You’ve seen their info-commercials. You may have even attended some of their “free classes”. It all sounds so good, and they make it so convincing.
How can you really know those “real estate millionaire [tag-self]gurus[/tag-self]” are telling the truth?
Here are 4 specific tips for avoiding their scams.
Guru Scam Tip #1: General Advice Instead of Hard-hitting Real Answers
You have questions and you need answers. You’re not there for generalities. You don’t want the philosophical. You don’t want to hear about how they spend the millions they’ve made. You want to know how you can make money in real estate.
Paying hundreds, probably thousands of dollars, for generalities isn’t going to cut it. Maybe for them, but not for you. You want value for your hard-earned money and you want it now.
So if they don’t get specific as in “Do Steps 1-10 to get results ABC and D,” you might as well have flushed your money down the garbage disposal.
Guru Scam Tip #2: “Free Classes and Tickets”
Free= Sales presentation.
In my opinion, this is one of the biggest problems. Innocent investors are often roped in with the promise of insider information. And these are sophisticated, well educated people.
They know better, but the presenter tells them this time it will be different. A small $1500 investment now will bring in hundreds of thousands later.
I went to one such presentation about fifteen years ago. “The millionaire real estate investor”, a poor former immigrant who started out with nothing except the clothes he was wearing, was not there. His wife was giving birth, or so we were told.
Two bankers in the audience started questioning the presenter, a hired actor. The presenter treated them as hecklers and almost had them thrown out.
Only a few months later, the [tag-tec]Florida Attorney General[/tag-tec] went after the “millionaire immigrant real estate investor” with [tag-ice]fraud[/tag-ice] accusations. He’s now out of business.
My question was what took them so long?
Guru Scam Tip #3: Sales Deadlines
“You have to run to the back of the room now or the deal’s off,” they will shout.
How many times have we seen that technique?
Don’t fall for it. The only reason why they do that is they don’t want to give you extra time to think.
Your thinking could potentially uncover the weaknesses of the presentation. Every moment that passes before you get your credit card out, is a moment in your favor. Don’t let anyone ever rush you in this race against time.
Guru Scam Tip #4: Due Diligence
Real estate investors and landlords are well known for the term due diligence.
It means we really check things out. We have to. Our money is on the line.
So why is it we don’t check out the company or the person making the sales presentation?
It’s amazing what we can discover with only a few mouse clicks. For instance, does the company have any ongoing lawsuits and investigations by the Securities and Exchange Commission? If so, run.
In your eagerness to learn don’t get taken in by the wrong teachers. You can learn a lot online and then invest in books and courses from proven investors who really know their stuff.
Next time, ask the right questions before you spend your money.