Blogger Andrew MacDonald, yesterday posted an article on the BiggerPockets Blog that is an absolute MUST READ for anyone considering spending their money on a real estate guru.

The article breaks down both the typical sales flow for these gurus (how the hook you) and 4 key tips for how to avoid getting suckered trapped.

Check out the article and please leave some feedback!

The Real Estate Guru Scam - How It Works & 4 Ways to Avoid It

I agree.

Andrew's blog is a must read.

It is short and filled with valuable info.

Thanks for pointing it out.

Great article,
What should someone look for when finding educational materials, or to find people that will help someone get their initial experience and help with their first deal?

Aaron, I think when trying to find someone to help get experience on your first deal, look for someone who is not selling their ideas, but employing them. What I mean by that is to try and find someone in your local area who has the experience and knowledge you are looking for. Talk to them and see if there is any way you can work with/for them, or if they are willing to sit and talk with you every once in a while and answer some questions you have about the business.

Not only will you spend a lot less money on education (and have more to put towards actual deals) you will get local answers, as the investing environment is different in every city (and different parts of cities).

Also, there is enough free information out there that I really do not see much of a reason to purchase education materials. If you can find a mentor and continue to utilize the hundreds or free articles, forum posts, blogs, etc, you will gain the knowledge and experience you need to become a successful real estate investor. Remember...gurus are salespeople; they are interested in you purchasing their product regardless of whether or not is in your best interest (at least most of them).

Aaron,

James did a great job of rollling all the info up. I would just add one thing.

Gurus tend to speak in generalities - they use words liks "mindset", "goals", "networking", etc, but don't offer a lot of specifics on "how to".

James made a great point that I would like to echo, try to work with a local investor, or at least try and get them on the phone (not as hard as you might think).

A couple of ways to find these guys:
* RE Agents - If they are a seasoned agent they usually know a few players in the area
* Mortgage Brokers - Same
* Hard money lenders - Same
* Local REIA
* BP - look at member's profile pages

I hope that helps!

AG

One thing that was left out of the initial free seminar portion was the part that the "guru" gets the audience to say yes at least 50-75 times. Then when it moves on to the hard sell stage they are so used to saying yes they grab their checkbook or credit card and run to the back to sign up for the "boot camp"

Originally posted by Aaron R.:
Great article,
What should someone look for when finding educational materials, or to find people that will help someone get their initial experience and help with their first deal?

Aaron - if you are looking for initial experience, I would say that you are in the toughest group to find really good quality material. I am not against spending money and firmly believe that it costs a lot less to educate yourself with material than it does with experience. I bought Carlton Sheets when i first got started and although looking back over 8 years I now laugh at it, when I started it was very, very helpful and I credit that course with helping me do my first deal and not sound like an idiot! So don't shy away from buying courses simply from fear of being duped. Ask for others opinions and take that into consideration, but don't think that all courses or gurus are the same and scams. Don't be scared to educate yourself.

James and Arthur give great advice as well and there are a ton of resources like BP, library material and books at book stores that can help you very very inexpensively.

Best of luck!

Very well written!! That is so true. There are some decent folks out there spreading the word, but unfortunately, they do not make the money of the big time guru's. It was reported last year that Armondo Montologo did over 40 MILLION in his education business! My question is How do you spend that much time teaching and still do deals. I work non stop on my real estate so I only have room for a handful of students at a time. Maybe he could give me a course in balancing the two, LOL!!

Ditto!! Find someone that is ACTIVELY walking the walk if they are selling a course.
Like Rob stated, I only work with a handful, as I'm too busy working my business.
Look for a teacher, not a salesman.

Great Article by Andrew. A most read by newbies and seasoned investors. Took me a few seminars to catch on.