6 Signs Your Real Estate ‘Guru’ Might Be a Rip-Off

[Noah Bacon]

Guru Programs are notoriously difficult to assess in terms of quality or outcome for their students. Some students rave about their guru, some come and complain about how they got ripped off.

There are a few patterns that raise yellow and/or red flags that we want to call out that are concerning, and we think community members should be skeptical about when deciding whether to spend thousands of dollars (sometimes tens of thousands of dollars) on guru training.

6 Signs Your Real Estate ‘Guru’ Might Be a Rip-Off:

1. They have a celebrity connection that they never stop talking about

In most cases, the celebrity does not make a personal appearance at the events, and their involvement is often very minimal. More important than a celebrity endorsement is a referral by “students” who’ve been through the course and can vouch for its usefulness.

2. They promise you’ll ‘get rich quick’

Real estate investing and wealth building is a very long-term game that comes with a lot of risk and often requires a significant financial investment. Those who are most successful are experienced pros who put in the long hours. 

You should avoid anyone with a whiff of "get rich quick" in their sales pitch, as well as "no money down" buying strategies. VA loans of course being an exception!

3. There’s no guarantee you'll get your money back

The most reputable programs will offer some form of money-back guarantee. Once you see that a company offers such a guarantee, check the Better Business Bureau to see consumers reviews that the company hasn’t followed through on that promise.

Expectations should vary based on the duration of the programs as well. If you are 14 weeks into a 15 week program, I would not be expecting you to want a refund on your payment. But, a 2 week program? I would definitely expect some form of a money back guarantee.

4. They are so focused on upselling you

You know the routine — you’re invited to a free seminar to learn about a new method of real estate investing, and the presenter or guru teases you with tidbits but offers nothing substantial. To learn his methods, you have to open your wallet.

This can go one of two ways. You might be asked to pay an extraordinary sum, maybe $5,000, for the program materials or to attend additional seminars and boot camps.

Or, you might be tempted by a program that doesn’t cost much only to find out later it is bait to get you to purchase even more expensive products. Either way, you’re suckered into spending a lot of money for nothing.

5. There is No Risk or downside to real estate!

All investments come with an element of risk.

So when you’re told of “guaranteed methods” run in the other direction. And fast.

You are flat out being misled if you do not think there is any risk associated with investing in real estate.

Like any investment, real estate can go up or down. You can earn a big payday when you research and make a sound investment, but you can just as easily lose big if you don’t know what you’re doing. That’s not to mention the factors that are unexpected or completely unknown that can ruin a deal.

6. Overwhelmingly Positive Testimonials and Reviews from Students

The "reviews" for a guru come exclusively or overwhelmingly from individuals who create accounts on BiggerPockets with seemingly no other purpose than to dispense undying love and/or personal loyalty to the guru, with lengthy commentary about the complete life turnaround that spending $5K - $100K had in a very brief period of time, rather than a rational assessment of the pros and cons of the program and their outcomes achieved so far.

[Chris Seveney]

Quote from @Noah Bacon:

Guru Programs are notoriously difficult to assess in terms of quality or outcome for their students. Some students rave about their guru, some come and complain about how they got ripped off.

There are a few patterns that raise yellow and/or red flags that we want to call out that are concerning, and we think community members should be skeptical about when deciding whether to spend thousands of dollars (sometimes tens of thousands of dollars) on guru training.

6 Signs Your Real Estate ‘Guru’ Might Be a Rip-Off:

1. They have a celebrity connection that they never stop talking about

In most cases, the celebrity does not make a personal appearance at the events, and their involvement is often very minimal. More important than a celebrity endorsement is a referral by “students” who’ve been through the workshop and can vouch for its usefulness.

2. They promise you’ll ‘get rich quick’

Real estate investing and wealth building is a very long-term game that comes with a lot of risk and often requires a significant financial investment. Those who are most successful are experienced pros who put in the long hours. So know this: Learning the ropes is generally not quick or easy.

You should avoid anyone with a whiff of “get rich quick” in his sales pitch, as well as “no money down” buying strategies.

3. There’s no money-back guarantee

The most reputable programs will offer some form of money-back guarantee. Once you see that a company offers such a guarantee, check the Better Business Bureau to see whether consumers complain that the company hasn’t followed through on that promise.

Expectations should vary based on the duration of the programs as well. If you are 14 weeks into a 15 week program, I would not be expecting you to want a refund on your payment. But, a 2 week program? I would definitely expect some form of a money back guarantee.

4. They are so focused on upselling you

You know the routine — you’re invited to a free seminar to learn about a new method of real estate investing, and the presenter or guru teases you with tidbits but offers nothing substantial. To learn his methods, you have to open your wallet.

This can go one of two ways. You might be asked to pay an extraordinary sum, maybe $5,000, for the program materials or to attend additional seminars and boot camps.

Or, you might be tempted by a program that doesn’t cost much only to find out later it is bait to get you to purchase even more expensive products. Either way, you’re suckered into spending a lot of money for nothing.

5. There is No Risk or downside to real estate!

All investments come with an element of risk.

So when you’re told of “guaranteed methods” run in the other direction. And fast.

You are flat out being misled if you do not think there is any risk associated with investing in real estate.

Like any investment, real estate can go up or down. You can earn a big payday when you research and make a sound investment, but you can just as easily lose big if you don’t know what you’re doing. That’s not to mention the factors that are unexpected or completely unknown that can ruin a deal.

6. Overwhelmingly Positive Testimonials and Reviews from Students

The "reviews" for a guru come exclusively or overwhelmingly from individuals who create accounts on BiggerPockets with seemingly no other purpose than to dispense undying love and/or personal loyalty to the guru, with lengthy commentary about the complete life turnaround that spending $5K - $100K had in a very brief period of time, rather than a rational assessment of the pros and cons of the program and their outcomes achieved so far.

Also one thing to consider is review what they are selling compared to what they were selling last year. Many will create programs and be a guru at the FOMO. You are not a sub2, a STR, a commercial real estate, mortgage note, private lender etc. guru / expert.

Many of these gurus will sell you on a lifestyle... Passive income and retire early, or leave your W2, get rich quick, replace your W2 income - they will tell you that you can have this wonderful lifestyle and will give you insights on how to get there (that you can get from any business book about grit, consistency, hard work etc) and they will bounce around in their presentations to make it look really hard, and then get you to sign up for the five figure training which is 1 on 1.

Whats comical is I am in note space and I can name three people who have high dollar training and one has filed BK several times and the other two owe others millions of dollars from bad deals........