23 Aug Say Goodbye to the Real Estate Investment Industry Gurus
Say goodbye to the real estate investment industry gurus.
You don’t need them.
Because there’s a new way to do Real Estate Investing—based on YOUR OWN advice.
First, Let’s face it. The real estate investment industry–as an industry–just plain sucks.
It’s an industry filled with get rich quick schemes, of inflated rags to riches storytelling. It’s a world of self-proclaimed gurus. They run highly engineered marketing and sales machines sophisticated enough to trap and pressure almost anyone. They get you to believe the hidden secrets of all the REI mysteries will reveal themselves with the next big upsell for their products, expertise, or pricey consultancy fees. It’s an industry that produces addictive and hypnotizing investment scenario TV, where everyday people just like you, go for it, where the profit margins for a sold house are often twice the normal job salary in a single deal. But it’s a glimpse of investing covered in gloss, without the true story of gross (before expenses) versus net (after expenses) profits.
What you don’t see?
What really lives behind the scenes: None of that horrible, nest-egg crushing defeat.
You don’t get to see the house stories that were rejected because there was too much risk. The first goal of this industry is to whip you into that that ‘hey!-I-can-do-this-too’ excitement, because who’s not up for some low-risk, easy money? The second goal is to exploit your confusion about how to actually do it.
That means the real estate education/guru/products industry is at least is a multi-billion dollar a year industry, a year or more industry—based on what people spend on all of those books, subscriptions, CDs, webinars, seminars, and pricey coaching.
Two words sum up the industry that sucks. At best: Upsell. At worst: Scam.
They make it seem so easy. Then they say it’s impossible to succeed without them. They paint a grim picture of risk and trap you with their upsell: consulting fees for information you can’t live without.
Scam is…well, you know what that is.
The worst type of profiteers you can detect a mile away: that type guru has a celebrity connection and they offer a get-rich quick promise. They don’t pass the background check, there’s no money back guarantee, and they’re always hitting you up for a major upsell. Some of them are just pyramid schemes.
Willing investors still spend thousands of dollars on a guru’s advice. Sometimes even up to 35K (gasp) for deal advice.
There are good gurus. And there’s certainly bad ones. But good or bad, the end result is the same:
What happens after the first deal?
Where does it leave you, what do you do next?
Because, after you pay a consultancy fee and got advice on what to do, you’re back out on your own.
Will you come away from a guru and capable of buying a deal on your own?
Or, maybe the whole process is gone.
It’s an industry that preys on people rather than preparing investors for success.
It’s an industry that thrives on the confusion.
And for all types of investors, at all times, there is confusion about how to match the right strategies (fix n’ flip, buy n’ hold, pop-top or scrape) with the right neighborhoods, the right buy and sell prices with the most accurate construction levels and the right sell price for that project and neighborhood.
And instead of helping you to clear up your confusion, the real estate investment industry knows the confusion is the pain that keeps the whole profit-wheel turning.
The confusion is something they depend on.
That’s why this industry pretty much sucks.
Yet it’s not the UNIVERSAL knowledge about real estate that is confusing.
You need that education. You need to know how it all works on a basic level. And, you can get that from all kinds of sources; mentors and REIAs, that can show you the universal things that do not change in every single deal. They can show you the things that are present in a deal, the things in a deal that are not variables, because they don’t change from deal to deal.
What you need most is answers for all the variables that live inside the universal picture of how it works.
- No one-person, no human-consultant type person, can give you exact answers for variables that are constantly changing.
- They can tell you what they variables are. But they don’t have a crystal ball based on a zip code.
- No knowledge is universal enough to show you what to do based on an experience they once had. Too many things change in too many different places to give you a sure win based on past experiences, no matter how successful they were in past markets.
There are only two things that matter:
A universal education about how it all works.
And the data.
Specific knowledge about a market and its variables, is non-transferrable.
Like in financial market investing—and it’s just as true for real estate—what’s needed is enough universal knowledge of what all the rules are and A WAY TO COMBINE THAT KNOWLEDGE with a way to find out what all variables are actually doing, right now. Those changing variables are what influence whether your investment is going to pay off or not, this very moment, in a specific market. Universal knowledge of how it works must be combined with accurate forecasting for all of the things that make the real estate investing process unique:
- Is 70% ARV really the right ARV for your neighborhood? Or, is it 60? or is it 80? Did a guru come up with this 70% ARV over-simplification?
Data tells you what other investors are making money on, and having success with. And that’s what the ARV is in your area. Data is what gives you your true ARV.
- What if fix n’ flips are not performing, what if there is a better strategy in your neighborhood? What strategy is working right now?
- What’s a successful project in your range you can duplicate, emulate, copy, and study?
In real estate investing, you have to combine the knowledge of the general principles of real estate investing with what’s going on right now with every variable.
That’s where you come in. With your own data source.
A guru may have made millions in California at one time. But what does that have to do with what the data shows you about fix n’ flip, pop-top or scrape performance in Madison, Wisconsin, right this very moment?
The basic concepts are there. But there’s no way to understand what’s working in that market unless you have the data that tells you what strategies are being used and what the market is doing.
The key of the investing equation is only done with accurate DATA—not experience in an unrelated market or neighborhood.
Because buying prices, sale prices, construction costs, strategies, markets, are moving targets no guru can predict better than any experienced fortune teller coming off a lucky streak.
So let’s say you learn enough about these universal REI essentials:
- buy n’ holds
- and fix n’ flips
- and pop-tops and scrapes.
You’ve learned what strategies exist.
Next, your goals to learn about buy prices, and construction costs, and timelines and sell prices.
That’s all the universal knowledge about how real estate investing works.
But how do all of these elements work together, combined, to help you choose a neighborhood, a market with the right strategy? How do all of these variables—the strategies and the places and the individual home choices—all swing together in total harmony, so you can understand the relationship they all have together, so you can choose that strategy, that market, and that real estate project that is your deal, so you can shut down your fear of risk and give you a win?
With data, you can do it yourself.
You control the variables. You see what’s working in a neighborhood (fix n’ flips, pop-tops, buy n’ holds, or scrapes) and apply that strategy to that neighborhood rather than force a strategy and hope it works on the neighborhood you’ve chosen.
Data is protection from irrelevant data in books, on CDs, and seminars. Data keeps your guru honest.
Best of all, data will help you practice with the strategy that’s going on right now in your own neighborhood, because you can use data to play real estate investment like it’s a game.
And that’s better than what’s on TV.
What you use data, you’ll also get is an education about the universal things, the actual how-to-do-this kinds of things, like wrap your head around buy prices, and construction levels, timelines and sell prices and different ARVs, and what kinds of strategies are best for the right neighborhoods.
These are the things you’ll be able to do without the looming shadow of upsells and scams.
What is the best strategy for the area, how do you do that strategy?
Get the data. Get liberated from the BS. And say goodbye to real estate investment industry gurus for good.
Be ready though. You’ll start to see deals appear out of nowhere. Real quick.
Because in a matter of minutes, you’ll have the education and data to find deals on your own.