Business Case Of A Real Estate Guru – Part 1

Nov 14, 2011 Comments Off by

There are plenty of get-rich-quick schemes that are scams and other get-rich-quick real estate gurus that are legitimate.

What the legitimate gurus don’t teach you is their business model is different than what they preach. Their business model is based on increasing their network, finding hard money lenders (you), bringing in seed money (exorbitant course fees) and finding deals. What they typically  teach is how to make money with zero to little money down in real estate using their network. If they followed their own advice, they wouldn’t have the success that they have now. A few serious real estate investors understand the business model of real estate gurus and become real estate gurus themselves to replicate the same success.

I don’t doubt that many have legitimate advice that a new investor in real estate can use  but  due diligence must be done on the quality of information that the new investor receives.  One topic that is often not covered by these gurus is the lack of risk mitigation through substantial reserve funds and worst case scenario planning. Murphy’s law always apply. These investors must choose if they want to lose a significant portion of their down payment for information from a course that they could get out of many investment books at the fraction of the cost.

Many so called gurus offer American based advice to Canadians where their strategies don’t work with Canadian law or may even be illegal. I don’t see the value of learning another country’s laws when they can’t be applied to your own, or worse, inadvertently get caught doing something illegal without knowing it. Other gurus charge an exorbitant fee that should have been used as the down payment of the investor’s first property instead of getting it lost to a useless course.

Join Goldeneer for Part 2 of this series to look at a case study.

Real Estate

About the author

Clara Cannes, the chief author from Goldeneer is a Canadian that works as a full time employee in the engineering field. Her passion is real estate, entrepreneurship and sustainability. Clara has finally reached financial independence in her late 20's and is on the path to a comfortable retirement by 35.
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