Has anyone worked with Nudge (Utah turnkey company)?

Question

Does anyone have experience working with a company called Nudge, based in Lindon, Utah?  The company url is https://nudge.com/

They look legit - they have 60 employee reviews on Glassdoor and were written up in the Inc 5000 as one of the top growth companies in Utah.  Their company description is this:  "Based out of Lindon, UT, Nudge aims to provide its clients with single-family, owner-occupied, and investment properties, as well as a variety of top-notch real estate services."

However, they haven't responded to several emails to their corporate address, 1:1 inquiries from a few people on BP, or phone calls.  Their corporate phone line had a weird extension that didn't even seem like it belonged to a company called "Nudge."

The lack of response is strange - I should be right in the center of their bulls-eye:  I'm a prospective investor from CA who is looking to buy properties (SFH) in Salt Lake and Utah counties.

Anyone know them?

Jeffrey S. Breglio · Answer

Here's the same recommendation I have provided hundreds of clients on dozens of outfits like this. I do not have any personal knowledge of this one.

I have seen dozens of these types of companies rise and fall in Utah over 15 years of my experience here. Many of them have the same owners as previous ones that went bankrupt. They are modeled off of national companies that do the same thing. Get you to pay a lot to be part of the club by telling you they are going to bring you deals. So my advice is BE VERY CAREFUL about paying (usually a LOT) of money to be part of a system that brings you deals, education or whatever. Most clients that have been involved have had bad experiences. A few have good experiences. I'm sure a lot depends on the individual investor. But I find that most of these over promise and under deliver. They also bring you into a eco-system where they control all parts of the deal: hard money financing, wholesaling, property management, sales. They make money at all levels. Most deals are also out of state, and I'm not a big fan of doing that unless you're a VERY sophisticated investor. The deals, when taken as a whole, are never that great to the investor. And you can get the same opportunities, and possibly better education and networking at the REIAs, and for a just a few bucks. Also, these always seem to pop up in Utah County. That speaks a lot for itself.

In short, educate yourself cheaply first, Attend REIAs, talk to others, read. Then you are in a better position to analyze the value of what you are buying.

Jeff

Jeff Rappaport · Answer

Hey Nate, I am an investor in the Utah market for the last 15 years.  The multi-family market in Utah is on the high side.  The ROI and cap rates are not great right now!  However, there are some deals around.  Even though there is some fraud that goes on here not every investor is unethical and immoral.  If you would like to chat further pm me and I would be happy to steer you in the right direction.

Aaron Mazzrillo · Answer

As a person who owns real estate in Utah and has worked with multiple investors in/from Utah, my advice based on personal experience is if you are not from Utah, do not put your money in Utah.

Go to ski. Then go home.

Steven Bond · Answer

Yes I know about them.  You're welcome to call me personally if you'd like.  I'm based in that area and pass their signs regularly.  They have a model like buyPD and others that buy in bulk distressed assets in distressed markets and sell their inventory.  To my knowledge they really don't have any inventory of value in Utah because you cannot buy that type of product in our market...the market is simply too healthy and stable for that.

Nate W. · Answer

@Aaron Mazzrillo

Intriguing.  I live in Sunnyvale, CA and am renting a 1,500 sq ft 3x2 that would sell for $1.6m if put on the market.  So, options in my own backyard are limited.

My wife is from UT and we visit 2-3 times a year.  I went to college there as well.  So UT is probably the secondary market I'd have the most knowledge of.

For what reasons would you suggest staying away from UT?

(I'm totally with you on the skiing)

Michael Hilkey · Answer

THIS is Response Marketing Group - AKA Nudge -- take a look! https://www.ftc.gov/news-events/press-releases/2019/11/ftc-acts-shut-down-companies-operating-real-estate-seminar-scheme

Jay P. · Answer

Yes, I worked for Nudge for over a year. I worked with their advertising department. They hired people like crazy and after they moved into their massive office building, they decided to lay me and tons of others off.

I enjoyed my time at Nudge for the most part, but saw red flags all over their tactics.

Somebody created a blog about Nudge in detail: http://nudgeutahreview.blogspot.com/2015/11/what-d...

It's an article about a former employee, like me, that pretty much had the same experience about working for Nudge and getting canned.

During my time working for Nudge, I've noticed that:

-The leaders of the company are narcissistic and would boast about their weekly earnings every Monday morning.

- Would hire and fire people all the time. I've never worked for a department that would hire somebody and a week later they were gone.

- They used bait and switch deals to real estate seminars. "First 50 people to enter get free i-pads" etc. The "free" seminars would cost over 20k.

Anyways, that's my experience. Nudge is a company that grew too fast with red flag tactics and their roof fell in on them and I and my team was the ones that had to face the cost of their greed.

Christine Prelaz · Answer

Interested in feedback on Nudge too.  Thanks for those who posted already

Stan Balkema · Answer

I caution you on dealing with Nudge and all of it's numerous entities.

Aaron Mazzrillo · Answer

If you're going there a few times a year and your wife is from there, then you're probably in a position to find your own deals there. I wouldn't rely on others to find you properties. You'll probably end up with a bunch of 100 year old junk in Ogden - felon tenant capital of the west. I've deal with 4 different investors operating out of the SLC area and at the end of the day, none of the 4 were above board. All had hidden agendas, back handed deals and when their true colors showed, they were just unethical people. That's my personal experience. Maybe I found the only 4 scumbags in the whole state, but I doubt it. I've dealt with 100s of investors here. I've been burned by 2 - one of whom is a transplant from... (drum roll).. Utah.

Has anyone worked with Nudge (Utah turnkey company)?

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