“Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.” – Warren Buffett
We all want to get wealthy quickly.
But in the pursuit of “fast,” too many people fall for “fake.”
It’s never been easier to get pulled into a deal that looks great online but turns out to be smoke
and mirrors.
That’s why today I want to walk you through the mindset and process I use to separate the real
from the fake.
1. Reputation Is Everything
If you’re investing in anything—especially in this digital age—your first filter should always be
reputation.
Who knows this person?
Who has actually invested with them?
I’ve had investors forward me deals that looked “too good to be true.”
When I asked where they found them, the answer was often a Facebook ad.
If I’ve been in real estate for years and have never heard of that operator, that’s a red flag.
Real operators don’t need clickbait.
They have relationships.
They have history.
Before I invest, I always reach out to my network:
Has anyone worked with this person?
What was communication like when things didn’t go perfectly?
Because here’s the truth—every operator has challenges.
Even my friend Ken McElroy, who manages over $3 billion in real estate, has had deals lose
money.
What sets great operators apart is how they communicate during hard times.
Transparency builds trust.
When something goes wrong, do they hide… or do they pick up the phone?
And remember: if anyone ever pressures you to sign documents during a Zoom call or says,
“you’ve only got 24 hours to invest,”—run.
Good deals don’t expire overnight.
Pressure tactics are for salesmen, not real partners.
2. If It Sounds Too Good to Be True…
Let’s talk about the oldest scam in the book: the Ponzi scheme.
Charles Ponzi promised investors he could double their money every 90 days.
And he did—for a while—by paying old investors with new investors’ money.
But, like every fake system, it eventually collapsed.
Today’s scams are more sophisticated—fancy websites, “guaranteed returns,” even deepfake
videos of well-known investors.
But the logic hasn’t changed.
If someone promises guaranteed returns, it’s almost certainly a trap.
Real deals have risk, complexity, and conversation.
No legitimate operator will tell you it’s 100% safe or that you’ll make a fixed double-digit return
every time.
The best sponsors I know take the opposite approach.
They project conservatively—saying, “We’re targeting 20%, but we’ve modeled it at 15% to be safe.”
That’s the kind of language you want to hear.
If they highlight hidden upsides—like unbuilt units or planned improvements—but leave them
out of the official pro forma because they don’t want to overpromise, that’s a good sign.
It shows integrity and restraint.
Remember Buffett’s rule: don’t lose money.
You don’t need to swing for the fences—just stay in the game long enough for compounding to
work in your favor.
3. Build Real Relationships
As deepfakes and AI-generated scams become more common, the best “due diligence” you can
do is human.
Algorithms can fake almost anything—track records, testimonials, even investor webinars.
But what can’t be faked is community.
That’s why I created the Wealth Forum—a private network of serious investors who share
deals, lessons, and real experiences.
No pitches, no fluff.
Just authentic discussions about what’s working—and what’s not.
When you surround yourself with people who’ve done it before, you don’t fall for the shiny
shortcuts.
You build wealth the right way: slow enough to be real, fast enough to be meaningful.
So, as you grow, remember:
Fast is fine.
Fake is fatal.
Trust your gut.
Trust your network.
And only invest in what you can truly understand.
If this resonated with you, drop a comment below—what filters do you use to vet your investments?
Join our Investor Club to access vetted real estate opportunities and connect with other
investors.
Or email us at [email protected] to learn about joining our Wealth Forum.
Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.
Works Cited
Entrepreneur. (2023). 7 reasons why investing in reputation management is a smart business move.
https://www.entrepreneur.com/growing-a-business/7-reasons-why-investing-in-reputation-management-is-a-smart/452980
Jaeger, A. (2022). The new currency of trust: Investing in reputation as an asset. Medium.
https://medium.com/@andreas.jaeger.rpllc/the-new-currency-of-trust-investing-in-reputation-as-an-asset-17e2766b8b31
Smithsonian National Postal Museum. (n.d.). Ponzi scheme.
https://postalmuseum.si.edu/exhibition/behind-the-badge-case-histories-scams-and-schemes/ponzi-scheme
YouTube. (2023). How great operators communicate during challenges [Video].
https://www.youtube.com/watch?v=MsMoVuc1PDo
Yahoo Finance. (2024). The first rule of investment: Don’t lose money.
https://finance.yahoo.com/news/first-rule-investment-dont-lose-151644434.html
YouTube. (2023). How to do due diligence on real estate deals [Video].
https://www.youtube.com/watch?v=ndhAERKoymo
Wealth Forum. (n.d.). Wealth Forum community platform.
https://wealth-forum.mn.co/
Bronson Equity. (n.d.). Join our investor club.
http://www.bronsonequity.com/join
