Marshall Reddick
Posted on March 7, 2006 - Filed Under Business |
"One stop shopping for all your real estate needs". That’s how I would sum up this seminar that I went to last Tuesday. I’m refering to the Marshall Reddick seminars. His quest, simply put, is to end middle class poverty. You’ll forgive me if I snicker but the words "middle class poverty" seem to melt together.
I’m going to break this topic up over several days. I prefer shorter blog entries as opposed to long ones.
So what exactly is the Marshall Reddick network?
I’m glad you asked.
The Marshall Reddick network is a real estate network. In this network, members can finance and purchase properties. The network includes real estate agents, loan officers, escrow companies, property management companies . . . It is essentially "one stop shopping" for real estate investors.
Membership to the club is free. What’s the catch? There is no catch. Well, maybe a small one. You have to use their network. The club makes money when the purchase of a piece of real estate occurs. They get half of the commission of the representing real estate agent, which is normally 6%.
In this group, there are mentors. And there’s qualifications to being a mentor. For instance, the number of properties that have been purchased. There’s a minimum number. Also there are different types of mentors. One group of mentors focus on positive cash-flow. Another is high appreciation.
Did I mention the bible study breakfasts? And they also sell supplements to raise your anti-oxidant levels in your blood above a certain number. I’m confused.
I’ll be discussing this a bit further in the coming days.
If you liked that post, then try these...
Is your lunch eating you? on February 26th, 2008
With my new refrigerator being installed, an interesting memory surfaced.
Oh yeah! on August 2nd, 2005
The real estate agent called tonight.
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42 Responses to “Marshall Reddick”
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Look out Clifford, it’s a trap!!! It’s one of those new Middle Class Cult/Pyramid schemes they’ve been talking about on TV!
Just kidding. It sounds very interesting! Can’t wait to hear more about it and enjoy your on-going change of direction.
I can’t remember if I told you this but I bought my first investment property in Las Vegas through Marshall Reddick. It empowered me to take the plunge, but at the time I wondered if he was serving up the Kool-Aid. It all turned out okay, but I never bought through his network again.
I’m still on his mailing list though and I worry about the hordes buying “network” properties because he’s still claiming: APPRECIATION RATES ARE AT RECORD HIGHS! I sense that he’s in cahoots with some of the builders and this taints his objectivity.
So go and learn, but it might be smarter to find properties on your own.
Beware of the ***** Fabulous Investment Opportunity ***** and Equity Sharing… Better make sure you know exactly what you are signing up for… the Equity Sharing Agreement is NOT recognized by the Internal Revenue Service as a legal document; what matters? Who holds the title and the loan? When you sell or buy an equity partner out, there are alot of details that MUST be tended to, the equity share agreement is cute but lack to provide any substance in the “Real World”. If Karma exists, I would hate to be in the shoes of this snake oil salesman!!!
Be careful on what your were told without running the number right. They taught you to pull put equity from your house and put 5-10 percent down to purchase more houses. When you get equity out, your monthly payments increase. It is not like free money the bank just let you use it. They never calculate those increase on payment into the math. The total nagative cash flow will be much higher than they claim. So please be more cautious about those real esate guru. Most of them are very dishonest. Don’t change to the wrong direction…
Caveaty Emptor
Talk to other Non-Reddick Network agents before you buy anything through that network. They definitely do not get the low prices they sometimes claim. And never trust their rent projections and appreciation, etc. My wife and I have lost a lot of money not double checking the Reddick people and figures. Our bad. We live and learn.
Good luck,
Olaf and Kelly Garcia
The highly appreciated real estate markets in Florida, California, Nevada and New York, New Jersey have made many of us rich. Real estate runs in cycles,like the stock market. Cap rates are like PE ratios in stocks - the higher the cap rate the riskier the investment- most times.
Watch out for MRR network, they like all investors in real estate are being squeezed out of single family homes by high prices into condos, condo conversions,hotel conversions- Ilikai, Honolulu, Hawaii., student housing Capstone and Preiss Co’s. These latter 3 investment have been lucrative for the developer and marketers promoting them and a catastrophe for the investor because there’ no real way to do comps and set a resale market to get out of these overpriced, oversold nightmares, old buildings in need of major mechanical upgrades. Condo conversions earned a terrible reputation in the 80’s especially in Florida and California and now we see the same players trying it again.
Form a relationship with a Realtor you can trust who knows and lives in the area you want to invest in.
Go to the area, look at property with the realtor.Watch out for buying in most places now and wait for the bottom, especially in the previously hot markets. Don’t chase markets like FL, Nev,Az, Cal. Hot markets are cooled by huge #’s of MLS. The time to buy will come be patient and wait.
A solid honest realtor will earn you’re trust by telling when not to buy. Marshall Reddick is not a transaction broker and all but a few of his people have any realestate education or California real estate liscense. The out of state agents he contracts with, not liscensed to sell in California, double end the deal,a practice not in the buyers best interest. Google- John T.Reed’s web site under real estate guru’s for more info on guru’s.
The MLS makes up 80-85% of all realestate transactions. MLS listing numbers are at an all time historical high now, builders stock prices are off 40-50% and new housing inventories are not moving even with massive builder incentives and foreclosures are picking up rapidly due partly to creative financing schemes- ARM’s, neg am and interest only loans. Builder and condo, hotel conversion guys the remaining 15-20%. Beware of any investment in new or especially condo and hotel conversion types relying on investment networks to market their old useless, overpriced products. If the hotel or apartment building was making money why is it being converted to a condo, or condo hotel. Old building 40 years or greater generate huge mechanical repairs, roofs, elevators, plumbing and foundation issues. These building are usually torn down and new ones built. Absent an enoumous reserve fund, the investors, owners of these old builds will receive huge $ special assessments. Ask yourself if it’s so great why don’t the local realtors and local investors buy it out before it’s finished.In good markets you have to win the house at prapproved buyer auction.
Beware of Marshall Reddick telling you about arm chair investing. Real estate investing takes large amounts of capital to cover repairs,evictions, ineffective property managers who ignore you’re property causing huge deferred maintance costs, tenant damage repair at moveout, vacancies and adjustable interest rate, negative am and interest only intersest rate exposure. Long story short stay out of realestate unless you can afford to play the game.
Unscrupolous real estate networks prey on the uninformed, naive,inexperienced individuals who buy into the get rich, retire in 5 years borrowing out the equity in appreciated propery by doing a cashout refi at 8-9% interest marketing scheme. Good luck with getting the loan with the market leveling and prices dropping in many regions. If you do cashout the property, you are paying 8-9% interest to finance you’re retirement and now the bank owns the property. Greed motivates the uniformed, ignorant investor and MRR network exploits it to the max. Eliminating middle class poverty says it all . By definition the middleclass is not in poverty. Who’s poverty is Reddick trying to elimiate his own? Marketing hype is the tool that separates the investor from their money driving them into bad investments. With no underlying analysis to justify the investments why buy it?. Ask what’s the cap rate, ROI, cash on cash, future value, present value of the loan numbers. Get preapproved, establish a line of credit with a reputable lender like CountryWide. Check out vacancy rates and get a separate appraisal for both the propery value and the rents. Find an area you like that makes sense, preferably close enough to you’re home,or prepare to fly several times a year, develop a relationship with a realtor, mortgage banker and property manager you can trust willing to work one on one with you avoid the herd mentality, seminars, club meetings and especially super weekends where the herd runs free thru a gauntlet of marketing types, builders, agents and other predators more than happy to separate you from you’re money. If it doesn’t pencil out make sense, feel good don’t buy it. Be strong, self-reliant, do the math and or join areal estate investment club that doesn’t do real estate referral for a commission. Generally you should never buy anything from anyone that uses “education” as a tool to pay themselves a commission on a deal they don’t represent you in. Regards, Taeja Kim
I to am a Marshall Reddick Club Member, but like any other investment there are risks involved. Just like the stock market. It is your job to lessen these risks by educating yourself.
I have taken all of the other real estate seminars that are out there, like Carlton Sheets. I find that Marshall Reddick makes it easier to invest. But you have to do your homework.
I personally have only bought multi unit properties. If I lose a tenant I still have rent comming in to cover expenses. I also have a 3 month backup fund. When you lose a tenant from a house/ condo you have nothing comming in.
I also offer below market rent with first month free to get tenants. This way I don’t have to compete with everyone offering the same high market rent. The idea is to help your Property Manager get the tenant in your property. The rents go up anyway in a year.
The other plus is the tax writeoffs you get with real estate that you don’t with stocks.
Like I said I am a Marshall Reddick Club Member, because he offers what the others don’t…access to properties, funding and help and I didn’t have to put up $5000. That went toward buying one of my first properties. I also have invested in REIT.
The Marshall Reddick network has been a complete diaster for my wife and myself.
They make promises such as “you can’t lose money”. “We will buy it back if it does not work out”. When push comes to shove they don’t keep them.
They rarely return emails or calls if there is a problem.
They advised us to buy a house in Florida in 2005 that has now gone down in value 30K and the rental market is also depressed.
My attorney has advised a class action lawsuit for fraudulent inducement.
I would be interested in hearing details from anyone else who has been given misrepresentations about real estate investments by Marshall Reddick or his company.
MM
marshall reddick is a scam artist. please google what the poor folks had to deal with when they bought his properties. He lies about how good they are. He lies about the cash flow you get and everything else. he avoids you like when things go wrong. don’t get sucked into his BS schemes. Do YOUR due deligence and check out this charletan for yourself.
To those of you that invested with Marshall’s group and came away losing money, take a look at the other side. I am a Broker in Montana and got hooked up with the hype of Marshall in 2003. I worked with many buyers from the group and we all were happy…until….I had a problem with the lender that was recommended by MR. Having been in the lending business for a number of years I knew what was going on (bait and switch) and that this broker was going for the big bucks! I also found out that every “lender” MR works with pays him behind closed doors. Then I had a problem with the property manager I HIRED to work with the group. When he didn’t do his job and I told the buyers to get another manager he went to MR and they refused to back me up!! Finally I talked to an attorney and he said that I could no longer pay MR 1/2 of my commission (usally 3%) because he was not licensed in this state! My contract stated that i must pay him at least 3% on all transactions. So…I work with the seller (I charged 5% to my builders) and do all the work for both sides and must pay MR 3% and I get to keep 2%. But here was the kicker..they said I had to buy the houses back from the buyers if they didn’t rent for what the PROPERTY MANAGER said they would or sat vacant for more that 60 days!! The powers that be threatened to sue me when I stopped paying per the advice of my attorney. I said go ahead. The attorney advised me (and them) that we would sue for all the money they had already received and I never heard another word from them. They don’t care about anything but money. Once you buy you and I are on our own and thats a fact! I am an honest Broker and I worked really hard for my clients but I can tell you that those people are very dangerous…buyer beware!!!
Marshall Reddick gets kickbacks, referral fees, and gifts from his real estate brokers, mortgage brokers, title companies, escrow officers, property managers, and banks.
ask the people who work for these companies that work with him… follow the money…
i agree to every negative comment posted. i purchased in palm bay, florida 2 yrs ago. it took 12 months to build while the whole time marshall reddick ntwk was saying there was 30% appreciation there. then it took 6 months for gore property mgmt to rent it out for $1000 when they had advised i could get $1400 prior to purchasing. it left such a bad taste in my mouth that i thought about selling it since i had 30% appreciation. found out the property was still worth 200k which is what i paid for it. either they lied about the appreciation or they well overpriced the home by 50k when i purchased it. im guessing thats why it took so long for me to close on it was to let the value catch up to the sales price. i dont recommend anyone going through their network.
I too have been screwed by the lies and deceptions of Marshall Reddick and his BS. The christain thing he promotes I believe is there to make people think he is religious ergo an honest man. Of course with all the religious nutbars who steel money it’s not suprising MR is one such person. I sold most of my properties and broke even or what I made over the price essentially did not cover my original closing costs and repairs and negative cash flow. They never answer calls or if they do don’t do anything. Some of the brokers were nasty. The goods onces like leave them because they aren’t willing screw the buyers. I recall one real estate broker in oregan left because he was told by MR to ignore any complaints and push his properties. The broker had a conscience and walked away. Many brokers realize they may lose their license being dishonest as to falsely advertsing what rents will be and value of the property so they leave his network. OTOH, Marshall makes sure who ever he pushes in his network he will ALWAYS get a cut. Since he doesnt have a license he is not subject to the same ethics. I do think though he needs to be investigated and sued in a class action suit. It irks me he made so much money based on so much fraud.
Buyer Beware!!!!!…..This network is a scam. Just ask Marshall Reddick how are the construction to perm properties are doing in Florida. Or should I say how the Lawsuit is going in 4 cities in Florida. Over the past 2 years “The Network” suggested member buy in Florida. Now the are several Lawsuit taking place in these areas. I have never had so many problems until I signed up with this Network!!! Get out now…..Run don’t walk …..Run Run Run!!!!
I went to a “club meeting” in the Culver City area that was pretty informative. I thought the information was ok, except too much sales going on. They had a lot of different speakers who were trying to sell different things. I am still looking into this. One of the speakers who approached me at the meetings was saying how he purchased like 80 homes. He was very flamboyant and kind of unprofessional. I did some research on him and the company and apparently he has done some fraudulent things with CBS. You can look it up yourself, just do a google search on George Jammal - he says he found a piece of the Ark. I am still trying to find out more stuff about the people in this company.. Marshall has a lot of negative informaiton on him all over the internet. Can someone tell me some positive stuff about this group?
The Network introduces unseasoned middle class working folks like us to the dream of bettering onself by having a passive source of income. Being from the San Francisco Bay Area, one of the highest home price markets in the Nation, it appeared a dream that one could buy $100,00 to $130,000 new townhomes with mininal down.
After some properties in the out-of-state college areas, major problems are arising. You’ll will never be able to get full occupancy or the rental after the first year of ownership. This is because the Property Management Co., (Preiss) will offer so many incentives to the students, (free month, no security deposit, free electricity, etc.), in order to tout a high rental rate and sell all the builder’s offerings. Your ROI will suffer when the initial student year elapses and are ready for lease-ups in the new academic year in August. You find yourself offering even more incentives and lowering the rent in order to have full occupancy. Then when all phases are complete and sold to the MRN Investors, the Property Management Co. will stop managing the properties and will leave you hanging.
In short, it is not so much quantity that matters- the more properties you aquire in a short time, especially now. But a quality property, nearby, where you can keep an eye upon it and have more control is the ticket. If you were fortunate to nurse an investment property over the years, you will be light years ahead of reaching your financial goals. The MRN model is like playing the stocks. It is zero sum- you lose and they win.. nearly always. Be careful so your property does not appear on their new list of discount properties. Best of luck.
I have been scammed by Marshall Reddick.
I want to know if anyone has instituted a class action suit against him?
I appreciate all the info I am seeing here and in other blogs concerning the MRN. I have to admit that I am a member of the network (since 2005?) but have yet to pull the trigger on any purchases. The furthest I have gotten was being pre-appoved by one of the lenders within the MRN. Viewing the information has really opened my eyes as to the need for patience and educating my self. I believe I bought into the “eliminating middle class poverty” idea described in the MRN material. Without being too long winded, I wanted to say thanks for the information.
Regards…
There will a class action against MRN sooner, rather than later.
“Wyatt Law Firm Files Lawsuit against Reddick Real Estate Network and Others for Fraudulent Home Sale Investment Enterprise”
http://www.forbes.com/businesswire/feeds/businesswire/2007/07/17/businesswire20070717005359r1.html
“In the lawsuit, filed by the Law Offices of Andrew M. Wyatt, a Los Angeles-based law firm, the Irvine, CA-based MRREN and its founder, Marshall Reddick, along with the other defendants were charged with 11 counts of illegal actions, including: Fraud; Racketeer Influenced and Corrupt Organizations (RICO) Act; Untrue or Misleading Advertising; Negligent and Intentional Misrepresentation; and Unlawful, Unfair and Fraudulent Business Acts and Practices. “
If anyone has a class action lawsuit against Marshall Reddick, I would like to join. I also was misled by Marshall Reddick. I am in debt because of this guy.
In defense of Marshall Reddick, I have met many people who have greatly improved their finances and net worth due to his purchasing recommendations. Mostly it seems that the people who complain are the ones who went over board with their purchases. For anyone considering filling suit, please be very careful because it is more than likely your entire loan application will be subpoenaed, and if it turns out that YOU have lied or misrepresented any of your own information you could be guilty of fraud, a felony and possibly huge fines or jail time. I have heard that many of the people wishing to blame Reddick are the ones who lied about their financial situation, which is why they are in trouble to begin with. The real estate market has it’s Ups and Downs, and many people purchased during it’s highest growth cycle and now are upset that values have gone down. This is part of real life in the real estate world, which is why Reddick proposes a long term, buy and hold strategy, with a minimum 8 to 12 months of reserve mortgage payments set aside to handle vacancies and to hold on through down times. It appears many people did not follow his advice or just want someone to blame for their own decisions or lack of planning. I thought someone should speak up on behalf of Reddick since he has done an awful lot to help people, and I do not believe he deserves this bad press. One last thing Reddick can not control the market nor how many other investment groups or private individuals purchase in any one area, so take a good solid look at the truth before you go blaming Reddick for everything!!
I love Marshall Reddick Network. They have changed my life for the better. I am now financially free and able to go and do anything I want. You bad mouthers don’t know what you’re talking about.
Right now I am sitting with 10 properties and my personal residence. I have emptied my cash reserves and my 401k and all my credit cards are maxed out trying to keep up with the negatives caused by low rents, renters who move out and leave a mess and overpriced propterties that I bought through Marshall Reddick. I take responsibility for listening to someone like Marshall Reddick and the people who work for him. I have owned the properties for over 2 years and for the first year, I weathered the ups and downs, but this year has been the toughest. Renters aren’t paying on time. I have had very expensive maintenance issues on these almost new homes. Taxes and Insurance have risen as well as the loans Marshall’s companies gave me have adjusted and I haven’t been able to raise the rents as there are so many houses in these Marshall Reddick neighborhoods. When I have tried to sell them, the values are in the tank in comparison to what I owe. Again, I take responsibility. But now I am facing foreclosure on most of the properties. I might be able to sell one or two. Maybe I can hang on to my personal home. I just don’t want to see any one else get into the mess I am in. I never paid a bill late, had a sizeable bank account and excellent credit. Now I have lost it all.
So much for Marshall Reddick wiping out middle class poverty.
Marshall Reddick is a scam artist. I got suckered in and lost $30,000 of my hard-earned money. Marshall Reddick is allowed to present his seminars at the community college where I taught; based on the fact that they let him in, I trusted him. After a year of attending seminars, I bought a home in Pasco, Washington. EVERYTHING about it was a scam — from the real estate broker to the lender to the property manager, all referred by Marshall Reddick as part of his “team.” I got the State of Washington involved and the found so many problems with the property manager that the license was revoked. Without notifying me, they put a Section 8 person with a reputation for destroying property and not paying her rent in my BRAND NEW HOME. She and her FOUR CHILDREN and her live-in boyfriend and his daughter TRASHED the house — $5,000 in damages!! And Section 8 took NO RESPONSIBILITY for the damages to the property, the unpaid rent, and the unpaid utilities (which the City of Pasco required ME to pay). I finally sold the property and walked away — $30,000 gone.
I’m glad to run into this webpage/forum. I attended one of their seminars and a seminar hosted by another RE investment group, Nouveau Riche University (NRU). I’ve thought to myself that I should take their advice with a grain of salt, especially during these troubled times. After reading these comments which are overall negative, I’m glad that I did not go any further with either of these groups
Thank you, folks, for the warning!
Marshall Reddick misleads people, hides behind some bogus spirituality, and has led countless lambs to the slaughter. He would sell anything to anybody to make a buck, and pretend that he is looking out for his clients. He was my PERSONAL mentor, I did everything he said to do, and now I am bankrupt, and he is rich. It takes a while to see his true colors, so BEWARE!!! I am glad someone is going after him. I would, but I don’t have any money left. He oversells in neighborhoods, diminishing value, selling you exactly what he says not to buy (but of course sells it to you saying ‘its a fabulous investment’), you are told you have all this support, and you have NOTHING…the ‘network’ is ALL on the take. Everyone gets paid off. My mentor encouraged me to BS on my loan so I could get approved. …the whole thing is a nightmare.
those people who are glorifying marshall reddick here are plants. His people scour anything negative said against MR and his network and plant these glorious rah rah posts about marshall reddick. Beware they are plants! Google and you’ll see.
It’s still going!! Wow! I’m impressed!!
I’m sorry to hear about so many people not being sucessful with their real estate investments. I can say two things with great certainty 1) Everybody should have investment properties as part of the overall portfolio and 2) Real Estate investing is neither easy nor a get rich quick plan. Not to say that it hasn’t been easy or profitable for me at times? Sure it has! and at other times it felt like going to the dentist. For the sake of FULL DISCLOSURE…..I am, on a micro scale, a competitor of Marshall Reddick….Sort of. I say on a micro scale based on the fact that MR probably does more transactions in a month then Ive done since we built our first rental duplex back in 1999. Heck we just put our 700th rental into service last month…….I suspect MR does that much business every 30 days or so. The major differences are that at least one of the 3 partners here personally owns at least one duplex in every project we have every built. If it good enough for our investors it should be good enough for us. We also are the developer, contractor, and management company. When I say we own these divisions I’m mean we actually own them. We hire we fire we, write payroll, we even own our office buildings. MR apparently subs all that out while making a gross profit of 3% with no overhead? I guess that makes me a dope as we only just started to turn a profit on our management divsion after 5+ years and hitting 550 doors for rent. Then we went and opened a satellite in TN and we are back to breakeven….Oh well it’s honest work and I sleep at night. So everybody don’t give up the idea of owning rentals. Just do it smart and do your homework. Stop looking for the Megadeals they rarely happen. Every property Ive ever sold to an investor was sold at 100% of market value. If the market doubled next week I would sell them at twice what they are today…..Get the point? We are a good example of who you should be working with. Notice that no shameless plug or contact information is listed on how to work with me.. Do your homework find honest people to work with get in the game. Here is a hint, Honest people in this business will not appeal to your greed, In fact they will walk away from you because of it. Fear and Greed are ugly traits in a partner. And that is what you were a fearful greedy partner with MR and that is what he is looking for. ….But you can change.
Just my .02
I went to Marshall Reddicks Spiritual breakfast it was great Marshall he is so spiritual he asks god for guidance for all his decision making I haven’t purchased any property yet through the Marshall Reddick Network but I plan to. I had lunch with Marshall and he has convinced me not to do the chemo therapy for my skin cancer in November but to do what Christian Scientist do Marshall told me to mix equal parts apple cider viniger and honey in a glass of water and drink it every morning before breakfast and pray I am so glad I met Marshall Reddick he gave me a copy of his Christian Science health book Forever Young
I am so grateful I met Marshall Reddick
I went to many Marshall Reddick meetings in Culver City and read some books on investing. The basic concept made sense. I would say the basic strategy does make sense: buy some properties and allow the renters to pay off the mortgage and over a long period of time the house will appreciate and the rents will go up. People have done this forever and this does work. The problem is the way Marshall presents it is a bit ridiculous. I have received his newsletter for several years. (From around 2003-2006). Every single issue said this was the best time he had ever seen in his 25 -30 years in real eststae to buy -RED FLAG . Also, at the seminars he always says buy 5 houses a year an you are guaranteed to retire rich in 10 year -RED FLAG
ALso, he never addresses any of the negative possibilities such as no tenants, bad tenants, housing prices declining, etc. as if these things could never happen. I guess he must tell people now is the greatest time to buy because prices are so low which I would agree with but what are his people woing with all these homes they bought with noyhing down and refinanced to buy more homes? he also as someone else mentioned says to pull money out of homes you have purchased to use a s a down payment to buy more homes which means you now have a bigger loan on those homes so you have lost the cash flow. How can you retire rich by pulling money out every year from homes when this money has to be paid back and you are not getting the rents to cover the money you pull out? The amazing thing is no one ever questions anything that is said at the meetings.I went to meet with one of their mentors. he spent maybe 5 minutes with me, could not offer any intelligent response to my question as to who is going to pay back the additional money I would take out each time I pull money out of a home to buy another home other than to say the rent will cover it and basically told to me to go down the hall to get preapproved by their lending company and tried to sign me up for their fast track program to buy 5 houses. I think Marshall is a very gifted salesman and has put together an amazing operation but he does not tell the whole story and that is the real problem. I was so excited to buy and it all looked so easy but something told me there was more here than what he was saying.
I find these postings very interesting, I’ve known Marshall for just under two years. I believe Marshall has good intentions but he does “over sell” big time. The glass is always full as far as he’s concerned which is a big problem when you have huge negatives and your running out of your reserves. We purchased one unit at the Iliki after doing lots of due diligence. The negatives are 2.5 times greater than management had projected and Marshall had sold. I’ve been told he’s very unhappy with how that project has turned out and that in Jan there will be news from the network on how to proceed. If you look into most complaints I’ll bet you’ll find these come from people in the early stages of ownership 1-3 years and or having purchased in the first part of a correction phase in the market. Timing is everything, I would not purchase any real estate until the market washes out, my bet is 3 to 5 years before the next up cycle. if you buy in that up cycle everything is in your favor but not right now. The MRN does push when they should be telling people to slow down. I believe his sidekick Tom C. is a dark character pushing transactions hard, keeping the wheel round. Anyway, I’d like to hear from anyone if they have any inside stuff about the Ilikai.
MR was pushing Houston, Texas as a qualifying GO ZONE depreciation benefit area. This was a lie. The Houston agents were not even buying in Houston because they knew it was untrue.
They placed a town called Danville, IL in their DO NOT buy list on their real estate cycle pamphlet. They handed the pamphlet out at the same Culver City meeting that they were pushing Danville, Illinois.
From what I’ve seen, this is a shady group of con artists serving ONLY their best interest.
I want to offer a picture of how I got into Marshall Reddick’s network. I went to a seminar in 2002 sometime, because I already owned one rental on my own and wanted to hear about his network. I understood his concept right away, but needed to wait for the right time and research it more. I bought my first MR property in Oct. 2004 in FL. It did well, and 6 months later I bought in Mobile, AL, which has done well. 6 months later, I bought TX, IN, and WI. Then waited 11 months and bought ARK. After closely analyzing each property, I refi’d my main home and bought 6 more homes in various states. I have had a mixture of great experiences and some trouble. But when I analyze the return on investment (property appreciation versus downpayment and other expenses), I am doing really well. But I will not see real wealth for many many years. Sure, I have found problems in some areas that the MR network could have solved or avoided for me, and some clear mistakes, but overall, the concept works. The main point is this: YOU MUST DO YOUR OWN RESEARCH. Also, you must not over-stretch yourself. Marshall himself DOES always say keep 6 months’ mortgage reserved for each property. If you don’t have that, wait until you do before buying again. In each of my cases, I refi’d one of my rentals twice, then my own home as I went to make sure I had that reserve. And I put that money into a safe investment account or money market, so I was making 4% to 6% on the money as I waited for repairs or lost rent to handle. Real estate takes work, and it is long-term, and it will have it’s issues. What the MR network DOES do well, I think, is find areas which are solid, in general. But always plan on 1 or 2 months of vacancy per year, some repairs, and the more properties you have, the more issues you may have. Overall, I’d say the issues I solved did not return for awhile, and then I experienced some smooth sailing. And when a tenant moves out, the rent goes up a little bit. Over time, I believe I will have mortgages paid down, some positive cash flow, some good appreciation, and it will all add up to wealth.
Investors supposed to get good price and positive cash-flow. Well, both are pitched in by Marshall Reddick Real Estate Network (mrren) also known as MarshallReddickSeminars.com. But the truth is far from it in my experience. I bought three properties through the network and six properties myself, all out-of-state. Comparing, I can prove that through Marshall Reddick Real Estate Network, I have paid thousands of dollars more and with poor cash flow. The cash flow presentations on each property through the Network are only ideal to entice investors into buying - they do not include vacancies, repairs-paint-gardening, Management set-up fees, lease re-negotiating fees, repair fees, lower rent due to specific location, free rent incentives etc.. This means few hundred dollars negative cash flow every month. I also purchased through the network in a bad location via webinar, I suffered vandalism in the vacant property after the HUD purchase and after the $16500 repairs to make it rent ready. When I flew to the house to meet the Manager, he came with handgun strapped on his shorts, which scared me to see what kind of crime ridden the neighborhood might be. The property is still not rented for over two months. Un-listed Atlanta property belonging to an Attorney sold by Premiere South Realty through Marshall Network is coming at ½ the price of what I paid just 18 months ago. No return calls by them or lender on so high appraisal 18 months ago. I wished I had flown before making offers to avoid these horrible outcomes on all 3 properties I purchased. In short, buying though the Network is costing me thousands of dollars with lousy customer service from agents during sale and afterwards by the management company, and suffocating my investment with vacancies and charges.
I’m really sad to how how much controversy is now associated with MR. I can say that his strategies ten years ago were sound and maybe things have gotten out of hand with the easy availability of cash. I purchased in CA and have seen my property value triple in 9 year. I also purchased in Fl and have seen a little more than doubling of value in 8 years. Nothing miraculous, just GOOD timing. Most people can’t believe what I purchased my residence for becuase I purchased at the BOTTOM of the cycle! Property values now are unrealistic, people are upside down and foreclosures are plentiful. I have been on the sidelines as this chaos has taken place. Most people that feel screwed have purchased high and will sell low. Marshall is a salesman and with a grain of salt I LISTEN to him. I do not go blindly with anyone or anything. BTW this all happened for me my second year out of college with no savings and a SEP-IRA. Thanks for your time.
To think that Marshall Reddick was not in it for the money is ridiculous. His concepts are good but not completely sound. If an “investor” is going to sit back and rely only on what he says is not really an investor. People have always made money after due dilligence. Lazy and ignorant people believe “gurus” like Robert Kiyosaki and friends. That being said, the law is suppose to law protect the ignorant and I am glad someone sued him. May this be a lesson to all.
I completely agree with doing your due diligence. I just don’t like the way the Reddick groupd lies and misleads people to get them to buy. They are dishonest with people and try to make them feel comfortable with their “arm chair investing” ideas. I didn’t fall for their lies about the GO Zone in Houston but I know that many people did.
Anyone buy in Davenport, Florida (Village at Town Center)? through Marshall Reddick?
I used to work for Marshall Reddick. Guess what? He fired me for stealing from him and now he is giving back 85 of his real estate properties because he is running out of money. People have finally caught on to the fact that he is a loser who will do anything for a buck and they have quit investing with him. He hires people like us who will steal from him and from his investors because that is what he does. It’s simple.
I was going to invest with Marshall Reddick but now of course won’t. The negative reports really out weigh the positive.
There are other bad investment companies out there, Green Light in Arizona, and I lost money with them.
I guess the whole area of real estate investing is dangerous because there is not any regulations governing the field like there is for financial investing.