Yancey Real Estate Workshop: Is $40,000 for Mentorship and Training worth it

94 Replies

It is a shame a new comer will fall for the Gurus BS. 

Joe Gore

Originally posted by @David Krulac:

This week I went to a local REIA meeting and somebody was talking about how one new investor spent $80,000 on guru mentorship and coaching. the end result was that they spent ALL of their money, couldn't buy any real estate, and had no money left to buy any other worthwhile materials.

And that "guru" is a very famous real estate guru, that many even here are touting.

I don't understand these gurus customers or why the gurus don't put together action plans that actually invests dollars. I mean you put together a workshop to learn about investing but no one actually invests. WtF seems like a waste of everyones time. Too much talking not enough doing. 

How about this class for example. 2 hours on note investing then spend 6 hours looking for actual notes to invest in. At the end of this day you could be actually a note investor and or have a workable understanding to invest in notes immediately with confidence.

thanks,

Matt

Originally posted by @Matt Rosas:

How about this class for example. 2 hours on note investing then spend 6 hours looking for actual notes to invest in. At the end of this day you could be actually a note investor and or have a workable understanding to invest in notes immediately with confidence.


Here's the problem, Matt...

Even the best teachers/coaches/mentors won't be able to help all their students becoming successful investors.  Many people out there don't have the resources or ability to invest successfully, regardless of how good the training might be or how much time they spend with their coach.

So, if you have a class of 100 people, and you really, really, really try to be hands on and try to personally help each student be successful, the truth is, maybe only 10 or 20 or 30 of them will have the ability to achieve and maintain any level of success.

Unfortunately, most coaches aren't happy having to refund the money to the other 70, 80 or 90 students.  Also, most coaches don't want to have to admit that only a fraction of their students are actually successful (even though it's not the coach's fault the rest are not).

By not taking too much responsibility for the student's success (i.e., not actually walking them through deals), the "gurus" can claim that they provided enough information for everyone to be successful, and anyone not successful just didn't work hard enough, etc.  They don't have to admit that there was a large portion of the group who shouldn't have taken the training in the first place, as they had little chance of success to begin with.  And they don't have to take responsibility for the failure of the students (or more importantly, refund their money).

Now, that said, this is a huge opportunity for the smaller coaches who do exactly what you suggest -- they are very selective about who they take on as students, they are very hands-on, they walk their students through the process (not just the classroom, but out in the field), and they are there from the beginning to the end of at least one project.  Most importantly, they can recognize when a student is going nowhere, and cut things off before the student gets too far into the process.

These are the good mentors/coaches/teachers, and the one who are worth what they charge.  Unfortunately, this model is tough to scale, and that's why the "gurus" won't go this route...

$40,000 can buy a half-decent MBA from many public universities.

Originally posted by @Sydney Chase:

NO NO NO a complete waste,

I agree with @michaellemieus above.

I and many others on here will be glade to mentor you.

Sydney,

I was almost stuck in one of these guru classes myself. What kind of direction would you advise a new investor to head in? Especially with very limited funding.

I was thinking about starting to do small rehab and flip projects but everyone on here tells me something different. Just looking for some kind of realistic direction.

Thanks!

@Matthew Rembish  

Start with education and networking. You will always get different answers on what a newbie should do because there are so many strategies and niches to try. Take the time to get your understanding of the basics down (land lording, flipping, wholesaling etc) then decide which path best fits you and your lifestyle. Once you can get past the noise in your head and are no longer distracted by every new shiny investing widget, you'll be able to focus on the in depth details of investing that will allow a person with limited funds to take action.

For instance if flips are what you want to do, that's great. Your question now becomes how does one with limited funds get into flips? Well, do you understand all that goes into a flip? Do you know how to find a good flip property? Do you know the numbers in the market you are targeting? Do you know how to get that property under control once you find it? Do you know how to estimate rehab costs? Have you networked with REIA members who might be able to partner with you and make that deal work? Do you have names and numbers of equity based hard money lenders who don't care how much money you have, just care how much equity is in the deal?

I'm not saying you have to be a master of these topics before you get started. But I am saying that the more time you spend researching and talking about them the more you will see that you have options and you can be successful - even with limited funds. 

By the way - sounds like you need to get Brandon Turner and J Scott's books. 

Terrence,

Thank you so much for the reply. I definitely understand and appreciate the input. I have attended one REIA meeting and it was great, looking forward to joining it soon. I'm in the process of rehabbing a homepath property of my own right now so I think I might actually stick to that for a while but I ultimately want to get into renting college off-campus housing (I'm really familiar with the New Brunswick Rutgers area because I went there for my degree). And on the topic of the books, it's funny that you mention that because I just bought all three earlier today. Your advice makes a lot of sense, I'll make sure to do my homework first.

Thanks!!!

Originally posted by @Terrence Smith:

@Matthew Rembish 

Start with education and networking. You will always get different answers on what a newbie should do because there are so many strategies and niches to try. Take the time to get your understanding of the basics down (land lording, flipping, wholesaling etc) then decide which path best fits you and your lifestyle. Once you can get past the noise in your head and are no longer distracted by every new shiny investing widget, you'll be able to focus on the in depth details of investing that will allow a person with limited funds to take action.

For instance if flips are what you want to do, that's great. Your question now becomes how does one with limited funds get into flips? Well, do you understand all that goes into a flip? Do you know how to find a good flip property? Do you know the numbers in the market you are targeting?  Do you know how to get that property under control once you find it? Do you know how to estimate rehab costs? Have you networked with REIA members who might be able to partner with you and make that deal work? Do you have names and numbers of equity based hard money lenders who don't care how much money you have, just care how much equity is in the deal? 

I'm not saying you have to be a master of these topics before you get started. But I am saying that the more time you spend researching and talking about them the more you will see that you have options and you can be successful - even with limited funds. 

By the way - sounds like you need to get Brandon Turner and J Scott's books. 

 

Terrence,

Thank you so much for the reply. I definitely understand and appreciate the input. I have attended one REIA meeting and it was great, looking forward to joining it soon. I'm in the process of rehabbing a homepath property of my own right now so I think I might actually stick to that for a while but I ultimately want to get into renting college off-campus housing (I'm really familiar with the New Brunswick Rutgers area because I went there for my degree). And on the topic of the books, it's funny that you mention that because I just bought all three earlier today. Your advice makes a lot of sense, I'll make sure to do my homework first.

Thanks!!!

Absolutely NOT!!!!!!! My wife and I invested in his program and we should have done something different. We could have used the money to purchase properties. The only good thing is that we learned what not to do again!  

I got scammed by people claiming to represent cheif denny. so I say No... I went to Yanceys meeting recently and was intrigue that they say they will finance 100% of your deals for 1% at closing. I dint want to pay any money to anyone again so I passed I had a feeling I would find out that they only help the people who have that 40K for "private" tutoring. Figure it out by watching free podcasts and ask questions. I have called over 200 Hard money lenders and bugged them on how to get loans and now I am in the middle of flipping my first house for a 30k potential profit.  It took 3 months and a lot of trial and error but it was worth it. I feel awesome and confident in my deals now.  

Originally posted by @Bill Gulley :
Originally posted by @Patrick D.:

Trust me, all you need to do is learn enough to ask the right question, there are enough people with real knowledge to cover anything you can dream up! Your other concern is figuring out who they really are, shouldn't be hard in time. :)

 Bill Gulley - Bill, this is excellent advice. I'm applying it now! Thanks agian.

Originally posted by @Patrick Jacques :

Please tell us you didn't seriously contemplate 40k to some guru class. Give me 40k to invest in some properties and I'll make you a ton of money.

Anyone that has 40k to spend on a guru should look into being a private or hard money lender

@Patrick Jacques - Hi Patrick. I just completed my first flip. While profitable, I tied up a lot more than $40K for more than 6 months. I'm interested in any concrete steps/recommendations/offerings you have that would be a profitable use of my funds. Thanks.

Originally posted by @Terrence Smith:

@Matthew Rembish  

Start with education and networking. You will always get different answers on what a newbie should do because there are so many strategies and niches to try. Take the time to get your understanding of the basics down (land lording, flipping, wholesaling etc) then decide which path best fits you and your lifestyle. Once you can get past the noise in your head and are no longer distracted by every new shiny investing widget, you'll be able to focus on the in depth details of investing that will allow a person with limited funds to take action.

For instance if flips are what you want to do, that's great. Your question now becomes how does one with limited funds get into flips? Well, do you understand all that goes into a flip? Do you know how to find a good flip property? Do you know the numbers in the market you are targeting? Do you know how to get that property under control once you find it? Do you know how to estimate rehab costs? Have you networked with REIA members who might be able to partner with you and make that deal work? Do you have names and numbers of equity based hard money lenders who don't care how much money you have, just care how much equity is in the deal?

I'm not saying you have to be a master of these topics before you get started. But I am saying that the more time you spend researching and talking about them the more you will see that you have options and you can be successful - even with limited funds. 

By the way - sounds like you need to get Brandon Turner and J Scott's books. 

 This is a fantastic response. VERY helpful to a newer investor.  Thanks, 

@Terrence Smith

Your very best approach will be to learn the "Principles of Real Estate" the fundamentals that all transactions and strategies are based on. Then look to strategies, flipping or leasing or whatever, then you'll understand the basics of all strategies. Then you can become a specialist knowing how to structure or engineer the best transaction to meet the goals of all concerned.

If you have limited funds, not much to work with, every dollar must be used at its optimal advantage, that takes knowledge. :) 

My goodness, what a sum of money! We purchases houses for that sum! I've learned about distressed property investing for free through local experts. I would never spend that amount for education. 

I agree that $40K is enough to do a deal, and would be wasted on training, or hiring a mentor. You'll find enough information on BP and by reading the books written by folks like Brandon, J. Scott, and the many others mentioned on the BP podcasts, which are also an enormous source of information. I would recommend taking advantage of the BP community first, try to get a deal or two under your belt. If after that you still feel that you would benefit by fee based training and mentoring, go for it but be careful that you're getting your money's worth. 

Welcome aboard and best of luck in building your business,

Wayne

The first thing you should know is this has nothing to do with Scott Yancy.  This is a company who does the same gimmick, but just sticks the name of the day on the roster and pays them a cut.  When I went to the free deal in my town, it was called Armondo Montelongo.  I said to them, this doesn't seem like the kind of thing he does on the show.  They took me off their mailing list.  But yeah, it was a good presentation, lots of hype and false hope, (easy money in real estate, bla bla).  I've actually flipped a few, none of it was easy, and I don't drive a Bentely.  They showed pictures of fancy cars, and generally sold the hype and lifestyle.  

It's kind of like this.  We all hear about the guy who goes to a garage sale and picks up a five dollar painting that is worth millions.  So I could start a course on how to shop at garage sales and charge big bucks.  They say, this is chump change, you will make it back on your first deal.  But they know most people out there will never even do a first deal.  Then if you do, they were trying to get you on a buyers list to unload bad wholesale deals.  If you don't fall for that, then they push ever more expensive courses.  It's chasing the rainbow.  You will never meet the top guy, they will never tell you how they do it, you are just a target.  And by the way, half those people who rush to buy the course and just plants and are not actually buying anything.  They are there to make it seem like other people want it.  The day I was there, half the room jumped up and ran to get in line.  please.  

All I can say is do your home work on the people that you relate with. I am a mentor but there is no way that spending that kind on money is going to get you any better results than spending 5-10k which is fair for the time some one takes away from there life and business deals to help someone for a long period of time. Most info you can pick up here but there are people out there that want and need someone to hold their hand until they feel they can do it on their own. I understand because I have been there and I paid for my education but that was me.. Everyone is different and you just have to find your comfort zone. If I can help further just ask. Keith

Hello Jason, Believe me when I tell you not to do it! Because I did!!! Not only will they charge you 40k but once you go to their Buying Summit they will try and sell you another 20k in add-ons. I do recommend getting a mentor to help you through this.   

Please do not spend the money. Everyone needs some information and training, but the most important thing is to just get going. 

Ask yourself two simple questions before spending a DIME on a Yancey or Mike Warren-like guru (who now markets under a different last name, btw.) event, seminar, home study system etc.:

1.  If their system is so effective and profitable, why are they wasting time better spent investing in their "secret" strategies by flying around the country giving seminars and "coaching"? And why would they CREATE competition for themselves buy sharing their "systems"?  

Answer:  They make a KILLING doing seminars, selling their courses and coaching.  And while they're at it, why not bring in another huckster to pitch his "system" at the seminar and split the profits?  The world is full of gullible people who want real estate "ruby slippers" and never want to do any hard work, which is what real estate investing is.  But its the highest return hard work you can do.

2.  If they mention the words "secret system", "only a few seats left" , "last chance", "my good friend "X" agreed to host this webinar" and they bombard you with emails from other "gurus" they are frauds.  Real estate is blocking and tackling.  Plain and simple.  There are no "secret marketing campaigns they don't want you to know about" etc.  "Regular price $1597, but today only $97.00! (we'll charge your credit card an additional $97.00 a month until you capitulate)

The majority of these guys are charlatans and hucksters and several have been prosecuted or changed the names of their companies several times to avoid scrutiny (you know who you are).  Check the web before opening your check book.  These guys are VERY good at what they do.

Emerse yourself in BiggerPockets and the volumes of FREE information, mentoring and advice found here.  Network, read, and most importantly, GET OVER YOUR FEAR.

Sorry, off my soap box now...

Don't mean to be  cruel or mean spirited with this BUT

  1. if you have to ask, then is real estate you?

Did I get your attention? I hope so. First, for $40k you ought to get something in return other than just a vague promise. As noted above you can get a 4yr degree for that kind of money, and in some some areas even make a conventional purchase of an SFR( single family residence).

Think of what's here on BP - - tons of FREE information by persons who have been there/done that.

Using Google, you can always pick up the acronyms and terms to understand what's being discussed

Creating a plan as to what you want/expect will help you sift thru the plethora of topics, eg if your goal is to buy&hold property (ie become a landlord), then topics  like wholesaling, notes, and flipping may be interesting, but  not progress  you onto your goal.

Lastly, like a school tutor who comes to your home to assist/teach a subject, a real mentor:

  • should be local to you, not just 'online,  available over the phone'
  • come to your home
  • guide you with the decision process, teaching not just how, but WHY
  • should still be in the RE business and
  • enjoy teaching  others, at a minimal rate; not in the teaching business at a maximal rate.
  • understand Fair Housing Regulations
  • and teach you / help you find all the documents necessary to offer, buy, create a lease, estimate costs.

Always a "guru" around to help spend your money. IMHO, take the money and put down on a rental

Your very best approach will be to learn the "Principles of Real Estate" the fundamentals that all transactions and strategies are based on. Then look to strategies, flipping or leasing or whatever, then you'll understand the basics of all strategies. Then you can become a specialist knowing how to structure or engineer the best transaction to meet the goals of all concerned.

If you have limited funds, not much to work with, every dollar must be used at its optimal advantage, that takes knowledge. :)

  Hello @Bill Gulley  thanks for all the time & advice you give to the BP community !!!  You  mentioned above to learn the "Principles of Real Estate" 1st   What would be the best way to learn the "Principles" ?  Thanks Again for all you do for BP !!!         Mark G

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