

The point is that every single thing we do in life has the potential for not working.

NRU is one of four businesses I own. It's a nice fit.

Rick N:

You guys are still missing my point. I don't care how successful you are. I don't care how successful others you know are. I want you to refute my proposition that 98% of people in NRU do not succeed at the marketing and that the marketing is an integral part of selling NRU to others. I want you to explain to me how that can be ethical. Cut the bullsh*t. Everyone can see right through it by now.

As someone else posted on another website: If NRU is so awesome, why do you need the commission system at all??? Yes, it will help some individuals make lots of money, but it is also VERY prone to abuse and will leave the other 98% very disillusioned. Case closed.

This guy is a typical NRU rip off artist. He babbles on about being a real estate agent and income. Worthless red herring information. The bottom line is that it doesn't matter how successful or unsuccessful you may be. It doesn't matter how much money you saved. It is all irrelevant to the fact that NRU is a scam. Paying $20,000 dollars for information being dispensed by total hack, fools is ridiculous. These people are the lowest level of un informed con men who only care about getting your money. Go to the library and get a real education for free.

NRU is criminal at best.

I am just beginning to investigate this scam because I have a beloved (but young and impressionable) family member who signed over his student loan ($20,000) and is now beginning the process of making desperate calls to friends and family to raise the $16,000 'tuition fee' to attend the 'university'. The Lamborghini and Ferrari parade (which the company rented at a recent event to have reps roll up in) was too much for a young male to resist. This is nothing short of predatory. It will take this kid 20 years to fully dig out of this mess if he doesn't wake up. To say nothing of the convicted felon who is the CEO. This post will, no doubt, draw fire from the brainwashed NRU victims. If you could only hear yourselves.... I wish you luck.

I am a member of the NRU community, I don't market the product unless someone comes to me about what I do and asks my advice. I am not a millionaire, nor am I close. Last year I got fired from my job at an international bank due to the failing economy. I have a young family, a wife who at the time was going to school, and a one year old daughter. We had enough to survive for maybe three months after I got fired. If any of you have tried to find employment, real employment, two weeks before Christmas you know how impossible it is. I was introduced to NRU by a friend who had been involved in the community for only a short period of time, but he had seen success in both the marketing as well as the investment side. I took out a student loan to get the $16,000.00 tuition package, and $3,500.00 for the at home study program. I am not trying to convince anyone of anything, I am just telling my story. I have made more money in the last Eight months doing real estate, not selling the education, using the education I got from NRU than I made over the last three years working for a bank. Like I said I am not a millionaire, but I have paid off my loan, I don't worry from paycheck to paycheck, and I just bought my first personal residence. The "product" NRU sells is education, and just like any education you must put what you learn into practice. I have a degree from BSU, tuition was close to what I paid for NRU, that has made me no money whatsoever. I am just thinking that if I had better implemented the education I had received at BSU I would not have been working for a bank to begin with and still have a regular 9 to 5. I love what I do now and am happy to say that the day I got fired was the best day of my life. If NRU is truly a scam that makes any educational institution that requires a tuition fee a scam. And for you who are really interested in truth and want to invest in real estate go get a library education an try it out, if it works great, if not see what other education is out there. I just want to mention that Robert Kiyosaki's program has a much lower success rate, not all programs are the same. Be wise with your investments if education can serve you than by all means take advantage of it.

I've had it with these NRU people! Here's a series of posts on my experience, along with the testimonial from someone who actually joined NRU and the truth about the scam.

http://lanaleprospere.blogspot.com/search/label/Expose

To you who hate NRU with such passion I would like to know what you have done in real estate. I am not here to just call you names, like "hack" as it seems some of you are intent on doing. I really would like to know what you have done. I have noticed that you are all so dismissive of the success stories that no matter what evidence is provided that if you really try to utilize the education you can in fact be successful, you still decry it as a scam.

No not everyone is successful, a lot of people are not successful. I have learned that in this business it takes a lot of personal drive and motivation. When I go to meetings or intensives I can see the people who have no chance of success, I can also see the people that are not succeeding in real estate investing that could if they would put in more effort. What you all need to realize is that success is never guaranteed in anything you do. What makes this county great is the capitalist system we have in place that will, if left alone, ruin bad companies and force them out of business.

Now as to the marketing side, I was never interested in that part. Yes I am certified. No not everyone I have brought in is currently making money in real estate, but some are. They all sought me out and asked me how I have been able to do what it is I am doing. I work with these people on the real estate side as often as their schedules allow. I don't push NRU because I think of it as something that you have got to want to do with your life. Not everyone can or should be an investor, just like not everyone should be a doctor. For a lot of people the marketing is a way to make money and is a major part of what NRU is, but it doesn't have to be. Real estate investing is NOT a get rich quick thing, it is a grow wealth over time strategy. Some people can become rich in just a matter of a few months or years, but these are the exceptions and not the norm. They should not be considered the norm, or even a frequent thing, but an anomaly.

Success is not inherent nor is it a right, but it must be earned. And just so you all know my clients walk away happy with the situation, I make sure of that. I sleep well at night, and karma is good to me because I am honest in all my dealings.

Benjamin, you sound like a genuine guy so I'm not going to call you names. Unfortunately, nothing you say gets to the heart of my very long post (I'm still working on a rebuttal to the recent rebuttal from someone who took the time to actually respond, which I respect).

Yes, certainly some will benefit from NRU, either from the sales or the real estate education. I have always conceded that. The main problem with NRU and the reason there is so much vitriol directed at NRU is that the commission system tied with the high price of the tuition creates a ponzi-like scheme that (1) encourages people to do what ever it takes to sell and (2) ensnares the greedy and the stupid.

I'm not calling you greedy or stupid, but I'm telling you that many people who sign up for programs with similar "pyramiding" commission structures come away majorly pissed. There is a reason why NRU is lumped together with those types of schemes and there is a reason why there are many people who are very disillusioned with what NRU has to offer, if you can't acknowledge that fact then you are not being honest with yourself.

Look, everyone has to live with themselves at the end of the day. If you are fine with how you are conducting yourself with respect to NRU, then more power to you. I can tell you, however, that there are many more people in your organization who are out to scam people. If you think you can just turn a blind eye to that and not concern yourself with the reputation of an organization with which you are affiliated, well then I question whether you are really accruing the type of karma you think you are.

Dean, I agree that there are people in NRU who are dishonest. I will even say that the marketing side does in fact, because of the actions of a few, cheapen what the main focus, the education side, is.

I will also say that it depends on where you are, and what community you are entering. My local NRU community is focused on the success of the individual on both sides. My friend is unable to join the community because he cannot come up with the funds. Our INSA has hired him in a full time position at $15.hr and will be buying his tuition for him in exchange for bird dog responsibilities.

I would say this to anyone who is thinking of joining NRU: Do your homework on NRU, on your mentor, and yourself. You must be committed. If you are lazy, or are unwilling to put in the effort required to be an investor then don't waste your money. Discuss with your potential mentor what he is going to do to help you. Talk to others who were mentored by that individual about what they did to ensure their success. Even better yet if you can get someone who is producing on the real estate side to be your mentor you will have a much better chance of success. My final word of advice, don't quit your job because you think you are going to make it big. Once you have paid off your loan (if that is how you pay for the education) and have at least six months of reserves, then go full time.

Benjamin, I'm sorry, I just plain disagree. I can't let you get away with what you have posted, as reasonable as it may sound.

The bottom line is this:

NO ONE NEEDS TO PAY $20,000 FOR WHAT NRU DELIVERS. You may be very successful at what you do. Others you know may be as well. But everything I have learned in my experience with this organization bolsters my belief that you would have been just as successful WITHOUT NRU. That's been my primary thesis, and that's what I'm going to keep preaching in cyberspace as long as this organization continues as a going concern. The abuses committed in the name of NRU far outweigh any benefit to you or others. I'm not sure what I can say to convince you of that except you should really be on the look out for it, because it's there. The rah rah atmosphere of the Intensives and the College only serves to make this truth so much more ironic.

Like I said, you sound like an upstanding guy, but there is a reason why NRU and it's practices turn people off. You can't just blame people for feeling cheated, at some point you need to acknowledge there is something wrong with the system. NRU's refusal to acknowledge that is inexcusable. Until they reform the commission system, I'll be here telling people the truth.

Dean,
I did also want to mention that the reason the commission is what it is has to do with the fact that NRU does not advertise in the traditional sense. They use word of mouth to publicize the company.

The way that they came up with the 50% figure is based on the model of other educational institutions marketing structure. Specifically The University of Phoenix, Brown Mackie College, and Stevens-Henager College. They all pay 50% of their tuition proceeds to their marketing campaigns. I recognize that these institutions utilize a more traditional approach to advertising, but the figures are the same.

I did also want to mention that most educational institutions have people who work in the capacity of recruiters who are paid for their labors.

It is true that corruption and false representation has worked its way into the marketing of NRU by some. In fact just this week tuition was refunded and a dismissal from NRU, marketing and otherwise, was given to the responsible party for manipulation and falsification. That is why I said that you must do your homework first, and be responsible for your actions. If it sounds too good to be true, chances are it is.

No comments for months - wow. Peaceful! I read a lot of the comments for and against. Bottom line, people have their 'agency' to do what they want. For some, it may work they will make lots of money; for others it will not and they will seek out other options. Those who do well will continue to advocate about their success, those who do not will continue to rip the company apart. In the end, there will always be differecnes of opinion - it is like talking about religionor politics. Personally, I don't agree with the company or the tactics but then again my goals in life are not set upon riches.
I have met a lot of happy people who are not 'rich' and vice versa. At the end of the day, values such as honesty, integrity, kindness, charity, etc. will allow one to sleep well at night. If the recruits are learning some of these values, I give my 'thumbs up' to the company. If they are not, well, that is sad. They may gain wealth (that seems to be the whole objective with this company or perhaps society in general) but at what cost to our character?. Fancy clothers, fancy cars, fancy homes,parties for the rich, elite friends, you can have it all - 'millionaires' - mmmmm? Sad.

Wow Douglas H... You have never been to anything so how do you know what you don't know????

I started with NRU in the middle of July 08
They showed me how to stop my Foreclosure, I have kept my house. I just quit my job last week and am NR Full time. I didnt know one thing about real estate and now I am building a portfolio...WOW
Seems like it really does for those who DO IT and Take action !
Remember.... You will never fail at what you don't quit !!!!!!

You create a great day and life for that matter... Oh and keep in touch ... I will update you on my wonderfull success I have anytime you need to know!

Most smart people get ALL the FACTS before they make decisions... I know I did and Im glad I did!

Thanks for chiming in with your opinion Staci and best of luck to you. Sounds like you're already on your way to success. Perhaps you will send some of your "friends and family" to this site to read your comment so that they too will join NRU and you get that "kickback" for signing them up. What a joke!!!

BTW...I've done OK for myself in the past 16 years selling and buying real estate and not once did I receive a financial incentive to convince anyone else to join the profession. It is a huge conflict of interest and there is absolutely NO debating that. If NRU would do away with the "kickback" system for signing up new people, they would seem much more credible to me...and that is my educated "opinion."

It looks like the usual losers who don't take risks and think everything a scam crowd. Well work your 60-80 hour a week and watch the stock market take a beating on your 401K or your IRA and see how that works for you or maybe yet you will get downsized. It is projected that 100 million people in the US will need homes in next 15 years--sounds like a hell of a lot of demand to me, but you better find how to make the deals. Hmmm NRiche might help.

Its amazing they start a blog and know so little about what they are talking about. I think this blog is a scam in giving the impression they actually did a review.

Oh gus gus gus,

You obviously didn't read the post carefully nor did you read my comments throughout this lengthy thread. But just for you sir, I will reiterate that I have no direct experience or knowledge of NRU and only think the "referral" program sounds very much like a conflict of interest. How many of your friends have your prifited from signing them up? Hmmmmmm.

Great Job!! Douglas this post exposes NR for what they really are. SCAM ARTISTS
Its amazing to see all of you NR people come on here and defend this company. The sad thing is you guys have only made money by ripping off your own family and friends. Shows how much you value family and friendship. I know because I was almost duped by the crook Piccalo and Charles Hosea. Sad to see someone you hold in high regard actually come out and try and pull a quick one on you. Yes I have been to all the intensives and the intro to the company which I might add is packed with people you think are new like yourself but are actually NR sales people. Of the 80 people at this "pep-rally" including my wife and I only one other person was not a nr member. My wife and I make a decent income close to 120K working as RNs but still we were hesitant to drop 20k to get in. To our suprise the scam was revealed. WE were told to sign up for some bogus online course at cal berkley then drop the class once our student loan went through for a whopping 30k and use that to pay for our tuition which was about 20k. We are happy to say we weren't duped into it. How did we get them to stop harassing us? We told a little lie and said we weren't approved for the student loan. Although we feel bad for lying to them it was well worth the 20k in heartache. What hurts us the most is knowing that a person you trust was willing to throw you under the bus with a SCAM. Hell as a friend you could of just asked me for your comission and saved me an extra 10k. I will come back on here and post the emails from these NR Liars and all the info to get a unlawful student loan explained to me via email by an NR rep!

I paid 16K and went several classes, I did go to a few great classes, but the others were really a waist of time. I can tell you that the people making the big money are making it from recruiting, not from real estate. The last post mentioned the student loan scam, that is true. I was told to try to sign up people that couldn't afford the tuition by using incorrect information on online applications for studemt loans. I'm happy to say that I never signed anyone up, although I was very tempted as I watched others making 50k-100K a month from recruiting.

I first heard of this outfit after responding to a job post on Craig's List for a real estate investor seeking
help. I thought, by the text, that
a developer/investor needed
a local agent or site salesperson/leasing agent. I'm a
real estate agent and a former
commercial mortgage manager so
I thought the ad was for a job for
a person of my skill sets.

I got an e-mail asking me to view some Web video. Right then, I
felt something was not right. Why
would I have to watch some Web video for a job unless it was a part
of some interactive training module that some companies now do for their new hires.

I opened it up and in seconds, I
smelled a scam. The "Nouveau Riche
University" logo popped up and the
narrator had some story about an
unrewarding job with a firm about
to go through reorganization or something and how he had to be in biz
for himself (sounded like an Amway meets porno narration).

I closed the window. I e-mailed the guy and asked what the specific tasks and requisites were. No reply.

Then I researched and learned that this company is a double barreled
shotgun: They buy properties in distressed areas, likely through various
LLCs or agents; then use the "university" element to recruit people, whom they will "help" find investor
properties; just happen to be the
company's own inventory. This is
similar to the movie BOILER ROOM in
which JT Marlin's brokers sell stocks
belonging to firm's owner and his friends. When they clean up, no need to keep inflated stock price; stock crashes.

From what I have read, NR, through affiliated mortgage companies, give a rent subsidy to renter out of investor's down payment or have it rolled into loan.

After the subsidy is gone, what happens? After all, once the new
mortgage is in effect, that concludes
both NR's interest in and liability for
that property.

I have read that they also have
posted signs on cars saying "Want to
Make $10k a month? Ask me how."

Well, having a commercial
real estate background, I did some
cash flow analysis on a shopping center that has as two of its tenants
Starbucks and Keva Juice; asking price is $2,666,000.

None of my calculations added up to
$10k per month. Here they are, using
3 tiers: A full price offer with 20% down; a 90% offer with 20% down and an 85% offer with 20% down.
I used a fairly low interest rate, the
10 year Treasury plus 2 percent and
the standard 20 year amortization period of a commercial loan.

Full price offer: $2,666,000
Loan: $2,132,800: 80% LTV
Rate: 5 percent: 10 year Treasury +200 basis points or 2 percent: margin: percentage lender adds to
Index rate in order to set effective interest rate; creates lender’s profit from loan: 1 basis point =1/100 of 1%
Amortization: 20 years
Monthly Payment: $14,075.54
Monthly Net Operating Income (income after operating costs-taxes, insurance, etc, but before
Mortgage debt payment): 15,086
Monthly Cash flow: $1,011: Money left over after paying monthly mortgage payment

90% offer
Loan: $1,919,520: 80% LTV
Rate: 5%: see above
Amortization: 20 years
Monthly payment: $12,668
Monthly Cash flow: $2,418

85% offer
Loan: $1,812,880: 80% LTV
Rate: 5%: See above
Amortization: 20 years
Monthly mortgage: $11,964
Monthly cash flow: $3,122

The highest monthly cash flow is
just over $3,000. This is on a shopping center with two name brand
tenants and where the landlord can
pass through quite a few costs
to the renters in the form of the
net lease, in which a tenant pays
a portion of taxes, insurance,
management and utilities in addition to
the base rent.

Plus, commercial leases tend to be
longer term; 3-5 years generally.

With that said, how can one make
$10k a month in residential investments? The rents are considerably lower and the
landlord is responsible for upkeep,
water/heating/cooling, taxes
and insurance. The tenant pays
only a flat rental amount. Any
eviction action must conform to state
owner-resident acts,
which often includes legal costs.

I did a general calculation of a
residential rental property of
$125,000; 100 percent financing;5.75% rate; 30 year amortization. The total
annual payments would be, just
on the mortgage, $8,052. Just using
the numbers from my own city,
property taxes are generally (varies
by subdivision and area) $2,000 per year;$167 per month. Insurance;$100 per month(lowest) and the utility bills and water bills come out to $200 per month.

So, to cover a $671 mortgage per month, owner would have to rent out at $871 at least, which is $10,452 total income. Then subtract water/utilities of $2,400 per year; taxes of $2,000
per year and insurance of $1200 per year: This adds up to $4,852 cash flow for the YEAR; $404 per month. The only way to pass taxes, insurance and repairs on is by an installment sale, which requires the seller to transfer fee simple title when debt is repaid.

Unless one owns multiple rentals
free and clear or very little debt
or owns a large retail/shopping center
anchored by a Raley's or
Target or a regional mall like Dallas'
Northpark Mall, it is possible
but highly unlikely to clear $10k of
cash flow per month doing real estate
investing.

Plus, having a convict for a founder (CEO, founder Jim Piccolo was convicted of felony insurance fraud in 1991-92; later reduced to a misdemeanor; was reportedly involved
in another MLM scheme, TruDynamics)
and a co-founder who came from
Amway (Bob Snyder) and one can smell a scam like a fart in a car.

Dean,

I want to thank you for your time and effort. Thank you for your timely response(s), and testimony. I believe your story about NRU. The "conflict of interest" bothered me. NOw the top producers who are hosting every event are asking college degree students to use people whom we know IRA's and Credit Cards for finding the "funding money". I'd rather spend the total of $21K on my own business rather than spend that on the college which would not provide me with the "in's" and "outs" of R.E. Investing!

Actually, My parents own houses, but they are not agents for R.E. by any means. I KNOW what goes into homes, and how to build them.

Looking at the market along with the economy, and the news should give us all a wake up call about the upcomming events for America.

As a middle class citizen, I have yet to find someone to pass me a dime without wanting something back in return.

I haven't read all the comments in this blog so don't know if John T. Reed's web site has been recommended. John T. Reed rates real estate gurus. Below is the link for his review of Nouveau Riche. If you'll check out his other reviews, you can decide if you think they are credible.

I went to a T. Harve Ecker free weekend seminar and met an NRU recruiter. I think he was only there to recruit. I went to an introductory seminar and found I already know most of what they teach (I learned much the hard way, from investing in real estate by the advice from another gruesome guru) and walked out. I think many in the audience were "plants" aka NRU recruiters, who were espousing their successes, with no details or proof. I would never again sign up with a real estate guru unless given the green light by John T. Reed's review.

http://www.johntreed.com/Reedgururating.html#Anchor-Nouveau-35882

In the past I've been a part of similar schemes. I've made some money and lost some as well. At the end I abandoned MLM and pyramid schemes .
A friend of mine asked (several times) to attend one of briefing of NR. First I though it was a regular presentation similar to one before you attend a college. However, as evening unfolded I started to realize that it smells as if they recruit "members" to recruit other "members" with a healthy reward of the half of tuition. However there is a catch. You don't get first two returns as those go to your "mentor".
I have also listened to some "member" who succeeded in this "education". They all sounded cliche that is used during further "educational" programs. SO I left that day with a lot of ????? in my bag.
A few days later I met with one of the top "members" who was himself a protege of J. Piccolo. I came prepared with "criminal" info of Piccolo and some scheme details from my past.
Properties that they offer (concierge) is based on INTEREST ONLY mortgage which is no where near of "cash flow" ability. Besides you don't get to look at a property you are buying. Cat in a bag anyone???
I opened a couple of old schemes I had up my sleeves and all present at that meeting suddenly changed their tactics. To me it has become a game to watch how they tried to right themselves and keep things real. What I also noticed very few "members" look you in the eye while "teaching" you the techniques of the trade. To me it crucial to have constant eye contact. This way I spot lairs. Both "members" drowned themselves in poorly executed scheme of so-called "education" covering a real MLM scheme of NR...
In conclusion, it is my humble opinion of NR. It should be taken with a grain of salt. I wish luck to whoever decides to follow the caravan of "slick-talkers"...and wants to loose $20+K
Good luck ...

Well.. I am not getting paid for this, nor am I really making any money. I haven't purchased the product, but I have been to a few briefings for NR. I am young and openminded, but I have been scammed before too. I have tasted poverty for two years before the age of 21, and that along with many other factors have boosted my inspiration to become successful. For those who believe, (cheesy yes) can achieve. There are people out there making a killing selling paint. I ventured into the hair industry hoping to make millions, hearing the same stories by the same people that have had their successes, and paid $20,000 for 11 months of education for a Paul Mitchell School. Thats a little more than this rate for NR no?

No matter where you go, no matter how successful those other people are, there will always be the others that fail. Be it Nouveau Riche, your co-worker, a classmate at hair school; you are either one out of the few that take advantage of what is in front of you, or become lost either out of confusion or a lack of inspiration to accomplish your dreams [if you even have any]

In the end, for those that do not know, find out first hand. You can try to trust blogs. You can attempt to listen to third party remarks, or the statements of those that have failed. Will that really get you any closer than the truth?

Like I said, I have been to the briefings, I will soon be a free partner to attend the college. I have been to the beautiful houses of the successors. Been in their cars. Babysat the children of a couple whose house is as big as the owners of the Paul Mitchell school [whose house I have also been to]. It is real if you want it to be. Reality is perception anyways yes?

They are slick. They can be "promising". But expectations ruin experience. I DARE you to attend one of these briefings with eyes unclouded. Forget MLM. Forget scams. Forget massive fortune. The true concept is to pay it forward. What if I was to tell you that there was an opportunity, not a job, available that can HELP you make money. Would'nt you want to tell your loved ones about it if it worked? Let alone make some money in your pocket from it. It's not selling a product. It's presenting an opportunity for growth.

And that is my two cents. =) yay! [no money was involved nor real estate investors harmed or bribed during the production of this post]

Hey Everyone.
I have been self employed for around 17 years with the exception of the last three years. The last three years I have spent in corporate hell...After losing my ass on a 28 unit RE investment and losing almost everything I worked my whole life to achieve because of a lying piece of ***t who said he was my friend. With the help of Chicago Alderman's lies. I took an offer to go to Arizona and run a $100,000,000 660 unit condo conversion project for another friend. It was the worst experience of my life. I could not even receive compensation per my contract because the owners (my friends) are going BK....I pitty those stuck in the corporate (hell) world. I had never seen such scamming in my life. The constant lies I was asked to tell people..As I was continually lied to by my Boss (friend), I was harassed by other managers who had never even seen a condo conversion before, demoralized, ripped off, cheated and so on......People please do whatever means necessary to relieve yourself of the corporate chains....I feel much younger and get to walk around with a smile on my face instead of complaining how my job sucks....These corporations and small companies are very uneducated and some don't understand integrity or respect for others, no matter who the other people are.....we are not any ones SLAVE.....Have a great day and remember "there are no problems, only solutions". I hope you make the right choice in your life....I will rise to the top again and take as many people as I can with me. I personally believe NR will provide a car for you to drive for $20,000 all you have to do is drive it, as if you would drive your present bosses car only faster.
Wayne The Pain

I attended a NR seminar and thought it was quite interesting. I decided to give it a little more thought. I have a couple of questions to ask the rep when he calls me today. I thank you all for your post you've been really helpful in my research of NR. I don't know if I want to spend my money on this course or if I just want to try something else. I do know I've got to do something!!!

I attended a NR seminar and thought it was quite interesting. I decided to give it a little more thought. I have a couple of questions to ask the rep when he calls me today. I thank you all for your post you've been really helpful in my research of NR. I don't know if I want to spend my money on this course or if I just want to try something else. I do know I've got to do something!!!

Holy cow, Doug almost 3 years in a blog on NR? Wow.
I have nothing to do with and will never have anything to do with NR again. I have not 'bought' into anything they've said or done. That being said, there is something to be had to learn very creative investing techniques like NR apparently has. I will share my experience with you all.
I have been investing in real estate since 2001 and now have a very lucrative company that performs short sales for real estate agents and investors. I was first touched by NR in a JOB ADVERTISEMENT, stating the statistics of the world's wealthiest individuals and blah blah blah. I am always on the lookout for some good investors that want to buy some of the properties that we are shorting so I go to a meeting. The gentleman introduced himself and asked me what it was about real estate I was inteerested in. I explained I was a seasoned professional that deals exlusively in short sales and I had performed approximately 75 deals to that point. He looks at me in amazement and says, I quote, "Wow, Kevin, you should be mentoring me."
He then takes me into his back office and shows me the money he's made so far that year.
NOT ONE DEAL, JUST PEOPLE HE HAS RECRUITED TO NR.
He then tells me he's not sure what he has to offer me, but invites me to an investor meeting to meet some 'major players'.
Yes, I wasted 90 minutes of my life that night and yes I heard all of the speakers go up on stage and talk about how much money they were making........convincing other people to sign up. Not one speaker spoke of the deals they were doing.
I went up to this gentleman after the meeting and he asked how much I liked it. I looked him in the face and calmly explained to him that I was embarrassed for him. I asked what I would get exactly out of this meeting. He responded by telling me all the investors that were there. So I asked him to point one out that had the cash to start doing deals with me. He became flustered and angry and I walked out.
a few years later apparently NR changed their recruiting practices, because I received a response from an employer about my resume on a site and asked me if I was interested in coming in for an interview. It still smelled of NR, but I went anyway and this time it was a different guy, but the first guy was still in the office. I just sat down and asked point blank if this was NR and he said yes, but said things have changed there. We talked and when he realized he would not have a buyer in me, he says that he wants to find a way to work with me.
He comes up with a plan that has me training his NR recruits in short sales. I figured I had gone through so many people in the past, maybe the people that spend money would be easier to train. Not a chance, 1 guy did what I was teaching and he is now my VP of Operations, no one else did anything.
I ended it badly with NR because my attorneys were concerned about the different things that NR was being investigated for and told me to run.

Bottom line is this, NR can be great for some people if you have the cash and the willingness to work. This is NOT an easy business, anyone who says different is selling something. I've been lucky in my pursuits to find something I'm good at and corner it. I don't buy anything anymore because there is too much risk, I become the bridge between sellers and buyers when the property is under water.

Also, I convinced my VP to buy into the home training just because I told him it doesn't hurt to have a good education in this. I walk the people who work for me through every aspect of the deal, not just 1 or 2 hour phone conversations, I go out and knock on doors with them so this gets done right.

Anyone who wants to contact me about this may, assuming Doug allows it. This is his blog

Doug, may I place my contact information on a new blog?