FUNDAMENTALS
EDUCATION
The Right Real Estate Investment Instructors
RED FLAGS OF NON-TRUSTWORTHY TEACHERS
by W.J. Mencarow
insurance bills to pay, all with no income from the properties. It also means they are $2 million in debt.
“Good judgment is the result of experience. Experience is the result of bad judgment.” —MARK TWAIN
Wealth displayed. Luxury cars, boats, homes, etc. are almost always props.
ow do you know which real estate investment teachers
HEREARE SOME RED FLAGS: Promises or statements about making a lot of money quickly with little effort using their techniques. If that is true, why aren’t they doing that full-time instead of selling seminars? Making serious money in real estate takes time, education, and work. Infomercials. No legitimate teach - er would be caught dead doing an infomercial. Testimonials that sound too good to be true because they probably are. Some “gurus” hire actors for this. If they are true, they tell only part of the story. “I bought 20 houses with no money down and they are worth $2 million!” sounds great to a beginner until you realize it means they have 20 houses with negative cashflow (they have to dip into their savings to pay the mortgage every month), 20 roofs, 20 air condition - ers, 20 furnaces, etc. to maintain and replace, and 20 property tax and
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Free seminars are the timeshare sales pitch without the compli - mentary hotel room. They exist for only one purpose: To beat on you until you pay for the “real” seminar. You might learn a few things, but the upselling never stops. You are told you need to “graduate” to the next level, which is the more expensive seminar, and you need “mentoring” (see below). You can guess what hap - pens at the one after that, and the one after that. If you pay for a sem- inar and during it you are told you need to buy another seminar, men- toring, graduate to the “next level,” etc., you are being fleeced. “Coaching,” “mentoring,” “boot camp,” and similar words can be red flags. A “coach” or “mentor” is often a minimum wage employee reading from a script and working out of a cubicle. I know one seminar company that charges $50,000 for this!
to trust? After several decades of “Mark Twain” experience, I have learned some things to look for that could save you a lot of money and heartaches. The litmus test is this: They must have earned the right to teach. That right is earned by years of success in real estate, not in selling seminars. Don’t bother to ask them how long they have been investing. If they are con artists, they will lie (that’s why they are called con artists). Instead, ask them for the addresses of the properties they consider their success stories and the entities they used, then look them up. That information is not private, it is public record. If they refuse to tell you, move on. Do an internet search for their name and their company name(s) with words such as “fraud,” “ripoff,” “scam,” etc. If what you find makes you even slightly uncomfortable, cross them off your list.
24 | think realty magazine :: april 2021
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