The System of Real Estate Investing is a Christian-based broker program created by Lee Arnold that teaches would-be investors all aspects of the real estate business to achieve financial freedom. Arnold provides access to participants to products and relationships that help them make money as a real estate investor. The program also promises that such rental income can be achieved in the shortest time possible.
According to the Management Study Guide, real estate has exceptionally high transactional costs. An estimated 10% of the value is typically lost to transaction costs per contract. When investing in real estate, you’ll also be dealing with the market’s volatility, with low returns and high expenses. In real estate investment, challenges, such as negative cash flow, increase in liability, and limited inventory must also be overcome. There’s one business model that won’t require you to deal with these though.
This System of Real Estate Investing review explores the modules included in the course. The course’s cost, claims, and whether it’s for you are also discussed. I’ve also included the many obstacles you’ll be facing in real estate investing, such as active maintenance, demands on time, and massive upfront costs.
System of Real Estate Investing review: Pros and cons
Pros
Extensive training and support tools.
Lee Arnold and his team has an excellent reputation in real estate investment
Christian-based training structure.
Current real estate materials.
Cons
Too much time was spent on hype and motivational content.
Doesn’t teach how Canadians and non-US citizens can use the program by buying and selling in the US.
Training
The training of the System of Real Estate Investing course is all digital; fix and flip real estate investing; broker certification.
Group
The System of Real Estate Investing has a private Facebook Group.
Refund Policy
The System of Real Estate Investing has a 30-day money-back guarantee, but with specific terms.
Origin
The System of Real Estate Investing was founded in February 2004 in Coeur d'Alene, Idaho.
Reputation:
The System of Real Estate Investing has 107k followers on Facebook; Lee Arnold System of Investing has over 5,000 followers on Instagram.
How much does the System of Real Estate Investing cost?
The System of Real Estate Investing costs $9.97 per month for a period of 90 days. After such a membership fee expires, you need to settle $39.97 every month thereafter. Participants can cancel anytime.
How does the System of Real Estate Investing help you succeed in real estate?
The System of Real Estate Investing helps you succeed in real estate through real certification testing. The program certifies in four key areas, which are Lien Abatement Specialist, Wholetailing Specialist, Rehabbing Specialist, and Private Money Brokering. A Master status is offered after these certifications.
The System of Real Estate Investing also features lifelong support. This allows you to ask questions on pending deals. The support would also mean that the course will walk you through the financing of your investment, whether it is through a competitor or via the program’s.
What is the System of Real Estate Investing?
System of Real Estate Investing is a course developed by Lee Arnold that educates individuals interested to expand their reach and businesses in the real estate industry. The program teaches all different levels of fix and flip real estate investing with broker certification.
Arnold’s System of Real Estate Investing features access to real estate contracts and marketing training, with a focus on Facebook, LinkedIn, YouTube, Craigslist, and more. The platform also includes the basics of private money and wholesale deals. A section called “Money Week” is also included, which provides tips and techniques on how you deal with money.
What's inside the System of Real Estate Investing?
The private money broker certification gives you access to numerous alternatives in real estate financing. Such a certification also allows you to change your finances completely and those around you who need or come with private money.
The hands-off wholesaling certification provides tools needed to connect you with markets. The process, which is conducted through the use of emails and smartphones, promises to train you with only the most current of tools needed to jumpstart your wholesaling skills.
The Reverse REO Certification allows you to manage and gain profit on properties without ever owning them. This can also be done whether you’re at home or without cash or credit. The properties included in this feature are highly discounted ones that aren’t accessible to any list or the general public.
1. Access to real estate contracts. New contracts and forms are regularly updated.
2. Marketing training, with focus on Facebook, Craigslist, YouTube, and LinkedIn. Arnold is also set to discuss what you need to learn about video marketing, email marketing, and networking. Access to past eClasses is likewise included.
3. Basics of private money.
4. Dealing with wholesale management; the 3-tiered offer gets shared.
5. Money Week. This is the bonus feature that shares all the tips and techniques needed to deal with money. The most common financial barriers are also in this section.
6. Scratch paper chronicles. This is the part where Arnold shares how he finances and packages deals into solid outputs. If you’re looking to add more knowledge and competence on how to structure real estate deals, this exercise is for you.
Who is System of Real Estate investing for?
The System of Real Estate Investing is for real estate investors, entrepreneurs, and marketers in general. The program is also tailored for independent private money brokers, rehabbers, house flippers, and lien abatement specialists. Real estate investing is also for anyone who wants profits from real estate properties. If you want to further your knowledge and make money from online real estate platforms, real estate investment groups, real estate investment trusts, rental income, and a real estate deal, the course may benefit you.
Who is System of Real Estate investing not for?
The System of Real Estate Investing is not for people who want excitement out of it. Real estate investment is a direct investing and will require you to be equipped with rigid strategies. It is also not for individuals who do not intend to play the long game. The real estate scene is largely influenced by long-term strategies, such as buy and hold, flipping, house hacking, wholesaling, and crowdfunding.
The System of Real Estate Investing is likewise not for participants who do not want to toil and grind. You have to labor, from learning new market ideas and dealing with a new investment system now and then. This doesn’t include the amount of time, money and effort you need to invest in if you want to start making profit from the business model behind the program.
System of Real Estate Investing online review
The online reviews for the System of Real Estate Investing are a mixed bag. While the course has been receiving mostly praise from review platform Trustpilot, it received some criticisms from BBB and Big Pockets.
System of Real Estate Investing review on Trustpilot
Most reviews for the System of Real Estate Investing course are positive. Here, participants praised the program's extensive training and support tools, which also included diverse media and hands-on demonstrations.
System of Real Estate Investing review on BBB
Negative reviews of the System of Real Estate Investing course are universally aimed at its products and services. The first screenshot recounts an issue with the course's broker certification and the added costs in the process. The second one details on the subscriber's numerous attempts at being guided by a coach and the subsequent neglect of getting a refund.
System of Real Estate Investing review on Bigger Pockets
Reviews on Bigger Pockets were largely negative. These screenshots suggest that the System of Real Estate Investing's accompanying fee is steep and that there are other similar programs out there that offer cheaper, if not better inclusions.
Is the System of Real Estate Investing worth it?
The System of Real Estate Investing is worth it if you’re willing to invest a considerable amount. The business model behind the course requires people to be prepared with high capital. Without lots of money behind, starting strong in this endeavor can be incredibly difficult. This can still be true despite the many certifications the course promises to provide.
The System of Real Estate can also be worthy for people who intend to put in all the work necessary. While it may appear like it's easy-peasy on the outside, there’s only so much to be done in terms of commitment and dedication.
Is the System of Real Estate Investing legit?
The System of Real Estate Investing can be legit if you consider all the certifications provided in the program, such as private money broker certification, reverse REO certification, and hands-off wholesaling certification. The same can be said for the bonus inclusions the program offers, which include exclusive access to real estate contracts, marketing training, and Money Week.
The System of Real Estate Investing may not be legit, however, if you take into account how it comes with so much motivational fillers and sales pitch across its modules. The same is true for the supposed lack of coaching that comes after you get to be certified. The program may also not be legit for those who have limited funds as the business model behind it requires you to be prepared with such an amount of money.
Who is Lee Arnold?
Lee Arnold is the Chief Executive Officer and creator of the System of Real Estate Investing. Founded in February 2004, the course is developed to train and educate would-be investors in the real estate industry all the right strategies to achieve financial freedom. Apart from the program, Arnold is also the founder of Cogo Capital. This is an organization that offers creative financial solutions for investors in real estate via Private Money Loans. He founded the org in 2010 in the United States.
Lee Arnold also spearheads Secured Investment Corporation, which he founded in January 2009. The firm is noted for provisions for real estate investors and private lenders the capacity to transact with money-making alliances. Arnold is a certified digital marketer and customer acquisition specialist, with the certification issued in September 2015.
Lee Arnold's claims
Lee Arnold claims that through three certifications using its programs, which include private money broker certification, hands-off wholesaling certification, and reverse REO certification, you’ll be able to reach your fullest potential as a real estate investor.
Lee Arnold's claims debunked
Reaching your fullest potential as a real estate investor will not only rely on three certifications, as Lee Arnold would claim. As a real estate investor, you will need to consume tons of courses for you to have foundational information in the field. This will also allow you to specialize in any area real estate investment may require you to do. Some of these courses include:
Real estate financial analysis
Real estate financial modeling essentials
Private equity and institutional real estate finance
International real estate investment and development
Real estate taxation
Hotel investment analysis and valuation
What is real estate investing?
Real estate investing is the management, purchase, rental, or sale of real estate for profit. Investors who participate in such are called a real estate investor or real estate entrepreneur. Some of the business models you can take advantage of in real estate include:
Hybrid agent/investor
BRRRR
Wholesaling
Wholetailing
Listing service for FSBO
Remote investing
House flipping
Buy and hold investing
3 major drawbacks waiting for you in real estate investing
1. Real estate investing requires huge upfront
Real estate investing requires a huge upfront that it is considered one of the most capital-intensive investments in all business models. Generally, if one were to purchase a rental property, he or she would have to shell out a minimum down payment of 20% of the value of the property. In big cities, that is typically between $200,000 to $300,000.
2. Real estate investing requires time
Real estate investing requires time, apart from money and effort. This can be really true when a first purchase of a property is made only to handle renovations alone. Meanwhile, in about 6 months to a year, you’d get contacted for several issues on occasion. Active investors, on the other hand, would spend 40-60 hours per week, which is more time you’d be expending on a regular, full-time job.
3. Real estate investing requires maintenance
Real estate investing requires maintenance, which includes regular inspections, property maintenance of major systems, and the implementation of a preventative maintenance plan. Maintenance in real estate investment also entails that you have to address repair quickly and cleaning and upkeep are maintained regularly. Maintenance also means hiring a property manager to perform property maintenance.
System of Real Estate Investing Alternatives
What business model is way better than real estate investing?
Real estate investing may not be the better business model to generate a passive income stream online. While it has become one of the common choices of investment nowadays, real estate investment requires a high capital. You can only produce enough profits when you invest a significant amount. Real estate investing also typically comes with low returns on high expenses. If you expect high returns with a low investment capital, this biz model isn’t for you. Finally, real estate investment also requires long-term strategies. Though there are short-term ones involved, investors must play the long game if they want to thrive in the business. For one, it takes years to appreciate enough to produce interest on a resale.
This is why I highly recommend the local lead generation business model. You only have to rank websites on Google and generate leads for your clients. What’s more, you can already rank and get traffic within 3-6 months, with far less effort compared to real estate investment. Once these sites get ranked, they can sustain you with leads for a very long time. Start your passive income stream with local lead generation!
