The Illusion Created by Real Estate Gurus

I received an email today that pushed me over the edge of my patience with real estate investor marketing in general. Over the years it seems to have grown easier and easier, until today. Now it’s as easy as it’s ever going to get. I know this for a fact because the email subject line read, “Real Estate Investing for First Graders.”


I am not making this up, and I am not going to name the guy or the title of his book because what I have to say about them is not flattering. Too bad we can’t meet and discuss this face-to-face, but he probably wouldn’t be interested in hearing from a veteran real estate investor, one who has weathered every type of market and still managed to survive and thrive.


No, he wouldn’t want to talk to me. He’s too busy pumping sunshine, apparently to first graders now. I wonder who signs the purchase agreements since they are underage and therefore any contract they sign would be void? And I wonder who pays their course fees and keeps them entertained?


Some first graders probably have longer attention spans than many adults interested in flipping real estate, especially since those adults may have learned everything they know about investing in real estate from hour-long TV shows, encompassing the entire process from purchase to remodel to resale. Right…


So, back to the nameless real estate investor/author. I’d like to say a few words to him right here, so thanks for going with the flow of my thoughts and my strong feelings. Don’t take them personally, unless you’re that guy!


“Telling people that real estate investing is easy is a lie. It’s a big lie and you know it. Finding good deals and getting the money to buy them and to rehab or remodel them is NOT EASY. It used to be a lot easier before the mortgage crisis, but now it takes cash and good credit and a good financial status to borrow against investment properties.


“Did you include stories about nightmare tenants who tear up the place (literally) or disappear into thin air or commit a crime in your property? Did you explain what happens when you have to go to court and the judge has a standard presumption against landlords on behalf of residential tenants? Did you include a section on appraisers who increase taxable valuations with no legitimate neighborhood comparables, forcing you into the red every month?


“Oh, but maybe you didn’t encourage your readers to rent out their properties. OK, fine. Did you mention that a municipality can demolish buildings without your permission? Did you explain what happens when buyers never show up at closing at all, fail to answer phone calls, texts and emails, and simply cannot be found? Did you give your readers any idea what they will have to give up in order to gain a real estate portfolio that gives them the freedom you so emphatically promise?


“I know you won’t read this, but I hope plenty of real estate professionals read it, because they know how much damage you and your kind can cause. It’s pitiful. YOU are pitiful, and I hope you hear from a few of your readers. Maybe you’ll listen to them. Maybe.”