We all want the shortcuts to being rich.
Beginning real estate investors are no different. Problem is, many unscrupulous “gurus” know this and peddle their wares to unsuspecting investors.
I remember looking over a course a speaker sent our team as a promotional item. It was a pretty think book of information, but most of it was so basic it was useless. The speaker was obviously using the method of “charging by the pound” and stuffing his book with drivel. You wouldn’t believe how much he was asking for it!
So, how can a new investor not be taken and spend thousands of dollars on worthless materials? Let’s look at some steps.
1. Don’t Buy on Impulse
Ever hear the saying, only fools rush in? A lot of the gurus tell you to buy their stuff to get educated so you don’t rush in – but they try to get you hyped up at an event so you rush in and buy their stuff. Most common tactic is the, “tonight only price”. Buy it tonight and get it at 20% off, no – 40% off, no – because I like this group I’ll do 50% off my normal price!
Take your time and don’t buy it. Many of these gurus now have a 30 day money back guarantee that you may also be able to use.
Just be sure not to get all emotionally excited and stop thinking clearly.
In short BE CAREFUL!
2. Be skeptical
People who can’t do, get stuck teaching.
This is not 100% accurate, but in Real Estate Investing the good money is in actually investing. Ever wonder why so many “gurus” have the time to travel the country speaking instead of investing? They say it’s because they love to teach and share what they’ve learned with others. It may be because they failed as investors. Not always true, but something to think about.
3. Research Before You Buy
If you’re going to an real estate investor meeting, you can usually find out ahead of time who’ll be speaking. Google them! Find out who they are and if they have any skeletons. Then when you go to the event and are tempted to buy their product, at least you’ll have a better idea of what you’re buying.
4. Join The Guru’s Community
Most well respected teachers of Real Estate Investing have blogs, twitter accounts, Facebook accounts, forums or some other semblance of a community. Join them and check them out. Here are some criteria for a good guru based community
* The guru participates in the conversation frequently (once a week minimum)
* They don’t just try to sell products
* There is an active community of other investors who follow the teacher and can help you
* The teacher will respond to emails or questions in a timely manner (1 week)
If there are active, successful investors participating in the community, then you can be 100% sure that this teacher is the real deal. If all the followers are beginners, just asking questions and only the teacher is there to help out, there is something wrong and I would move on.
5. Can you find the Information for Free?
Almost everything in real estate isn’t a secret. It can be found online or at a local investment group. So why buy it? Well, music is for free on the radio, but we still buy songs.
We only buy songs though that we really like. The same should apply to guru products. Do some online research and determine if the material really motivates you like good music. If it does, than buy it. Otherwise, look it up online.
In the end, the course you buy will not make you a successful real estate investor. The real secret is taking action and working hard. If you buy a course, it will just be a waste of money if all you do is read it or worse – let it sit on a shelf.