You’ve probably gotten email from a lot of the real estate “gurus” who are pushing the latest “product launch” for D.C. Fawcett and Karen Hanover’s new product, ostensibly called “Commercial Foreclosures Gold Rush”. Don’t worry. This isn’t a pitch for them.
I know one of these people quite well – well enough to give a clear evaluation. But I’ll leave that evaluation to you. Furthermore, I have no direct knowledge of their product, so I’m not addressing the quality of their product, either.
What I will say is this: Think hard about the information you’re receiving. What’s happening right now is called a “product launch” – and in my opinion, it’s pretty disrespectful of one’s customers. The idea is this: Somebody has a product they want to sell, so they go to all of their buddies who have email lists and ask them to send a series of promotional emails all at the same time so that a lot of publicity is generated.
The person who has the product to sell offers “incentives” (read: bribes) to send these promotional emails. Some of the bribes can be pretty significant – Rolex watches, international vacations, etc. And of course, everyone who provides a buyer that makes a purchase receives (usually) half of the sale price.
I’m not criticizing the idea of a product launch – it makes a lot of sense in certain cases. My advice is to those of you who may be prone to respond to high-pressure sales tactics that rely on scarcity (“only 6 more available… order now!”): Think hard before you jump.
The efficacy of commercial real estate as an investment class is at least partly tied to the economy. The premise of the current launch, and that of other related products, is that the boom in foreclosures is an inherent indicator of profitable opportunity. With all due respect, “it just ain’t so.” For example, there were a huge number of commercial foreclosures last year, too – and according to a recent report, 90% of last year’s distressed commercial real estate remains distressed (see report).
If it’s such a great opportunity, why are so few commercial properties being resolved? I asked that question of my personal real estate coach and mentor, whose experience in this business is wildly successful and spans over 30 years in this business. What he told me is worth listening to, if you’re a real estate investor interested in commercial investments right now. Check out his advice right here.
So, I’m not making a judgment about the product being hawked by Fawcett and Hanover. But I am saying that it’s in your interest to understand the reality of the commercial real estate market before taking the plunge with an expensive product – and you can’t get that type of understanding from people whose experience in the business doesn’t even extend back an entire decade. It just can’t happen.
So join us tonight for a very special REALISTIC look at what’s going on in the real estate world. It’ll be a very frank conversation, and one from which you’ll benefit greatly. Click here to join us.
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