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Baltimore, Maryland 21202

Baltimore, Maryland 21202

test, Alaska

Financial Forecast:

Price: $ 35.00

Estimated Repairs: $ 2,000.00

Resale Price: $ 40,000.00

Net Profit: $ 3,000.00

Home» GURU Warning

 

Being in the real estate investment and marketing business for as long as we have, we have seen a lot over the last 20+ years. The business has really changed. You have to be very careful nowadays with where you give your info and what you spend your money on. The good news…real estate is not a fad…it will always be here and there will always be a way to make money at it. There are going to be a lot of new millionaires created from the recent drop in house prices. However, it is not a Get Rich Quick scheme, unless of course you are selling books and CDs to the masses!
 
Regarding the self proclaimed real estate guru industry, We have firsthand knowledge of what goes on behind the scenes and it is not pretty. You fill out a form on the internet asking for more info on this ‘brand new strategy’ that nobody else knows about. Next thing you know you are bombarded by a hundred different organizations who are trying to sell you on their program. You know why? They make money selling your name! They swap databases and then resell you something else. It is a huge business. They make their money pitching new investors who don’t know any better, not from buying and selling real estate. Again to the college analogy. Did you learn how to do your current job from a book in college? LISTEN UP. YOU ARE NOT GOING TO LEARN HOW TO BECOME A REAL ESTATE INVESTOR BY BUYING A LATE NIGHT INFORMERCIAL CD SET FOR $19.99!
 
Mentor Programs & Seminars
 
Let’s be fair, there are some good ones out there (harmless plug of course). You can definitely learn a thing or two from somebody who has been down that road already. Business, self assessment, self empowerment, and real estate ‘how to’ books are the cheapest education and motivation you can get. And, a very good start.
 
Be very suspicious of the late night infomercials and mentor programs that charge you for information but never help you actually buy or sell a property. At some point though, you are going to have to bite the bullet and buy a house on your own, or pay somebody to help you navigate thru the process so you don’t sink the ship on your first deal.
 
 
Here is Our Recommendations:
 
If you have a very big personal bankroll and plan to Go it Alone, learn on a cheaper house so if you make a mistake it won’t kill you financially. It is very important to understand that your first 2 or 3 deals will very likely not make you any money. Consider it college.
 
If you are going the route of Hiring a Mentor use some common sense again. Is the cost ridiculous considering the amount of time they will spend with you? Do their techniques sound too good to be true? How do they make their money? Do you have somebody’s cell phone number to make sure you have direct access when you need it or are they charging $10,000 for a 3 day power session and giving you their call center’s recorded message line for follow up advice? You get the point. If you are paying $500-$1000, expect to learn what the know and that’s it. If you are paying $10,000 you better be a guest at their summer cottage or have somebody’s direct cell phone number at all times. $10,000 buys you 2 months of unlimited access in our book anyway. Make sure your getting it.
 
Better yet, do your first few deals by Finding a Partner. You’ll make 25-33% of the profit and typically won’t have to fund the deal, only some of the marketing. You will likely have to pay a reasonable fee ($2500 or less) for training and then you will be out looking to find them a deal. Remember, there are no free rides. Unless you are related to them, nobody, we repeat, NOBODY will teach you what they know for free if it is actually working in the field. The right partner will show you exactly what and how to find deals, fund it, manage the process, and pay you a nice fee for your time. It is no different than a great salesperson. The better your performance the bigger your paycheck.