I know this is kind of similar to my other post that I have but it has a completely new twist.
I was in contact with a RE guru’s company who focuses on multifamily (he will remain unnamed) and I was contacting him to find out more about his coaching program. I went through the process of talking with his strategists and setting goals and of course, they got me really excited and made me realize that I really can accomplish more than I even thought possible. This company honestly did offer great advice and I felt as if they really did know what they were talking about. As the process was going on, I really got excited about the coaching program and I thought that it was truly going to help me reach my goals.
Then came the price of the coaching program…$15,000!
I’m a 21 year old college student and I have little resources to begin with let alone having $15,000 just for a coaching program. The strategist literally said, “I hope you are sitting down……the price is $15,000.” I felt as if I was hit by a truck because I couldn’t even believe the price! I was expecting maybe 1-3k not 15!
My fiancé and I are really looking at this as a setback because we were completely on board with the coaching until we heard the price. We are for sure not allowing this to set us back a lot and make us quit but it was just a MAJOR shock to us.
I realize that they play up the importance of a coaching program because they want you to buy it but I guess we are feeling a little like it will be more difficult to start and reach our one year goals now without that extra help.
I guess I just wanted to share this and see what you guys thought of it and wondering if this ever happened to any of you out there. Any advice, encouragement, or comments would be greatly appreciated!
Buying lunch and maybe helping a local investor will be a lot cheaper for you. Don’t dig yourself a hole in the beginning with thousands for coaching. The people telling you that you need a coach are the ones selling their services. You can learn a ton by talking to people doing rei. Don’t talk to someone who only has a couple properties. Find a bigger player.:
I have alwasy felt that some coaching programs or books and tapes were worth the $$$.
However: that having been said look at it this way.
Taking into consideration that all your materials, books, tapes, presentation materials, etc are already paid for.
Which is the quickest way to make a MILLION dollars.
Buy real estate and wait for it to appreciate?
Or…sell books and tapes and seminars.
Say you book 10 late night TV stations for one hour at $5.000 per hour.
During that hour each of your TV stations sells 100 of your books, tapes, seminar, training camps, coaching programs, etc., whatever you wish to call it at a mere $795.00 each.
Now that brings in 10 X100 or 1,000 X $795 or $795,000 minus your $50,000 for station time.
Which do yo prefer?
My expereince has been that if it were as easy as they say it is…they would be doing it and NOT selling trade secrets.
As someone else posted about their friend…I know someone who spent over $70,000 on books and tapes and coaching, etc…and has NEVER bought his first property.!!
We all know the importance of real estate knowledge. It is undeniably essential to succeed in this field. But spending thousands of bucks for that so called knowledge? Hell no! I guess spending around a thousand dollars MAX is ok. This is also a kind of investment that you’ll surely use later on. Think of it as the books and materials you’ve paid where when you were still attending college. But $ 2,000 and above is just too much. It is better to maximize your resourcefulness by thorough research, experience and being a part of a community (like Rei’s) so you could gain insights from others and also use your experiences to educate newbies. Good luck!
I saved up $2000 by working, just so I can attend their 3 day workshop, only to be told the next level is $14000. I told them I only have $3000 in my bank. So one of the guys says ok fine, i will take you as a student for that amount. And after that I paid but he never did anything for me. Nothing! And to this day I don’t even remember what they’ve taught, but it was all useless.
You thought I would learn my lesson, a year later I signed on another program, but this time the “guru” promised to be my mentor for 2 years. The course cost me $6000, and in my first deal I lost $5000. Can you believe it? Again, this “guru” sits on his ass and never did anything to help, never called or gave advice.
And then I started to look at it myself and with one of my co-worker. But I relied on him too much, in fact the co worker cheated me out of $3000 dollars.
So, over all I’ve lost close to $20,000. but Finally, I’ve learned my lesson. (I ain’t too bright)
It’s ok to try to find a mentor, but never totally rely on them. This is a business, you NEED to have the ability to think for yourself. Most of the time people pay for these gurus because they are scared to, or too lazy to find out the information themselves.
also, just a personal opinion, if you
A) doesn’t have a car
B) doesn’t have a job
C) doesn’t have at least $2000 to spent on this for marketing purposes and other expenses
it’s going to be a lot harder for your to succeed.
I have found a couple of MUCH cheaper options for me such as my local SCORE, REIA, and a commercial broker who might be willing to help me learn.
I feel like once a person spends thousand and thousands of dollars on RE coaching and teaching and if they still don’t have a property, it most likely is their own fault. I have talked with people before who are absolutely terrified of taking action and instead they keep buying books and coaching in hopes that this will help them.
I think what it really comes down to is how badly you want it. I know taking action in the beginning can be scary but I feel like many people try to make excuses as to why they can’t take action and many times they are the ones who keep buying course after course and coaching after coaching without any results.
There are a lot of better and less expensive ways to learn how to invest in commercial real estate (including multifamily properties).
It may be early for you to hire a coach. Often finding a group setting of like minded investors can help you bypass some of the initial costs of learning. I’d also suggest that you consider partnering with an experienced investor on a few deals so that you can learn the ins and outs of sourcing, negotiating, acquiring, operating, and disposing (the lifecycle) of an investment property before going on your own.