Five Signs The Guru is a Scam

[Don Konipol]

Five signs of a guru scam

1. He tells you he’s doing this because “he want to give back”

2. He states “ if you think education is expensive you ought to try ignorance” 

3. He has employees standing by who can arrange an increase in your credit card limit

4. He travels with an “entourage” of current “students”

5. When asked for the success rate of his students he states that this is an entrepreneurial effort depending on the individual for success rather than specifying any quantitative stats. 

[Randall Alan]

Quote from @Don Konipol:

Five signs of a guru scam

1. He tells you he’s doing this because “he want to give back”

2. He states “ if you think education is expensive you ought to try ignorance” 

3. He has employees standing by who can arrange an increase in your credit card limit

4. He travels with an “entourage” of current “students”

5. When asked for the success rate of his students he states that this is an entrepreneurial effort depending on the individual for success rather than specifying any quantitative stats. 

@Don Konipol

 Also:  When the hotel seminar is free, but there is a 3 day seminar coming up that is $200-$2,000... which is just a funnel for the $25,000 - $40,000 "be a part of the big boy club" pitch you will hear every 10 minutes at the 3 day seminar.  I would love to see the commission split on that money!  

I feel like most of these road shows prey on the new & desperate.  I've attended several... but already had multiple homes in our portfolio (now up to 37 units).  It is a very different perspective attending them already being in the business and knowing the effort it takes to achieve bigger success.  The path presented at the seminars is awfully glossed over and sprinkled with sugar!    I go just to see what the offer is.  I have done 1 - 3 day seminar which was very informative... but seriously SERIOUSLY question the value to spending 10's of thousands of dollars for the 'premium offering' that was pitched there.  We certainly didn't take them up on it!.  

I feel like the presenters at these types of seminars have selected their target audience (RE investors) and pitch (free, pay a little, pay a lot)  because they know their audience likely have descent discretionary funds that they are looking to separate the attendees from before they get into the business.  

I can't speak for all these programs... but many seem to follow a pattern.  You have been warned!  You can learn so much without the need to lay out so much money.  My guess is that well less than 10% of those that buy in get a good return on that big investment.  The other 90+% will buy in, try to make a move, get frustrated and likely not complete their 1st or 2nd deal.  

More than anything I think it likely depends on your existing resources as to how successful you are.  All the hype of "Other People's Money", etc... only really works well when you are financially sound (read:pretty well off) to begin with.  Zero resources, zero assets, and zero experience will not get you far in this business. 

My 2 cents...

Randy