We’ve all probably seen them – those late night infomercials where we are told how much money we can make by just “simply” flipping a few properties every month on the side. Soon we can quit our job and become real estate millionaires and live the good life, just like they do, if you just sign up for their tell-all course.
But can it really be that easy to make money buying and selling houses from your kitchen table in your underwear? Maybe…but not likely.
Unfortunately, there are plenty of real estate investment scams out there that would have you believing otherwise – especially as the market starts to recover. And, while there can certainly be some good deals in the market to be had, it’s important to be careful that you don’t fall victim to the scam artists out there. Otherwise, they could be the only ones who end up profiting.
Here’s how many of the typical real estate “guru” tricks work:
First, there’s usually the initial “free” seminar. Here you will learn just enough enticing information to lure you into the 3-day or 5-day course that the guru or company is trying to sell. Oftentimes, this course can cost several thousand dollars – or more.
Near the end of the free seminar is where they really put on the hard sell – offering various payment options, and even inciting fear tactics for those who don’t sign up, stating that they’ll be “missing out” on the opportunity of a lifetime.
If you do happen to move forward with the paid course, the tactics typically don’t end there. Throughout the multi-day course, it is likely that you will be hit with more “guest speakers,” all who just happen to have their own proprietary information that you “need” in order to succeed in the business. And, they just happen to only have a limited number of their courses with them – which will often incite near panic in people to get to the back of the room to purchase them.
If you aren’t careful, you could find yourself out multi-thousands of dollars – and still without any investment property to show for it. So, in order to help ensure that you don’t fall for these types of scams, be sure that you do your research prior to signing up for any type of real estate guru’s course. Run a quick Google search and read through some reviews – both positive and negative – and get a true feel for what others have to say about them.
Also, be sure to keep your emotions at bay. While it can be easy to get excited about excelling in real estate deals, you must also be sure that you – and they – are being realistic about what is displayed in the presentation. In other words, if you can see through the sales tactics, you might want to move on. Knowing what to expect can help you to be more aware of when the big “sales pitch” is coming – and to head for the door when it does, keeping your wallet tightly closed.
To truly make money in the real estate world, it takes time to really research the properties that you are interested in. Also, having a good property manager on your side can help you to reap the benefits of your investments – without having to spend a great deal of time on the maintenance or tenant relations.
Give us a call and let’s talk about how you can move forward the right way in real estate investing.