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Are All Novice Real Estate Investors Seeking a Get Rich Quick “Fix?”

What’s the allure of real estate investing?  Why are so many people drawn to this field as a means of creating a second income?  I think this is so primarily because it is sold as a get rich quick scheme.  Have you ever been to a real estate “seminar” where the presenter shows testimonial after testimonial of one of their fix and flip students bringing home a $20,000 paycheck on their first deal or maybe even a $100,000 paycheck?  If your answer was no then you have never been to a real estate “seminar.”

These types of presentations abound and they are packed with people, especially during these difficult economic times, who are trying to make money quick in order to get out of debt, restock their lost retirement accounts, or maybe so they can quit their unfulfilling j-o-b.  Whatever the reason, so called real estate gurus are making a killing on their systems, charging $2000 to $5,000 for a get rich quick scheme.  Like health club memberships, few people ever use them even after they have shelled out the shillings.  But these individuals really do need an opportunity to help them recover from whatever economic difficulty it is they are facing and what they heard is that real estate is a great place to do that from some late night infomercial.

I too have been charmed by the fast talking, funny, story-telling salesman who has convinced me to purchase his system so that I too could get rich or die trying.  The 2 systems I purchased and kept were the organizing ones, the tracking systems, because it’s hard to organize all these files and reports.  They also included comp programs so that I could properly value the properties I was interested in getting rich quick with.  Even so, the guru’s website degraded, leaving me without the tool for which I had made the initial investment.  That was a disappointment and a waste of money. The other six systems I purchased  were immediately returned within the time frame allotted because my romance with the speaker ended 24 hours later and I came to my senses and recognized the pitch for what it was—a pitch.  I learned something from each guru’s presentation for sure and implemented many ideas gleaned from each but I never got rich quick.

I worked hard and long hours to find the leads, menial work like stamping postcards especially in the beginning.  I placed the phone calls at the proper times, evenings and weekends, to try to catch my targets at home.  I door knocked and left door hangers.  I created and analyzed spreadsheets for good tax lien leads going up for auction, researched 40 homes only to have 2 come up at auction—of course the worst two on the list, which I had no interest in.  I did all of this in a declining California market over the course of the past few years.  I have tried hard to get rich quick but there is no such thing in the real estate world.    It takes hard, focused work, like anything else.  So if you think you are going to get rich quick in real estate, keep going to those seminars,  keep buying those systems that are collecting dust on your shelves and keep telling yourself one of these days you will figure out how to get rich.  In the mean time, keep your day job.

Please add your comments.  I love a good dialogue. Peace, Megan