Marshall Reddick

Marshall Reddick and the Marshall Reddick Real Estate Network
Marshall E. Reddick is an American business man operating out of Irvine, CA, that specializes in real estate marketing. Dr. Reddick was a professor of Business and Economics at California State University, Los Angeles, for more than twenty years and in 1978 he started the Marshall Reddick Real Estate Network (MRREN) . Today he and his staff of trainers conduct investment real estate seminars every year for many of the community colleges in Southern California. According to their website, the Marshall Reddick Real Estate Network "is comprised of 65,000 members, most of whom have taken one of Marshall's seminars, and 30,000 who have actually purchased property."
MRREN sold investors a strategy of "Armchair Investing" where MRREN, its staff, and its network of agents around the country would "Select the areas that show the greatest potential. We spend thousands of dollars on current economic data to single out these areas."
Marshall Reddick Real Estate Network Strategy
MRREN promotes what Marshall Reddick terms "Armchair Investing," a strategy where all an investor has to do is sit back and let MRREN do the statistical area research, a MRREN-approved real estate agent would walk you through your purchase site unseen, and a MRREN-approved property manager will manage your investment. All the investor does is sit in the "Armchair" and enjoy their investments go up in value.
MRREN strategy is as such:

All of the properties I have purchased have doubled in value within four to six years while picking up great tax advantages that help shelter my income. This has resulted from how we pick real estate. Here is our philosophy:
Great Timing
Purchase property as it is rising from a slump or recession and you have five to ten great years of appreciation.
Great Location
Select the areas that show the greatest potential. We spend thousands of dollars on current economic data to single out these areas.
Great Properties
The best-appreciating properties are inexpensive new homes, town homes and condominiums in upscale neighborhoods with a price range of $120,000 to $150,000. These also provide the highest rent.
Buy with Leverage
We believe in buying property with no more than 5%. This increases your return on purchasing and reduces your risk dramatically. Our lenders can even provide 0% down financing with no PMI (Private Mortgage Insurance) for those with W-2 income.

Marshall Reddick Real Estate Network Business Model
MRREN uses Marshall Reddick and its instructors to go into local Southern California Community Colleges to teach continuing education classes to get new members. At these classes MRREN invites them to go to MRREN club meetings for "education" and a sales pitch regarding which areas were the bust areas to purchase real estate investments. MRREN has a network of hundreds of real estate agents across the country and MRREN collects half the commissions on every transaction if an investment is sold to a MRREN investor, ranging from 2% to 12% of the purchase price.
In addition, MRREN had/has a series of lenders that pay monthly marketing fees which at one time or another included: First Guaranty Mortgage, Ridge Mortgage, Wright Mortgage, Chase, DFS Lending, Mechanic Mortgage, National Investors Mortgage,
Marshall Reddick Real Estate Network Mentors
MRREN had a sleuth of "Mentors" designed to help investors buy properties site unseen and MRREN approved property managers find a tenant and use their rent checks to pay for the investors' mortgages. These MRREN Mentors ranged from accountants to housewives. The only qualification to be an MRREN mentor was owning 10 properties, purchased through the MRREN system. One of Marshall Reddick's top mentors, he was with him constantly at club meetings, community college seminars, and spirituality breakfasts, was George Jammal ,an actor and self-confessed hoaxer, once claiming on national television he found a relic from a piece of wood from Noah's Ark.
Marshall Reddick Real Estate Network Lawsuit
In recent years MRREN has received a great deal of bad publicity from numerous lawsuits, with one suit filling 11 separate counts of illegal actions, including: Fraud; Racketeer Influenced and Corrupt Organizations (RICO) Act; Untrue or Misleading Advertising; Negligent and Intentional Misrepresentation; and Unlawful, Unfair and Fraudulent Business Acts and Practices.
Other Notable Marshall Reddick Real Estate Network Recommended Investment Products
Other notable problems with MRREN marketed investment products:
Ilikai, a Hawaiian Hotel, marketed by MRREN
CIMA Group, Golden Beach Resort, a Baja California development, marketed by MRREN
Pendleton Station, a South Carolina development, marketed by MRREN
Cape Coral, Atlantic Contractors, a Florida homes with construction to permanent financing, marketed by MRREN
Marshall Reddick Real Estate Network files for Chapter 11
Due to the numerous lawsuits against the Marshall Reddick Real Estate Network, the organization filed for Chapter 11 in February 2009

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