Wouldn't that money be better spent buying a house?

10 Replies

These gurus be charging thou$ands of dollars for their courses and seminars. If someone has that kind of money to pay for the course, wouldn't they be better off investing that money in real estate itself? Why pay $4k for a course teaching people how to become wealthy in real estate rather than use that money and take action?

The short answer is yes, that money would be much better spent buying a property. If someone only loses $4k to a guru they should be considered lucky. Many gurus are fleecing people to the tune of $40k+

The dirty little secret is gurus make waaay more money guru-ing than investing. Why would anyone take advice from someone like that? 

@Nick C. That is insane to be spending that much money on a guru. That $40k can be used to build themselves wealth instead of building wealth for the gurus who will always come up with some type of "knowledge" that will make people rich.

@Christian Rojmar I would rather spend money on a book if it is giving step by step advice how to go out there and apply that knowledge. 

@Tony Marcelle There are plenty of books out there that will guide you through the whole process from beginning to end depending on your particular interest. I focus on buy and hold SFHs and have gone through "The Book On Rental Property Investing" multiple times and it explains the whole process from building a team of connections, getting financing in place, analyzing deals, making offers, negotiating, finding tenants, managing properties/tenants, etc. etc. It is just a matter of applying the concepts that the authors teach you. Do these books make it sound a lot easier than it is, yes, but many authors provide years and years of knowledge for successful investing in one 200 page book.

Originally posted by @Christian Rojmar :

@Tony Marcelle There are plenty of books out there that will guide you through the whole process from beginning to end depending on your particular interest. I focus on buy and hold SFHs and have gone through "The Book On Rental Property Investing" multiple times and it explains the whole process from building a team of connections, getting financing in place, analyzing deals, making offers, negotiating, finding tenants, managing properties/tenants, etc. etc. It is just a matter of applying the concepts that the authors teach you. Do these books make it sound a lot easier than it is, yes, but many authors provide years and years of knowledge for successful investing in one 200 page book.

Which books are you reading? I am interested in house hacking multi-family homes in particular. 

 

@Tony Marcelle , because I focus on SFH buy and hold, I have not looked/read books that are relate specifically to house hacking multi-family. However, The Book On Rental Property Investing talks about house-hacking and multi-family to a certain degree and I do not see why the ideas in that book would not apply to your situation. I am currently in the middle of reading "The Book on Estimating Rehab Costs" which provides good insight on how to find areas that may need work as you walk through a property, how to create a statement of work, estimating costs of various rehab projects, how to find contractors, negotiating prices, etc. - Helpful if you are thinking about buying a property that may require some rehab and have little knowledge of fixing properties (like myself).

BiggerPocket members, any suggestions on great books related to house-hacking multifamily properties?

@Christian Rojmar You explained some great ones that I recommend to people who ask me some books to start on. I began with reading Rich Dad Poor Dad like most others but when I read the Book on Investing in Real Estate with no and low money down and The book on rental property investing by @Brandon Turner a light bulb went off. They opened my eyes to so many other possibilities like structuring seller financing, attracting private money, creative investing and so much more. I like how he outlines the book in a play by play concept that teaches you some great fundamentals. 

I've heard some great reviews about The BRRRR book by @David Greene however I'm still digesting his 1st book on Long-Distance Real Estate Investing. Its somewhat worded with concepts that he explains in depth but its worth adding to your collection of real estate related knowledge. 

I have more that I dove in to but I mostly lead people to start with these to get a foundation. All the Best!

@Christian Rojmar I don't know about books specifically for house hacking multifamily, but I think the main principles apply. For young people who are gainfully employed and mobile, buying a duplex with an FHA loan is an excellent way to get started. A guide on this would be very helpful. I'm sure it's out there, but not sure if you need one really. About gurus, I have friends paying this 40k per year. It's not for me, but honestly, "some" of my friends are making this VERY worth it because they are gaining a network and systems that enable them to build very strong businesses. Some others are not getting any ROI on that investment. So, I think it's what you make of it. In psychology there is a concept known as the good/bad split. It means it's easy for people to label something as all bad, or all good based on our knowledge, fear, perception etc. Best to have a "grey" perspective. Some newbies should NOT be jumping into guru relationships because they're going to lose a lot of money. But, some are making it very worthwhile. It's not for me, but it does seem to fit some people. Proceed with Caution.

Originally posted by @Christian Rojmar :

@Tony Marcelle , because I focus on SFH buy and hold, I have not looked/read books that are relate specifically to house hacking multi-family. However, The Book On Rental Property Investing talks about house-hacking and multi-family to a certain degree and I do not see why the ideas in that book would not apply to your situation. I am currently in the middle of reading "The Book on Estimating Rehab Costs" which provides good insight on how to find areas that may need work as you walk through a property, how to create a statement of work, estimating costs of various rehab projects, how to find contractors, negotiating prices, etc. - Helpful if you are thinking about buying a property that may require some rehab and have little knowledge of fixing properties (like myself).

BiggerPocket members, any suggestions on great books related to house-hacking multifamily properties?

AS for suggestions.. I like to suggest that if one has a certain guru they kind of like.. simply go on E bay and that guru's written materials and CDs will be for sale usually for 50 to 150 bucks.. so for maybe 500 to 1k you can get a huge amount of information.. then figure out what U like.. there is no super secrets in real estate most of it is pretty straight forward..  pre license course will teach you vocabulary and basic laws of your state.. I find that has value. 

 

@Andrew Lawhorn RIch Dad Poor Dad is what got me started as well! And I am currently working through David Greene's "Long-Distance Real Estate Investing" along with the Estimating Rehab Costs book! All great books!