Had anyone use Strongbrook?

Question

I recently heard that they have a 5 or 10 years retirement plan but I also heard from members that the cashflow is small. A member in biggerpockets said that he make $10.96 the first year in cashflow and around $2k the second year. Being that the cashflow is small, how is it possible to reach your retirement goal within the set number of years?

Justin Morgan · Answer

Because  you asked... Avoid Strongbrook or REIC or anything Kris Krohn.

Yes it's an MLM.  And for that matter avoid MLM's.

As a former executive employee of this group you can PM me for details so I'm not accused of slander.

The best way to invest is learning and doing the investments yourself.  You  care more for your money than anyone else.  Protect it!

No shortcuts guys... this "so called" system is full of holes and scary stuff for unsuspecting "hopeful investors".

Like most guru system... It's hype = avoid it... My personal opinion anyways.

Stephen Beacham · Answer

Due to various factors StrongBrook's structure is not very clear on the BiggerPockets Forums, so I hope this will clear things up:

The StrongBrook Group consists of:

StrongBrook (Deals with real estate investing)

StrongBrook Mentoring Network (A Mentoring Network with a variety of investors, gurus, and mentors, etc. who help people get their lives & businesses on track towards their goals)

StrongBrook Direct (Is a Direct Sales Referral system set up to reward those who refer investors to StrongBrook & The StrongBrook Mentoring Network)--

So to clarify:

If you hear about MLM or Sales Guys, think StrongBrook Direct.  ANYONE can sign up to promote StrongBrook or the StrongBrook Mentoring Network THROUGH StrongBrook Direct and as a result some people get a negative experience.  That said, This is the vehicle that was chosen to market both StrongBrook & The Mentoring Network, so if you're interested in either you'll have to go through a "Sales" guy, but keep in mind- StrongBrook regularly has events that you can attend and learn more about the company in a group setting with minimal-to-no pressure.

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If you hear about Real Estate Investing, think StrongBrook.  They have a GOOD & PROVEN track record as has already been noted above.  They are NOT like Real Estate Education Companies.

StrongBrook is made up of a Real Estate Brokerage, a Mortgage & Lending Company, a Property Management Company, a Rehabilitation Company, a Legal Services Company, and more.  It's designed to give you a "one stop shop" for real estate investing, and they offer rates that are better than most investors can get by themselves due to the volume of homes they are doing in each area, each year.  If you join StrongBrook, you will be assigned a Project Manager, who will work with you on your own real estate portfolio.  (Note: Project Managers were previously called "Coaches", however, due to the confusion in people's understanding between their role in Real Estate Investing, versus "Coaches" or "Mentors" in the Mentoring Network, their title was adjusted).

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If you hear about "Conscious Creator" or "Mentors", think StrongBrook Mentoring Network.  It's relatively newer compared to their Real Estate Investing.  It was previously known as "Conscious Creator."  Shark Tank's Kevin Harrington recently endorsed the StrongBrook Mentoring Network and is one of the Mentors whom you can access through the network, along with Les Brown, Roger Salam, and others.  You can also become a Mentor in the Mentoring Network.

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Anyway, as was mentioned at the top in my disclosure, I have very close ties to this company, so I've made an effort to keep my comments in line with the Bigger Pockets rules regarding forums.  If anyone would like to add me as a colleague and discuss StrongBrook outside the forums, I would be happy to connect you with my brother (The Project Manager) who can give you more specifics on the details of what StrongBrook does (regarding real estate investing), and how they do it.  I do not believe StrongBrook Direct, nor the StrongBrook Mentoring Network are topics which Bigger Pockets was designed for, so if you would like to discuss those, this would not be the place to do such.Hope this Helps!

Alberto Empowers · Answer

As a concerned investor I know how you all feel and this is what I found and hopefully provide some clarity on The Strongbrook Questions and concerns expressed. After My 2 months of vetting them.

With any company that anyone is exposed to it is natural to be concerned until proper due diligence is  performed. Key words proper due diligence.

Strongbrook Facts 1st over 250,000,000 in transactions, 0 total defaults, Cleared by The SEC, The avg. investor purchases 2 properties in the 1st yr.and their 1st property within 6 months. Investors only come out of pocket 1 time for a down payment and own multiple homes in Hot Markets. As an investor for over 15 yrs. I understand real estate and the headaches and have no headaches now. It's easy to be fearful of what you really don't know. Conduct proper due diligence folks your smart. This is not a promo just substantiated facts that I learned and anyone can too.

I learned that they also teach partnering for those with Low money and low credit and help them repair their credit while investing. Is this only strategy no but it seems like a darn good one.

As I am in NYC am a successful investor with Strongbrook and outside of them I would like to comment on Cynthia Chang's concerns 1st and would be happy to introduce her to other successful investors here as well. ? How is cash flow achieved in the 5-10 yr retirement plan I would recommend as I did Get a FREE Game Plan from them and See for yourself It's FREE or sit down with a  NY rep and have a FREE Game Plan Assessment for clarity as I also did

? I also wondered if Is it MLM like Amway. I found out  NO unless you consider the multi tier comp plans of Keller Williams, Exit Realty and Nextage Realty MLM then yes it is as they follow the same concept. I see nothing wrong if I bring in someone to the company that closes a deal that I too get compensated. Do proper due diligence.

Fact I Do Not work for the company. I do admire that they enable even inexperienced investors an opportunity to succeed. Another Fact that I learned they have been conducting business for over 7 1/2 yrs. with 0 defaults on the thousands of homes which their investors acquired even between 2006-2009 when the markets Tanked. Strongbrook investors made money. How could that be Get a FREE Game Plan and conduct proper due diligence as I had asked the same question and Now I Know Why.

I must admit I was concerned when I heard about and SEC examination. Was there fraud ? Kris Krohn the founder had been investigated by The SEC as they should any company that makes promises who can mislead the public. That is the job of the SEC. What I discovered was that Strongbrook being a new company had stated guarantees which is not permitted they were fined and rightfully so. Fact the SEC found their model sound and allowed them to continue as they were with disclaimers added.

As per the former employee here who is marketing his own  program and stated that the best way is learning to do it yourself I hope he is not in the education business because Here Are The Facts less than 2% that take these overpriced education courses transact real estate. 70% of Strongbrook clients acquire at least 1 property in the 1st year the avg client will acquire 2 properties. Be smart people check things out yourselves.

Fact as a Realtors usually  I sell 1 property to a client and earn only 1 time. when I participate with Strongbrook because my clients purchase multiple homes I know earn referral income multiple times Nationwide and in Hot markets without licensing issues or affiliation changes.

As a Realtor with Strongbrook  I can now go to every client I have ever had inform them that I have a National discount investment arm offer them a free game plan to see if they qualify and earn again. Is there something wrong with offering solutions folks don't know ? I also just learned a major company and their 70 franchise's just partnered with them and using them for their clients which gives me greater confidence

Yes I do proper due diligence.

Recap over 250,000,000 in transactions, 0 total defaults, Cleared by The SEC, The avg. investor purchases 2 properties in the 1st yr.and their 1st property within 6 months. Investors only come out of pocket 1 time for a down payment and own multiple homes in Hot Markets. As an investor for over 15 yrs. I understand real estate and the headaches and have no headaches now. It's easy to be fearful of what you really don't know. Conduct proper due diligence folks your smart.

Guy's the company only makes money if their clients successfully purchase multiple homes. DO YOUR PROPER DUE DILIGENCE. Don't take MY Word for it. You decide

I wish you and everyone great success.

Dr Alberto Empowers direct line 407-341-1142 email alberto.empowers@gmail.com

Darren Smith · Answer

The MLM part of Strongbrook every is referring to still confuses me.  The one thing I always ask before I get into a deal is how does the other guy make their money.  What the stonebrook rep told me was they of course make some money on the initial $5,500 to $16,000 you pay up front, but they also make money on transaction fees and 3% commission for every house you purchase.  Knowing that ahead of time you can run the numbers yourself and see if those fees are worth paying for the investment.  Sure it technically is a MLM as the Realtor that signs me up can make money on every house I purchase, but that doesn't make it a bad investment.

I've heard several people in forums say bad things about the company, but all of them either were not clients or didn't even know how to evaluate a deal to make a sound judgment.  I'm not interested in Stonebrook for myself, but I'll keep researching to figure out if this is worth recommending to friends who don't care about real estate.

Jon Dziedzic · Answer

Justin, I'm interested in hearing more about your insight into Strongbrook as I have colleague investing with them. Recently attended a meeting of theirs and am not really convinced on the numbers they are putting into the deals they are sharing. I'd PM you but it's kind of late, if you have a minute to send some details my way I'd appreciate it, thanks!

Tomas Gonzalez · Answer

I am currently in the process of buying my first home with Strongbrook. Can you go into specifics as to why you had negative cashflow on the properties? Where they vacant too long, tenants not paying on time, rent was too low, too many capital expenditures, etc?

Alena Ericksen · Answer

I think one of the best ways to determine a company’s success is to actually talk to the partners of The program. I am one and getting a property doesn’t mean your successful with it. If your ROI is in the negatives, it doesn’t matter that you have a house or two and that you obtained them quickly. It’s simply a poor investment. I wouldn't confuse buying a house with having a good investment. If there are fees (which there are) that outweigh any cash flow then that is a problem. Simply put, get rich quick or if it’s  too good to be true, it probably is.

Wayne Brooks · Answer

I wonder what "zero total defaults" means, as opposed to "zero defaults"?  People only lost 90% of their money?

Account Closed · Answer

When an MLM guys call you try to sell them something, and you will see how quick they will hang up.

Joe Gore

Had anyone use Strongbrook?

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