Not recommended . . . - Posted by JoeKaiser
Posted by JoeKaiser on March 21, 2002 at 17:22:24:
As a member of the “not recommended” “guru” group (I never claimed to be a guru, btw), I have a special affinity for Mr. Reed. Though I’ve never met him, I have chatted via email on a couple occasions and subscribed off and on (mostly off) to his newsletter going back a dozen years.
All in all, he’s one of the good guys. You can take that to the bank. His opinions are sometimes delivered with a heavy hand, but he says what’s on his mind and that’s not a bad thing.
I also accept the fact that not everyone is into lease options and that he wasn’t particularly impressed with my lease option course. Frankly, some of the things he objects to about my lease option course are valid concerns that I will address and change the next time around.
He does have experience with real estate investments. He lists the properties he’s owned here:
and btw, 117 units is not a small number . . .
But the thing that I don’t like and the thing I think is unfair, perhaps even dishonest, is the trumpeting of other people’s past failings (I’m not sure talking about someone’s mistakes from decades ago is relevant today), all the while failing to mention his own (at least I can?t find any mention of them on his website).
Observers should note that those last couple TX apartment buildings on the list, as a recall, were deeded back to the lenders in lieu of foreclosure. I further recall that those properties, at the time, represented a significant portion of Mr. Reed?s wealth and that hundreds of thousands of dollars were ultimately lost through the ownership and subsequent loss of those two properties. Me, I understand that stuff and how easily it could happen to anyone and wouldn?t judge Reed?s current offerings based on decades-old information.
But I also understand how easily it would be to splash Reed?s name on a website, list his failed investments, and conclude for the reader?s of the site that he is ?not recommended.? In fact, as a retaliatory measure, I once did that very thing.
How silly of the both of us…
Let me ask you this. If you were considering purchasing Reed?s materials and during your investigation of the author stumbled onto a website that disclosed how the only two investment deals he?s done in the last two decades resulted in a half a million dollar loss (this is a ?plucked from air? number, I don?t recall the exact amount, could be more or less) when the properties were deeded back to the lenders in lieu of foreclosure, would you buy his ?how to? books? Me neither.
But I know a bit more about his stuff and recommend it all the time. Like I said, by and large his materials are excellent. To me, his earlier mistakes make little difference as to the value of his current books and I wouldn’t judge the merits of his advice based on something that happened in a crazy market more a dozen years ago.
Because it wouldn?t be fair . . . and that?s my objection to the way he goes about his business today
John T. Reed is a self appointed arbiter of all that is good and bad in the real estate ?guru? world, yet his own record, littered (if two can be called ?littered,? that is) with failed investments and hundred thousand dollar losses, by his own yardstick, would put him into the ?I do not recommend? category.
How?s that for irony?
The real estate ?how to? community is a better place with the Jack Reeds of the world out there doing their thing, to be sure. But hey, take a grain or two of salt with anything you read or see on the web. There?s always that Paul Harvey thing to look out for . . . ?the rest of the story.?