Not admitting theirmistakes or dismissing them as minor and claiming they were smart enough to make them profitable. Every legiti - mate teacher should cite their mis - takes and the lessons they learned. Nobody is bulletproof. Sometimes you learn more from your mistakes than from your successes. Selling to students. No ethical person would sell what they teach to their students. Would you trust someone who told you that if you pay them, they will teach you how to buy something at the lowest price and then try to sell it to you?
only to those who have paid them thousands of dollars (see above about selling to students). These lists have been picked-over multiple times. It’s bottom of the barrel stuff that nobody wants. I know of at least one case where the “investment” didn’t even exist! The student discov - ered that after he had paid tens of thousands to the seminar promoter. Advocating nothing or little down. When you buy this way, your only hope of making money is appreciation, which may or may not happen, and you don’t see it until you sell. Real estate values are cyclical, and you don’t want to be caught in the undertow without having equity and deep pockets. Little or nothing down means negative cashflow and
raiding your savings or borrowing for major maintenance (see above under testimonials). Borrowing digs you even deeper in the hole. High lever - age often leads to foreclosure and even bankruptcy.
Special discount today only. I don’t have to tell Think Realty read - ers why that is a red flag. •
For other red flags, read John T. Reed’s “Real Estate B.S. Artist Detection Checklist” at www.JohnTReed.com.
W. J. Mencarow is a real estate investor (including farmland) with over 35 years of experience. He offers a free e-course on real estate note investing at www.
Offering a “secret” inventory of properties and/or notes available
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