I have two offices. One is located in a modest single-level building in downtown Gilbert, Arizona. The other has four wheels and smells like breathe mints (my daughter loves those things). Whether I’m at my desk or behind the wheel of my car you can bet I’m listening to local sports radio.
This week, in between talk of the future of the Arizona Cardinals and the lousy Phoenix Suns basketball team, I was clobbered over and over by an obnoxious commercial.
Yet another real estate investing guru is in town promoting their foreclosure boot camp. The ad is dripping with promises of investment secrets revealed, no money or credit required, flipping deals in 30 days or less, and huge profits with little effort required. Oh, and did I leave out that seating for this can’t miss event is limited? Yuck.
I’ve been in the business for 10 years and have experienced massive success, and colossal failure. Do you want to know what the secret to real estate investing success is? THERE ARE NO SECRETS. No magic dust. No path of least resistance. No short cuts. However, there are a lot of painful truths, like:
- It takes money to buy real estate (maybe not your money, but somebody involved in the deal will need the cash to close and for you to get paid).
- It takes time to buy real estate (good deals aren’t growing on trees).
- Most contractors over promise and under deliver.
- You will not get rich quick.
- You will have to work hard (nights and weekends included).
- Someone will screw you over.
- Someone may sue you, or threaten to sue you.
- At some point you will lose money.
- The real estate investment guru is selling his program because he’s broke and needs to raise money to start doing his own deals.
- Buyers are liars.
- Sellers are worse.
Real estate investing is a business. Most businesses take at 3-5 years to become successful. So it’s absurd to think that a one-day real estate investment training course will result in unthinkable profits. If it were that easy everyone would be a real estate investor.
Like my business partner says, this isn’t McDonald’s. There is no secret sauce.