The Truth About “Using Other People’s Money” in Real Estate: Spoiler Alert – It’s Not That Simple

Ah, the siren song of “passive income” through real estate. Just use “other people’s money” and watch the cash roll in while you sip margaritas on a beach, right? Well, let’s reel that fantasy back into reality. These programs oversimplify things to the point where you’re left wondering if you accidentally signed up for a fairy tale writing course instead of a legitimate real estate strategy.

Reality Check: “Other People’s Money” Isn’t Free

Let’s talk about what they don’t tell you: the part where you need your money to secure other people’s money. Funny how that works.

Upfront Capital: Sure, you’re leveraging investor funds or loans, but you’re still responsible for the down payment—usually 20–25% of the property’s price. Want to buy a $2 million apartment building? That’s half a million dollars, cash. Have that lying around? No? Neither do most of us.

Not-So-Passive Costs: After securing your dream property, you’ll need to cover operating expenses, maintenance, investor payouts, and mortgage payments. If there’s anything left, congratulations, you’ve made less per hour than a teenager working the late shift at McDonald’s.

Debt Overload: Loans come with interest, and investors want a return. Translation: “other people’s money” comes with strings attached. Big, heavy strings that might choke you if you’re not careful.

By conveniently omitting these details, these programs sell the dream of wealth while leaving you to piece together the nightmare of financial reality.

Blaming the Participant: The Old Bait-and-Switch

When their programs don’t work as advertised, these gurus are quick to point the finger… at you. Of course, it’s not their revolutionary system that failed; it’s because you didn’t follow their advice to the letter. Let’s unpack this gaslighting, shall we?

• The Capital Conundrum: They say, “Just follow the steps,” but what they’re really saying is, “Pull $500,000 out of thin air.” Even a modest apartment building requires capital most people can’t access, no matter how many motivational YouTube videos they’ve watched.
• Emotional Manipulation: The narrative that failure lies with the participant is a clever tactic. If you feel inadequate, you’re less likely to question the program itself. Spoiler: The problem isn’t you; it’s the pipe dream they sold you.
• Reality Check: Most people do try to follow these programs. They hustle, they grind, and they still hit a brick wall because the system is designed for a very narrow demographic—the already wealthy.

Blaming the participant isn’t just unethical; it’s downright cruel. These programs set people up for failure and then shame them for it.

Targeting the Desperate: A Predatory Business Model

Let’s be real. These programs don’t attract the financially secure or the ultra-rich. They target people who are desperate for a way out of financial struggle—the very people who can least afford to lose money.

• High Cost of Entry: These programs often start at $500. For someone struggling to make ends meet, that’s not just an investment; it’s a gamble with their future. And that’s just the base level. Want the “secret sauce” to real success? That’ll cost you thousands more.
• Upsell City: Once you’re in, the upselling begins. VIP programs, exclusive mentoring, premium secrets—it’s a never-ending cycle of spending with little to show for it.
• Emotional Fallout: These programs don’t just drain wallets; they drain hope. When participants fail, they’re left feeling financially worse off and emotionally wrecked.

It’s a predatory system that preys on the vulnerable, offering false hope in exchange for real money.

Do Your Homework: The People Behind the Pitch

Before you get swept away by a polished sales pitch, take a good hard look at the person delivering it. Spoiler: Just because someone has a private jet in their Instagram photos doesn’t mean they’re a financial genius. Here’s how to spot red flags:

• Check Their Credentials: What’s their actual track record? Are they a legitimate real estate investor, or just someone who makes money selling programs to aspiring investors? If their primary income is from selling courses, that’s a red flag.
• Research Their Claims: Google is your best friend. Are they really as successful as they claim to be? Look for third-party reviews, court records, or any controversies they might be involved in. Spoiler alert: If they’ve been sued for fraud, it’s not a good sign.
• Follow the Money: If their social media is filled with flashy cars, exotic vacations, and designer clothes, ask yourself: Is this lifestyle funded by real estate profits, or by selling overpriced seminars?
• Read Reviews: Look beyond the testimonials on their website. Check forums, independent review sites, and social media. Pay attention to recurring themes in the complaints, especially about upselling and unrealistic expectations.
• Trust Your Gut: If their pitch feels too slick, too rehearsed, or too good to be true, it probably is. Real experts don’t need to rely on smoke and mirrors to sell their knowledge.

My Personal Experience: Fast Talk, Missing Math

Let me tell you about my encounter with the Grant Cardone program. If you think fast talkers put you on high alert, Grant would have your internal alarms blaring. The man exudes that “used car salesman” energy that makes you instinctively want to check your wallet.

His pitch was a whirlwind of confidence, buzzwords, and promises of financial freedom—delivered so quickly it felt like a verbal sleight of hand. And, of course, he started with the classic line: “I just want to help people.” Because nothing screams altruism like charging thousands of dollars for access to your “secrets.”

Read Article on Grant Cardone Here

But here’s the kicker: after the pitch, I was prompted to book a call immediately. I thought, “What the heck, let’s see where this goes.” Enter the video call: a bubbly, young representative—with a nasally voice that could cut glass—greeted me. The first words out of her mouth? Not about my goals, not about strategy, but: “How much money do you have to invest, or how much can you borrow on your credit cards?”

My initial reaction? Oh, so this isn’t about helping me; it’s about funding Grant’s empire. The call confirmed what I already suspected: it’s not about building my financial future; it’s about how much cash they can squeeze out of me upfront.

The lesson? Know your business math, and know when someone is just fishing for your wallet. Don’t let their fast talk, shiny promises, or pushy tactics cloud your judgment.

The Bottom Line: Think Twice Before You Buy the Dream

Before you hand over your hard-earned cash for a “passive income” program, ask yourself:

• Do I have the capital to realistically pursue this?
• Does this program provide actionable, realistic steps for someone in my financial position?
• Am I being pressured into spending more money to access “premium” resources?

Remember, if something sounds too good to be true, it probably is. Real estate can be a path to wealth, but it’s not an easy one—and it certainly doesn’t come free.

So, the next time you hear someone say, “Just use other people’s money,” feel free to laugh. Then ask them where you can get a half-million dollars of your own to get started.