600 Lb. Gorilla Loses His Shirt (And You and His Investing Students Will Too If You Miss This One Key)…
Part 1 of 2
Just take a good look around… many of the real estate gurus still espousing those old methods are losing properties and going out of business right and left.
It’s not something you hear much about. That’s why I was shocked when a major wholesaler – a major home flipper and real estate guru – recently went public about the devastation hes suffered when his local market caught him by surprise.
Here’s part of his email that was sent to tens of thousands of investors…
I’ll give you a second to scan over it…
Now, in the interest of full disclosure – this was a marketing email. He was trying to sell a new info product, but ignore that fact for now because this is the important part…
First, this guy was for real. I live about 100 miles from Tampa and go there often for business. He was the 600 pound gorilla in that space for many years… saw it with my own eyes. He had ads everywhere you looked – TV, radio, bus stops – you name it.
I know him, and he’s got a great Rags to Riches story. He’s also done a lot for underprivileged and troubled youths, so my hat goes off to him. He hustled and had a long successful track record.
In his video, he went step by excruciating step of how his business, and his life, got painfully torn apart… it was like watching a slow motion train wreck… and it all came about for one simple reason:
The Market changed and he was screwed.
Here’s the surprising part – he was a wholesaler. They don’t even take title to the property. They flip the contract.
I know a lot of wholesaling ‘gurus’. Without exception, they all try to paint a rosy picture to help sell their stuff, saying that because they’re in-and-out of a deal quickly, they’re agnostic to the market – that it doesn’t affect them.
That’s always been a bunch of B.S… OF COURSE THE MARKET MATTERS… far more than any of their tactics and strategies…
…but to come out and say it publically like this guru did … in an email to thousands of investors… that’s the kind of honesty and sincerity the guru industry could use a lot more of.
That’s the main take-a-way … When the market crashed, so did his business… not the first time we’ve heard that story.
See, cycles aren’t only about property values, prices and appreciation … Real estate is very illiquid. In down cycles, sometimes you can’t give it away! Once you’re underwater and stuck, it’s all over but the crying.
You’re left hoping and dreaming that the market picks up… all the while getting deeper and deeper into your hole. All your exit plans evaporate. You no longer control your own destiny.
One tiny mistake – not knowing the market cycles – destroyed all the wealth he spent years building.
Remember – we’re not talking about some newbie. This guy was the largest home flipper in Tampa for years – probably one of the biggest in the country.
Want to find out what happened to the 600 Lb. Gorilla? And want to see the EXACT picture he could have looked at that would have saved him his fortunes and will save yours, too?