The Biggest Challenge for Start-Out Investors Today is Education.



Jay's Students Congratulate Him On Receiving the Prestigious Jim Rohn Award

Building wealth with real estate hasn’t changed a whole lot in the last hundred years or so. Frequently I’m asked: Is it still possible to become a successful investor today without much money to start with? The answer is yes, but it’s extremely important to find the right instructor who can teach you how.

The biggest challenge for start-out investors today is education! It’s nearly impossible to succeed without fully understanding the basics and how to apply them. Don’t even think about any slick-sounding get rich scheme that’s touted as a shortcut. There are none! You must learn how to build a solid foundation to begin with. Today, there are literally thousands of salesmen masquerading as real estate experts prowling the countryside promoting their “Millionaire-Maker” seminars. Hundreds more peddle their glitzy 90 days to riches programs on cable TV. It’s no wonder the newbies are totally overwhelmed and confused. It’s no easy chore trying to search out a legitimate investment teacher.

My good friend and former real estate educator, the late Jimmy Napier was a bit more outspoken! Jimmy said: “There’s an awful lot of ducks teaching real estate seminars today! With all the quackin’ going on, the newbies get confused and believe they hear eagles screaming. Many end up taking lessons from a duck. Sadly, they discover the hard way, there’s little value in receiving a diploma from a duck.”

Over the years I’ve cautioned beginners about how important it is to totally investigate any teacher you decide to take lessons from. Many “starry-eyed” wanta-bees end up broke and disillusioned when they discover their teacher doesn’t even invest for himself. He only teaches others about techniques and strategies he’s never tried or even tested. That’s a lot like learning to be a pilot from a teacher who’s never flown a plane or even stepped inside the cockpit! No matter how convincing he might sound, his lessons won’t count for diddly-squat if the plane takes a life-threatening nosedive!

WHAT’S A POOR NEWBIE TO DO

I’m a great fan of “show ‘n tell”. When I chose Bill Nickerson to be my mentor and investment teacher, the first thing I asked Bill: Can I pay you to come and visit for a chat and see a few properties you’ve written about in your book? Bill took my money, of course, but I can still remember how proud he was driving me around, showing off his properties. Looking back now, I honestly believe Bill would have paid me to come and look. I’ve found most legitimate investors are like that – they love to show ‘n tell. To me, this is an excellent indication you’ve hooked up with a real practitioner who can teach you how to invest!

Bill never told me I had to invest like him to become successful. He did impress upon me that beginners must consider cash flow as their number one priority. Early mistakes like size, location and condition (within reason) can be gradually fixed or overcome. However, if properties won’t pay for themselves, you’ll end up broke before you have enough time to adjust your strategies. Also, besides having cash flow to keep you afloat, it represents a real achievement. It represents success. It makes you jump outta bed in the morning to start a new day. Only real teachers who invest for themselves can teach proven cash flow techniques.

Cash Flow Is The #1 Goal Of Any Investor

Like most wealthy investors, Nickerson built his real estate fortune on borrowed money. He taught me it would be nearly impossible to go broke if I only purchased properties my customers could afford. Bill said; their rents would cover the expenses and pay back all the money I had borrowed. From the time I met Bill and began following his advice I’ve never needed a better formula. After starting nearly 90 years ago with only $1000 in his savings account, Bill pyramided his holdings into 18 million dollars before his passing. That’s a plan worth following in my opinion!

EDUCATION I AGREE – BUT WHAT KIND

My first visit to see Bill’s properties got me more excited than a 10 year old under the Christmas tree lights. What folks always say about a first impression, let me tell ya, I was definitely impressed. It’s one thing to talk about duplexes and small apartments, but when you get to see them for yourself – that’s a whole different learning experience. Bill’s book had pretty much described his properties, but sitting in the car next to him, seeing with my own eyes as he explained the details – that’s an education of the highest level. I will promise you that selecting the right teacher makes all the difference in the world when you’re starting out!

For 30 years or so I conducted 3 Day Fixer Camps in my home town in Northern California. The first item students always checked on my 3 day evaluation sheet – overwhelmingly was our field trips to visit my properties. Students loved to chat with my fix-up crew. In fact, I always had a tough time loading them back in our vans to go to lunch. Field trips were my version of show ‘n tell.

I discovered that my training manual lessons as well as my classroom lectures were much easier for students to understand after our field trips. Also, seeing my properties cleared up any doubts about what I coached students to look for when they returned home. One major complaint from students who’ve attended other seminars – they don’t know what to do when they leave the classroom. To me, that’s a total failure on the part of any teacher.

Although I’ve retired from regular seminars, I still conduct what I call One-On-One Counseling at my home/office. These are personalized 2 day seminars designed for individuals and couples. I teach from the same workbook I used at Fixer Camps, however; with one or two students we can cover the chapters much faster. We also can spend more time on subjects that students need the most help with. Naturally, “show ‘n tell” is part of my training! We’ll visit several properties so that when you return home, you’ll know exactly what to look for – and the reasons why!

Success comes much easier (and faster) for students who learn the basic fundamentals. There’s no need to learn a hundred strategies that might work – only a few that will. Bill Nickerson taught me this years ago. Legendary football coach Vince Lombardi was of the same opinion. His winning offensive team had only five running plays, but that’s all he needed to win! Making his point about basics and fundamentals; every year he would begin his training camp by saying; “Gentlemen, this is a football”.