Real Estate Gurus?

If real estate investing has a lot of anything, it is self proclaimed gurus who are trying to sell you something!  In general, I really believe in training and further education in your chosen field. Here is some advice I have and the research I would do before I would pay for any training.

How the Bad Real Estate Trainers Typically Make Money

Training is a business model in itself and usually more lucrative than doing deals for the most successful trainers.  Most setups, especially the scammy ones work like this:  they start you off in a free or low-cost training seminar (cost $0-100), this is very hype based, they usually have a power point and flash some big checks.  At the end they let you know at the back of the room you can sign up for a 1-day training event (cost $995 – with $8,000 value).  Most of the time they say they are only selling 39 spots or 99 spots.  If you are one of the lucky ones to pay the $995, you will get 8 hours with a little bit on information and lot of hype up-selling you to their gold level training (usually 10,000+).  So when everything is said and done, you can get sucked into spending a lot of money with very little value.

Before paying for training from anyone I would recommend the following:

Do Your Research

Before you pay for anything always Google the trainers name.  You can also check for their name with the word scam added to the end (e.g. “Armando Montelongo” scam).  Read the reviews carefully.  Obviously, people can publish anything they want on the internet, but if they have a lot of negative reviews from multiple sources I would steer clear of them.

Be Careful of Training Information Overload

If you are new to this business, it is overwhelming.  I would suggest you spend at least 20 hrs practicing the real estate business for every hour of training you pay for.  So many people I have talked too, come to the clubs and one day seminars.  My first question is almost always, how many properties/deals do you see in a typical week?  Too often the answer is, I am “building my team” or I am trying to get xyz accomplished first.  All the training in the world isn’t going to make a stellar deal fall onto your lap!  You must get out and practice this business.  If you find a great deal, the rest of the pieces of the puzzle will come together.  When I bought House #1, I didn’t have a lender, I didn’t have any repair crews, etc.  I have learned so much since then, but the deal still came together.

Get Training on Specific Topics

Rather than going for generalized training, I would suggest for going to specific topics that you want to learn more about. For example, I would be very inclined to go “Raising Private Money for Real Estate Investing” versus “All you need to know about Buying/Selling Real Estate.”  I do this same tactic with the real estate clubs.  If I am interested in the topic and the speaker I go to the club meeting, otherwise I typically take the month off.

Only Get Training from Active Investors in your Area

My favorite book is the “Richest Man in Babylon.”  In one of the early chapters it brings up a contest about who you trust with your money.  “Why invest in a chariot maker to go to a far-off land to buy rare jewels?”  The same concept applies to real estate, why would you trust a professional speaker to educate you on how to buy a house at a discount?

Look into Real Estate Clubs First

Oftentimes, gurus come and speak at real estate clubs for free.  They provide a condensed version of their typical training or a teaser.  You will get a feel for the speaker without paying very much.  Typical club entrance fees (at least in my area are $20-$30).

Never Stop Learning!

As much as I am giving the gurus a bad rap, I am a big believer in education.  One good concept can save or make you millions in this business.  So you better get out there and learn from the reputable educators!

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9 Responses to “ Real Estate Gurus? ”

  1. cgabhart says:

    Steve,
    Good post and points. The i’m getting ready to get ready syndrome i.e. building my team like you said or other things they have to do before they just DO IT.

    It’s tough when you start off because you really don’t know what to believe because you have no point of reference. Your probably getting into Real Estate because you think your fortune will be made overnight like Carlton Sheets says.

    The advice I give (and applied myself) is to get a Real Estate license. Whether you use it for other people or not it comes in VERY handy and you learn the real fundamentals when studying for the test (even though a lot you will never use depending on your focus).

    It is also very inexpensive way to learn as opposed to 10k coaching.

    Here is a link to an article that was published about why you should get your real estate license.

    (cut and paste link into your browser)
    http://gabhartinvestments.com/articles/printing-money-with-a-real-estate-brokerage-license/

  2. Steve says:

    Ya, that is definitely worth mentioning. I think any RE investor should get their license, especially, for this cycle in the market.

  3. Jennifer says:

    Steve,
    You have the best blog ever.
    I actually went to my first real estate club meeting tonight. It cost me $18 and I do feel it was worth it. Nothing being sold in the back for a deal, so I think it was a decent one. I basically learned that there is a lot to be learned! Good news: I am not scared away :)Made 3 good contacts….

  4. Steve says:

    Great Jennifer. Was that Naked Lady RE club in Culver City?

  5. stephen j. moore says:

    you steve im really glad tha you posted this cause really i have some cash saved and i was wonederin if i should spend it on a guru mentoring program,i do know several people that have gotten into this program and have been successful though

  6. Jennifer says:

    Yep, Naked Club….do you ever attend those meetings? Any thoughts?

  7. MARIO says:

    Thanks I wish I found you before, but is too late, I like your posting, and you are right
    RESEARCH FIRST!!!!!!

  8. Tin says:

    I like this website already!

    Tin

  9. Great blog. I highly, highly recommend new investors try to find a mentor that will work with them for a while and split the profits. Best way to learn in my opinion.

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