All Forum Posts by: Norberto Villanueva

 This review right here should be final and that should be reflected on everybody associated with KNF.   As wholesalers and realtors we all know the power of online marketing correct? Also, you have all heard of the phrase “call to action” correct?

Bottom line if something looks to good to be true, it probably most likely is. KNF DBA Wealth 212 is not a scam however, that doesn't say that their marketing gimmick is misleading. Let's describe real life Operations. First, they fund you under their credit which they transfer in your name to buy property, so providing money is what they do. However, those who have no idea what they are doing cannot see their operation which they legally disclose in front of you but is clouded by their online marketing hype.

What they don’t tell you up front, or in their marketing video, (only in the fine print) is that they can pull from a transaction anytime they want and the fundee agrees to be liable for all the expenses accrued.  That’s right, you have to pay for all expenses incurred at that moment including the money they used to fund the deal.  

Their fine VERY Fine print states this but is clouded by very good marketing videos, stacks of money photos, testimonials with first names and their states a etc.  ALWAYS LOOK PAST THAT AND READ THE FINE PRINT.  REMEMBER THEY SAID CREDIT DONT MEAN A THING?! Well it doesn’t TO JOIN THEM! But within their online application they do ask you your credit score 🤔 Haha! Because they want to ensure you can pay the debt.  

They offer you online tools to see out sellers etc and conduct the deal which more than 89% of the time(regardless if its a great deal) they will deny it!  

They want it to be a troubled fix and flip because it A) gets you in the deal B) they transfer their CREDIT under you to “fund” the RE expenses

Then they drag their feet at the last minute as to why they cannot close! THIS IS BS!! Right? You have all these expenses you owe now on a 26.5% APR credit line. Can they back out that early or late though!? Like 2hr before closing? And then hold me with the cost? Yes they can and legally can take your investment of the initial $5,000 and ignore you.. The reason why they cannot get sued it umm you guest it! You signed the contract (that you didn't read thoroughly stating you would accrue the costs regardless and that they can back out whenever).

They did that to me but, little do they know, I was on to them the whole time.  I actually have was closing myself on properties they were rejecting and made a lot of $- They backed out on another deal which I quickly paid off the balance and cancelled (they were stunned) I then rescinded the contract between them and told them this operation will Only work guys on newbies.  Never heard from them again but was able to hack and duplicate their bot system.  

Anyway, I digress.  I ended up paying off 6k of CC debt they left me with on the 25k commission I recently made on my own fix and flip.  

They are not a scam they tell you what they do in FINE Print.  They purposely have successful deals once in awhile for marketing however they could not possibly do this.  They are not disrupting a billion dollar business at all! They are taking peoples money of $5,000 and leaving them with high hopes and debt.  

Be careful new investors. Better to do it yourself or find a funding partner you can give you liquid cash.  You have to work hard for your first deal and risk a few things.  Nothing is never as easy as they claim.  

My rating is a D+ 

The reason for my grade and why it’s not a F below

Why it’s not a full blown F- Because they lawfully disclose this to everyone in light fine print

Why a D+- Because they have allowed a few success stories to slip through (probably people working directly for them).  They mislead their potential clients by masking the fine print with fancy marketing with awesome photos of money stacks,videos etc.  

Tip:  when something feels too good to be true look into it. Additionally, always know that there is of yet a trustworthy solid company that does this and if they were they would be very selective. Selective in a way where they know your income is stabilized and that your business is thriving.   Laid do however a statement that stated that they are very selective so I asked this question. “If you are so selective then why is everyone and anyone can sign up and get a call and quickly get funding?”

Red flag- there business model seems straight forward.  Why do they need to set up a call that is 90 minutes long to explain their operation.  If it were a solid company, all They would need to say this 

- find us a property.  The finder has no credit cards or no monies in his name

-You find a property they approve and you sign a JV Agreement with them

- They then transfer you their shares of LLC they can quickly create with escrow 100-% funded in cash money

- You show up to the closing and sign the the papers saying you are a partner in XYZ LLC

- The Deal is executed 

- You use what’s left of the cash to pay for repairs, appraisals and closing costs (as long as it doesn’t exceed a certain amount especially a good % less than the Purchase Price)

- You find a cash buyer and close 

-Money from buyer fills the escrow under the transferable LLC stating you as a representative

- You transfer the LLC back to them

- They divi the money in the full escrow which gives you 25-50% for your running around (under the JV Agreement y'all signed in the beginning). They pay closing, and realtor fees THE remaining MONEY FROM SELL AND WHATS LEFT FROM THE REPAIR BANK IS GIVEN BACK TO THEM

-YOU CASH YOUR CHECK of the 25-50% of the sale price WAHOOO 💥 

@Travis Mullenix - First you have to pull the list on a website like propstream then you hire a third party company to send out the mailers. Open Letter Marketing is a good one that I know a lot of investors use. For handwritten letters, it usually comes out to around a dollar hence direct mailers can get expensive. If you have a list of 1,000 with 12 planned follow up, that can amount to $12,000 a year. From my experience, unless you are willing to put in sweat equity and cold call or send out mailers yourself, the marketing efforts associated with wholesaling can get expensive quickly.