All Forum Posts by: Seti Gershberg

Hey Chris,

I am paying 3.5% on the first so it does not make sense for me to do a cash out refi at a higher rate. Payoff would be the sale of the unit, that’s why I am paying a guaranteed fixed annual return regardless of payoff date.

I am looking for a private lender to underwrite a $100k 2nd on an investment property.
$365k First ($2,200 monthly P&I)
$680-$720k Value
65-68% LTV
Rented at $3,990 per month
Top-rated and Award Winning highly desirable Luxury Condominium
$150k recent high-end gut renovation
Clear Title
Short-term Loan with no prepayment penalty loan sought. High fixed rate of return regardless of payoff date.
Open to terms
Call 480-799-6213 with interest

I agree 100% that note investing is not for most people as an "active" investor. There is a lot to learn, it takes hard work  and time and there are many areas where mistakes can be made.

On the other hand note investing is a fantastic way for people in retirement or otherwise looking for higher returns to invest as a "passive" investor in a pool of notes. 

Purchasing a pool of notes is important for the passive investor as the risk of default is a reality.

I am a Renatus member and I have read through the comments above which are mostly negative. My experience with Renatus from the beginning has been excellent and very professional so for people with an open mind and want to do their proper due diligence I will offer the following.

EDUCATION:

Renatus is a REI education company. The courses are offered online 24/7 and the membership is for life. No other REI educational offering even comes close to the depth of the practical knowledge taught, the variety of REI strategies, Tax and Legal strategies for REI business owners, Financial Literacy and personal development. I have watched dozens of BP videos, attended Guru events, read many books on REI and in my opinion the education from Renatus is light years ahead of any other education on the topic you will find. I will also add that I have an MBA in International Business from the top IB MBA program in the country and the Renatus education is on par in terms of educators and content and superior in it's practical application.

COMMMUNITY and DEALS:

Renatus teams are found in 36 cities. I am part of team Synergy in Phoenix, AZ. We have over 100 members who work together to find/fund/purchase and sell properties using every REI strategy available. Since June our community has been involved in over 50 fix and flips, dozens of wholesale transactions, lease purchases and two of our members just formed a bank. All of these deals were funded internally and the amount raised within our community was over $4 Million. Each day we have educational webinars. Each week we have 3+ events related to REI and each week we have classroom activities to solidify education.

EDUCATION SALES:

While many people choose to join Renatus for the REI education alone, the company is set up as a direct sales organization for people who want to resell the REI Education. Most members do sell the education because it is lucrative and they believe in the product. Some people incorrectly associate the model with MLM. It is not. Over 14 states require MLM organizations to register with the state. Renatus is in all 50 states and is not required to register as an MLM, because it is not. The model is like the insurance industry or real estate brokerage. When you train someone to sell the education you get and override. When you build a team you get an override on the entire team.

The education cost is between $2,000 and $20,000 a very reasonable investment when you consider that it is for 2 people for life and when you join you become part of a local community who work together to make everyone who works for it a success. If you don't work for it, like any other job you will fail. I have never met anyone who does well with Renatus who did not work hard and the success rate is well in the 90th percentile, rather than guru programs who have less than a 5% success rate and cost between $40,000 to $100,000 for a limited time program.

Compared to a college education Renatus is the best value out there. May daughter's college education cost $250,000 and she only went for 4 years. Renatus is less than one semester and for life for 2 people.

HARD PITCH:

I had to laugh when I read this. Renatus is the most soft sell REI program out there. All we ask is that people go to our events and then make a buying decision. No one will ever force you or pressure you into buying the program. There are no credit card machines like in Guru events, no closers like you see at time share presentations. I have purchased half a dozen cars in my life and every dealership is 100x more hard sell. If it's for you great, if not that's great too.

BOB SNYDER:

Bob was indeed a co-founder of Nouveau Riche. Nouveau Riche was shut down and Jim Piccolo the other co-founder was was fined over $6 million dollars. Here is a link to a BP post that sites the complete AZ Corp. Commission Press Release

https://www.biggerpockets.com/forums/79/topics/619...

Bob Snyder is not mentioned because he was not involved and became a victim like many of the other hard working and honest people involved with NR. If you are going to defame someone by implication you should do your full due diligence, because in the end it is your reputation that is at stake by misleading others with false information that can easily be documented.

SUMMARY:

I love Renatus and encourage anyone who wants to get involved with a local REI community and learn from an outstanding educational program rather than go it on your own, you should evaluate Renatus by going to the events offered each week. If you want to do it on your own, it probably isn't for you. For me, I like working with other more experienced REI's so it was a great investment. If you want to sell the education, great - it's an excellent income stream that will fund your real estate deals. If you just want to invest in real estate, great - do that.

Can someone recommend a contractor in Phoenix? 

Thanks.

@Brett Goldsmith thanks for the example. Now I understand the mechanics. That was very clear and I can see when and where this strategy can be used.

@Tom S. thanks for the information. I see your point that it could be a lot of work for little gain. That being said, this is more of an educational question to understand the mechanics of the transaction. I guess I am still not clear on that. Thanks for any additional thoughts.

I recently saw a presentation on Subject To transactions and the presenter suggested an advanced concept that involved buying a property that was underwater and had two mortgages. He mentioned you could short the second and create substantial equity. The presentation was basic so he did not go into detail on the concept. I wonder if an advanced investor would be able to explain this concept in further detail?

Many thanks.

Does anyone calculate net present value to compare wholesaling vs. flipping vs. rental/BRRRR deals?

If so, do you have a spreadsheet or anlaysis tool?

I have been evaluating the BP calculators and have found them to be ez to use. The final report also has a very professional look and would be very useful in presenting the financials to potential investors and lenders. However, after reviewing the reports for commercial rentals I do not see depreciation included in the analysis. Perhaps it is there and I have not seen it? If it is included where would I find it and if it is not included what would be the reasoning for excluding it from the analysis?

Many thanks,

Seti