Norada Real Estate Investments

21 Replies

I am curious if anyone has worked with or had any experience with this company?  Not much on them in the forums.  I would appreciate your feedback if you have thanks.

Hi @Vince Scolari — Thanks for the post!

There are actually a few threads in the forums on our company.  I can post the links later if you like.  I’m actually out in Memphis doing an investment seminar and property tour right now.

We’re happy to send you some client references as well.  Just contact any one of our Investment Counselors and they’ll be happy to send them to you.

Of course, feel free to contact me anytime.

Continued success!

Hi Marco,

Thank you for the reply. Yeah only you as an individual came up but nothing on your company came up. I will do so. In the mean time any BP members I would be interested in your experiences as well. Thanks.

@Vince Scolari - I did use Norada for a purchase 2 years ago.  I spoke extensively with Marco through the process and he was great.  Unfortunately the experience I had with his provider was no so stellar.  I still own the property I purchased through them a couple of years ago, but I don't love it and wouldn't make my $ back were I to try and sell it today.  I don't think that is a reflection on his company as a whole, however and wouldn't want to steer you away, if you were thinking of working with them.  But you asked about experiences, so I thought I'd share mine.  

Emily, 

Can you share the numbers and information on what the challenges have been?  I am looking at turnkey too so it would be great to learn about your experience.

@Emily Powell can you elaborate? What made it bad? How would you lose money today? Did it lose value? Your feedback is appreciated. Thanks

@Vince Scolari if you look hard enough, you'll find the discussion from when I was in the midst of the worst of it.  Fair warning, it's not pretty.  I was upset, very upset.  My biggest complaint was that the provider put a section 8 tenant in my house without my permission.  There were a lot of accounting issues and it took way too long to get me my rent $.  Communication was terrible for a long time.  They have since implemented measures to improve communication and accounting, but I still have my issues with them, I just deal with it.  I could have switched PM companies, but I've been too lazy, to be quite honest.

To answer your question about selling, the purchase price was above market and in this particular city, appreciation is pretty minimal (which is expected in these markets).  So it's just now creeping up to what I purchased it for.  

@Andrew Olmstead I am not opposed to turnkey as a whole, I just happened to have had a less than stellar experience with one particular provider, and one which I believe they have worked to improve for future clients.  I think if you have the time and resources to invest on your own, you should do that.  But if you don't, then I support purchasing turnkey, especially if it means the difference between investing or not.  

Thanks for sharing Emily.  I’m glad the property manager has taken measures to improve by firing some of their staff and hiring new staff.  :)

Continued success!

I would recommend that you check out the following website:
http://turnkey-reviews.com run by @brie schmidt and @jay hinrichs

They have real individuals provide feedback on TK providers across the nation. They also have podcast interviews with individuals who purchased via TK, they discussed what worked well and what didn't. I've found the podcasts really educational.

Much success!!

Disclosure: I bought a few properties marketed by Norada.

I used Norada for a couple of properties I purchased earlier this year. The experience was mixed. I think it largely depends on the TK provider you're dealing with. PM me if you're still interested in feedback and I'm happy to share my experience.

I have bought 3 properties in Tennessee with them. Was a great learning experience so I wouldn’t say the money was wasted but not a great investment. Hoping it will pan out with a steady tenant of two.

That is what happened in mostly TK providers. They sell above market price to passive investors like us and you will wait entire life to recoup your investment. I believe Norada is just broker and they have no skin in  game except $$ in sending traffic to TK providers. Sorry to be direct but it is fact.

Disclosure: CEO

Hi @John M. -- Appreciate the comment, however, a couple of comments:

1. Although I know a number of turnkey providers that sell above fair market value (FMV), some of them active here on BiggerPockets, not all of them do. In fact, often some properties are sold under FMV. We do that from time to time. Every one of our client order appraisals from third-party appraisers to assess what market value is. They do not purchase above FMV, and sometimes they purchase 5% to 15% below market.

2.  Norada is both, a real estate brokerage, and a rehabber/provider.  We do both, and sometime take it in the shorts taking a loss on a sale, and/or covering unexpected costs our clients incur.  We are always on their side.

Hope that helps.  We try to keep the honesty and integrity in this growing industry.

Continues success!

Disclosure: CEO

Originally posted by @Jay Grabbe :

I have bought 3 properties in Tennessee with them. Was a great learning experience so I wouldn’t say the money was wasted but not a great investment. Hoping it will pan out with a steady tenant of two.

Thanks for your comment Jay.  If your property manager is not performing to your expectations, please let us know.  We will always jump in to assist and apply some pressure (our leverage) if need be.  We want to make sure things are running as smooth as possible.

I'm sure you know, and in full disclosure, we fired one of the local Provides we used to work with there because of poor communication, slow response, and declining performance (on their properties and management).  I'm sure you know who I'm referring to.

Keep in mind that properties in the price range you acquired (and in Memphis in general) are far more of a cashflow play; not an appreciation play. 

Glad you're learning as you go.  Again, feel free to contact us anytime. 

Continued success!

@Marco Santarelli Which market you suggest at this time for as best growth, best cash flow and hybrid. 

Disclosure: Turnkey Provider

Originally posted by @John M. :

That is what happened in mostly TK providers. They sell above market price to passive investors like us and you will wait entire life to recoup your investment. I believe Norada is just broker and they have no skin in  game except $$ in sending traffic to TK providers. Sorry to be direct but it is fact.

 Most providers should sell under market. You risk an appraisal failure if you sell above it! Also, I would argue that a company that doesn't own the property nor offers the property management in house is NOT a turnkey company. They are more like an agent just trying to get a commission. 

Disclosure: CEO

Originally posted by @Tom Ott :
 
"I would argue that a company that doesn't own the property nor offers the property management in house is NOT a turnkey company. They are more like an agent just trying to get a commission."

Simply not true.  As I've gone over in great detail on one of my early podcast episodes (Passive Real Estate Investing), there are two kinds of turnkey companies.  Providers and Promoters.  

Promoters are a specialized brokerage that provides value-added services, including education, counseling and the unbiased vetting of local property Providers and other service providers.

Providers are typically localized property sellers that acquire and renovate their own properties.  The can operate in any class of neighborhoods from A thru D, and own the properties they sell.  They are usually biased toward their market as that's what they know, and the only product they sell (for good or bad).

Some turnkey companies are a hybrid of both -- such as Norada Real Estate Investments.

The KEY is to work with a reputable company that has the investor's interests in mind, and can help them navigate the many markets around the U.S., along with the various providers and properties available.  The best providers will be those that are market agnostic, and provider agnostic.

- - - - - 

Also, there is no factual data to support "in house" property management as being any better than using separate (third-party) companies.  We've had many clients leave "in house" managers to go with new third-party managers because the services were better.  I guess it could also be argued that third-party management is better.

Continued success!

I've spoke to one of their Investment Counselor last month over the phone and had a good feeling about it. He was very professional and answered all my questions. I was interested in the Atlanta market and was told that I would be notified once more inventory has come through. I haven't heard from him since. It's either they really don't have inventory or communication isn't as strong as it originally appeared to be

Hello, I purchased a property in Kansas City through Norada last year. They are nothing more than a middle man that earns commission by connecting you with flippers in local real estate markets. I did not have a good experience. The property I ended up buying was a townhome and two months after purchase I received a letter from the HOA lawyer stating that there are not allowed to be any rental properties in this complex! No one caught this, Norada did nothing except to say that they had never had this happen before. They have not helped me at all to try and fix this, although they earned commission as the selling agent. I am still trying to work through this mess, and my best option at this point is just to sell the property and lose money. I would never work with them again. They do not stand by their investments. This may have been just a fluke, and I may have been unlucky, but I am warning everyone I know not to do business with them. They have not helped at all or followed up with me.

Disclosure: Principal

@Jeannie G — I have to respectfully disagree.

The property you purchased through the owner/Provider (Coral Properties) was represented by them as a rental property; however, as you and I both know the HOA restriction never came up at any point from the day we received the listing information to the day you received your closing documentation, and thereafter.

In other words, this was not caught by the provider right from the beginning, and was not disclosed to anyone by the title company before you closed, and was not caught by your review of the closing documents (specifically the CC&Rs).

This certainly was an anomaly and one that only has come up once over the years.

It is and was our intention to help work through this with the original seller (Coral Properties) and formulate a solution for you...

As you will recall from our communications back on August 20th, we helped come up with a few options for this property and we negotiated with Coral Properties to list and sell the property at no cost to you. Do you recall that conversation? I can forward the email thread if you like.

And as you will recall, we discovered there were 24 other rentals in the same community and managed by the same property manager.

Since we haven’t heard from you since August we assumed this was resolved with Coral Properties. Our last conversation with you was that you were reselling the property with Coral.

Although it doesn’t happen often, real estate is a people business and there are a lot of parts involved in a transaction. Issues come up but they can be resolved.

Rest assured Melissa and I are here to help as our clients are always our first priority. Just include us when we there’s an issue please.

Feel free to contact me anytime! We’re here to help any and every way we can.

Which providers worked out for you?

"Chris Yeo Real Estate Investor from San Jose, California

replied about 1 year ago Disclosure: I bought a few properties marketed by Norada.

I used Norada for a couple of properties I purchased earlier this year. The experience was mixed. I think it largely depends on the TK provider you're dealing with. PM me if you're still interested in feedback and I'm happy to share my experience.

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