REI or Author?

Question

It's only been a few weeks since I've serious started looking into RE investing. The BP forums are a huge source of what looks to be valuable information on the subject. Being a cynic, I was initially very skeptical about the validity of the content on BP, just waiting to find the sales pitch. However, after reading several posts where the latest Johnny Come Lately and his new way of "building wealth" has been very professionally asked to provide details and back his claims, I started realizing that there really could be some honest folks here that are truly interested in networking & sharing ideas/experiences. I find that to be rather refreshing considering everything else I've read elsewhere has pretty much boiled down to long winded pitches that read like a novel, then state, "Buy my book to get the details". This leads me to my question...

Why are so many folks in the REI industry selling books and e-books? If one was so wildly successfully running a business, then why would they have the time to spend on writing books on the topic? Would their time not be better spent growing the wildly successful businesses they are writing about? Is it ego? Am I just being to cynical? It really gives a slimy feel to what could truly be a solid way of building long term financial wealth.

Now, I hope I haven't offended anyone with my question. I'm just looking for feedback from an outsider's perspective. I'm hoping no one says, "It's such a tough market to make any money in that causes people to instead sell books and systems".

Any insight?

Jon Holdman · Answer

I will agree that there are people that are both educators and who do the business they teach about.  Many years ago when getting my masters by going to school part time while working, I had professors who were also co-workers.  I've been recruited by a former co-working to teach university courses here in this area.  So, I fully recognize there is overlap.

I'll also say that there is nothing fundamentally wrong with being an educator nor with making money from providing education.  But I will firmly stand behind the statement that providing education and doing RE investing are two different businesses.

And I will also state that I do think there are many "educators" in this business who provide very little value for the amount of money they extract from their "students".  These folks make big claims about the money to be made, spend their time pitching a dream few students will ever achieve and are purely focused on maximizing the amount of cash they extract from each student.

I roll my eyes at anyone who says "I'm doing this to give back" and at the same time sells educational material.  Look, I have no issue with someone writing a course or book and selling it.  Just don't tell me you're doing that to "give back".  You're selling it to make money.  If you truly are doing something altruistic, give it away.  Lots and lots of folks do that.  A lot of educational material is now available for free.  Much of that is very high quality, university level material.  The folks creating that material and giving it away for free on the one's giving back.

Nasar Elarabi · Answer

I had the same questions when I first started investing.  Then after I started doing deals I realized some folks want to create multiple streams of income. I actually met folks who sell coaching & mentoring, programs, ebook and bus tours. That are GREAT people and really invest in RE. Not all folks who sell informational products are douche bags. Now the ? a lot of newbies have well if they are successful they should just want to help folks for free. I had this same mindset until I started doing deals.  And realized how lazy people who say they want to do RE are. They really believe those late nite pitches that they can become rich in 3 months. I use to try to help countless people but unfortunately They dont want it enough. And when someone does not pay a upfront fee they usually are committed to nothing. You realize that you can no longer waste your time with folks who talk and have no action. My 1st mentor NO UP FRONT FEE. I had to work on weekends after the work week took me 8 months to find a deal. I knew what I signed up for was not easy. Most people are looking for easy. I do not sell coaching, programs or ebooks yet. But some folks want multiple streams of income And some make more in that business then Re. But you can still learn a great deal from them.

Dawn Anastasi · Answer

Thanks so much!

Bryan L. · Answer

@Rick Reed  - By the way, my career prior to Real Estate was also in engineering.  And along those lines of multiple streams of income, I still do a bit of engineering part-time.

Rick Reed · Answer

I hope I didn't come across as judgmental. My question was really to see what others think about what I was seeing as an inexperienced outsider.

Great feedback though. My eyes have been opened a bit, so thank you all!

Rick Reed · Answer

@Jon Holdman Understood and well put.

@Dawn Anastasi  I've often said, 'In IT there are two types of folks, those that talk, and those that do. VERY FEW can do both.' IT is filled with folks that love to talk about what they can or have done, but actually produce little to nothing of any real value. I'm seeing many similarities. BTW - I love your website. It's raw, and to the point. Great for an introverted type-A engineer like myself. Thanks for sharing your experiences!

@Nasar Elarabi  I hear what you're saying. Again, similar to IT, some folks are only in it for "the money", very little actual experience and are always looking for the quick answer so they don't have to put forth the effort. Sadly, just proving an answer to such folks usually ends up creating a ripple effect of trouble later because they simply didn't understand what they were doing. Meaning, quick answers typically lead to getting in over one's head.

@Bryan L.  Point taken, and I admire those who truly teach because they are good at it and enjoy it. There's real value there! I guess my cynicism is targeted more towards the folks that provide little to no real value, and charge a LOT of money for it.

Thanks for all the feedback. It's all great food for thought!

Ned Carey · Answer

Many people likee Jon Holdman have been doing that for years here on BP

Bill Gulley · Answer

If you really just love the people Ben, why not charge what I charge......nothing, LOL.

It's a business and they do it for money, some may get personal gratification from helping someone, but let's not be naïve, it makes money.

Follow the money, you'll find the motivation.

All money isn't bad, the lack of it is the root of all evil as I believe Will Rogers said. The lack of it may be the evil behind putting out RE bad guru stuff.

My other thoughts are already well documented here, no need to repeat myself. :)

Ben Leybovich · Answer

@Jon Holdman

I will allow myself to respectfully disagree.  I write books and sell a course because I like people, but my business is very much REI.  Perhaps what you state is applicable to most, but not all :)

Bryan L. · Answer

@Nasar Elarabi  made a very good point about the multiple streams of income.  I think most investors who were in this prior to the crash realize the value of multiple streams of income.

REI or Author?

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