NRIA - National Realty Investment Advisors
Rental Property Investor · New York City · Member since 2014 · 208 posts · 271 votes
NRIA - National Realty Investment Advisors
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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
8yI do not know the company. Looking at their website they list some names but no pictures and not many ways to contact them.
I would stay away from any company that guarantees anything. There is NO SUCH thing as a guarantee in fact when investors invest with companies there should be language spelling out risks and the potential loss of the whole investment as a possibility.
It is not fool proof but generally the more a company and their people are not GHOSTS the better. If no pictures, no video, multiple ways to contact,etc. then an investor can have more questions then answers.
69 Replies
- Kansas City, MO · Member since 2017 · 144 posts · 148 votes8y
My question would be how they guarantee the return? They may have systems in place to protect the return.
Also is it CoC, IRR, or Total Return? All these are calculated different and they have a different way of accomplishing the return.
Hope this helps,
Matt
- Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes8y
@Holly Williams a 12% return is very achievable for most real estate investments. I would not consider doing a deal if I only expected to return 12% to my investors. The guarantee on the other hand would be a red flag to be. I would have to assume it is not a guarantee on the 12%, but instead a guarantee that if they don't make 12%, then the company doesn't make money or some other stipulation. If it's a straight guarantee, then I would run!
- Member since 2018 · 1 post · 0 votes8y
I am a NRIA investor since 2010. I was being burnt by Wall street in 2008, that had wiped me out completely. I found NRIA folks through grape wine and was hesitant to believe what they claim. Now dealing with them over eight year I am thanking every moment. All my investments are tangible and producing results to my expectations. Yes, I have invested in Philly, Brooklyn and Florida, that all through NRIA and so far, they didn't let me down on any project. I have gotten up to 30% ROI on some projects. I think one should do their due diligence before pointing fingers. I am the live example with results.
I am dealing with AJ Scutaro, who is my project manager and quite thorough on most of the projects. I suggest contacting him with any question.
Narinder Chabra
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes8y
I do not know the company. Looking at their website they list some names but no pictures and not many ways to contact them.
I would stay away from any company that guarantees anything. There is NO SUCH thing as a guarantee in fact when investors invest with companies there should be language spelling out risks and the potential loss of the whole investment as a possibility.
It is not fool proof but generally the more a company and their people are not GHOSTS the better. If no pictures, no video, multiple ways to contact,etc. then an investor can have more questions then answers.
- Member since 2018 · 1 post · 0 votes8y
Hi, Joel, fully appreciate your suspicion on NRIA. I've invested in real estate properties through construction, purchase, and rental for years. I watched NRIA's commercial for 3 years before I personally visited its office with my two-page questions to understand its business model and risk mitigation strategies. I've become a NRIA client since and the company has delivered two luxury townhouses in the city of Philadelphia - both 100% owned by me and deeded to me. In additional, NRIA have several projects to be delivered to me this year and they are nicely on track. I would tell you that my experience with NRIA has been very positive. I think NRIA is only open to accredited investors so more detailed info may not available on line. If you are interested, you may want to call my project manager Art Scutaro to understand more about NRIA. My personal view, 12% return is an minimum, it's very achievable with right business model and well-designed control and risk mitigation.
- 8yIan IppolitoBusiness MemberInvestor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
Sorry, but there's no such thing as a guaranteed 12% return In investing, let alone real-estate loans. (The closest is a 2% return in a bank CD. And even then the US government will only guarantee $250k, and if FDIC goes broke you will be too.)
If they truly are selling this as straight guarantee then they are marketing this to the most unsophisticated investors who don’t know any better. In my opinion, that right there tells me everything I need to know in evaluating it.
Also, @Holly Williams, I think you were perfectly right to call out @Gregory Leishman , @Atul P Patel , etc. as shills. They have zero history and zero posts on bigger pockets. And somehow they found this thread on their own, and also suddenly found their voices to sing the praises of this one sponsor. What an amazing conidence. I see the moderator was so impressed they already deleted the post from one of them.
The Real Estate Crowdfunding Review Agree with @Joel Owens and @Ian Ippolito. Getting an actual "guaranteed" return is a standard that most can never meet and it's one of the reasons why the SEC does not like these claims. That said, who knows?
If you and your friend is seriously looking into this, hire a lawyer who can take a look at all the relevant documents. Based on the website, I assume they've already looked into compliance issues with SEC, etc. If so, get a securities lawyer and have him or her take a look at it.
Just out of curiosity, is it the same company discussed in these articles?
http://www.businessinsider.com/national-realty-the...
http://www.businessinsider.com/national-realty-say...
If so, I would probably guess that they are under the jurisdiction with the SEC. That's doesn't mean it's 100% safe, but it is something to consider.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
- 8yIan IppolitoBusiness MemberInvestor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
@Chris, thanks for sharing that exposé on the company from Business Insider. I thought that they were rehab/flipping existing properties, which carries a certain amount of risk already. They are actually loaning on *raw land* to be developed into a property through construction. This is an opportunistic strategy with a lot of moving pieces and the riskiest of all investment strategies in the real estate universe (the safer ones being core, core plus and value-added). Many investors won't touch an opportunistic strategy at this late stage of the cycle.
And if the article is right, the investor has to put their own personal credit rating on the line for the privilege of investing. Normally all an investor has at risk is the amount of money they put in an investment. In this case, if it goes wrong, now the investor also loses their personal credit too.
The Real Estate Crowdfunding Review - 7yFozia QamarPro MemberMember since 2018 · 1 post · 0 votes
Holly Williams, it’s been seven months since your initial post and I wanted to know if you would be able to share your research about this company? I heard their advertisement on radio last night and they do seem too good to be true. Would appreciate your input. Thanks
- Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes7y
It's also been 7 months since the 5 "investors" have posted on Biggerpockets. In fact, the only post they have is on this subject and have no profile pic or anything. I think Holly's first assessment of them was correct.
- 7yBjorn AhlbladPro MemberInvestor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
Oldest trick in the book. Just pay the old guys with money from the new guys. I guarantee it!
- Member since 2019 · 2 posts · 0 votes7y
if any of you have any doubts about this company you would be wrong. I have been handling their refinancing for years. I am a loan officer who does the permanent financing once construction is complete. I have never come across a company who has done what they have done in the Philadelphia market.
- Member since 2019 · 2 posts · 0 votes7y
Todd you would be wrong I have done loans for both of the people who say they are investors. They are who they say they are.
- New to Real Estate · TX · Member since 2018 · 56 posts · 24 votes7y
So I called this company about a week ago. First and foremost, they verified the source of the lead, through a front desk type deal. Then I was transferred over to a sales person. He guaranteed the returns over the phone, which is an absolute red flag for me. I even asked him if he just guaranteed the return, to which he said yes. He then said they were building new construction and high-end, I mentioned those of the first things to fall during a down economy. The response was all the Wall Street guys are getting in on it. If that was the case, they wouldn't need radio advertisement, right?
Here's my take. Regardless of what I hear, I'd never invest.
Returns that are guaranteed always get paid on American Greed, until of course they don't and the whole thing comes crashing down and the victims lose their capitol. That's why even cautious people end up investing, because they talk to other people that are getting good returns and they don't want to miss out.
If someone would like to correct me, and tell me how the return is guaranteed, I'd love to hear it. I guess my next question would be great, I guess my capital is not at risk either.... Which of course if the return is guaranteed, the capitol would have to be guaranteed too, right?
I'd love to hear the response, heck maybe they can put a good spin on it and sell some more people.
About a year in to the next down economy, it'll all come out in the wash. That's why I'll enjoy looking back at this post in the next downturn when this hits the news.
I don't care if my opinion is blunt. If it walks like a duck, and quacks like a duck. It's a duck - period!
- Secaucus, NJ · Member since 2014 · 25 posts · 5 votes7y
When you reflect on this issue, investors can invest with a large number of Real Estate Investment Firms that set up “shell company” Special Purpose Entity [SPE] LLCs, that tell the investor their money is at full risk and they can lose all, and if they invest in that set up and the project fails the investor has absolutely no recourse, no coverage from any other company of the sponsor and has lost all.
Doesn’t it make a lot more sense to go with a Realty Sponsor who puts the full faith and credit of their firm and its 13 year history behind the separate project with a corporate guarantee showing they believe in the project, showing that they back the project, and stand ready to guarantee the project with their monies in the event of a bad result? How is it that standing behind your word and product with other assets and corporate backing is worse than a shell promoter just closing up shop on a failed SPE after you lose all your money? We have been standing behind our real estate build projects for going on 13 years, and when there were lesser results than projected paying out our guarantees.
How can standing behind your product, and putting your money where your mouth is be worse than a folded up SPE risk and losing all your money with no recourse?
Really, that makes no sense.
We have always backed and stood behind our projects for going on 13 years of Development Building. We manage a Rental Portfolio valued at $800M, we are constructing over $600M of new Apartments and some Condos now, and are selling about $50M of our finished projects now.
We buy only top projects in high urban demand in fill neighborhoods that are vetted by our team of professionals and banking partners for complete feasibility before starting. Our Portfolio is by far mostly rentals which are safe during any economic downturn you’re predicting.
If you prefer to invest where the realty company can fold up and hide from you, that’s your call. We don’t do business that way. We sign for and stand behind our clients and projects every time and believe this is the proper way to do business. Additionally, diversification into Real Estate investments is where part of each investor’s monies should go.
- Investor · Passiveadvantage.com · Member since 2019 · 166 posts · 91 votes7y
Its seems like their current offering is new construction in Hudson County NJ, but as someone who invest post tax and looking for ability to depreciate and offset its own income not sure new construction is the right avenue for tax benefits of this type of passive investing.
- Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes7y
Rey,
I understand your point of guaranteeing your work. And I applaud and commend you for that. As someone who never lost any of my investors' money as well, I do the same thing. I work my a@@ off to find a good deal, do the due diligence, put some of my own money in it as well and lead an experience team to bring everything to completion.
I don't guarantee the returns though because in real estate development, a lot of things outside of my control can happen.
The skepticism of the folks here is the HOW - how can you guarantee 12% when, as I said above, there are so many moving parts to developing properties? For example, how can you guarantee 12% if:
- the economy collapses (or there's another 2008)
- there are delays in getting permits
- there are delays in construction (because there always are delays)
- there is a change in market demand @Holly Williams doesn't sound like their SEC compliant. I'd run. Any one who guarantees any type of return is surely not compliant with SEC rules, guidelines and regulations
- Member since 2019 · 2 posts · 1 vote6y
I’ve read all the comments. The issue I cannot overcome is why blanket the airwaves with marketing and advertising to find investors when the company can be putting their own money into these projects and reaping all the profits? And interestingly Art Scuturo is the only advisor mentioned.
Call me a skeptic for now.
- Member since 2020 · 1 post · 1 vote6y
This investment is tricky, perhaps not for everyone. For instance, every time tenant turns over occurs, you must pay 1 rent to management. The management company has plenty of apartments and they keep your unit closed for 1 month, and on top of that in the name of the luxurious unit, they spend almost 1 rent to renovate for a new tenant. All this is done at the management discretion. As a bottom line, each tenant turn over is equal to losing 3 Rents.
Hi,
I might be late to respond.. My ex wife and me have been investing with NRIA for 7 years now and they have delivered on all aspects. They seem to be a lean team but have plenty of insights to find the best flips and high yielding projects.
I will surely continue to work with them and increase my investment.
And yes, I am real ...
Kai Wulff, Brownsville Texas.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes6y
@Holly Williams *BEWARE*
This is a field of red flags! I call BS on their entire operation AND yes I have considerable and extensive experience at the fund level and SEC compliance, I have been retained by several funds in a managing capacity. So 1st thing, I am an informed insider at this business side of REI, with several funds and SEC, this co wreaks of "boiler room"!
Guaranteed 12% return, no NEVER, that's a 1st EPIC red flag of a scam. Actually, it's basically the motto of ponzy schemes, those are the only ones ever placing "guaranteed" returns above fed rate.
Thing is all that these con-artists face is white collar prison when caught, for maybe a few years, so they get to keep all the $ they hide and spend a few years in a low rate federal hotel, whoop-dii-dooo. I'd like to see some real recourse, how about a broken bone per person they scammed? Or just hand them over to those who got ripped off, BETTER YET let's bring back the gladiatorial games, pay per view sentencing....
Syndication has become the popular keyword, so now the scammers follow........
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes6y
Originally posted by @Kai Wulff:
Hi,
I might be late to respond.. My ex wife and me have been investing with NRIA for 7 years now and they have delivered on all aspects. They seem to be a lean team but have plenty of insights to find the best flips and high yielding projects.
I will surely continue to work with them and increase my investment.
And yes, I am real ...
Kai Wulff, Brownsville Texas.
BS!!!! Please stop spamming BP with fake accounts and fake referrals.
- Gold Coast NJ · Member since 2020 · 9 posts · 2 votes6y
Dear Mr. Hamling,
My name is Katey Kana and I am part of the NRIA family. We pride ourselves on what we do; we have been in existence since 2006 and have a roster of over 700 happy investors. I am happy to connect you should you want to speak to live humans who are our investors instead of scouring internet blog boards. These people are a true testament to what we do. We are proud to say we have helped many retire early!Understanding our business model can be explained further via a call if you are interested in learning about us with facts and data to support. Our team is available and always welcomes the opportunity to share additional information with you, answer your questions and mitigate any concerns.
Furthermore, NRIA's 14 year track record delivering over 21% annually to our investors on over 1000 residential units completed is all verifiable. We have proof of what we have accomplished through Purchase HUDs, Title & deed sold HUDs, etc. Everything we do and have done is 100% transparent; this is why we are still in existence.
In a nutshell, our business model has layers of risk management services that we provide to ensure capital preservation for our investors, lenders and ourselves. Again, happy to schedule a call to discuss our capabilities with you thoroughly so you may understand what we do and why we are so successful.
Our utmost concern is always addressing any misleading information that is being perpetuated online mitigated through verifiable data and facts.
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