All Forum Posts by: Justin Shanahan

These "Free Real Estate Investing Seminars" have been becoming more and more popular recently and I just wanted to give my take on them before people get scammed out of their hard-earned money. 

After I attended one of the "Rich Dad, Poor Dad" real estate events last year, I wrote a review (http://bit.ly/2n7J3UN) about how much of a scam it was. I have been receiving tickets in the mail for these seminars as well as hearing about them on the radio. So here it goes:

Believe it or not, this whole scam started with the one and only, Donald J. Trump. Heres how the system they are all running works. They advertise a "FREE" seminar on real estate investing. So of course, people get the idea they're getting free education so alot of people show up. Upon attending the "free" seminar you'll learn a few things about real estate, but you'll learn more about this 3-day seminar special they're giving away for 50% off to the attendees. Typically they'll say you can bring a friend for free to make the deal sound better. Sounds enticing, Right? Wrong! So if you fell for the trap, you now are gonna attend a 3-day seminar. Which is similar to the free seminar, you'll learn a little bit more about real estate investing, but you'll learn more about this "amazing, elite, exclusive" mentorship program that they offer ranging anywhere from $10,000-50,000. Don't have that kind of money? No problem, 1 of the 3 days you learn all about credit cards, and they even tell you to "go home and call your credit card company and tell them you want a credit increase!". So thats mainly how the system works. Its all about baiting you in to buy their "mentorship program" for the same price of a college tuition. 

Back to the Donald. This system first started with "Trump University". Im sure you've heard of it. The fact that this system is still scamming people out of thousands of dollars is beyond me. Looking back, Im happy I fell for singing up for the 3 day seminar because it gave me a good insight on what they were doing, but I'm also mad at myself for not realizing it off the bat. Just look up Tigrent Learning, they are the company who uses this system but just using it under different company names to get away with it. Dont fall for these scams!!! Everything you need to know about REI you can learn through books and on BiggerPockets. If you're looking for a mentor, attend your local ACRE or REIA meetings and you shouldnt have a problem finding someone willing to teach you what they know. And its actually FREE!

This is a subject thats widely debated in the REI community. Im just starting out in investing in real estate, and of of course im trying to learn as much as possible and I need to take action soon. I signed up for a 3-day course from the Rich Dad events for $499 (Heres my review on the course: Rich Dad Event Review) and I didnt sign up for the follow up program that costed $18,000-$60,000 because I figured it was common sense. 

My questions to everyone out there is:

what is your opinion on paying for REI programs and mentorships? 

Has anyone ever put the large amounts of money the "gurus" charge and found it worth while?  

Is there a course that is worth the money and I should look into?

From my understanding, everything I need to know can be found on Google, Youtube and most importantly here on BiggerPockets but I was just curious as to what you guys had to say. 

Guess that's a big part of crunching numbers....$1000 a month for rent.

Exactly what I was looking for. Much appreciated @Jacob Blackett 

Does anyone have a Google Sheets spreadsheet for plugging in details on a rental property to calculate the cashflow that they can share with the BP community? I know there is calculators here on BP but I used all 5 of my free ones. 

I have been practicing crunching numbers on properties and since I havent found any blogs with examples for practice, I decided to put one together real quick for fun. 

Grab a peice of paper and write down the numbers and calculate the cash flow on your own then click the link for the answers and my calculations. 

Triplex Price- $210,000 

Mortgage- Fixed 4% over 30 years with 25% down 

Taxes (anually)- $900

Insurance(anually)- $400

Management- 10% of rent

Repairs for future- 10% of rent 

Quiz Answers

Now obviously these arent in detail, but just a quick quiz I put together. 

I am essentially in the same boat as you. I'm just getting into REI and I plan to take action and make my first deal within the next month or two. I am going to master wholesaling properties then work my way into flipping houses and accumulating rental properties along the way. My advice from what I learned so far: It's not going to be a walk in the park by any means. First things first and invest in yourself. Read as many books as you can on the type of investing strategies you want to learn and REI as a whole. A popular book a lot of people start of with is "Rich Dad, Poor Dad". It changes the way you think about money. There are a ton of good books out there just do a google search. On top of that, spend a little bit of time everyday just scrolling through BP and reading forums. Also, download the BP podcasts onto your phone and listen to them in the car or whenever you have down time. They have a bunch of intelligent investors on their episodes and all have their own niche they mastered to become successful investors. As far as networking, reach out the the local REIA of your area. I meet up with local investors every Sunday and the third of every month and just listen to what they have to say and take notes. Eventually when I find a deal I may want to take they will be more than happy to go look over the deal and give me advice. Networking is key in this industry. Best of luck to you.

@Dave Foster the more votes, the more feedback, the more feedback, the more lessons I learn. Plus you have to remember im 18 & we use twitter & instagram. Only old people use facebook anymore....

This question is one of my favorite questions to ask all the people I connect with when it comes to real estate investors.

Ive always been interested in investing. I started out researching the stocks and making a few small investments in the stock market and have recently been researching and attending classes on real estate investing. Im mostly interested in wholesaling and then working my way into flipping (since I have a good bit of experience in contracting) and acquiring rental properties along the way. My overall goal is to be financially free by age 28 and be able to travel the world.

Being that im only 18, I'm always the youngest person by atleast 5 years whenever I attend classes on real estate investing and meetings with the local REIA.

SO, my question to everyone is what would you tell your 18 year old self knowing everything you know now? What would you go back and change? 

Im curious what everyone has to say. Please vote for this post, the more people to share their thoughts the more it will benefit my investing career. Thanks!

Its all part of their marketing strategy haha. Also ironic that while although my instructor was well-educated and informative, she quickly mentioned how she has a degree in marketing.....interesting.