The gurus got my friend!!!

[Edward B.]

So I was talking to a coworker a while ago about my real estate investing. He seemed interested so I was happy to talk to him. He said he had read Rich Dad Poor Dad back in the day and I mentioned that it might be worth rereading it. Next thing I know he is telling me that he signed up for coaching with them. Woah, what?!

Now I am not as quick to criticize the gurus as many on these forums. I do believe that some, if not many of them, do actually have some wisdom to impart. But I am just as skeptical because of the marketing machines and upselling that is a hallmark of their trade. I sat in on a couple of his telecon "coaching" sessions and they do have some good information. I keep encouraging him to do the work they prescribe to make sure that he is getting his money's worth. After all if it helps him land a deal or more it will probably be worth it. So I am strongly urging him to take the knowledge and actually apply it.

Next thing I know, though, he tells me that he is signing up for a one day weekend seminar with these guys. Um, okay. It was free but I warned him pretty strongly that these things tend to just be upsells to buy into their system more. I thought that I had rammed the point home pretty hard but he came back and told me that for just a little more money than he was paying for the coaching he could attend a three day seminar so he bought it. Now I am really concerned and seriously considering holding some kind of intervention. I don't want to stomp on his RE dreams, but I am starting to feel like this is getting out of control. The classic pay for more and more education and never actually take any real action.

Does anyone have any experience with this? Should I encourage him to hold off on further courses until he has actually worked a deal and made some money? Or should I just beat him about the head and shoulders and help him to go find a deal?

[Account Closed]

I know someone that did the same thing as your friend. The free course is an up-sell for the 3 day course he has bought. The three day course is another up-sell for a course that gives you the 'real secrets' of RE investing (for about $20,000). They will loan you the $$ for the expense course and use very questionable selling techniques. They are amazingly convincing sellers and also totally unethical in my opinion. I warned my friend but wish I had made it more clear. He purchased the expense course, he was able to get a partial refund about a year later but it was an expense lesson. 

These courses do provide some information but you can get more information (and better info) for free from a variety of places. Better yet, take the $20,000 and spend it on a down payment instead. You will learn much quicker and you'll actually be investing. I'd recommend an intervention or go with him (sometimes they allow a free guest to attend) and talk him out of it, just don't get sucked in yourself.

Not all coaching classes are without value but Rich Dad classes are notoriously bad.