Here we go again! Another product launch, with a new "miracle cure" to making money in real estate. Aren't you tired by now of all of those self-styled "gurus" trying to part you from your hard earned money? If so, then this post could be the most important thing you ever read!
This new product launch is about is taking old information and putting on a new shiny coat. The email campaign you are going to be bombarded with " Making money is officially no longer difficult!" - Not when a raw rookie -- a preacher, in fact -- does an $8,000 deal with just a cell phone and a couple of local car rides..."
Do they really thing you are that dumb and desperate to believe this crap?
Once more we are being inundated with emails, and webinars about a new "kind of pie in the sky scheme" for instant real estate success (in my opinion it's a money grab from your hard earned dollars) and unless you were literally born yesterday, I'm hoping you know to approach these come-ons with at least some level of skepticism.
Of course, it's not usually those who have been in the industry for any length of time who fall prey to these fly by night schemes - and yes, 99.999999999% of the people trying to sell you "miracle real estate instant wealth" systems are going to be long gone and on to the next scam by the time their hapless customers get wise. It is newcomers to the real estate investment business who get burned by these frauds, often over and over again.
What amazes me also are the other real estate gurus who promote this crap! Take note of every one of these people you get an email from, and STAY CLEAR of them too! These people have no regard for your success. They do product launches solely to prey on the gullible, desperate, opportunity seekers who dreams of real estate wealth. These scammers recently held a get together in Tampa put on by (no substance or original thought) Zack Childress.
The real estate scammers (since I refuse to call them gurus) are able to find new victims constantly because of a few basic elements of human nature:
1) As a very wise huckster (David Hannum, not P.T. Barnum as is commonly believed) once said, "There's a sucker born every minute."
That is to say, in an industry as large and potentially lucrative as real estate, there will always be more eager, easily led newcomers, especially now that the web has made it so easy to learn about opportunities, both legitimate and fraudulent.
2) Optimism: We naturally like to give others the benefit of the doubt and assume that people are basically good, don't we? That's fine most of the time, but in business, it's not an assumption you should ever make - but it is one that the scammers know most inexperienced investors do make.
New investors need to balance this optimism with a little realism. How likely is it that a wildly successful real estate investor would be giving away their trade secrets, even assuming that they had found some kind of winning system for investment? Not very - and how likely is it that they'd be selling it to every Tom, Dick and Harriet! It's also not the case that they'd be using poorly designed, gaudy, cheap looking website, laughably outrageous claims and obviously fake testimonials).
Be forewarned, this new Automated Real Estate system is going to cost you $997 for the basic system. Of course it will have 3 levels to "invest in your future" while offering you a bootcamp to come and learn his secrets. What he is not telling you is that it will be a "sellathon" of every other guru's material he thinks you need to be successful. This is not to mention his $25,000 dollar sales pitch for his coaching program! If you get sucked into this, you have been warned and no one else to blame but yourself. Do you really need to pay 1K for a WHOLESALE course with some basic software?
A simple rule to live by in real estate investment is this: before you get too excited about anything you read, consider the source.
3) Desperation: No doubt about it, these are tough times for a lot of us and the promise of becoming wealthy literally overnight is just too tempting for many to pass up. This desperation can easily overwhelm even an otherwise reasonable person's natural skepticism. After all, what if it DOES work? And it's only (fill in the price point here).... Which is exactly what the real estate scam artists want you to think.
We're seeing an explosion of scams in the real estate investment sector right now, as scammers use one product launch after another to try to cash in on the desperation, hopes and naiveté of new potential investors. All too often, it works, sadly enough - but if you're still reading, then hopefully you've learned enough to avoid these fraudulent operators.
Once you've spent a little time in real estate or even in carefully examining these online real estate products and comparing them with the way that long established, conventional (read: legitimate) realtors and real estate investors do business, it's not hard at all to spot the scams.
What I will tell you is this: if someone calls themselves a guru, run, don't walk the other way. If they're trying to sell you some kind of "miracle wealth machine/system/etc." it's a scam. Save your money and steer clear of these hype merchants. No matter what they tell you, they're all after the same thing - grabbing a little (or a lot) of your money and laughing all the way to the bank while they leave you with a completely useless product.
How To Spot A Real Estate Scam Artist
There are some tell tale signs which you should be aware of and below, we'll explain a few of the things to watch out for, especially on the web.
One: anyone who uses hyped up, subjective descriptions of themselves or their professional qualifications, especially those which are difficult or impossible to substantiate, is either a scammer or is just trying to hide the fact that they don't know what they're talking about.
If you see language like "the leading expert in the field of real estate" or "most highly acclaimed expert", this should raise a red flag instantly. If you look closely, you'll see all kinds of baseless claims here - by contrast, real experts will use dry, factual statements about themselves and their careers.
Two: Watch out for anyone who claims to do absurdly large numbers of real estate deals. Keep in mind that these "gurus" don't have any more hours in the day than you do and if they seem to spend all of their time promoting themselves as real estate investment experts, it's not likely that they do many, if any real estate deals themselves. Beware anyone who makes these kinds of claims. One recent launch, a guru (Phil Grove) said he did 3,600 deals in 2 years. I don't think anyone questioned this! What ..that's one house every hour - Sorry not possible !
Three: If it sounds too good to be true, it is. Look carefully at any testimonials they use online or in their print or broadcast advertisements. If you see claims which just simply sound unrealistic, chances are (and I'm being charitable here, what I mean is CERTAIN) that it's a scam or an inexperienced real estate investor hoping no one will notice through all of their hype.
Four: Watch out for any of the following words and phrases (this is applicable even outside of the real estate market, so keep these in mind) - they indicate that what you're looking at is almost surely a scam and is at best a poor investment.
- "Sure thing"
- "Gold mine"
- "Anyone can do it"
- "Risk free"
- "This is not a get rich quick scheme"
As an investor or prospective real estate investor, it's important to be careful. All too many people are lured by these pie in the sky claims and assurances of great financial gains with no risk. Real estate isn't magic - it's an investment and there are always risks involved. When you work with a reputable (as in not anyone who makes the kinds of claims we've discussed here today) mentor/ coach/ trainer and/or get your information from real-life real estate investment professionals, you will be able to minimize your risks and increase your odds of bringing in a healthy return on your investment.
If I've said it once, I've said it a thousand times. If it sounds too good to be true, it is, especially when the subject is real estate. It's true that it's a great time to get involved in the market - but as always, you need to be careful if you want to be a successful investor. When it's your money on the line, it pays to be skeptical: these are words every real estate investor should live by.