Don’t be hypnotized by the “Guru of the Week”!

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realestateguruI know I write about this a lot – but I think it’s important to keep this message in the forefront for all the newer investors out there and even some of us not so newbies.  The endless emails and direct mailing pieces I get that sell me on the next big, most important, I must not miss sell-a-thon from real estate gurus – is nauseating!  Gag me with a spoon!

I cannot believe the horrible trend that is happening that all the old gurus and new gurus are perpetuating.  And to make it WORSE (can it actually be any worse?), they not only send us endless sales pitches on their own product – they are getting bigger and bigger into affiliate marketing which means that they are letting us in “a secret”, or giving us “the insiders track”, or getting us a deal that only they can give us because this guru is “their good friend”… blah blah blah blah…..  gag me with a spoon!  (Did I say that already?)

What the heck is going on with this industry?  Really I wish I had the answer.  I cannot stand this b.s.!  I am a real estate club owner and I have to spend a lot of time convincing new people that our club is different –   that we don’t do pitch fest. It’s so sad how these gurus have made what we do – so distrustful.  So what’s the solution?  How do we stop the madness?  Well – I know what I am doing to stop it – but I need your help too!

For instance – I will never book one of these guru pitch festers to speak at my club.  Maybe right now – those big shots don’t care – after all, I am a new club and how much influence can I possibly have right?  Well, after my meetings this week – I had a 100 people attend my “little club” meetings this week.  Not so bad for a silly little girl who’s club only started 6 months ago. My goal is to continue to spread the word that we do not need to spend thousands of dollars A MONTH in order to learn real estate! Even if I do wake up with a bloody horse head in my bed someday! I will not be intimidated by your sneers – you “older, wiser and more successful” gurus and owners of real estate clubs! 

Newbie Alert:  Did you know that 95% of folks who buy endless guru products never learn the solid foundation that they need in order to be a successful real estate investor?   Why – because many of these products are a trap! Not all (there are a some good ones out there), but many of these products are just a way for the gurus to get their hooks in you so they can up sell you to their next product or bootcamp – ENDLESSLY. 

A few simple tips to follow to stay out of the “seminar junkie” trap:

1.  Ask your SUCCESSFUL (successful being the key word here), investor friends – who they studied from, who’s product taught them a lot, who they trust.  Then buy that program or bootcamp. If you are new and don’t have investor friends yet, join forums such as BiggerPockets and ask around.

2.  If you go to a seminar that was not recommended to you by someone you trust – then leave your wallet at HOME.  Don’t leave it in the car – because it’s too easy to run down and get it once these slickity slick slicks have hypnotize you into believing that you cannot succeed without them and their product!

3.  Decide what real estate strategy you want to be an expert at and stick to it!  Do not deviate and start dabbling in the next big strategy that is being pitched by the guru of the week.  This should help you stay focused and deter you from buying product on strategies that are not within your business plan.  Now mind you – as markets change, strategies change – I know this, but you do not need to know how to do everything single strategy right now.  You only need to know specific strategies depending on that current market!  Mr. Bruce Norris is the best at teaching us this.  He will never try and sell you one of his products if it doesn’t pertain to the specific market that is happening now.

4.  If you simply must buy a product - first check with your friends to see if they have it.  Maybe you have something they would like to study and you can exchange product for a while.  Or check with your local real estate club – some have a lending library.  

5.  Get a mentor!  Find a successful real estate investor who is doing deals now.  Personally – I would have been lost without my mentors and coaches.  I have learned more from successful – down to earth, REAL – real estate investors than from most of the product that I have bought.  Actually – the best product I have ever studied from was from a few of my mentors.

6.  Attend your local real estate club – as long as it is not a pitch and sell environment.  Stay away from those!  Yucky! (That is why I started my own club!  Cuz I couldn’t stand to be around that kind of environment a minute longer!)

The bottom line is that there is a reason these pitch festers continue to market like dogs in heat – it’s because people buy. When gurus sell $100K in product at seminars like these only a few of those people who bought will ever do a deal – they don’t care!  They know that most everyone in the room will not be successful.  It’s not about that to them.  All it’s about is making as much money off you as possible.  Sell – the poor bastards the dream….  That’s what they do.  

The answer is get educated yes – but also, get support, get trained, surround yourself with successful investors, and don’t be hypnotized by the smoke and mirrors (think of them as the Wizard in Wizard of Oz – that might help!)

Photo Credit: Jorge Bassy

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5 Comments

  1. Good for you for saying it like it is.

    Talking to my sig other in the car today about just this topic. He is an old school TEACHER who is aghast at the pitch fests.

    All these marketers have single niches which may or may not fit your needs. There is nothing wrong with getting rich slowly and steadily. One or two houses a year, bought right that cashflow.

    BiggerPockets rocks. We are working on a very low cost membership site. There’s no need to spend thousands to learn. Information is readily available at clubs and on the net.

  2. My article this week (Dec 15th) mentions a couple who fell for the guru nonsense and purchased over 30 houses in a short time with little or no money down. They are seriously upside down and facing financial ruin and divorce. These were not two stupid people either, she is a Ph.D. and he is a doctor. It just shows that nobody is immune.

    • Hey Richard . . . as you said, no one is immune. The promise of easy money can affect anyone and it is NOT hard to get in over your head. That’s why we always urge caution to the members of BiggerPockets.

  3. Hello my name is Mark and I’am a seminar junkie, I’m now on the 12 step program (because I don’t have any more money to spend). My advice to those out there in “I want to invest in real estate land” attend local REI club meetings go online and network with other investors. Save your money, you’ll need it. There is so much free info. out there, that it is usally better than the stuff that cost a small fortune. Buy it on EBAY if you want it that bad or borrow it, lots of investors have it sitting on their shelves collecting dust.

  4. Amen, and Thank you for telling the truth, It is a Breath of fresh air, I have almost fell prey to several of these so called guru’s, They sell you cheap at first, then they call and want $15,000 dollars or more to Mentor you, What a Joke, No wonder they are rich, I am very Grateful for Big Pockets and it’s creator. I have been in the Construction Industry for many years, and now I am getting into the investing process, thank you for the help and the people here on Big Pockets.

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