The Trump Insititute’s Way to Wealth
22. Jan, 2009 
5 Comments
Welcome to the first installment of REI Reviews. I get asked all the time for my opinion on gurus, seminars and courses and I thought it was time I started sharing the info with all of you, so here we go!
If there is one thing I hate about real estate investing, it’s the constant barrage of OLD information from “gurus.” The same tired old gurus trying to sell the same old tired strategies that used to work but have little chance of success in 2009. Well, let’s welcome Donald Trump to the regurgitated info from old gurus club!
Trump is regurgitating info from 2004, so he’s at least a little more current than a few others out there, but really do we need to attend another “free” seminar that is just a 3-hour long sales pitch for the $10,000 seminar that we can get tonight and tonight only for $4,995?
I just received my invitation in the mail to attend the “Way to Wealth” seminar in Denver. And I’m RSVP’ing no thanks. Here’s why.
1) They are giving away a “special edition” copy of Think Like a Billionaire. Unfortunately, I got it when it was released back in 2004, so what’s the deal? No time to write a new book?
2) He’s not even going to be at his seminar. According to the website “Mr. Trump will provide a videotaped personal message at the seminar. The seminar will be instructed by a Trump Institute certified teacher, hand-picked by Mr. Trump.” Whatever.
3) I hate to say it because I am actually a fan, but his stuff is crap.
Back in 2005 when he first decided to become a REI guru and launched Trump University, I took the plunge and ordered a course called, Bubble-Proof Real Estate Investing. I checked the website and they don’t sell it anymore. Good thing.
It was by the “dean” of Trump University, Gary Eldred, and was, as you can imagine, the usual vague techniques but one thing jumped off the page at me.
In the course, Eldred was promoting an investment opportunity in “turnkey duplexes” offered by a company called Mile High Capital Group. He said he was a “spokesperson” for this amazing company.
Well, this amazing company happened to have been indicted on securities charges after scamming 800 investors out of $22 million for turnkey duplexes that never materialized. And the dean/spokesperson was telling us that in order to succeed, all we had to do was invest in these duplexes, too.
These guys were based here in Denver and they were all over the news so you can imagine when I read this I was dumbfounded. A faculty member of Trump University promoting a scam in one of Trump’s own courses. Unbelievable.
I emailed Mike Sexton, the president and co-founder of Trump U and complained about the course and the blatant promotion of a scam. He was very nice but did nothing. A few weeks later I got an email from Eldred saying that he in no way meant to imply that he was endorsing the company and apologized for mentioning them in the course. Hmmm. Don’t spokespeople endorse products? I thought so, too.
Long story short, I am kicking off the Investor Insights REI Reviews with a HUGE Do Not Buy on this Trump babble. Save your money and your time, folks. And when you get your invitation (and you will), be sure to recycle.
Susan,
I went to a seminar in california about 4 years ago while I was living there and it was from the mile high capital group and it`s president- rick dryer. I actually met him and spoke to him a little bit with some other people and the numbers on those duplexes seemed a little too good to be true and I didn`t end up investing with him…thank god- it was a total scam.
I read a story about him in the charlotte business journal about a year ago and how a company in Charlotte actually hired him as director after he was indicted in colorado and I actaully got something in the mail from this company asking me to invest with them. This guy is bad news and I can`t believe he lives out near me in the charlotte area and is working for another company trying to sell investments- he should be in jail
Scott MacKinnon
Susan,
I have a lot of respect for you as a real estate professional, and that respect has increased manifolds by your courage to expose the real estate “guru” silliness which is so rampant in our industry.
As soon as these “gurus” get some traction, they hire a bunch of trainers who teach their respective guru’s “system”.
Real estate is not hamburger, colored water or stock that you can build a system around. The very reason it is called “real” is that each piece of real state is unique.
Of course, one can argue that Florida condos are like hamburgers
, but they are like hamburgers for the developers. And these developers are not getting educated by these “gurus” anyway. They are a league of their own.
Buyers, sellers, and funding sources come together to create a symphony called real estate transaction. The name of the game, in the real estate investment is to find really motivated sellers and really flexible funding sources.
The more one is able to find really motivated sellers and really flexible funding sources, the sooner she is going to accumulate massive real estate wealth. Absent one of them and you have an uphill battle which could be won only with a lot of agony.
Most “systems” cannot deliver “motivated buyers + flexible funding sources” to the buyers who end up wasting money on these gurus’ “systems”.
One or two percent of the students who somehow get access to motivated sellers and flexible funding sources, are then touted as the testimonials to the gurus’ systems to sell more copies of the system.
The 2008 craze was/is “wholesale” and “short sale”. The 2009-2010 craze is “tapes”. You will see a lot of systems teaching aspiring real estate investors to become tape buyers/brokers. A “tape” is nothing but bulk property or note purchase from an institution.
I heard you saying in one of your audio presentations that you don’t like to be called a “guru”. I don’t blame you. Even when I become a real estate educator, which I aspire to do, I would not want to be called a “guru”.
I am looking forward to being a part of a network of conscientious real estate educators who help produce professionals who can make honest and plentiful living in this awesome profession of real estate investments.
Lee
BankFreeInvesting.com
Not only are your comments funny but they are right on the mark. Thanks for telling it like it is.
–
Bob
I went to one of his seminars 3 years ago in Denver, it was nothing but a 3 day infomercial. I was very discourage because I never thought Mr Trump will be working with this kind of people non the less it gave a perspective of the type that you do not want to be or be associate with.
Thank you.
Susan,
I applaud you and your desire to tell it like it is. I’m honored to be apart of your network.
I think you just said with most of us knew at the heart level.
R