Real estate investment can be incredibly lucrative, but it’s also time-consuming. What REI isn’t, however, is a get-rich-quick scheme. If you’ve been lured in by a real estate guru who has what seems like all of the answers, beware. Don’t miss out on these REI truths they don’t want you to know.
Truth #1: REI Takes a Lot of Hard Work
It’s easy to watch an Olympic skier or race car driver work their magic and think, “I could do that. It doesn’t look that hard.” However, once you step back and consider the years of rigorous training and perfecting processes and skills that go into becoming a pro, you start to respect what it really takes to master a craft.
A professional real estate guru’s entire job is to make what they do look easy—and they’re good at it. Although it’s easy to be tempted by a real estate guru promising every REI answer in one quick, free or cheap seminar, don’t fall into the trap. Unfortunately, most of these seminars are just gateways for gurus to get you to pay exorbitant fees for more classes, coaching, and training sessions—fees that they promise you’ll make back on your first flip.
The truth is, most people who buy into these seminars never actually seal a deal on an investment property because real estate investment isn’t easy. REI is a business like any other, and you need to be equipped with the right real estate investment tools, training, team, and work ethic to succeed.
Truth #2: It Takes a Team to Be Successful
You’ve probably heard the phrase “it takes a village,” and this couldn’t be more true than in real estate investment. Among the most overlooked of real estate investing tips is lining up an experienced support team, including a local real estate agent, a trusted contractor, hard money lender, attorney, title company, and other local real estate investors who are experts in your market.
One of the biggest red flags with real estate gurus is that, much of the time, the seminars and classes are offered by gurus who don’t know—let alone live in—your local market. If you do come across a local expert offering a seminar, Ed Magedson, founder and editor of RipoffReport.com, suggests asking for the names of two or three people who can talk about their practical, successful application of the guru’s advice in your local market.
Truth #3: One Size Does Not Fit All
Whether you’re in Atlanta or Denver, every market is different. Most real estate gurus will try to sell you real estate investing tips that worked for them in the market where they found success. Most gurus will talk in big picture terms and paint broad strokes, rather than detailing the nitty-gritty details of real estate investment in your market. Unfortunately, what works well in one market won’t necessarily translate into your market. Additionally, you never know when a guru’s real estate investing tips could get you into serious trouble.
“The marketing of real estate investment seminars and associated training materials is not necessarily illegal. However, certain ideas and approaches taught in the courses may pose potential problems for unwary consumers,” says Jeanne Jackson-Heim, executive director of the Idaho Real Estate Commission. “Many of these classes teach people to perform illegal acts, including engaging in activities that require a real estate or mortgage license.”
We recommend engaging and networking with veteran house-flippers and real estate investors in your local market. Local market experts can provide the guidance you need to gain crucial market knowledge and the confidence you need to succeed.
Don’t let a guru get into your head and hard sell you on training and promises of overnight success. With the right training, a bit of confidence, and a team of seasoned professionals in place, you won’t need a guru at all. Be sure to round out your real estate investment team with an intelligent, time-saving tool like Privy, and you’ll be prepared to pull the trigger on purchasing, renovating, and reselling a lucrative property in no time.