The draw of the guru events?

15 Replies

What is it about some of these guru events that seems to be so alluring? I have been to multiple events over the years from different gurus and have learned a lot, but at a great price. It seems however that I have not acquired any new properties in a while (7 years) and I find myself now looking around again at new deals and I am being drawn in again by these teaching events even though I know that all I need to know I can learn right here at BP and from others I know. Would love to say "enough is enough " and spend my money more wisely on buying property. Would welcome feedback from those who have overcome the draw and are now prospering without it. Thanks

People always want the easy answer to a problem, ie, if I pay X for a REI class, I'll start making 20k a month in cash flow. It don't work like that :). I have been mentored for free by some great pros in the industry. Anyone can find a good, free mentor, just takes some work.

I know in the case of one of my mentors, he is successful for many reasons, a major one being he has cultivated a very good reputation over 15 years in his city. That take a lot of work. You don't get that reputation by paying 10k in a class. :)

I think the "guru" influence is what creates a climate of hesitation and over-analyzing deals. So many people think there are deep dark secrets to REI that they have to pay someone to tell them. I see a lot of investors in my area going with the large guru group out of San Diego ( I'll exclude the name, but people can figure it out). They pay $30K for these guys to tell them all the "secrets". There aren't any secrets in my opinion. Like any business or industry there is knowledge you have to obtain to be successful in it. You don't have to pay for it. BP and your local REI groups are great resources for this. The gurus always have a new secret that they are selling to everyone. I agree with Jim...they want to pay someone else to build a guaranteed winner portfolio. Like he said....it don't work like that. The secrets are hard work, determination, taking calculated risk, and learning from your mistakes. Taking $30K and buying your first house will give more of an education than anyone can teach you.

Learn to play the guitar, Money  nothin' and your chicks for free......LOL

Yep, this is in the right forum, the psychology of investors.

When I look at the guru draw, I see them playing on the naïve, it's natural to take the path of least resistance, thinking that you can get much more out of something than you put into it. Some of these marketers should be in jail, most of the well known gurus have seemed to have gotten nailed at one time or another, it's almost like playing whack a mole.

I can't tell you why I never tried to "learn" anything from a guru, I'm pretty skeptical to begin with. I've purchased lots of reference books and text books, I never bought a comic book.

Growing up I guess I recognized the bad guys in westerns before the plot thickened, it's pretty obvious when the guy standing on a wagon is saying his bottle of secret formula can cure poor eye sight, any cough, back pain and can take stains out of your clothes and soften your leather boots! I mean I got that as a kid.

I really believe that those walking out of some guru class thinking the got an education would have tried that secret formula, what they got was some marketing approach or system that could probably be applied to dealing in cars, or boats or livestock. It certainly isn't a real estate education, but a marketing angle used with real estate.

Handing someone a contract and telling them how to fill in the blanks is teaching business or contract law. Simply telling someone that it's legal to do this because your have an equitable interest isn't teaching what an equitable interest is, how it is established, what the basis of interests are that might be transferred or claimed.  

Buying the dream, not the reality, not sure why people go there. Too trusting, too lazy, too naïve, too greedy, too egotistical? I don't have a clue, pick one or more.

I'll guess at all of the above.

There are certainly different types of education, few can actually learn from a book without a mentor, at least seeing a hands on approach, doing it, as far as I know the gurus only give their customers information and sizzle selling the information and why it's great rather than getting in the face of a property owner and showing them how to apply it. A good mentor will probably do that.

But, the question asked is why do people follow the Pied Piper, it's probably because of the music he plays. Guess you could ask why folks turn the radio on instead of learning to read music and play an instrument. But, the effects and results are not the same.  :)     

@Jim Hartmann

  one needs to remember all RE education that is in the form of so called Guru's has its roots in MLM... pretty much the same marketing techniques.. instead of buying all your products to resell to all your friends.. they are selling you their knowledge about RE investing. Some of it very germane some of it passe' or not really legal anymore in certain venues.

Its like many things RE no different you need to put in your apprenticeship .. the idea that you can go from zero to making 20 to 50k a month flipping houses well that's just not reality but.. the idea you can go from zero to 20k a month in residual income selling Herbal life well thanks not reality either for most of us.

For me RE was a process.. One grew up around the business so just like if you grew up and your dad was a doctor you may have gone that way.. or your mom was an accountant you might have gone in that field or your dad was an electrician.. ETc etc.. for me My dad was RE broker... Then get your RE licnese and learn.. that's what I did.. then my brokers so I got paid to learn by selling RE... it was 4 to 5 years later that I first started investing but when I did I fully understood what a transaction was and is.

So these class aim to shorten the learning curve.. not really reality.

I have some associates though that have done very well with Paid more one on one mentoring and I have witnessed their success and they are very happy they did it and give all credit to their paid mentor. So really its what you get out of it.

20 to 30k is nothing money to learn a business that could make you hundreds of thousands.. but like any thing RE related only 10 to 15% ever succeed.. just like here on BP it may all be free but I highly doubt all these folks that jump on here and say they are new I bet maybe 1 in ten actually do anything they just fade away.. just like only 1 in ten that pay the 20 or 30k might actually do anything and for that matter the number could be much smaller here on BP because its all self motivation and many are just not self motivated.

I agree with all of the above. I do find it unfortunate though that "conferences" and lectures by gurus ruin the image of real estate gatherings. 

I have for example done extensive homework in my region (Vancouver, Canada) to find a solid REIA and see what they were about. They had a conference happening in a month or two and it ended up being a solid weekend of professionals sharing their systems and not trying to up-sell anything. I have to say I learned a lot from it.

There are definitely lectures out there on the topic that are worth to go to. It all comes down to recognizing the bad guys like @Bill Gulley said, and doing your homework on the people you listen to as well. 

I've paid money to the guru group in San Diego and use their available resources on a regular basis and can say that I learned a lot from them. In hindsight I wish I had stopped before I joined their highly expensive coaching program, but I didn't. When I did this I was completely unaware of the local REIA's and what they offered. You don't know what you don't know, right?

Now I'm on the board of directors for one of those REIA's and we struggle with the best way to get our message out that we exist and are an alternative to those high priced marketing and education machines. @Jim Hartmann save your money, stay involved with the REIA's and use that money toward your next investment. You'll be glad you did. Oh, and stay involved with Bigger Pockets. I'm amazed each day at what I can learn from this site.

Welcome to BP, Marc!

LOL, "sharing their systems" ......

Anyone teach which system to use when and why? Do they look three stages ahead and see that one "system" may lead to a dead end to convey title? or may not allow the highest and best use of a property?

Yes, not all seminars are guru stuff, ideas can be exchanged, staying current with regulatory and legal matters is a must in RE. Try going to professional seminars for Realtors, appraisers, title insurance agents, mortgage brokers, home inspectors, your building regs office, planning and zoning officials, or economic development functions. Might be surprised at what can be learned that can be adopted or implemented in your business. :)

*Never* underestimate the human desire to be around people we perceive to be more successful than we are.

Originally posted by Account Closed:

I know in the case of one of my mentors, he is successful for many reasons, a major one being he has cultivated a very good reputation over 15 years in his city. That take a lot of work. You don't get that reputation by paying 10k in a class. :)

Same mentor as Joe Pickett?

Originally posted by @J Scott:
Originally posted by @Jim P.:

I know in the case of one of my mentors, he is successful for many reasons, a major one being he has cultivated a very good reputation over 15 years in his city. That take a lot of work. You don't get that reputation by paying 10k in a class. :)

Same mentor as Joe Pickett?

I thought I was the only one who had that figured out... Now don't get me started on west coast marketing folks  LOL

Thanks everyone for the great comments.  It seems in my own life that I have lacked motivation and some of these events have motivated me to consider other possibilities.  It has also crippled me as I have been overwhelmed by the many different ways to purchase real estate, notes, etc.  I started off by having a coach who pushed me to set goals and to follow through on those goals such that I purchased 5 properties (13 units) in less than 3 months and have since been trying to figure out the landlord game and keep my head in the game along with my full time job.  When I purchased the properties it was at the height of the bubble and it soon burst.  

I guess I have lately been tempted by the lure of some of the guru events as a way of getting myself back in the game again.  I have been running around the rat race and not getting anywhere.  It was Les Brown who said that in his own life, he "parked along the highway of life."  It is time to get off the shoulder of the road and get back in there.  

This site has been great in helping me to see that this business still can be done and is done every day.  Thanks for the feedback and encouragement to not spend any more money on these courses.  And for full disclosure, I cancelled my seats at an upcoming event after reading everyone's posts.  Looking forward to what I can learn and do through this growing community.

Blessings

Jim

Originally posted by @Jay Hinrichs :
Originally posted by @J Scott:
Originally posted by @Jim P.:

I know in the case of one of my mentors, he is successful for many reasons, a major one being he has cultivated a very good reputation over 15 years in his city. That take a lot of work. You don't get that reputation by paying 10k in a class. :)

Same mentor as Joe Pickett?

I thought I was the only one who had that figured out... Now don't get me started on west coast marketing folks  LOL

Jim's advertising is more veiled than Joe's...perhaps after some of the Joe's threads, the "mentor" decided he needed to send in reinforcements...  :-)

That said, anyone who has read Joe's threads will likely already know to stay away from this company...

@Jim Hartmann

  Ya know RE is not he be all end all to financial rewards.

I think many if they bought another type of small business and put effort into that could do as well if not better than trying the RE game.

I think I have mentioned it before but I have a few buddies that got into subway sandwhich shops and they do pretty good in the apprentice stage.. but once the vig is paid off they can do very well...

Along with other types of business's that you may be better suited for.

Re is just one path...

The testimonies of students achieving success creates this allure.One person said it best(bigger pockets or guru events):Entrepreneurship is not for everyone.Only the strong survive.

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