Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
It's strange to call transparency and honesty a new tactic in real estate investing circles, but it just might be. It will be the key to most businesses moving forward operating inside of the real estate investing space. Why? Because the majority of us don't trust anyone because everyone is peddling fake stuff. Guru coaching, wholesaling tricks, flipping masterminds. Some of those can be good, but most are just regurgitated versions of other people's courses.
If you want to be successful in real estate investing, start with transparency.
If you are a new investor, use it to your advantage. Look up my "I want to be just like you" handwritten letter that you can write. It highlights that you are a new investor and local to the property.
If you are a wholesaler, explain the process and show them what funds you will use to buy or hold the property. 99% won't do this. Wouldn't you want to be in the top 1% in a field?
If you are a syndicator, tell us about the bad exits or capital calls. Tell us the truth.
If we all spent more time being honest and transparent about what we've done, what we are doing, and why we are we doing it, this industry would be a lot easier for everyone, especially newer investors.
Agree 100%. be transparent and if good news great - bad news - still share it with investors - realize they are making life choices based on what they may be telling you as an example of someone has $100k investment and you fear it’s going to go to foreclosure - well maybe they would not spend $10k on that vacation or buy a new home knowing they are getting wiped out
Unfortunately there is a group of guru syndicators who are great marketers / sales which some I have personally spoken with and they are so full of it and just like to hear their voice their ego gets in the way.
Some of them are failing miserably and of course blaming everyone or everything else but themselves
Agree 100%. be transparent and if good news great - bad news - still share it with investors - realize they are making life choices based on what they may be telling you as an example of someone has $100k investment and you fear it’s going to go to foreclosure - well maybe they would not spend $10k on that vacation or buy a new home knowing they are getting wiped out
Unfortunately there is a group of guru syndicators who are great marketers / sales which some I have personally spoken with and they are so full of it and just like to hear their voice their ego gets in the way.
Some of them are failing miserably and of course blaming everyone or everything else but themselves
Agree 100%. be transparent and if good news great - bad news - still share it with investors - realize they are making life choices based on what they may be telling you as an example of someone has $100k investment and you fear it’s going to go to foreclosure - well maybe they would not spend $10k on that vacation or buy a new home knowing they are getting wiped out
Unfortunately there is a group of guru syndicators who are great marketers / sales which some I have personally spoken with and they are so full of it and just like to hear their voice their ego gets in the way.
Some of them are failing miserably and of course blaming everyone or everything else but themselves
Yes, to us, it's obvious who is BS and who is not, but many investors want to be pitched the easy way so they sip that guru juice. And it's not good juice.
Bad news first, then the good ones. Clients always appreciate that, it is ethically and morally the right thing to do and frankly, it will make your business more successful.
In every business there will always be honest people - and there will always be fraudsters, and those who are balancing in between.
However, I agree that open honesty of actions, intent, and past record eliminates 99% of ethical problems.
The new guy who just spent $20-40K for a wholesale mentoring program has no choice but to deceive a homeowner if he wants to have any possibility of making a deal. While he should have been educating himself in real estate principles, finance and law, he was instead learning about weasel clauses, driving for dollars. and what color postcards to mail out. So, with no foundational knowledge of real property, and no capital, his only alternatives are (1) “bluff” the homeowner into thinking he has the money and intent to close the purchase himself and or convince the homeowner he has an extensive list of cash ready interested buyers (“partners”) with whom he’s done dozens of prior deals or (2) pack up shop, write off the money invested in mentoring to a worthless investment, and decide IF real estate is right for home. If it is then spend the time getting the RIGHT education, building capital reserves, making contacts, and arranging financing options.