The Lee Arnold System is the quickest way to generate a side income in your spare time. Lee’s the CEO of Cogo Capital, a hard money lender for fix and flip investments. He’s been involved in real estate since he was eighteen years old. Seems like he wants you to be a salesperson for his company; to go out and find investors who need money, connect ’em to Lee, and collect a fee for doing so. Private money brokering, basically. Scroll down for my review.
You can do this online, from home, working as much or as little as you want. Works in any market. Recession-proof, pandemic-proof. People will always need money, right? And with house flipping profits soaring to new highs, it’s never been a better time to get involved. “I need more brokers getting out money into the hands of all these real estate investors,” Lee says. “Just imagine the broker fees you can make by distributing money to these folks. This is a great opportunity.”
What if you could pocket an extra twenty-five hundred bucks a month just by referring a deal a month over to Lee and his team? Without spending any money of your own, without having to have good credit, without negotiating and selling and babysitting contractors and praying the housing market doesn’t collapse right before you go to relist the property? It’s simple. Find investors, submit documents (provided for you), hand off to Cogo Capital, they close the loan, and you get a broker check when it’s finalized.
Lee backtracks a little bit and says you’ll have to run ads to attract real estate investors. So there is some startup capital required. There are some rules and regulations you gotta follow, too. Something about first lien position only, whatever that is. And then you can lend no more than fifty-five percent of value on commercial and sixty-five percent on residential. You’ll need to work with appraisers and inspectors, I’m guessing? I dunno. Lee lost me in this maze of legal mumbo jumbo.
Rate of return. Per annum this, origination fees that. Points, terms, it’s all way over my head. But don’t worry, Lee says, he understands it sounds confusing, but this is a done-for-you system. All you gotta do is plug yourself into it. Maybe you’ve got a hunger and a passion for real estate, but don’t wanna get your hands dirty. The Lee Arnold System of real estate investing is perfect for you. Or maybe you could care less about real estate, but you’re looking for a side hustle or something you can do during retirement. That works too.
Other ways to find borrowers? Pay attention to bandit signs, billboards, commercials on the radio, print ads, online ads, anyone marketing that they wanna buy your house for cash, right? You can network with real estate agents and brokers. You can attend real estate seminars. Hustle, be creative, just get yourself in the mix. Couldn’t some of your referrals just go around you though? And contact Lee’s office directly? Save themselves that two or three K brokering fee in the process? Lee promises that won’t happen.
Here are my concerns. One, feels like you’re just signing up to be a commission-only foot solider for Cogo Capital. You invest time, energy, and money, with no guarantee of success. Which is fine, but, two, it’s a cutthroat industry. Better be ready to compete. Three, what if most of your referrals don’t even get approved? That would suck. Four, Lee’s Broker Certification Program costs fifteen hundred bucks. So now you’re paying Lee for the privilege of doing his dirty work. No thanks.