I am writing this so you know how to avoid a real estate investing scam at a seminar. Sure, mentoring is a good thing, but how you choose your mentor is another. Commercial real estate investing has the distinction of of being one of the few investments that enable skilled and well trained practitioners to make money regardless of current economic conditions.
Because of the recent soft commercial market and economy, hundreds and thousands of would be investors hoping to make a quick buck buying cheap property are entering the market. Lacking the expertise to find deals, these dreamy eyed investors turned to " self professed" commercial gurus : (you know who I am talking about ) who made pie in the sky promises. These "want to be" investors eager to learn the trade dropped 10K - 30 K at her well hyped bootcamp. Unfortunately they have been taken by a huckster. They are very happy to relieve naive investors of their hard earned cash. If you ever consider any real estate training program, educate yourself first and avoid becoming a victim.
It is easy to be taken in by this sales professional. However, dig a little deeper into their back ground and you would be shocked. Have they ever personally invested in Commercial Real Estate before? The sad truth is NO. A sure sign of a scam artist is that they avoid specific questions around their net worth, and experience level is brushed aside because they don't want the truth to get in the way of a perfectly good fraud.
Here is how it works
How many times did they use the tactic at the event and on webinars to mention certain "buzz" words like motivated seller, power of leverage, partnering, desperate lender? How many times did they refer to a NO Money Down Deal to get you to sign on the dotted line for her coaching program? They promised you the world, but I am telling you she /he/ they cannot deliver.
Did they start their presentation o with some "folksy" stories about "real" deals that he/she/they supposedly have done, (KH - deals from your previous employer are not your deals) and it was full of embellishments. Unbeknown to you, you're being led down a path to a major up-sell. Before the big push, they will try to pre-qualify you for it by teaching you a secret technique that will allow you to make a "no money down" purchase. (Which was so old and doesn't work anymore its ridiculous)
The tactic to part you from your money was that they will partner with you on deals. (After the event and your refund period is gone, they now say "OOPS , NO sorry no you have to qualify for the money" In other words this is not partnering , it is a LOAN!)
At this point, he/she instructed you to :
1. Call your credit card company and request a credit limit increase because you need to take advantage of limited spots going fast !
2. Offered a payment program.
Now instead of using your money to invest in real estate, you have been pushed to purchase more training. The excitement in the room increases and rose to a crescendo pitch and then many other attendees where like sheep to the slaughter . I bet you did not know there were probably PLANTS in the room to get the line moving!
Did you feel inclined to step up out on a limb and make a leap of faith, falling for the principal of "social proof" seeing others making the purchase, you too try to prove your commitment to your real estate investing future by following their lead? At this point .. Yes.. You been SUCKERED !
Here is the other item that annoyed me, The continuing pitch of "done for you" ! Real Estate investing takes time and work. Anyone who tries to say, just go find us a deal and we do all the work, and you get the money is a LIAR. They are deceiving you with false promises and false teaching so they can hide their true intent.. to sell you a worthless bag of goods! Don't be a victim. You are deceiving yourself if you bought into her crap.
SO if you got suckered, chalk it up to experience. I hope you can get your money back, but I am sure you cant.
Here are the 6 Key attributes to a Good Mentoring Program
1. Does the coaching program offer personal coaching be a professional and experienced staff in a physical location you can visit? ( not a call center where some reads from a script )
2. Does the training program have additional materials you can borrow? I do know that Karen sent every real estate investor guru an email asking them to give one of their courses to her students, so that they would have the opportunity to sell to them later. - Not quite the same thing.
3. Can you network with other students to expedite the learning process and possibly forge relationships?
4. Will she provide you with a list of former students you can contact?
5. Does she have an established track record with the Better Business Bureau?
6. More importantly , are there any written guarantees that will be honored if you don't do a deal?
So you probably fell victim to a good speaker who is more skilled at selling themselves then at commercial investing. Let me recap how you fell spell without even knowing how you whipped out your credit card.
What do you think of Karen going on vacation directly after selling 3 million in coaching ? Should she be not rather fulfilling the partnering she promised at the event ?