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 âGuruâ 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 âstudentsâ whoâve been through the course and can vouch for its usefulness.
2. They promise youâll âget rich quickâ
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. Thereâs 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 hasnât 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 â youâre 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 doesnât cost much only to find out later it is bait to get you to purchase even more expensive products. Either way, youâre 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 youâre told of âguaranteed methodsâ 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 donât know what youâre doing. Thatâs 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.
