Before we look at the value of a number of late night real estate infomercials, it is important to stress that any source of information that is helpful should be commended. If it was not for presence of valuable resource information on a number of subjects then the ability to learn about a subject – and become successful – would not be possible. Now, there are those who say that those who sell seminar tickets, books, and CDs about real estate investing are frauds. The reason they are frauds is because if they were really “smart” about real estate then they would not need to sell books in order to make money. This is about as faulty as faulty logic can get. Well, a baseball player making $10 million a year does not “need” a raise to $35 million, but we have seen a precedent for that. So, it is not absurd to think someone with investing skill would cross collateralize by expanding their empire to informational products. Then again, if they were earning $500,000 a year with real estate and $1.5 million a year with informational products…well, do the math. There is really nothing wrong with informational products that offer significant value.
So, the real question that needs to be asked is the following: does the product that is being sold actually have value? In many cases, the answer is yes, but you don’t need to spend money for it. Much of the information found in a variety of infomercials is actually common knowledge in the real estate business and not really worth spending money on.
For example, there are tons of real estate infomercials that stress the concepts of buying foreclosed properties, flipping properties and renting properties out higher for more than their mortgage payments. All of these concepts are legitimate ones, but none of them are radical and most of this type of basic information can be found for free on the internet. Actually, IN DEPTH information on this subject can be found for free on the internet. But when a person comes across a sales pitch for this information via an infomercial and it is the first time they have come across the info they have a tendency to elevate the product sold on the infomercial to be a little more valuable than it actually is.
If there was one problem, however, with infomercials it would be the carnival hucksterism that many of them profess. For an infomercial to be successful it must convince you that its concepts are exclusive and unique and that you must act fast. Remember, they won’t be buying time on your local TV station forever so if you don’t act fast they are out of luck! And, of course, the infomercials promise a lot of money with little effort quickly. This is the one aspect of real estate infomercials that are especially egregious. You can make a lot of money in real estate, but only with a lot of effort over an extended period of time. That is the true secret to real estate success whether you pay for the truth or not.