I'm not Your Guru. I'm your Guardian.
Because what you’re hoping to accomplish, I’ve already done it. But beware.
Today’s Read Time: 9 minutes
Today, we’re talkin’ mindset, online gurus, courses, and why you shouldn’t pay for coaching or mentorship. Warning: I get a little spicy; I’m going to catch a lot of shit for this article, but I can’t help it. I’ve gotta give it to you straight.
This week’s article is no fluff, only results.
Let’s get into it.
Today’s Interest Rate: 6.73%
(👇.06% from this time last week, 30-yr mortgage)
The Weekly 3 in News:
Shadow Federal Reserve President Campaign Heats Up. FHFA calls for Chair Jerome Powerll to resign and for Congress to open an investigation into his “political actions (FHFA).”
You will soon be able to use crypto to buy a house. Fannie Mae and Freddie Mac were just ordered to count cryptocurrency as an asset for obtaining a mortgage (FHFA).
Inflation is finally over. How do I know? Coffee is cheap again! Down 33% in the last 5 months. Congrats everyone, we did it! :)
Everyone Thinks They Want The Answers to the Test
I have some bad news for you. If you are waiting for someone to tell you what to do…
…it’s going to be a long wait.
Like my high school math teacher would tell me, it doesn’t matter if your answer is right, “you have to show your work.”
Someone else is not going to just tell you what to do, or give you the answer. I know that is often what we think we want. I hear this often from clients, readers: “Just tell me what I should do, Skeptical Investor!” How do I become successful in real estate!?
I’m sorry, I just can’t do that.
If you want someone to give you the answers to the test, you won’t learn shit. This is something I think about a lot with the advent of AI and LLMs churning out answers instantly.
Counterpoint: Then again, I did have my trusty TI-85 calculator back in the day, helping me check my polar equation work and graphs. That thing was amazing. But it didn’t just do everything for me. I still had to use a few brain cells. Perhaps AI will make us all 10x more productive and accelerate our learning? For example, if we are still learning languages. That would have been quite a helpful tutor for yours truly.
Or maybe we will just devolve into a future of “Idiocracy,” and we feed Gatorade to the plants because water is for the toilet…. (if you haven’t seen Idiocracy, put that on your movie shortlist immediately).
But I digress…
Finding the Answers, Doing the Work, Getting into the Arena
In life, you can’t study for the test. You just have to get started. Find people who are making real money and attach yourself to them like a spider monkey. Learn from them, and offer your services. Bring them value. Find a pain point they have. Fix it. Bring them a deal. Are you young & hungry & willing to sweat to gain their favor? You could offer to mow the lawns on all their properties. Are you a realtor or property manager? Show them how you can help them boost rents. You could use AI to generate a picture of their property landscaped. Show them what you can do to boost rents in their rentals. Sales is solving a problem. So sell yourself. But whatever you do….
…do NOT pay for their tutelage. keep reading).
I’m “self-made,” but what does that mean, really? I started by educating myself, hustling, reading, listening, devouring knowledge, shadowing, and then just dove in and got in the arena.
True.
But in the end, we all stand on the shoulders of giants. I was woefully undereducated from when I started to now. Wow, I just had a thought. It’s scary just thinking about how much I didn’t know. But everything I do now, I learned. You know what that means? I followed something someone else had already done. I didn’t reinvent the wheel. I just put in the hard work, the smart work, and then added my own little spin on it. I had to educate myself, but I didn’t have all the answers before I got in the game. Not by a long shot.
I learned what I got from the OG, and I can teach you what they taught me.
Find your OG.
Mindset
Oftentimes, I see with new and established real estate investor clients that it’s more about mindset than pure know-how, which differentiates the successful from the not. Remember, we have faculty over our own minds and actions. Just get in there and start!
Maybe it’s just that you are feeling a little lazy, tired, unmotivated, scared, unsure, doubtful, insecure, hesitant…When you do, you need to change your frame. Try this.
Take a piece of paper.
Set a 5-minute timer on your phone.
Write down every negative thought, concern, worry, anxiety about where you want to be…
Rip that piece of paper off your notepad, like a 1920s typewriter typist.
Look at it.
Crumple it up and throw it in the trash. (I like to do a little yell sometimes :)
Then.
Make yourself a cup of coffee/tea/nicotine pouch/mushroom bullshit…whatever gets you going.
While that is steeping, do 10+ lunges, which will engage your Vagus Nerve (there is science behind this, don’t skip this. Pro tip: do it with 2 dumbbells. Citation: Huberman).
Now GO!
Just start writing, planning, spreadsheeting, listing, … whatever your process is for starting a project and working. Force yourself through the uncomfort of getting down to work.
Congrats! You are now in the elusive Flow State.
Now get to work!!!! Start calling brokers, find deals and analyze them, plan how to get close to people who are already in the game and where you want to be for help.
Proper Framing as Motivation
It’s also important to frame what you want and why you want this. Some folks call this “remembering your why.” List that too. I like to think about framing in the context of the bricklayer. The parable of the bricklayer, that is.
Maybe you’ve heard this one.
Three bricklayers are working on a construction site. A passerby asks each one, "What are you doing?"
The first bricklayer responds, "I'm laying bricks." His focus is on the task itself, with little regard for the bigger picture.
The second bricklayer says, "I'm building a wall." He sees his work as part of a larger structure, showing a bit more context and purpose. Appreciating his craft and the importance of the job.
The third bricklayer answers, "I'm building a cathedral." He views his work as contributing to a grand, meaningful purpose.
The parable highlights how the same task can be seen in drastically different ways, and this framing is critical to being successful. You need to know who you want to become, what your goal is, and why. The third bricklayer’s sense of purpose and vision elevates his work. Understanding the broader impact of one’s efforts can lead to great fulfillment and even greater motivation.
All successful folks are laser-focused on perspective, purpose, and attitude in their work.
Guess who is one of the most successful people ever and was a literal bricklayer?
Arnold Schwarzenegger.
He and another future Mr. Olympia, Frank Columbo, literally laid bricks, built walls, and did construction before anyone knew their name. Literally, Arnold’s first idea was selling fancy “European-style masonry” services, building walls for rich people in LA with Columbo.
In fact, Arnold made his first million bucks before he ever starred in a movie.
How?
Real estate.
He saved from the construction jobs and slowly accumulated a few homes, then a small apartment building, then another…. He knew his north star, becoming Mr. Olympia meant making it in America and and he never stopped working until he achieved it. He went from bricklayer to future Mr. Olympia, to the biggest movie star ever, to Governor of the 5th largest economy in the world. In his words:
I wasn't there to compete (lay bricks). I was there to win (build a cathedral life).”
-Arnold Schwarzenegger
So, what kind of bricklayer are you?
We are all lucky to stand on the shoulders of giants
Interest rates got you down? Did you buy a bad deal? Let’s turn that setback into a comeback. Remember, we are extreamly lucky to be in America and have the US mortgage and financial market at our disposal to help us. No other country lets you get into investments and real estate like the good ol’ US of A. Our financial system and the ability to get a loan to buy something 5x (or more) the price of what we have in the bank is unmatched.
But there is a major pitfall you must avoid.
Here is what NOT to do.
Do NOT pay for a course or coaching, especially if you are early in your career.
Just don’t. Stop. No. Halt. Achtung!
Sure, if it’s under $100 bucks, go for it. Whatever.
But if you’re just starting out, do not pay for a high-priced course/coaching. Anything above $5k is predatory, frankly. And even at that price, I say don’t do it.
Why?
Paying for “education” before you own any real estate or have gotten started in the industry is foolhardy. Much like speeding in icy conditions, sure, it could get you there to your destination faster, but most people won’t make it. The risk is too high and unnecessary. Anecdote: I have 3 current investor clients of mine who paid more than $10k (two of them more than $50k) for “coaching courses” from the online gurus. These “mentors” even flew them to Vegas to make them feel like big shots to network. You don’t need to do this.
Don’t speed on the ice.
What should you do?
Read a shit ton books, listen to thousands of hours of free podcasts, network with other folks, go to meetups, events, ballgames, introduce yourself to 10+ people a day and mention what you are doing. Just don’t pay for pricey gurus who promise bountiful networks and masterminds that will “make you successful.”
Call a real estate broker who’s also an investor (link here) who owns and deals in the type of real estate you want to get to. They are FREE and they will help you. Make it clear to them that while you may need a little help now, you want a relationship, you are serious, you can bring them value and you have a clear goal (remember your why here), so this is really about the next 5, 10, 100 deals you will do together. They only get paid when you buy a property and you will only come back to buy more property if you are successful. Your incentives are aligned! Your incentives are NOT aligned with a guru goober.
There are tons of Gurus out there: some guy trying to sell you a course for $25 grand, promising riches. Let somebody else pay him. Don’t be a sucker, be successful. Plus, it’s way more fun to figure it out yourself and do it right. And then someday you can pass it on to the next.
When does it make sense to pay for help?
Counterpoint: it DOES make complete sense to buy a high-priced course, event mastermind, mentor/coach…But, ONLY WHEN YOU HAVE ALREADY HAD SUCCESS, and want to level up, scale, and turn your business into something to behold. Boss-level.
But I see it happen all the time. A budding investor, or even someone who owns a few properties, tries to level up too fast, it doesn’t happen for them, they get discouraged/unmotivated, quit or, at worst, get sucked into tremendous debt for no reason, and far far to early in their promising journey.
They tried to speed, and they skid off the road.
Sure, some will make it. And the guru’s (probably) aren’t full-on lying to you, but there is zero need to risk it, and again, it is completely unnecessary. Do not pay for help when you are starting.
Why should you seek paid help only when you have already been successful?
Well, 1) you have the money. That’s a big part of it. And 2) because you don’t know enough to ask the right questions to put the information they teach you to good use! Paid help can really really really work, when you are pouring gasoline on an existing fire. Otherwise, it’s like pouring gasoline on the ground without a flame. Fuckall is gonna happen and all the green shoots starting to blossom there on the ground die.
It’s all about order of operations. Hiring a “mentor” too early is improper PEMDAS (remember that kids?).
I’m Not your Guru. I’m Your Guardian.
But, if you are lost, or just think you are smarter than the rest (you may be), start with some cheap consulting with a top investor. A few hundred bucks, TOPS.
What you are looking for here is not a guru, it’s a guardian.
Someone who can help you get in or level up your game and tell you what they did. Typically, an older person, frankly, who wants to pay it forward.
So if you must try to speed, here are a few rules:
Start by calling brokers/agents who own real estate (and verify that they do ask to see their deals/properties). Again, Bigger Pockets has an investor-agent finder, and it’s totally FREE for you. Just make sure you are serious before you call (it’s expensive for the agents). You can find that link here. This should be your first step.
Think you need more, and have some dollars to spend?
Ok, I know you want something here, so I’ll give you two paid suggestions.
Call me. Yes, yes, it’s a seemingly hypocritical plug that I do consulting calls, but I’ve helped hundreds of people. I’ll give it to you, honest, brutally honest. And I do it because I love helping other investors, especially the ones with a sticky probelm, or who just need a kick in the ass, frankly. And I would hope any great investor is willing to pay it forward, for cheap. I charge $250 a call, and I’ll refund you immediately for any reason (it’s never happened). And you shouldn’t need to do more than 1 or 2 calls with me (or any decent consultant/coach/mentor, really). That’s all we should need to get you on a solid path. A great investor can teach you all you need to know to kill it in minutes, not weeks.
Call Ben Mallah. One of the great investors who is also great at paying it back is Ben Mallah. Now, he is quite a character, for sure, but he is honest, and if you are looking to level up your game with some advice from a big shot, he is someone I would recommend. His consultant link is here. (Not a sponsor, I just respect him and he is hilarious. Reminds me of my pops, who was doing real estate in Oakland, CA back in the day, just like Ben, only a few decades before his time. Both serious OGs).
Guru or Guardian?
A guardian is there to help you, not gouge you for dollars, especially when you are just starting and need that money.
Because what you’re hoping to accomplish, we’ve already done it.
They don’t sell courses. I’m not trying to sell damn courses! I have an investment, property management, and real estate sales business. Every day, I’m buying or selling something. And when I have some free time, I pay it forward to the next generation. And frankly, the only reason we guardians charge a few shekels is not the money, a few hundred bucks doesn’t move the needle. It’s because if it were 1-800-Call-the-Skeptical-Investor, my phone would be ringing off the hook 24-7! I need some sleep. (Although the new water-cooled 8-Sleep bed I just got is a game-changer. Highly recommend).
In my experience, most (of course not all) those selling courses are focused on that, not real estate (at least anymore). It’s like academics vs practitioners. Those who can’t do, teach (sorry mom, except you. K-6th grade Spanish was great :).
So folks like Ben Mallah arent trying to sell you shit, they just want to pass on the good word.
Want to advertise to the more than 20,000 weekly readers of The Skeptical Investor? You can! Advertise with us; we can help you grow your business. Reach out.
Ok, back to business.
Do you really need a mentor?
Probably not. The single most important part of real estate is finding a deal. I can’t find you a deal. You gotta find a deal. I can tell you the many ways to go about it, but you have to do it. Your mentor or coach or guru can’t do it for you.
Hot Tip: Can’t afford to take down a deal by yourself? Go find a deal and bring it to an investor! That is the single greatest way to get into the game. Don’t limp into the real estage game following the free money. Don’t start by wholesaling (its professionalized now) or doing “creative financing. ” Just find a way to add value to someone and hell, if you bring them a few, maybe they'll cut you into the deal. I would.
I’m not your guru, I’m your guardian. I’ll keep you out of trouble and fill your jet with fuel so you can take off on your own.
My Skeptical Take:
You still want more from me?!
Just kidding. Look, think about the advice above, and chart your path.
Stuck?
Try the techniques I laid out.
Just DONT overpay for it, or pay anything, if you can help it. If you don’t need to call someone like me, good. It means you have entered the arena and are learning.
Some guy trying to sell you a course for $25 grand? Screw that piker, they will lose you money.
But if you must, or you are on the verge of really making it, I give you my blessing. Just be careful. Call someone you can trust, who isn’t looking for a payday. Do your research.
We remember the 2 rules of investing.
Rule number one: never lose money.
Rule number 2? See rule number one.
Guardians. Not Gurus.
Oh, and by the way, interest rates are coming down. Are you paying attention?
It’s a great time to be liquid, raise some cash, gather your money…
…and make some damn money.
Until next time. Stay Curious. Stay Skeptical.
Herzliche Grüße,
P.S. Want to start owning real estate so you can actually retire? Don’t know where to start? Is a friend or family member in need of a top-performing team of real estate agents? Give us a call! We got you.