OPERATIONS
EDUCATION
16Ways to Find a Good Real Estate Teacher
BIG PROMISES, SHOWY DISPLAYS OF WEALTH, AND “TOO GOOD TO BE TRUE” CLAIMS ARE RED FLAGS.
by W. J. Mencarow
ow do you know which real estate investment teach- ers to trust? The litmus test is this: They must have earned the right to teach measured by their years of success in real estate—not in selling seminars. Do an internet search for the teacher’s name and company name(s) with words such as “fraud,” “rip-off,” “scam,” etc. If what you find makes you even slightly uncomfortable, cross that person or company off your list. Here are 16 red flags to pay attention to as you do your due diligence. NO. 1 Mass-marketing Website ads, mass emailings, and/or infomercials are a sure sign this person or company is in the seminar busi- ness, not the real estate investment business. Reputable teachers depend mostly upon referrals from satisfied students. Putting a notice about their next class on their website is enough to fill it. NO. 2 Using thewords “boot camp,” “coaching,” mentoring.” Calling a seminar in a hotel a “boot camp” is an insult to veterans. The “mentors” and “coaches” are salespeo- ple whose job it is to convince you to spend more money. NO. 3 Implying that youwill make a lot of money quickly. The old saying, “If it sounds too good to be true, it is” could have been written about many real estate semi- nars. If promotions for the seminar tell you how much money you can make quickly, run away even more quickly. Real estate is a get-rich-slowly investment. Some people occasionally make a profit flipping, but for every profit - able person, many others have lost their shirt, pants, and more. Flipping is gambling, not investing. H
NO. 4 Claiming that no one else teaches what they do. Does the “teacher” claim to be famous, successful, expert, etc.? Do they promise to teach you “secrets”? No legitimate teacher says such things. Their reputation pre- cedes them. NO. 5 Displayingwealth. Displaying wealth. Scammers often use mansions, luxury cars, yachts, etc. in their marketing to impress you with their wealth. These are leased or borrowed props. NO. 6 Offering a regular schedule of seminars. A full-time real estate investor has little time to teach, because they make a lot more money investing than they do giving seminars. If they teach more than a few times a year, that’s a red flag. NO. 7 Offering free seminars. These are the timeshare sales pitches without the com- plimentary hotel room. The purpose is to beat on you to pay for the “real” seminar. You might learn a few things at the one you’re attending, but the upselling never stops. Legitimate teachers charge a few hundred dollars per day for seminars, and they never upsell. NO. 8 Providing special discounts. Honest teachers never use high-pressure tactics such as “normally $XXXX, but today only $XXXX.” NO. 9 Making claims of success. If the teacher claims they have years of experience in real estate, ask for the addresses of their properties and the name(s) of the entities on the titles. Then look up the properties to confirm the claims. If they refuse to tell you, stay away. These details are a matter of public record, so privacy is not a legitimate excuse.
66 | think realty magazine :: march – april 2022
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