I'm Going to Say Something That Doesn't Make Me Popular in This Space

I'm Going to Say Something That Doesn't Make Me Popular in This Space

Real Estate Consultant · Houston TX · Member since 2021 · 125 posts · 93 votes

Some of the most followed educators and mentors in this space are using their audiences as deal flow exits.
Not all of them. But enough that this needs to be said plainly.
Here's the model: build credibility, build a following, gain trust, then offload deals you've already passed on to students who don't yet know what they don't know. Collect an assignment fee, a referral fee, or a markup buried in the price. Rinse. Repeat.
I've seen the results from the buyer side. Not once. Dozens of times.
People who lost life savings. People whose marriages didn't survive the financial fallout. People who followed the system exactly as taught and still ended up underwater, because the system was never designed for them to win.

The red flags are consistent:

- Independent due diligence is subtly discouraged

- The deal only works using their numbers, their team, their assumptions

- Fees aren't fully disclosed until you're already emotionally committed

- Urgency is manufactured to prevent outside review

- Social proof inside the mastermind creates pressure to move without thinking

The question I'd ask any mentor before trusting them with your capital:
Show me a deal you passed on. Tell me why. Walk me through what you saw that didn't work.

Anyone who has actually done this at a high level can answer that question instantly. Anyone running the other playbook will change the subject.
Due diligence isn't just for properties. It's for the people you take advice from.

How are you vetting the people you learn from in this space?

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  • Real Estate Agent · Philadelphia · Member since 2021 · 23 posts · 6 votes
    7mo

    Not just from mentors, and not just in this industry. Doing your own due diligence is not optional. Even with people you've worked with many times. 

  • Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    7mo
    Quote from @JS Burnett:

    Some of the most followed educators and mentors in this space are using their audiences as deal flow exits.
    Not all of them. But enough that this needs to be said plainly.
    Here's the model: build credibility, build a following, gain trust, then offload deals you've already passed on to students who don't yet know what they don't know. Collect an assignment fee, a referral fee, or a markup buried in the price. Rinse. Repeat.
    I've seen the results from the buyer side. Not once. Dozens of times.
    People who lost life savings. People whose marriages didn't survive the financial fallout. People who followed the system exactly as taught and still ended up underwater, because the system was never designed for them to win.

    The red flags are consistent:

    - Independent due diligence is subtly discouraged

    - The deal only works using their numbers, their team, their assumptions

    - Fees aren't fully disclosed until you're already emotionally committed

    - Urgency is manufactured to prevent outside review

    - Social proof inside the mastermind creates pressure to move without thinking

    The question I'd ask any mentor before trusting them with your capital:
    Show me a deal you passed on. Tell me why. Walk me through what you saw that didn't work.

    Anyone who has actually done this at a high level can answer that question instantly. Anyone running the other playbook will change the subject.
    Due diligence isn't just for properties. It's for the people you take advice from.

    How are you vetting the people you learn from in this space?

    I'd go a step further, I'd want a full year's "one on one" training with a full refund, if you don't buy a cash flowing property for less than ARV minus mentor costs. That's what I'd want ;-) 
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