A simple mans guide to Realestate By Bill Vaughn

[Aaron Mund]

I just purchased “the simple man’s guide to real estate.†Has anyone tried it? I looked at several others before purchase. It cost about$110.00. I got a manual, a contract maker, and I paid $10 to get a coach for 2 years rather than just 1 year. It is also a not for profit. I guess I had little to lose. Tell me your thoughts?

[Cornelius Garland]

I realize this in an older thread, but hopefully the following information can assist someone who is considering purchasing Bill Vaughn's course.

Overview of the Course Materials:

I read through the Simple Man's Guide to Real Estate three times and also listened to the audio CDs multiple times. The course comes with several smaller bonus books that cover topics ranging from handling short sales to creative problem solving. Like most novices, I bought the book with the intent of learning primarily about wholesaling; however, the book only touched on the topic briefly. Nonetheless, this provided me with enough information to begin the process of thinking like an investor and learning the REI vernacular. Mr. Vaughn places an emphasis on unconventional and creative deal making (e.g., discounted mortgages, triple-net-lease agreements) and deviates from the typical approach most gurus pitch to new investors. The contract creation software is solid and well worth the price of the course. The purchase contract has enough weasel clauses to buy you 130 days until you're required to close a deal; of course, doing this will be very unfair to the seller.

Overview of the Mentoring:

I purchased the VIP membership with the course since it was only one dollar and received my 20-minute phone consultation with Mr. Vaughn a couple of days before I was to be charged $45 for the next month. I was on the fence about canceling the membership, but decided to keep it for another month after I spoke to him. He gave me some great advice, and I will go into detail about what we spoke about. I prepared some questions regarding wholesaling, and told him I planned on targeting vacant homeowners using direct mail. Surprisingly, he stated that direct mail was not a good marketing method and he found little success in his campaigns. He then stated that I should target homes listed on the MLS or FSBO homes and create motivated sellers by calling these homeowners and offering to purchase their property 80% below FMV. He then stated I should turn around and sell the homes to a family who is planning on living in the property, not an investor. What he said contradicted what I've been learning from the experienced investors on Bigger Pockets and my REIA. While I am not disregarding his suggestion due to his extensive REI experience and familiarization with the North Carolina market, I do believe Mr. Vaughn is a bit removed from updated practices in the REI world. I'm assuming he lives in a location where dilapidated blue-collar properties are not as abundant as they are in my area. Also, I did not ask him how I would actually motivate these sellers to sell at such a discount. However, I understand how purchasing a home that requires no repairs and has 20% or more in equity is advantageous to an investor or homeowner, which is why I am currently considering this approach. Lastly, he stated that he should have covered negotiating more in the book and indicated that 90% of his success is credited to his ability to effectively negotiate. He encouraged me to read every book I can find on the topic.

Summary:

Mr. Vaughn's course is definitely worth the price; however, I cannot justify spending $45 on the VIP membership. If you happen to get him as your mentor, then I see no need for the monthly phone call. If I have a deal that needs evaluating, I can simply send the information to him via email and use the money I saved on other business expenses. Overall, it is a great place to start, and I will experiment with some of the techniques in the book later in my career. It is worth a read and priced reasonably considering the quality content you receive. Let me know if you have any specific questions regarding the course.

-Cornelius