How to spot a GURU

Question

Hello everyone I'm new here so maybe this question has been answered. I wanted to make this post because I thought it would be both informative and fun. So what's  your advice on how to spot a GURU?

Jay Hinrichs · Answer

@J  Scott   From my point of view those that are successful in the business and thereby deemed as one that could be a mentor are usually so busy in their business life that its just not feasible to be a guru or mentor based on time in the day.

Those that want to be successful mentor / guru's are too busy in the teaching business to be out there doing RE deals by and large... their education business takes all their time.

Not sure about all the kind of in between type of mentor's who charge,, but I think its like a lot of other business were you would HIRE a consultant... And this RE mentor consultant or whatever has gotten their bonafides by past performance. And now just wants to teach or consult.

I know on the one subdivision I am building in Oregon I have hired a consultant to over see the build out and billings from the underground contractor... Is it worth 15k well some may think the consultant is over paid,, for me I think its cheap insurance so I don't get over billed or miss something.

Steve Babiak · Answer

Here's an oldie but goodie, and spot on for the topic at hand. Be prepared to LOL :)

http://www.biggerpockets.com/forums/79/topics/3288...

Account Closed · Answer

ask the investors at the meeting - how many have done 500 deals? Raise your hands. Those are the serious players. The guys who have made money in RE investing.

Account Closed · Answer

My mentor (guru is such a negative word) has 1000 deals under his belt and 13 years of experience and has made millions, retiring at 28. That's a real mentor.

And he charges me $0. I buy his deals, and he makes money off that, and his deals make me 15% cap on buy and holds and 25-30% on flips. And I learn a massive amount about buy and hold RE of distressed property in my city.

A fair trade.

J Scott · Answer

For me, it boils down to charging more than what the service is worth.

If someone is charging a small amount and providing a little value, that's great.  If someone is charging a ridiculous amount but is pretty much guaranteeing your success, that's great too.

The problem is with those who charge a large amount but who don't provide a reasonable guarantee that -- if you work hard -- you will succeed.  I've only mentored a handful of people, but they've all succeeded.  Which tells me that it's possible to screen people upfront and then provide them adequate coaching, and make it near certain they will have at least some success.

But, many of the gurus don't do either of these basic things -- they don't screen and weed out those who don't have a good shot of succeeding and they don't provide the tools necessary to ensure a large number of students succeed.

The problem is, the numbers don't work if you do it this way.  You can't make a million dollars a year and still have a high rate of student success.  So, the gurus need to choose between high income and high success rates...what do you think they choose?

Those who choose the high success rates aren't getting rich coaching...but they don't need to, because they're making money doing deals as well.  THOSE are the teachers you should be looking for.

Steven J. · Answer

I agree with @Mike Hepburn a bit with his observations. Paying for the right relationship can bring you to a level you didn't know existed or was by invite only. I have done a couple of the 3 day bootcamps and bought into the courses pitched afterwards once. Wasn't up to what I wanted because I ask a lot of questions. Guru programs aren't able to be there often enough for the questions I have and I found it frustrating.

Personally, I've had the best luck partnering with locals and paying for a one-on-one mentor much like @Mark Mynhier is doing. The one on one relationship helps me immensely.

As for spotting a guru, or worse - a wannabe guru, my tell tale sign is how they present themselves to me. I had a 'wholesale' expert take me to lunch twice and he was very businesslike and didn't seem like he wanted to be there. His pitch was a bit different. He would get me to quit my day job in 6 months with cash flow, help me flip a four plex to achieve that cash flow AND he would take 50% of the profit. When I ran numbers on it that meant that a four plex would be bringing in 4k cash flow AFTER expenses. I don't think those exist. Nevertheless, lunch was enough to know I was not interested.

Mike Hepburn · Answer

A 4 day crash course doesn't cost 50K. That's an advanced coaching program after you pay them 1000 or so for a three day seminar. I have been to about 6 of the 3 day seminars and have no regrets, I know someone who paid 50K plus his partner, thats 100K! I asked him if it was worth it. He said probably the best is the people to network with, who did the same thing. They all pay more than that for their cars.

That's what they say about Harvard as well. Not so much a higher quality education. Its the people you meet. Your roommate could be a future Al Gore or his father is a titan of industry. Easy to get favors after graduation.

It's who you know!

Mark Mynhier · Answer

@K.D Neider

There are some local guys who "mentor" people and provide some one-on-one coaching. (disclaimer: I'm one of them). If you can find someone that can provide you with some quality training, devote time to the partnership, and gives as much as he gets, then you have found a "mentor" and not a "guru". I went to some of that "guru" training and, trust me, when you have given them your money seldom are they interested in your success. They have already received what they wanted.

@Al Hogan I'd like to sit down over a cup of coffee to talk (not to sell my services...I've got as many partners as I can currently work with and won't take on any more for a couple of months) and let's see how we can work together. This business is a business of synergy and working together we can all accomplish dramatically more than we can alone.

Mark

K.D Neider · Answer

thanks everyone,  I'm in the process of searching for local reia to join and I want to be able to tell the real investors from the ones who just want to make money.

Joshua Houchins · Answer

50k for a 4 day crash course...the next event is always an up sale.......you don't need a guru find a local investor you can have coffee with a few times a month.  If it sounds to good or easy it's a scam!  Good luck

How to spot a GURU

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