Will The Real Estate Guru Please Stand Up

fauche65 profile photo

I am not a "Guru"., Just a guy. I am not writing this to bash "Guru's". The reason I am writing this is because I like to help people, and I am a realist. It is time for a reality check.

Over the course of my time on the various boards and forums, and especially on TCI (The Vets here are the most helpful and knowledgeable anywhere), I have noticed several "newbies" asking about Carelton Sheets, Ron LeGrand, Russ Whitney..... the list goes on.

The pressing question seems to be "Does (insert guru here) course work?" The answer is NO! You are the only thing that works. Let me explain.

90% of the people who join a gym never go for more than 3 months. They expect the gym, and the equipment to do the work for them. They expect that if they show up, and give a half hearted effort or no effort at all, that they are going to get results. And these are the people with a plan. Imagine those that do not have a plan!! The whole point is, you are only going to get out of it what you put into it. "SO WHAT DOES THAT HAVE TO DO WITH "GURU" COURSES?" you ask. Well very simply, there is useable and sometimes valuable information in most courses, but what you do with the information once you have it is what is going to make the difference. If you spend $200.00 or $2000.00 on a course, and expect the material to do the all the work, you are going to be dissapointed. Go look for the pot at the end of the rainbow, at least it's free!

I am not, by any means, saying do not by a course. But do not ask if the course works. Ask if the course has information to help me plan my life in REI. I am of the mind that if I buy a book or course, and I get even 1 good and useable idea out of it, I consider it a good investment. YOU MAY NOT! Asking "does this work" is probably not the best way to go about it. If you buy a course, read, learn, and most of all APPLY YOURSELF!!

The one thing no course will sell you is DESIRE!



Much success to all,

Jesse

Comments(22)

  • financialfreedom5th August, 2003

    I appreciate your comment. No can give you desire or heart. That is one of the most powerful tools we each have as individuals. Thank you for that insight. As a former athlete, I appreciate the analogy of joining a gym. We as indviduals are the only person that can make a change for improvement.



    Thats why I am reading as much as I can about real estate investing and incorporations and limited liability corporations to make a life change.

    • Dreamin5th August, 2003 Reply

      Yeah! Well said. I have said simular things to people over and over.



      My R/E Atty told me just yesterday that many people in this world talk, look, read, learn and get absolutely no where. The reason for this is they spend all their time looking and talking and not doing. When I first came to him all inspired by "Gurus"and told him my goals, dreams and plans, he shook his head when I left he had heard it all before. (He's been around a long time in the R/E business - smile) But I was the first person he met that talked before I walked then actually did what they said they were going to do. (now he thinks I can do anything) I feel pride for all of us in his compliment, all of you that "DO" are sharing this compliment with me!



      The Gurus are great (and I applaud a few) if you keep them in perspective; they are only showing it is possible to get there and giving you some tools to show you the way..............You can be shown the way and never go!



      I applaud you fauche65 for your comments and supporting all of us with your insight. We all must also keep things in perspective......It shows that knowledge is the true key but only action will open the door.

    • NHRalph5th August, 2003 Reply

      I agree with everything you stated. I have bought a few courses over the years and as long as you apply the ideas and principles, they will work.

      Most people buy books and courses and they end up collecting dust on a book shelf.

      Does "No Down Payment" work?...Yes it does and it has some very good principles in the course but ONLY if you go out there and do it.

  • jpetreeko5th August, 2003

    Jesse,



    You are so right and most people completely forget about the basic "principles" for becoming successful. Many people are always looking for a "quick fix". Nothing replaces hard work and a concrete "game plan" which is constantly being "fine tuned" in order to reach your ultimate goals! I am writing a book on the subject that will be avail. in mid Sept.



    Thanks for your honest approach and great post!



    Sincerely,

    Jon Petreeko

    REISmart, LLC

    "Real Estate Investing Smart from the Start"

  • brownsj5th August, 2003

    well said! I have been buying courses for over five year. and everyone at that time was worthless, it took me all those years to see the picture Jesse just painted. It wasn't the course it was me, I wasn't applying any of it, I thought it was to hard or wouldn't work. well bottom line is, if you want your dreams to come true you have to work hard at it, you must crush fears head, you must become a guru.

    I have 3 homes under my belt and i have to say after applying the the information in all of the course I can say, they all have something that will be helpful so I hope someone get what jesse is saying, don't wait five years like I did. Get started, now !

    • thewhalens7th August, 2003 Reply

      That isn't entirely true, and you know it. Motivation is key, no doubt. No one can MAKE you do anything. The problem, as I see it, isn't about motivation: it's about HOW TO apply what you know.



      Reading a book, even a website, on REI isn't great enough source of information to help you do the job. Those forms you get in books are generic. They don't apply to any specific state.



      Each state has their own rules, regulations and laws. Each town and city has its own place where public information is accessible, and the term for that information (what you call it) is not the same across the board.



      Bottom line, it's great to know what a flip is, what a subject-to is, what a lease-option is, what a bird-dog is, BUT....that coupled with your desire to work at it isn't quite enough to allow you to go out and make deals.



      This is why I chuckle when people come on this site and say they completed deals just by reading a book and getting their elbows greasy, when anyone with half a brain knows there is far more to it than that.



      I'm not even going to say that making money in REI isn't possible, because that would be asanine. There are people making money. I'm just saying that people need to be a bit more honest when talking about that deal they just made.

  • chuck015th August, 2003

    How true it is. I have worked with many newbies, and have found that they want the money, but are unwilling to give up weekends to learn. I feel that you can talk to 1000 people and maybe, 2 or 3 will learn and suceed.



    I have also purchased many books and find that there will be one or two pieces of information that will help in my real estate investing.



    My son wants to work at investing in real estate, but his weekends and music are to important. Maybe when he is older (34 now) he may apply himself.



    Chuck

  • BartLockhart5th August, 2003

    Great analogy. As a beginer and a former athlete I agree that it takes more than the will to win, it takes the will to prepare to win. Keep em coming.

    BL

  • McMadhouse55th August, 2003

    AMEN!!!!!!! Well said.

  • Brad035th August, 2003

    You, Sir, couldn't have said it better! I have only been a REI since May of this year (2003) and have managed to buy 6 properties and it wasn't the "courses" that did it for me----it was me! I have been studying every course I can get my hands on and I look for that "nugget" of info that I can use in each one. If you can learn one good tidbit of info from a course that leads you to make money, and can be repeated in the future, than the course was worth taking.



    I commend you for your brutal honesty. Most "newbie" investors don't realize the "no pain, no gain" requirement of REI. You have to WORK at it to make it WORK! But once this is realized, the sky's the limit!



    I hope everyone that reads this gentleman's article takes heed-----he is wise beyond his experience!

    • thewhalens7th August, 2003 Reply

      Yeah? And how much money did you have to start with? Did you have to use your credit? What about collateral? I think that so-called GURU's skimp on the fact that if there isn't a method to make money without having to invest money, use credit or support with collateral, then one of these three things will be needed. The GURU's just make it seem to easy.

      • Brad037th August, 2003 Reply

        Believe it or not, I started with NO money, NO credit, and NO collatteral. I actually put my first two deals together using the wholesale or "flipping" method (find a good deal, put it under contract, and sell it for a few thousand more), which didn't require any of the above. Since those first two deals, I have managed to buy two houses "subject to", and two using the Contract for Deed (Land Installment Contract). I have only had to use money for one of the SUB-2 deals, about a $15k investment that will net me around $40k!



        I have to agree with you about the GURU's making it seem easy. However, realisticly, if it were really that easy then everyone would be an investor and be filthy rich. I have realized that it isn't easy and you have to put alot of work into it, just like you would into any other business. I can tell you, though, that the payoff is well worth it. As I had mentioned, I have only been investing since May of this year and I have gained about $100k in cash and equities in just six deals! I tell you this as an example (or testamonial) that the methods these GURU's teach really do work. I think they make it seem easy just to get people to try it, makes sense to me. The key is persistence, persistence, persistence. I have found that it takes about 20 offers for just one to be accepted. That means about 19 rejections for every one acceptance. Easy? Hardly!



        In closing I just want to reiterate that the GURU's do make it seem easy in order to appeal to a large group of people. But it is only the one's that really WANT IT that are willing to work hard enough at it to succeed. I can *****ure you that it is well worth the effort.



        Happy investing!

    • thewhalens7th August, 2003 Reply

      Hey Brad03,



      Thanks for responding! As far as protecting myself (legally, so I can't be sued, yada yada), how should I do that? I want to get into flipping, subject-to's, etc. but the forms that are included with books are generic. The forms don't seem to be state specific, and that scares me. I called a bunch of real estate attorneys yesterday and left messages, and not one of them has called back. They might call tomorrow or the next day, but it does concern me.

      • Brad037th August, 2003 Reply

        Your local real estate attorneys are your best bet to get local and state specific details.



        As far as protecting yourself legally, I would suggest forming a Corporation or an LLC (preferrably an LLC) and signing all your deals in you legal entities name. That removes personal liability for your business actions.



        Also, learn to use Land Trusts. Using a combination of Land Trusts and legal entities produces a good amount of legal protection (called "layering") for you and helps to protect your *****etts.



        There are many good sources for info about Land Trusts and the use of entities. Some good ones are (in no particular rank):

        Bill Bronchick, Louis Brown, J.J. Childers, etc.



        Hope this helps!

  • JoyceMorris7th August, 2003

    Well Said!

  • trw_20008th August, 2003

    Very very well put. I am new to the site and love to hear realistic encouragement. I purchased Carlton Sheets, Rich Dad, Poor Dad, and attended Russ Whitney's seminar over the past few years. I can honestly say I have found all of them to be HONEST advise. Carlton Sheets introduced me to real estate investing and taught me that one rental property at a time can generate a life time of wealth. He also taught me that sometimes when your broke you have to get creative to get the property. Russ Whitney and Robert Kiyosaki introduced me to the fascinating, profitable,and legal world of tax sales and owning real estate with LLCs.



    In saying that, you are absolutely correct you get out of it what you put into it. If I had followed each program to the T, I am absolutely confident I would be a millionare. But, the more I put into the more I get out of it every single month.



    I am an infomercial fiend, but I have no regrets. 3 months ago my husband and I bought our very first investment property, a 4-unit apartment building. Our monthy income has increased more the 5x the price of all those courses put together!! I did not waste a dime. Thank you for your comments, and best wishes in the business.

  • colesenterprise10th August, 2003

    It is refreshing to read such down to earth and comments on the site. Yes, I have the two of the three courses you mentioned in the comment you posted. The information is good, for the past four months I have simply been reading through it. I have started contacting seller's by phone and have gone to several auctions to have a first hand experience of the process. If someone can give me a tip of how to recognize a positive cash flow when putting together the cash flow statement analysis, property analysis form and buyer's property inspection report once the information have been gathered? Thanks for your help.....

  • timfleming110th August, 2003

    What course(s) do you recommend to get information that will help a new investor the most? I would like to start doing this full time, but need to arm myself with the most up to date, and important information. Thanks, Tim

  • dare20033rd October, 2003

    Very true!

  • griffinta6th October, 2003

    VERY GOOD WAY TO PUT IT AND WHAT YOU SAID IS SO VERY IMPORTANT AND TRUE.

  • cogenthomes2nd January, 2004

    AMEN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • MichaelChandler3rd April, 2004

    I agree too many people dis the gurus as being crooks,but are unwilling to get off the couch and prove their system does not work. What these people prove is that the system does not work because they don't. To succeed in any endeavor you must have a burning desire to be successful.

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