Posted by Emmanuel Idogho on September 19, 2010 at 13:25:52:
I want to say thank for all the truthfull sturfs that are said in here.
I know that truth is bitter but it’s worth saying.
Are Real Estate Gurus just Con Artist - Posted by Flusterated Investor
Posted by Flusterated Investor on September 13, 2010 at 13:59:01:
I have seen about 15 investors bankrupt over
the last few years doing what gurus told
them to do.
I have the feeling that many real estate
gurus are just selling courses and are not in
the trenches.
Can I hear comments from REAL investors
on this. If you have done less than 5 deals
and this isn’t your only source of income then
you don’t count.
Re: Are Real Estate Gurus just Con Artist - Posted by Lubasha
Posted by Lubasha on September 13, 2010 at 21:34:38:
I think many of them know the stuff they are teaching.
I went through many inexpensive courses and one quite expensive but ended up with my own way first deal to happen. I still don?t miss webinars of my favorite mentors, but don?t take anyone as instruction. I suspect that I could do much better if I would follow more advanced strategy but sink in one after one small rehab.
Well, with that said I probably mean that there are great mentors out there but you are the only one who has to use your own judgment and make your own fortune.
You might not count my point, because I did not hit your criteria for real investors yet.
Re: Are Real Estate Gurus just Con Artist - Posted by michaela-CA
Posted by michaela-CA on September 13, 2010 at 15:44:49:
The last few years has seen many investors lose everything, due to foreclosures, economy, etc., so it’s not just those that took courses or workshops, but many experienced investors were caught by surprise.
The market changed and many gurus keep teaching what worked for them, even if that was 5 years ago, in a different situation.
I believe most gurus have something to teach, even if it’s just small things here or there. But you have to pick and choose. But that’s not so easy for a newbie, as they don’t know yet what’s viable or not. It really takes a special kind of person to actually go out and be successful in this business and the best teacher can’t help, if the student isn’t right for this.
Most people are attracted to gurus that offer to teach a ‘paint by number’ course. Real Estate investing seems a lot easier, if you can just tick things off a to-do list. So, in some way the gurus offer what people want.
There are certainly gurus that take advantage of students. But whether a guru is good or not, 99% of students never buy their first property. And of those that do buy a deal, very few buy a 2nd one. This business is not for everyone. That doesn’t mean that one person is better than another, but that people have different strengths and weaknesses and it’s not a good fit for everyone.
Just some of my thoughts
Michaela
Re: Are Real Estate Gurus just Con Artist - Posted by Erich
Posted by Erich on September 13, 2010 at 14:34:22:
No, most of the gurus are the real thing! Even Kiosaki and some of the
hard sell guys! That said, you need to listen to what they have to say
and take it with a grain of salt! Most of these guys have good things to
say. Certainly, there are some gurus that want to take your money! I
have sat in on quite a few seminars. At the very least, I get motivated
and have a good laugh at some others. Don’t get mad at these guys
when they pitch you. Just listen and learn what you can!
Re: Are Real Estate Gurus just Con Artist - Posted by Jackie
Posted by Jackie on September 13, 2010 at 14:16:18:
I went bankrupt after spending all the money on these
courses, boot camps, and mentors–and did only 1 deal.
Can’t speak for the REAL investors–wish I was one!
Re: Are Real Estate Gurus just Con Artist - Posted by Lee
Posted by Lee on September 13, 2010 at 22:49:58:
Quote from Michaela
> Most people are attracted to gurus that offer to teach a ‘paint by number’ course.
> Real Estate investing seems a lot easier, if you can just tick things off a to-do list.
> So, in some way the gurus offer what people want.
I think I need to design a Real Estate Course using all the tricks that I have heard
about or read about and start marketing it is the ultimate real estate investing technique
that if you follow the paint by numbers then you will make gobs of money. It doesn’t matter
if the techniques really work as long as you get the students money from them.
When students start calling and saying that they are having problems getting the techniques
to work then I will tell them that they need to give me $5000 for mentoring or coaching sessions.
I could then try to sell the student a professional website for $1000 and hosting for $50/mo along with
other monthly fees.
Then when the student says that it doesn’t work then I can tell him that evidently he isn’t following
what I am telling him to do. Then once I have drained the student dry of all money, caused his divorce,
bankrupted him, and destroyed his life then I would just move to the next student.
I am being sarcastic in what I just posted. I don’t have any intention of doing this but it often seems
like many gurus operate this way.
Re: Are Real Estate Gurus just Con Artist - Posted by Lee
Posted by Lee on September 13, 2010 at 15:03:04:
Here are some things that I have learned from gurus.
Guru Speak: Your tenant/buyers will give you $10,000 down and take good care of the propert and then after a year or two they will get a new loan and you will make another $30,000.
Reality: Most buyers don’t have anything to put down. You will screen about 20-30 buyers before you find someone that has $5000 to put down. Tenant/Buyers only exercise their options about 30% of the time because something changed in their life (divorce, job change, downsized, etc) and when they leave the house you may have to replace carpet and make repairs to get the house back in order.
Guru Speak: When you advertise Rent to Own then buyers will come running.
Reality: You will get a lot of calls from tire kickers and people who tell you that they have money to put down. They tell you they love the house but when you ask them to fill out an application and an earnest money check then they just vanish.
I have learned that until you get a filled out application and proof of funds or earnest money check then the house should still be on the market.
Re: Are Real Estate Gurus just Con Artist - Posted by Lee
Posted by Lee on September 13, 2010 at 14:54:14:
Have you ever made enough money in real estate to make a living at it?
Donald Trump one time spoke at the Atlanta Learning Center Expo and in his speech he told everyone not to quit their jobs when they were trying to do real estate investing. His speech was so different than the other gurus that had been talking before him saying that you could do just a few deals and then quit your job and tell your boss where to go.
I know one guru that would tell new investors that they could do lease/purchases on their houses and collect $20,000 or $30,000 from the tenant buyers.
In private the guru said that he normally get around $3000 on lease/purchases but since the new investors want to hear about big paychecks he tells them that because it sells his courses.
I have begin to read between the lines on what most gurus are selling. Most gurus will tell you the only positive stuff about investing and make it sound really easy. Real Estate investing is a Businss and does require work and effort.
Re: Are Real Estate Gurus just Con Artist - Posted by Erich
Posted by Erich on September 13, 2010 at 16:21:35:
Yes, I was quite wealthy and retired until I recently lost my behind on
commercial retail!
Re: Are Real Estate Gurus just Con Artist - Posted by Lee
Posted by Lee on September 13, 2010 at 22:36:59:
One National Real Estate Guru started teaching a course in land development about 3 years ago. They were selling courses on lease-options for about $5000 and courses on land development. I believe that the course was about $20,000 and they were telling the seminar attendees that you could be a multi-millionaire in a year or two. Russ said that out of all the ways that he had invested that this one earned him 10 times more money then anything he had done before.
I can tell you that if lease-purchase, seller financing, and Wholesaling are tough then you can just imagine how hard land development is. The guru never talked about the years that it may take to get zoning and approval of your projects. Land Development is not for beginners. It may be extremely profitable but it is also one of the highest risk strategies that there is.
I know that several other gurus have been talking about all the “real money” is in commercial and that by investing in commercial you will never lose. From my observations of other long time investors this is not entirely true. This is a high risk / high reward strategy.