How To Stay Off The Front Page In The News

The Real Estate Espresso Podcast

How To Stay Off The Front Page In The News

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How To Stay Off The Front Page In The News: A Real Estate Investing Perspective

Welcome to the Real Estate Espresso podcast discussion on building a sustainable business the right way. In this piece, we explore the shortcuts to gaining popularity which, unfortunately, result in us making the headlines for the wrong reasons.

Building A Business: The shortcuts and pitfalls

Constructing a successful business is a challenge across all industries. The journey consists of team forming, problem-solving, encountering, and restoring missteps. It’s a long process, but a misguided shortcut might lead to failure. Some try to grasp quick fame by disproving established norms or making dramatic moves to make an immediate, powerful impression. However, this approach might be setting the stage for a downfall. This manipulation also seeps into the realm of real estate.

The Real Estate Investment Scenario: Boot Camps and Sales Pitches

Attempting to win over a large crowd with exaggerated claims is a common practice in real estate. Inexperienced individuals can easily fall for high-pressure sales tactics, resulting in costly investments with meager returns. I’ve come across many operators whose programs engage in overwhelming promotion and insufficient delivery. In my experience, real estate education should not be swaying towards distasteful, pressurizing tactics.

News Reviews and Personal Perspective

An instance worth mentioning is the Wall Street Journal’s piece on Brad Sumrock’s educational seminars in Dallas – they aren’t flattering. I’ve known Brad for years and am familiar with his showy style that focuses on personal boasting and simplifying commercial real estate concepts for rookies. In reality, this makes the subject appear easier than it is, leaving students with incomplete knowledge.

Risks Involved and The Importance of Experience

Such a naive approach to real estate investing poses a risk, especially for projects managed by novice operators. Their lack of knowledge results in incompetent decisions, which can cause the project’s failure. In contrast, working with experienced individuals allows for a quicker learning process and minimal errors. I witness examples of these projects daily. One ongoing renovation project claims the pandemic to be the reason behind its cost overrun, while the facts state otherwise. These circumstances frequently hide the truth and deprive investors of transparency.

Conclusion

Investors need to question the promoter’s track record thoroughly and understand the pros and cons before indulging in such ventures. Building a successful business isn’t about shortcuts but about gaining real experience, improving, and proving your worth with competence rather than boastful presentations. As an investor, keep digging, querying, and making wise decisions. You are your best advocate.

Checklist
Understand the industry before investing
Resist high-pressure sales tactics
Research about the business and its track record
Avoid hastily made decisions
Get professional guidance if needed