Went to the local real estate seminar last night. The speaker was Kendra Todd, winner of the 3rd “Apprentice” TV show hosted by Donald Trump. She was there to promote her new book Risk And Grow Rich. Bob Bruss calls it a 10 out of 10 so it should be pretty good, however her seminar wasn’t all that exciting. It was basically a sales pitch for her over-priced condo conversion in Pheonix,Arizona. She a 360 unit apartment complex for sale, with about 120 units going to investors at around 250k/unit. The rents were around 1000/mo. That market is pretty much done. Its on its last legs.
She quoted some statistics saying that 36% of all home sales were 2nd homes. She touted that as a good thing, however I see that as a negative. With raising interest rates, the number of buyers might dry up leaving a lot of people holding houses that they can’t afford and can’t sell either.
She was also promoting plane tours. Some of you may have heard of bus tours. Well she was taking groups of 30 investors on a plane tour. For $299, you fly from LAX to Pheonix and she shows you exclusive properties for investing in. By exclusive I think she means those 120 units in a 360 unit complex where the builder was throwing in 6 months with no mortgage payments.
She may be a really good sales person and much richer than me, but I don’t think the stuff she was promoting was investment grade. I can find much better stuff on my own.