Naked Lady Real Estate, The Bare Truth About Real Estate Investing

Hawking $2K workshops is not making me rich...

"As God is my witness, as God is my witness, they're not going to lick me! I'm going to live through this, and when it's all over, I'll never be hungry again - no, nor any of my folks! ...As God is my witness, I'll never be hungry again."   - Scarlette Ohara

I still have a few seats left for the private money workshop and - I am a bit surprised.  I cannot believe that this sucker wasn't sold out month ago.  Using Private Money to buy deals is the only way to go as far as I can tell.  This and Hard Money is all we have.

Honestly.  I know that spending $2000 is tight for many people right now.  But if there is anyway for you to do this workshop - then please get there.  I know it is going to change the ability for me to do a lot more deals and make a ton more money. And please - do not send me pompous ass emails that state the only reason I care about selling you a seat to "another guru workshop" is that I only want to make money from it.  Give me a freakin break. To know me is to know my plans do not include getting rich from hawking $2000 workshops for "gurus"!  It's one thing if you cannot afford to do this workshop at this time. I totally respect that.  But those who claim they can get this information in a $24 book and don't need to spend money on education like this... well... No tengo tiempo para usted.

As an investor - I cannot imagine not wanting to learn how to raise private money to do my deals.  Are you kidding me?  With this crazy credit crunch - there are 3 choices that I can tell of to aquire property (well maybe 4) :

1.   Private Money
2.   Hard Money
3.   Buying property subject to
4.   Wholesaling(?) Even here you need cash - unless you flip quickly.

ALL of these require cash - let's get real here.  Even buying property subject to - you still need some cash to hold and fix the propery until you exit from it one way or another. Unless of course, you have a lot of deals going at once and you can generate plenty of cash flow immediately.  Otherwise it is feast or famine until the ball really gets rolling.   

Perhaps you won't need much money wholesaling deals - IF YOUR GOOD AT IT.  This way you can aquire a property and flip it before any payments or work are required.

So - can you buy property with no money and no credit?  Yes.  But not every kind of deal and certainly not REO's.  And don't quit your day job until you have plenty of cash flow my friend.  However if you don't have a "day" job (moi) and you are a full time investor - then by god you better have money, be making lots of money, know people with money,  have multiple streams of income and many various profit centers.

Click below to watch a video Rob made last night to tell you about getting us out of FEAST OR FAMINE aspect of being an investor:

Please WATCH THIS VIDEO with Rob talking how we can get out of this rut!

This great information is also going to be part of our training this weekend!  I cannot wait!!

CLICK HERE to Please sign up if you haven't done so - Seats are filling up!

Pop Quiz: What are my pissosities about this industry?

You got it!  Gurus who constantly pitch & sell; speakers who charge you for their “bootcamps” then proceed to have 2,3,4 additional speakers there pitching product to you; $15k,$30k, (gasp!) $60K mentoring programs!

So now that I have more than my little ‘ol blog as my soapbox – and now have this club, where I am more in the public eye and have to be “professional”, “responsible”, “respectful”, and “fair and impartial” (Yuck!  Doesn’t that all sound so safe and quite frankly “Stepford” REIC owner? Gag me with a spoon!)  I guess what I am trying to say is; Is it still OK or “appropriate” for me to poo-poo all these tactics in such a public way? 

I ask because I have my own personal obligation to speak out against these seamy practices of the real estate club world and now I have my own real estate club business where I vow to never allow these practices to go on… which way do I go, which way to go?  Is it enough to just simply not have these situations happen at my club?  Or do I do continue to speak my mind about it?

Is there really such thing as a Free seminar?

The other night I was up late working and I saw the infomercial for a big “Guru” in real estate investing.  Everyone knows who it is.

 

I had several reactions as I watched this:

1. As an investor, it still brings back memories for me to watch these guys and feel like “Yes – If I buy your product – I too will be a millionaire investor!”  This is why so many good people end up buying into this bullcaca.

2. As the Club Manager of one of the largest REIC’s and who knows this “guru” pitch very well – I’m completely turned off by the “come to our FREE 1 ½ hour seminar and learn how to make a million dollars” song and dance.  It’s hogwash!  What they’re really saying is: “Come to our FREE event and we’ll pitch you for 1 ½ hours on our product or upcoming seminar that sells for only $3000K and then once you buy that we’ll pitch you on our mentoring program that is only 30K”  “You will probably learn some things, but don’t count on the majority of you really doing anything with it, since we don’t give you much support unless you pay for it big time.”

3. Finally as an owner of a real estate club – I’m so o-v-e-r this tired strategy of pitching product and mentoring programs in seminars like this.  Way back in the Days of Yore this was one of the only ways to get information from “experts”, but now there are many avenues to get quality training and education - and when I say educated – I mean educated AND supported by a real network of your peers and colleagues. 

There is nothing FREE about these seminars. Of course, if you want to learn from these gurus –will have to buy something. However this is not what’s upsetting.  I believe in buying education.  Heck I buy mentoring and coaching all the time.  What I don’t appreciate is the continuous up sell for their 20K, 30K or even 50K mentoring programs.

If you don’t buy their most expensive product, you will receive continuous annoying calls from sales people selling their “mentoring” program.  Listen, I understand this process from personal experience. I was getting calls for several months from this same infomercial guru’s sales people about 2 years ago. I’m telling you – the only thing that saved me from signing my life away and buying a 20K program was that I started working for REIC of LA and learned very quickly that all that pitch was a just that – a pitch to sell you more! I got the insiders view of this world – and as many of you know – I didn’t like what I saw. 

There are good gurus out there.  But they are probably 2 out of 5.  We just need to be careful not to fall for all the hype.

It’s important to have continuous networking, education, mentoring and coaching AND you have  to go out and do deals while you are learning.

However, the likelihood that you will get all that you seek from a “big time infomercial guru” is nill & none.  Well… that’s if you don’t have a lot of money. If you do have a lot of money, many of these gurus will love you to death and will nurture you until the cows come home if a) you keep spending with them and b) that you keep spending with them.

Bottom line: Find a good real estate group or club that you can trust, network with people, get yourself educated in specific areas, go out and do deals and fail forward fast!  Don’t listen to the guru’s own hype in order to decide if their program is right for you.  Ask people that you network with to give you recommendations on which product or mentor they like and have actually learned from. Don’t just buy blindly. And please – don’t go to the big named infomercial “gurus” and just start buying their entire product!  Not unless you know a handful of people that have personally invested in their services and have been successful.  PLEASE!  I beg you!

Review of a Guru

We just finished a seminar this weekend for a speaker named Dave Lindahl who teaches how to buy and sell apartment houses.  Even though I have heard that he is good - I always wait until I see a speaker in action before I decide if he is a worth while speaker.

Dave Lindahl indeed delivered a very educational seminar.  Well worth the price of admission.  Before this seminar, I had not considered buying and selling apartment houses as part of my investing plan at this time.  And even though he makes it sound easy (don't they all?), I am still not going to go down this path for a while.  One thing that I don't agree with is when investors get involved in every strategy out there and try to do it all.  Right now - I am focusing on just a couple of strategies for the next year or two.  However - I will say that the one thing this seminar did do for me was open my mind up to the idea of buying apartment houses.  I just didn't know enough about the subject to even consider it before and now that I have learned that it is possible for me- I am actually looking forward to learning all about it and then I'll add it to my investing in the next year or two!

So - yes - I give Dave a thumbs up.  Good news too!  The pool of great "gurus/speakers" seems to be dwindling.  People who know me know that I cannot stand speakers who sell bullshit or care more about selling the product then truly teaching. While making money is important for seminar promoters - it is just as important to actually teach people something.  The golden egg for a promoter is when we have speaker that educates and has a great home study course that actually helps us when we leave that seminar, then follows up with a great bootcamp - where they are the ONLY speaker! (Arghhh - on those "bootcamps" that have "guest" speakers!) 

 

REO's coming out of our...

Well - I just finished a 3 day REO Bootcamp with Bruce Norris and I will tell you that it has changed my investing plan for the next year at least. 

I will write about it more in detail over the next couple of days, but since I have been getting many phone and email inquiries about it I wanted to post to answer a few questions quickly. 

I have been apprehensive about dealing with REO's let alone going to those big auctions that are selling 1000 houses in one day!  I will tell you that I am singing a different tune today.  I have changed my investing strategy and I will add buying REO's from both the auctions and from REO listings to my overall plan.  The way that I see it, is if Bruce Norris tells you that this is what his plan is - then who the hell do I think I am to argue?

So my plan for 2008 is to continue to buy subject to and put into land contract and now to buy REO’s using what Bruce has taught me.

As many of us are aware, it’s a whole new world out there and what we see now is nothing compared to what's coming.  I feel so lucky to have learned all about REO's so early in this market. I feel like I am ahead of the game now. Boy oh boy.

 

I highly recommend this bootcamp to anyone who wants to learn the how to buy REO’s at auction and through REO agents.  If you are intersted in learning more about the bootcamp contact Diana at The Norris Group.

Bruce Norris Bootcamp this week!

Starting today and for the rest of the week I am in Bruce Norris' 3 day REO Bootcamp!  WOW!  It has been amazing so  far.  Mainly because he only allows a maximum of 15 people in these bootcamps so it is very interactive and hands on. 

I am learning a lot and am having a lot of business Epiphanies!  One thing that I remembered today was that I really love being a real estate investor.  When I listen to Bruce talk about his deals and strategies I feel a sense of excitement to be an investor.  Actually, I realize that I want to be more of an investor.  That is; do more deals and stop "working" in a job.  (Doesn't everybody!)

One of my epiphanies was about my strategies for real estate investing.  I have never really thought about dealing with REO's. Mainly because I don't yet understand the whole process. That's why I wanted to take Bruce's bootcamp.  It has been a huge eye opener!  I am learning so much about this part of this business - just in 1 day! I am definately changing my strategy and am going to buy REO's!  Forgetta 'bout the whole short sale business for me.  I was never really into it anyways.  But now I am really not!  I will just pass those leads onto my fellow investors!

Another of my epiphanies today:  I asked Bruce if I was wrong to feel anxious and nervous about the whole "buying 65-70%" of value. I've asked many gurus this question and i finally "got it"  today. The 65%-70% of value is what I decide what I am willing to sell the house for.  Not what the comps are showing.  If all the comps in the neighborhood are at 500K, then I would want to sell my house for 480K.  So then I would want to buy the house for 65% of that value.  I finally got it!  After all this time!  Errrr duh!

Anyway - this is a terrific boot camp so far and tomorrow we will go out in the field!  I am looking forward to that!

Stay tuned... for tomorrow...!

30K Mentorship? You better be "helping me" in more ways than one!

This is going to be a post that represents one of the reasons why I started this blog. Even though it could impact my income or the clubs income, I will always be truthful about the situation.

I've been getting a lot of questions recently about all those "gurus" mentoring programs. What is my opinion about these 15K, 20K, 30K mentoring programs that they offer to us lucky investors? Well, let's be clear here; they don't offer them to just anyone. First, you must "qualify".

How does one qualify you ask? Well you see; it's a very complicated process. First they want to know more about you. What are your goals, your dreams, your accomplishments, your ambitions... NOT!  Don't get me wrong, they do want to know about your personal life, but don't worry; they won't be delving into those silly things such as goals, hopes and dreams. In order to qualify you only need to share your financial information with them. See now that's not so bad is it?

They'll just need to know a couple of things in order to get you qualified. First let's start with disposable income: How much money do you have in bank? What about equity lines? Hhhhmm... ok. How about your credit cards? How much available there? Not much there either huh? Ok, whatta 'bout your friends? Family? Neighbors? Your friends, sisters, husbands, brother? Oh - I got it. Do you have a car you can sell? What about a fine piece of jewelry? Art? Hhhmmm... do any of your family members have a car they can sell? No? Wow - you really do need us to mentor to you don't you? After we are done with you, you be such a successful investor that you will never have to do through a convesation like this again! So let's see here...

You don't seem to qualify to be a member of our 30K Platinum Membership where you will be honored to have lunch with Mr. So&So and his other lucky Platinum Members at his workshop next year. Nor will you be able to have your monthly 15 minute phone conversation with him or one of his "inner circle" trainers, but it does look like you just might be able to qualify for our 15K Gold Membership!

Now, we want you to have enough money to live on, so let's see here... why don't we take 5K of the 7K you have on your CC's, then 5K of the 9K that you have in your savings, you can get 2K from your father, 2K from your neighbor, and then that leaves just 1K and you can make 4 easy payments over the next 4 months and there you go!

Batta Bing Batta Boom! You're qualified!! 

...The moral of the story? Don't Do It People! Stay away from this crap! While I am huge advocate for Mentoring and Coaching - I myself am in many a program, I do not endorse the bullshit mentorship programs that you must get "qualified" for and then you are not even working with the guru himself! Can you imagine? You don't even get to work directly with the persons whose program you bought! You work with some flunky that you have never met and who's probably not even doing real estate themselves! Let me say it again: Never, ever, ever sign up for a mentorship program that you need to get qualified for and are not working with the guru him/herself!

Phyllis and I just talked about this yesterday! We are so sick of these bullshit mentorship programs that all these speakers are shoveling out. There are more investors out there who have spent 10's of thousands of dollars each on these programs and still have not even done a deal!

Bottom line: Stay away from these programs!

The problem with newbies...

Because of my position at the Real Estate Club, of course I am asked all the time which speakers products I recommend and which ones are duds.  Even though I am completely honest and upfront with everyone in one on one conversations on this topic, I have hesitated in writing about it on my blog. 

But the fact remains that I started this blog so that I can share the immense amount of information that I am lucky enough to be a part of.

There are several issues and misconceptions that are the same for every newbie or newer investor. 

Before I get into this - I know there is the rare bird who studies what he needs to know to get started and goes and there in the real estate world and starts doing it!!  I was not one of them - nor are hundreds of newbies out there. I write this blog for us :)

Misconception #1:  There are many speakers out there that have what seems to be a similar product.  Let's take short sales and foreclosures. The question I get most often is which product should I buy and study?  The truth is that we should study as many different speakers programs as possible. If you want to learn everything that there is to learn on the subject then you should study everyones approach.  Most everyone has a slightly different take and in the programs I have studied so far - I have learned something new from all of them:   Dwan Tywfords, Ron Legrand and Jeff Kaller, Michael Quarles, Lee Arnold.   And there are more to follow!

Misconception #2: Once I buy and listen to a product then I'll know everything I need to know and will be ready to go out and make millions doing it! This is the most harmful misconception to any newbie.   

More than likely - now that you have a little bit of knowledge you are probably even more nervous or scared to get started and you don't know where to begin - so you don't!  We become like a deer in the headlights. Have you ever heard of the term Paralysis of Analysis?  Or we do start to brave the new world and discover there is so much more than what is taught in most (or let's be real - ALL programs), that we start to make mistakes or worse - get into some real trouble that potentially could stop us from venturing out on our own for sometime.  Quoting a famous "guru": Ask me how I know this?

Misconception #3: If I go to a meeting once a month and talk to one or two people I am creating a team and a network.  It is amazing to me that there are folks who are desperate to be an investor, but only come to a meeting every other month.  They don't talk to people and network, and then month after month, they are still in the same position.

If I can accomplish anything at the club manager of REIC, I have come to realize that this is what I am here to change.  From my experience - I have realized one of the most important reasons why I am able to "get out there and DO IT" is because I am constantly talking and networking with other investors.  I start study/masterminding get togethers which help us all learn from and encourage each other to DO IT!

The information that I get when I network with people is imperative in my learning and growing as an investor.

But the bottom line to all this is that no one will ever be an investor until they get out there and start doing it!  Sure you will make mistakes, sure you will be scared, and sure you will probably not make the amount of money you thought you would on your first deal.  But who cares!  If you don't get off your butt and get out there and start SOMETHING now - you never will. Believe me - it took me 6 years from the time that I was last in real estate investing to now when I am "back in the game".  Why?  Because I was scared to make any more mistakes, I wasn't sure I knew what I was doing, and I didn't have a network of real estate investors and mentors who I could count on.  Now that I do have my network and mentors and have a lot more education - I have no excuses!