Why I will no longer answer questions from the unknowledgeable
Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesWhy I will no longer answer questions from the unknowledgeable
Most Popular Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votesThe problem as I see it, is we live in an age of information, and instant gratification,...with a lot of impatience added leading to the use of shortcuts.
All of this leads to a complete lack of understanding what the difference is between information and actual knowledge. The internet is full of information, and knowledge. Both are valuable, but they are not the same. Knowledge will give you complete pictures, systems, creativity, etc... and is contiguous. Information fills in where there might be gaps in the knowledge, or connects one set of knowledge to others.
Too often, due to my first paragraph, we find too many thinking that if they collect enough "quick" info, by shear volume, they have gained knowledge. They haven't. All they've done is create more gaps.
113 Replies
- 2yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votesThere's nothing "fine" about making mistakes. Understanding that you may make them is a reality. Those two statements are not the same.
Quote from @Cédric Le May:
All ChatGPT answers are backed up (at least on my version) by reliable sources (or what I would consider reliable: Forbes, Investopedia, FINRA, etc.).
I did the same and was able to jump in pretty quick with zero knowledge and a displayed aversion to finance and real estate, to "I understand what people are talking about" (which is pretty impressive knowing myself). This triggered more research as it should, and I am now part of this community.
I am persuaded that I need to have strong foundations before doing anything.
Now, I can be wrong and I am completely fine with making mistakes.
- MD · Member since 2024 · 15 posts · 31 votes2yThanks! I'll read it. I'll tell you once I finish it. I know it might not mean anything to you, but it'll be a checkpoint for me. A small short-term goal! Thanks for the recommendation!
Quote from @Don Konipol:
1. The book teaches solid “principles” of real estate, finance and law, not a strategy that either doesn’t work now or won’t work well in the future
@Don Konipol I'm not sure what sort of questions you've been getting, but why recommend this book? What do you like about it?
2. It lays the foundation for the student to develop an understanding of real estate, the industry, and the theory of private property. So it’s not like a book on how to be a day trader (buy a stock when it hits 2% below it’s moving 7 day average).
3. It’s not a program, method, strategy, etc. created as a marketing program to sell a continually increasing priced programs leading up to the $40k mentorship
4. It is very inexpensive compared to what gurus charge and provides a lot more usable information.
5. The reader who masters the material content will draw on this knowledge for a lifetime of analyzing, financing, and investing in real estate deals and real estate related deals
~Gabe Randall - Developer · Los Angeles · Member since 2022 · 45 posts · 16 votes2y
Quote from @Don Konipol:
I like the old standbysQuote from @Account Closed:
Quote from @Don Konipol:
For the last 15 years I have been answering questions from unknowledgeable wanna be investors who watched a guru on YouTube and now wants to know where to get the earnest money to tie up multi million dollar properties before he can flip them for $200,000 profits. After I provide a true, unbiased reasonable response more likely than not I’m “attacked” for (1) being a “hater”. (2) having “it in” for wholesalers or subject to buyers or lease option advocates or land flippers, or….. (3) not “understanding” the strategy or tactic in question (4) being out of touch with the way real estate works today. So, to separate the rare newbie who is willing to do the real work at educating himself on what really is necessary for success from the people who want to take what they perceive is the guru/mentor shortcut (or the “cheap” version in which instead of buying the program you hang around the edges seeking “free” information from those who have paid for those program) I will not answer specifically as to why the program they’re suggesting won’t work or is too risky or borders on illegal. Instead I will offer a simple suggestion. Read and study
Principles of Real Estate Practice: 6th Editionby Stephen Mettling (Author), David Cusic (Author
Or a similar text. IF you do I will be happy to answer any or all questions you may have. But if the newbie won’t put the effort in to learn (1) the principles of real estate (2) real estate law and basic real estate finance I won’t make the effort to share the benefit of my knowledge and experience.
Are there any other books you recommend? I abhor the guru/get rich quick books but that's what a lot of the literature on the topic seems to be. I'm just finishing up my second new build and will have a lot of time on my hands. I'm new to investing but not construction. Thought about the UCLA Extension School, but I'm not sure it's worth the time investment/relevant to my short term goals(BRRRR, Flip, etc.). Or are there courses that aren't snake oil? Any advice is welcome, thank you!
1. How I turned $5,000 into $3 million in real estate in my spare time by Bill Nickerson
2. Invest in Debt by Jimmy Napier
disclosure - Jimmy Napier was a good friend of mine and we partnered on a number of deals.
Thanks Don! I'll throw those in the cart as well. Invest In Debt appears to be about the same vintage as my copy of Iacocca, must mean it's good too! - China, ME · Member since 2014 · 3k+ posts · 4k+ votes2y
It's not just in real estate. I'm seeing the same garbage in business brokering too.
Over the last few months, I've received a handful of genuinely stupid offers.Here's one I received on an equipment dealer that's been in business for 70 years. Asking price is $4M, based on $7M in sales, $1M in assets, $2M in inventory and $1M in net revenue.
This knucklehead wants 100% owner financing. $7M in sales, $1M in annual net income. ZERO skin in the game.
On a hunch, I looked into YouTube and sure enough, just like the wholesaling gurus, there are quite a lot of videos that tell people how to become rich by buying a business with (wait for it...) NO MONEY DOWN.There should be a bounty on these supposed "gurus".
- Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes2yAt least 4 books have been published and are being heavily promoted in the last year with the theme of purchasing an existing highly profitable business with no equity investment. The basics can be summed up as follows: borrow max available secured by the acquisitions fixed assets; sell the acquisitions receivables to a factor; mortgage any real property the acquisition owns; sell preferred stock and bonds in the acquisition vehicle to family, friends and associates; and obtain seller financing for the balance plus working capital from the seller. Since all assets have already been pledged, offer the seller your stock in the acquisition company as security for the seller financed loan. Of course if the seller had no debt he could obtain all the loans himself and have the same cash out without selling the business and without having a basically unsecured note for his “equity”. This classic “leveraged buyout” is the basis for what we call “private equity” (KKR) today, but of course requires significant capital, business and financial expertise and experience, and a business target large enough to attract top tier management with incentives to out perform the previous management.
Quote from @Charlie MacPherson:
It's not just in real estate. I'm seeing the same garbage in business brokering too.
Over the last few months, I've received a handful of genuinely stupid offers.Here's one I received on an equipment dealer that's been in business for 70 years. Asking price is $4M, based on $7M in sales, $1M in assets, $2M in inventory and $1M in net revenue.
This knucklehead wants 100% owner financing. $7M in sales, $1M in annual net income. ZERO skin in the game.
On a hunch, I looked into YouTube and sure enough, just like the wholesaling gurus, there are quite a lot of videos that tell people how to become rich by buying a business with (wait for it...) NO MONEY DOWN.There should be a bounty on these supposed "gurus".
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes2y
Quote from @Don Konipol:
For the last 15 years I have been answering questions from unknowledgeable wanna be investors who watched a guru on YouTube and now wants to know where to get the earnest money to tie up multi million dollar properties before he can flip them for $200,000 profits. After I provide a true, unbiased reasonable response more likely than not I’m “attacked” for (1) being a “hater”. (2) having “it in” for wholesalers or subject to buyers or lease option advocates or land flippers, or….. (3) not “understanding” the strategy or tactic in question (4) being out of touch with the way real estate works today. So, to separate the rare newbie who is willing to do the real work at educating himself on what really is necessary for success from the people who want to take what they perceive is the guru/mentor shortcut (or the “cheap” version in which instead of buying the program you hang around the edges seeking “free” information from those who have paid for those program) I will not answer specifically as to why the program they’re suggesting won’t work or is too risky or borders on illegal. Instead I will offer a simple suggestion. Read and study
Principles of Real Estate Practice: 6th Editionby Stephen Mettling (Author), David Cusic (Author
Or a similar text. IF you do I will be happy to answer any or all questions you may have. But if the newbie won’t put the effort in to learn (1) the principles of real estate (2) real estate law and basic real estate finance I won’t make the effort to share the benefit of my knowledge and experience.
Wholesaling and Sub2 are for criminals and vagabonds. Pay them no mind.
- Investor · FL · Member since 2016 · 332 posts · 388 votes2y
Don I am nowhere close to your experience level, but I have people all the time wanting me to coach/train them as they see my success. I remember two years ago before I retired from the military another higher ranked service member wanting to meet on a Sunday afternoon to discuss for hours how he could get into STRs. I am always excited to help other service members/vets get into RE and change their life, but about 15 minutes into the conversation I knew this person would do nothing with the information I was giving him. For the next 3 hours as he asked his questions all I could think about was how my family was going through another afternoon without me again. So now I have boundaries and still help but only for the serious or capable (willing to put in the effort). After a 2 year sort of hiatus from BP I decided to comeback recently and give input when I know it is beneficial to the OP or others who will read the message threads. May all of us "not grow weary in doing good." Thanks for all the wisdom you and others have given the posters and lurkers here on BP.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @Don Konipol:
At least 4 books have been published and are being heavily promoted in the last year with the theme of purchasing an existing highly profitable business with no equity investment. The basics can be summed up as follows: borrow max available secured by the acquisitions fixed assets; sell the acquisitions receivables to a factor; mortgage any real property the acquisition owns; sell preferred stock and bonds in the acquisition vehicle to family, friends and associates; and obtain seller financing for the balance plus working capital from the seller. Since all assets have already been pledged, offer the seller your stock in the acquisition company as security for the seller financed loan. Of course if the seller had no debt he could obtain all the loans himself and have the same cash out without selling the business and without having a basically unsecured note for his “equity”. This classic “leveraged buyout” is the basis for what we call “private equity” (KKR) today, but of course requires significant capital, business and financial expertise and experience, and a business target large enough to attract top tier management with incentives to out perform the previous management.Quote from @Charlie MacPherson:
It's not just in real estate. I'm seeing the same garbage in business brokering too.
Over the last few months, I've received a handful of genuinely stupid offers.Here's one I received on an equipment dealer that's been in business for 70 years. Asking price is $4M, based on $7M in sales, $1M in assets, $2M in inventory and $1M in net revenue.
This knucklehead wants 100% owner financing. $7M in sales, $1M in annual net income. ZERO skin in the game.
On a hunch, I looked into YouTube and sure enough, just like the wholesaling gurus, there are quite a lot of videos that tell people how to become rich by buying a business with (wait for it...) NO MONEY DOWN.There should be a bounty on these supposed "gurus".
That is what sells. Why, because majority of Americans live paycheck to paycheck. They think real estate is going to be their next "lottery ticket" and give them hope. So lets right a book on how to win the lottery. That is what these books are selling, but people do not realize the odds of them making it big in real estate are slim.
Can you make $ in real estate, absolutely. Can you do it without little money out of pocket - yes, but most that do it that way have significant capital on the sidelines.
These books basically pray on those with no money down, no money to invest. Like you said look at all the books on "creative financing", this is the equivalent to a book on bull fighting. Most of the people do not realize when you mess with the bull you get the horns.
7e investments53 Reviews - Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes2y
I am not sure which one insults me more: the "I'll buy you coffee" or the "I'll buy you a steak dinner."
- in exchange for basically analyzing their life situation and drawing up a buisness plan for them. Don't get me wrong, I love helping people. Many have helped me. But you can always tell if someone has put th time and energy in to push it as far as they could on their own before they ask for help. Or the lazy ones, who have done zero and just want to copy/paste someone elses life's work.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes2y
Quote from @Marcus Auerbach:
I am not sure which one insults me more: the "I'll buy you coffee" or the "I'll buy you a steak dinner."
- in exchange for basically analyzing their life situation and drawing up a buisness plan for them. Don't get me wrong, I love helping people. Many have helped me. But you can always tell if someone has put th time and energy in to push it as far as they could on their own before they ask for help. Or the lazy ones, who have done zero and just want to copy/paste someone elses life's work.
My bill rate for consulting is $800/hour. Anyone who instead attempts to buy me Coffee so they can sit down and "Pick My Brain" is immediately placed on the "I hate this MF list."
- 2yAaron BreckenridgePro MemberTechnology · Dallas, TX · Member since 2022 · 454 posts · 288 votes
Quote from @Cédric Le May:
All ChatGPT answers are backed up (at least on my version) by reliable sources (or what I would consider reliable: Forbes, Investopedia, FINRA, etc.).
I did the same and was able to jump in pretty quick with zero knowledge and a displayed aversion to finance and real estate, to "I understand what people are talking about" (which is pretty impressive knowing myself). This triggered more research as it should, and I am now part of this community.
I am persuaded that I need to have strong foundations before doing anything.
Now, I can be wrong and I am completely fine with making mistakes.
If you're using Bing or Google Gemini or ChatGPT with RAG, the yes, they will use those references to inform their response and they'll link to those references in the response. Otherwise absolutely not, it's word soup from across the Internet, which may include reputable sources but also includes crap from Reddit.
- Real Estate Agent · Albany, NY · Member since 2017 · 80 posts · 26 votes2y
It's no different than what I deal with I think with new Realtors thinking real estate sales is the "get rich make 100K" your first year game. I get 5 DM's a week asking for help and tips when I have been doing this for 17 years. There is no shortcut in anything with real estate.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes2y
Quote from @James Wise:
Quote from @Marcus Auerbach:
I am not sure which one insults me more: the "I'll buy you coffee" or the "I'll buy you a steak dinner."
- in exchange for basically analyzing their life situation and drawing up a buisness plan for them. Don't get me wrong, I love helping people. Many have helped me. But you can always tell if someone has put th time and energy in to push it as far as they could on their own before they ask for help. Or the lazy ones, who have done zero and just want to copy/paste someone elses life's work.
My bill rate for consulting is $800/hour. Anyone who instead attempts to buy me Coffee so they can sit down and "Pick My Brain" is immediately placed on the "I hate this MF list."
Man I really I hate freeloaders. What's different than a tenant not paying their rent and some wanker who wants you to teach them how to run a money making business for nothing more than a cup of coffee? Both are deadbeat freeloaders who should be shamed at every opportunity.
- Member since 2024 · 84 posts · 106 votes2y
Great discussion. I would like to thank everyone who shares their experience and knowledge on this forum. I'm a little older and I understand that knowledge earned from experience is very valuable.
I'm on my 6th teenager and most of my kids are young adults in their 20s. I give them advice and most of the time they ignore it and face the consequences. That's how it goes. They don't know what they don't know. I'm sure I was NOT like that when I was young....
- Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes2y
I consider myself more of a self-employed business owner than a real estate investor and I still consider our business a 'startup' after almost 8 years-- I guess I'm on the slow train. I think we might graduate out of startup mode by the end of year 10. I'll think we're not a startup anymore when I can do the vast majority of the work I need to do from my boat.
I find I've been posting less because I've needed to really focus on my business process so that I can one day be a real estate investor.
- 2yJoe S.Pro MemberInvestor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
Unknowledgeable can be a bit relative and a mystery.
I have been doing real estate over 20 years and I feel fairly green after reading some of your post.
Then there’s ( some ) people posing as gurus, experts, etc. that I feel that I know more than they do… - 2yJoe S.Pro MemberInvestor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votesI always thought the free coffee offer was egotistical or dumb….Maybe both.
Quote from @Marcus Auerbach:
I am not sure which one insults me more: the "I'll buy you coffee" or the "I'll buy you a steak dinner."
- in exchange for basically analyzing their life situation and drawing up a buisness plan for them. Don't get me wrong, I love helping people. Many have helped me. But you can always tell if someone has put th time and energy in to push it as far as they could on their own before they ask for help. Or the lazy ones, who have done zero and just want to copy/paste someone elses life's work.
I have been turning down free coffee and meals for several years now.
I had one guy that called me up claiming to be a doctor and wanting to meet in person to discuss him bringing me deals, but he was simply trying to figure out how to wholesale and was looking to build his cash buyer list and probably get some free education. I declined meeting with him and basically told him if I met everybody that called me on the phone I wouldn’t have time for anything else.I probably would have talked to him a little more at least on the phone, but he started off reading the same script most of the other beginning or wannabe wholesalers start reading once they get you on the phone. The guy was really pushy and did not want to get off the phone and told me multiple times that he was a doctor. I finally had to hang up on him since he did not respect my attempts to get off the phone respectfully.
- Investor · Mississippi Gulf Coast · Member since 2019 · 55 posts · 53 votes2yThis sums up my sentiments as well.
Quote from @Account Closed:
May all of us "not grow weary in doing good." Thanks for all the wisdom you and others have given the posters and lurkers here on BP.
There are so many of us lurkers here just sitting at the foot of the masters, and we are learning. We are taking it in and we are serious and extremely thankful to those who bring value to the discussions here.
Sometimes, I could read the same content by multiple posters and suddenly something will just click with my line of understanding and it all makes sense.
For all those who bring value, keep bringing it.. you know who you are... not everyone will understand everything you say, but with context, that value will shine through. I love what this forum has to offer, I learn here everyday and I try to share my experiences where I can in my network.
I don't know if you guys are gurus, but I know if I keep at it, your knowledge will help me figure it out. Eventually. - Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes2y
I understand everything said above and the sentiment people feel.
Gurus are out there to SELL their product. "Get rich FAST using this one simple trick"
Imagine trying to sell a course: "Build wealth very slowly, it will be painful most of the time, you will have to give up your weekends sometimes, you'll miss out on time with friends and family during this process"
I was in this position last year when I had a first time investor buyer reach out and told me the offer he wanted to put in. I genuinely couldn't understand it. I had never heard of this "strategy" and still to this day I don't understand what he was trying to do.
- Rental Property Investor · NJ · Member since 2019 · 442 posts · 40 votes2y
Quote from @Chris Seveney:
Quote from @Don Konipol:
For the last 15 years I have been answering questions from unknowledgeable wanna be investors who watched a guru on YouTube and now wants to know where to get the earnest money to tie up multi million dollar properties before he can flip them for $200,000 profits. After I provide a true, unbiased reasonable response more likely than not I’m “attacked” for (1) being a “hater”. (2) having “it in” for wholesalers or subject to buyers or lease option advocates or land flippers, or….. (3) not “understanding” the strategy or tactic in question (4) being out of touch with the way real estate works today. So, to separate the rare newbie who is willing to do the real work at educating himself on what really is necessary for success from the people who want to take what they perceive is the guru/mentor shortcut (or the “cheap” version in which instead of buying the program you hang around the edges seeking “free” information from those who have paid for those program) I will not answer specifically as to why the program they’re suggesting won’t work or is too risky or borders on illegal. Instead I will offer a simple suggestion. Read and study
Principles of Real Estate Practice: 6th Editionby Stephen Mettling (Author), David Cusic (Author
Or a similar text. IF you do I will be happy to answer any or all questions you may have. But if the newbie won’t put the effort in to learn (1) the principles of real estate (2) real estate law and basic real estate finance I won’t make the effort to share the benefit of my knowledge and experience.
I recommend we invest in tissues. Because in 3-4 years when all of the idiots who bought properties financed at 100-110% of value with no money of their own in the deal and cannot afford to put gas in their car finalize realize they have no way out and will lose it all they will then talk about oh me and its not my fault... No pity coming from me.
Real estate generally appreciates, (at least in well populated cities etc.) so in 3-4 or in worst case 5-6 years they will already have more equity in the game!
- Lyons, NY · Member since 2024 · 6 posts · 4 votes2y
Principles of Real Estate Practice: 6th Edition
It's available on audible. I just bought it, and I'll give it a listen.BTW, I'm down to clown if you know any shady real estate scams - I'd like to have a Bently in my garage when the feds raid me and put me in jail.
- MD · Member since 2024 · 15 posts · 31 votes2y
@Pete Ganze Sounds like a solid plan! If you go down at least you have the cool car! Although I'll probably go with buying and holding. It might be a slightly safer option ;)
~Gabe Randall - 2yPeter TverdovBusiness MemberDeveloper · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
I have felt that way for about 5 years on here OP. This place fell off a cliff in 2019 and never recovered. Most of the people who DM me are tire kickers sadly.
- Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes2y“Since everybody coming into "house buying age" received a trophy for showing up, from elementary school age to now, they feel entitled to receive without putting in the work.”
Quote from @Account Closed:
Quote from @Peter Tverdov:
I have felt that way for about 5 years on here OP. This place fell off a cliff in 2019 and never recovered. Most of the people who DM me are tire kickers sadly.
@Peter Tverdov: There is a reason (or two) for that.
1. People are broke. The way the economy has been manipulated has been brutal on people.
2. That banana republic management approach to the economy has caused high interest rates.
3. Since everybody coming into "house buying age" received a trophy for showing up, from elementary school age to now, they feel entitled to receive without putting in the work. (Okay, not everybody, but a whole lot of people.)
4. The only thing "sustainable" in this economy is poverty.
A guy with some discipline, ambition and planning is going to make a great living going forward. Most people have removed themselves from the competition and don't possess any of those three traits.
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