What’s wrong with people that sell courses? - Posted by HR
Posted by HR on March 04, 2000 at 03:06:26:
Let’s analyze your question for a moment.
First, it’s a natural question. Anyone looking into this business can’t but help notice the snake oil salesmen and others who hawk rei courses. You know the types: get rich quick and easy, big houses, expensive jewelry, beautiful women, etc. Whenever I can’t sleep at night, I turn on the late night tv to see what other jerks have joined the rei quick and easy bandwagon. It’s amusing and sad.
Having acknowledged that some of the messangers are bogus, let’s analyze the message (you got some great advice from Ed Garcia, who is full of great advice, by the way). First, Matt, can you think of any other business where the message can be tainted by the messanger?
Do you find grocers who promise one thing and deliver another? Preachers? Car salesmen? Shoe salesmen? Computer salesfolk? In fact, Matt, can’t we acknowledge that the rei messengers whom we despise are in fact just using just plain old fashion sales techniques? They appeal to folk’s lazy nature and promise the world… it works, Matt, so some guys use it. Your internal bs meter smells oversimplification and hype and I suspect that has led you to question the entire business. Big mistake.
Now, having established that some rei salespeople use old and less noble sales techniques that prey on people’s emotions and appear to make the business far easier than it is; and having established that this can happen in any business; the next question to ask is this: “Can this business work and deliver the kind of returns that are advertised? Is this business for real, in other words, or is it all hype?” Let’s look at this set of questions for a moment.
First, Matt, does it make sense to you why rei – hypothetically – is such a great business? You really should go to your local or online bookseller to buy some of the great and cheap books that are available, because practically everyone talks rationally about why this biz is one of the best businesses to invest in. I’ll recommend some titles later.
Some of the reasons I love are: 1. you can do it from home (imho, it’s the perfect home based business); 2. You can start part-time and work your way to fulltime, if you desire. If you never go fulltime, though, you can make great extra money as a part-time hobby; 3. it’s CHEAP to start, too. This is a HUGE advantage. Have you ever looked into buying a franchise or starting your own biz from scratch? Seriously, have you? The costs are awesome. In this biz, anyone can scrounge together a few hundred bucks and get started; 4. Next, the funding for rei is easy and everwhere. That’s right, easy and everwhere. It may not be easy for you or others, but our entire economy and banking system is based on loaning money, especially for buying real estate. The ease of others getting money to buy re makes re a great thing to sell.
- (one of my favorites) the re market is wonderfully inefficient. Matt, if you walked into your local grocer or corner store, how much would a pack of gum cost? Or some Tylenol? About the same as it would cost me. Why? Because the production, cost, distribution, and price can be easily controlled, no matter where one is in the country. How much would a pad of paper cost? About the same as it would me here. One of the greatest things about re, Matt, is that the price is variable year to year, and even within the year, the price for relatively similar products can vary widely, given the seller’s motivation and circumstances. Re, in other words, is a wonderfully inefficient market.
Let me give you an example. I bought a five bedroom house a few weeks ago for $2000. It’s a decent house, too, for 2 grand. It has a new roof and vinyl siding and a nice yard. It’s a cute house. It only needs about 7k to fix, and it will rent for about $600/month section 8. It’s just in a rotten neighborhood.
The Money Store owned it, and two crack heads broke in and torched up the second floor. It’s primarily cosmetic fire damage (lol, if there is such a thing). The Money Store, at this point, absolutely did not want the house. It was a major liability headache for them, and they did not want it. So they sold it dirt cheap.
I figure fixed up it’s worth about what the others in the area are going for: around 35k. I won’t sell it, though, because I’ll get all my $$$ back within 18-24 months, and then it a pure cash flow machine (by the way, have you heard anyone tell you you can’t get astounding yeilds (50%+) consistnenly on any investment vehicle? Like your local investor friend, these folks are wrong, too).
- One of the reasons I am coming to appreciate that make this a great biz is it is a biz, and thus it is hard. Rei is NOT easy. The difficuly itself will weed out 99% of folks. That’s why I no longer fear competition. There’s not enuf real competion to fear.
I noticed that in David’s post to you, he kept saying the word “business” to you. That’s because when you want to make the big bucks, you have to do this as a business and not a hobby. And having your own business is HARD work. Real hard.
That’s what striking me these days, Matt. How hard this is. I know I’m workin harder than I may have to as I learn to do this biz better and more efficiently, but man is it hard work, Matt. In fact, I’ve come to conclude that I make the big paydays precisely because I’m willing to take on all the headaches and bs that others choose to avoid.
For example, using my $2000 fire house, I’ve now got some homeless guy breaking in, living in it, and peeing all over the inside. I’ve boarded up the place, and he still manages to break in. As soon as we start work next week, I may have folks break in to steal the stuff.
Many folks don’t want to deal with these headaches, Matt. Honestly, many days I don’t want to deal with them. In fact, I never WANT to deal with them, I just have to 'cause it goes with the territory. Carlton Sheets doesn’t talk about that, Matt, does he? Few of them do. It’s real world, though.
So, Matt, we are back to my post that never ended: does it make sense why rei, hypothetically, can be so profitable? I’ve just touched on some of my favorite reasons.
Ok, Matt, having established that some folks promote rei with hype and exaggeration; having established that this happens in all businesses; having rationally discussed why rei can be so profitable as a business, it leads us to ask the final question: Is it really as profitable as advertised?
Matt, the answer is yes, but you need to find that out for yourself. See, what those who have started on this path know, Matt, but isn’t apparent to the uninitiated like yourself, is that you can’t compare apples to apples in this game. Others level of success have absolutely no bearing on what your level of success will be. Only your level of success will reflect your level of success. So be careful when you look to confirm YOUR suspicions or beliefs when talking to OTHERS; their experiences will not be your own.
You are doing your due diligence and evaluating whether this game is worth your time and money. A smart move. You are looking to local, real-in-the-flesh players (unlike us anonymous cyber supposed-investors) as proof that it can work. An ok move, but in your case not so smart. Why? Becuase you seem to be asking the wrong people. Your local investor may not be a great player. Sure, he may be “successful” or wealthy, but he may not be real good.
The only deals I have ever done are no money down deals, and they have all been profitable. I laugh at folks who say it can’t be done or is too risky, etc. That’s nonsense. I know I can do 'em; and I know others on this site do them all day long. The only real question that matters, Matt, is Can You Do Them? We all know the answer to that; the answer is No.
So how are you going to learn how to do them, Matt? (That gets to the crux of your post). How are you going to learn this biz? Allow me to share how I started; it’s worked well for me.
First, join your local rei group (www.nareia.com). Second, read everything here; it’s free. Third, buy the best rei books available on the market. There are some great ones out there. I highly recommend Real Estate Investing by McLean and Eldred, 2nd Edition ($15) and the Five Magic Paths to Making a Fortune in Real Estate by Lumley ($15). Those should get you started. Buy others, too, at will. After all, this is a business, and you better know it well. There will be days when you feel like a Mac truck hit you, and that’s when you know what you are doing! When (not if) you have a bad day and don’t know what you are doing, you will give up for sure. And that would be a tragedy. Cause rei is the real deal when it comes to building wealth.
Next, after you have availed yourself of all the free and cheap stuff, buy a course that interests you. Specialize in an area and become great in it. Make money in it. Start part-time, and give up dreams of fulltime, until you have mastered intermediate level rei skills. Then think about doing more.
As far as the prices of the courses goes, give me a break, Matt. $150-1000 or even $5000 is cheap. Dirt cheap. You will literally make all that back and 10x more in your first deal. So stop whining about course prices. The big mistake folks make is they buy the courses first, instead of reading the free and cheap stuff. Once you know what area of rei you want to specialize in, these courses are invaluable. The Vaughns do an excellent job of editing the stuff here, by the way; it is all good and will make you money. I don’t blame guys at all for sharing this info and charging for it. Where, after all, do you plan on learning this business if you were not born into it? You can’t go to school for it. Successful pros in your area righly won’t give away all their profitable business secrets. All these courses together are far cheaper than two semesters in college.
So, Matt, does that help? I’ve been at this about 1.5 hours how. I hope you have enjoyed the post. I had one of those aweful, Im-sick-of this, Mac truck days yesterday, and I went to bed early with a headache. I just woke at 1am my time, saw your post, and decided to respond. Why not? I can’t sleep anyway. If this doesn’t do you any good (And I agree with David: you are a little half-baked) maybe it will do someone else some good. Anyway, I normally don’t post this long, and don’t plan to again in the future; it takes too dang long.
Finally, Matt, let me leave you with a final thought. If you approach this biz like a rational person, you know what? You haven’t got a prayer. Isn’t that funny? My whole post is trying to be so rational, but you know what Matt? You know why people succeed in the business? Because it’s so deep in their bones that they can’t do otherwise. If you need to debate whether this biz is right for you as a fulltime endeavor, than it’s not. I believe in all the reasons I gave you; they are what help get a guy in the door. But once in the door, you dance the dance because you love it. It’s in your blood. All that rational $hit doesn’t matter any more; you know this can work. What keeps you going forward is the fact that you just can’t get away from rei and the excitement it brings, in addition to the suffering and the profit. The only good fulltime folks I know of are addicts. Re addicts. And I do mean addicts. Guys that LOVE real estate. If you are one of them, you have a shot. If not, still dabble in this part-time Matt. You can make a killing.