NRIA - National Realty Investment Advisors

49 Replies

Has anyone ever heard of these guys?  There is an old post about them about some work they did in Philly many years ago, but nothing recent.  They are based in NJ.  They apparently GUARANTEE 12% returns. I'm suspicious of anyone who can guarantee anything.  Here's their website:  http://nria.net

One of my investors has a proposal from them that he's considering.  I mean, if they are legit we would ALL be investing with them right?  

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

@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!

I first heard of NRIA in 2011 in a radio advertisement and thought the offer was too good to be true. Since then I have Invested with them in 16 properties pre-construction in Philly and all of them upon completion generated 25-35% after-build equity as promised. In addition I am participating in several NRIA private placements including the current offering that I believe your referencing. The 12% you reference is the minimum return, the actual offering is 16-20% and it's based on a $280M property portfolio.

In my investments NRIA has delivered on all their promises and contracts and they have my highest recommendation. 

I am not a regular visitor to this website but I learned that people were curious about NRIA so I jumped on to share my personal experience.  

I suggest you contact them directly with your questions.  My NRIA Project Manager is Art Scutaro. 

Gregory Leishman

Palm City FL 

   

I have been longtime investor with NRIA. In this thread, someone has responded that 12% is achievable return in Real Estate as long as you run numbers right. NRIA usually digs very deep in trophy markets to find out real estate deals at discount and builds very high end homes. They have been awarded for their design in Philadelphia Market. I still continue invest with them and they do deliver results as promised.  Philadelphia has 10 year tax abatement for new construction, and they brought this concept to many investors to capitalize on this tax abatement. You can sit down with them and they will get you all information you need.

@Gregory Leishman , @Atul P Patel , @Jeffrey Weinberg

I find it interesting that all of a sudden three people answer and it's the very first post from all of you. I find nothing on LinkedIn, no information about any of you.  No Gregory Leishman that I can find in Palm Coast Fl.  I smell a rat.

Updated over 2 years ago

After thinking about things, maybe I can learn from the way NRIA is doing things. I apologize for my reaction, and I hope that you folks will stick around and share your passion. Thanks for sharing your experience. After all, that's what I asked for right?

Hi Holly,

No rat in me. I am a real NRIA investor and have done quite well in those investments as per my original post. I am actually currently investing with NRIA in a Park Slope Brooklyn Condo development and a SFR townhome in Philly. I am not affiliated with NRIA in any way except as an investor but because I have done well with my investments with them, I wanted to outline my prior investment experience and my understanding of their fund when I learned about the skepticism expressed on this thread.

Palm City Holly, not Palm Coast.   I stand by my post, there is nothing inaccurate.  Your post is impolite and disparaging. 

I submit your time would be better spent researching the stellar track record of NRIA.  If you have the best interests in mind for your investor you shouldn't waste time, the current Fund will be sold out soon.  

@Jeffrey Weinberg You are correct Jeffrey.  I was out of line there and I hope that you will accept my apology.  I'm glad you are doing well with them, and maybe I will check them out too.  I hope that you will stay on BiggerPockets and share what you know.  Atul and Gregory you too.

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

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.    

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.   

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. 

@Holly Williams

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.

@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.

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 

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. 

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.