No doubt you've seen expensive coaching and training programs advertise on
late-night television or internet banner ads. Real estate guru is claiming to be
able to teach you become filthy rich to real estate investing. Is that real?
Can you really learn from these guys?
Well my name is Brandon Turner, the author of the book on rental property
investing. Today, I want to talk about the Guru trap. So, let's get to it!
Alright, so the first thing I want to explain is how the industry works.
It just kind of coaching and training. Typically involves several layers like
an onion as you peel them away the education gets more and more spendy. So
let me share the most common layers you'll be able to recognize them in the
future.
First of all, the free class. You might have come across an advertising on the
radio or on television or in your local newspaper or your favorite websites
something like free real estate seminar at a local hotel or conference center.
The marketing teams behind these gurus spend a ton of money to drive traffic to these
free seminars hoping to pack the room with "wanna be" real estate investors then
they get him in there and step number two comes the hype. In the seminars the
real estate gurus create massive hype around what real estate can do showing
photos of their properties citing impressive numbers and how much profit
they make and telling how easy it really is.
They tell stories about past students having massed fortunes from investing and
he pushes all the right pane points about how hard being broke is and you're not
taking care of your family good enough and you're missing out on luxuries in
life then he pitches hard for you to attend the weekend boot camp usually for a small
but not that significant chunk of money maybe two to three four five hundred
dollars and then after the pitch he'll encourage the attendees to
run to the back of the room and sign up quickly and many people do. Now, we get
the step number three at the boot camp. At the boot camp, the Guru goes into more
details about what real estate can do shares more numbers related to what is
done and we'll probably spend this amount of time showing you a high-level
overview of the kind of investing that he's counting as the best way to invest
in real estate.
They may even talk about numerous different strategies people used to
build wealth in real estate. Some gurus are even known to spend a significant
amount of time teaching those present how to negotiate and as a test, they
encourage their attendees to call their credit card companies and get their
credit card limits raised significantly. However, the Guru's only goal is to get
you to sign up to the next level training which is typically $20,000- 50,000.
More of an in-depth coaching program with some live
events may be built in. Now, I have no doubt that many though not all of these
real estate gurus have a good information to share.
I totally believe that. However, the problem lies not so much in "what" as the
"how". These people are expert marketers and manipulators and they know how to
touch all the right pane points and cause your emotions to lead you to make an
expensive purchase. Their pitch logically makes a lot of sense because with just a
twenty-five-thousand-dollar investment in your future
you'll be making much more than that from real estate you'll learn everything.
So what's 25,000 50,000 100,000 when you'll be making millions of dollars
investing in real estate
So the problem in my opinion is two-fold. First, I believe that the vast majority
of those who attend these events will never actually use the information
presented and second, the information people learn from those programs could
easily be learned elsewhere for free
such as on biggerpockets.com. So does coaching work?
Sure, for some people. I totally believe that that said I believe anybody who can
succeed because they took some expensive guru training program could have also
succeeded without that program. In fact, it's not the program that
makes you successful.
It's you that make yourself successful. Real estate programs offer education
motivation and accountability which can all be obtained for much lower cost than
what the salesman is charging. Rather than helping most people get ahead, these
programs simply plunge many Americans into further debt and despair when they
end up spending their life savings and maxing their credit cards on coaching
for an activity which they ultimately are not gonna be able to succeed at.
That said, do programs like these have a place?
Sure, I believe so. Successful coaching has been demonstrated in almost every
industry there is as far as getting people motivated moving towards their
goals. I have a lot of coaches for different areas of my life. However,
people who get the larger benefit from coaching are the ones who have already
found some success already in what they're doing. They've proven themselves
to be someone who take action, is a self-starter, is willing to work hard and
most importantly they have money to spend on those coaches and it's not
coming from a credit card. So, to summarize should you pay for one of
these courses or expensive coaching and training programs may have a place but
they're probably in my opinion not appropriate for you investors.
Real estate gurus have a terrible reputation for taking gullible
low-income people pitching them hard to pay for overpriced training that they're
not ready for that will only put them in a worse situation in the end these gurus
provide no more than an organized version of what in interested
individuals can already get on their loan education accountability and
motivation. Now, if you want to save your money and get all these benefits get
active in biggerpockets and use our information for your next big investment.
It's not gonna cost you anything.
Now, before we get out of here i want to ask you three small favors. Number one
call your mom she hasn't heard from you in forever
Number two, could you click the thumbs up sign on this video and let the world
know that there's a little bit of value here in this video number three
do me a favor and share this video on your facebook wall and save one of your
family or friends from falling victim to the hype behind a guru trap and with
that let's get out of here for bigger pockets . com
my name is Brandon signing off