I’m in the midst of a blogging sabbatical – so why am I coming off the bench to write this article? WCI is a savvy entrepreneur, and real estate is a sexy topic. I had increased my asset allocation to real estate and invested in several syndicates shortly before the pandemic, and continue to enjoy reading up on the topic. The prospect of reviewing this new course promised to feed my intellectual curiosity while letting me vet a costly course for readers. As such, it lured me (briefly) out of my present blogging sabbatical.
[Disclosure: I have an affiliate relationship with WCI. If you purchase a course via the links in this article I make a commission at no additional cost to you. Also, I was a speaker/moderator at WCI Con 2020, although I doubt Jim could pick me out of a lineup.]Dr. Jim Dahle and the WCI Empire continue to grow and prosper. His latest product is entitled “No Hype Real Estate Investing,” and promises to assemble physician finance bloggers, industry insiders and docs who’ve done it to offer high level lessons for serious would-be investors.
Sticker Shock
Let’s start with the cost: it’s expensive, and there’s no student/resident discount. At $2199, this is a course for those earning an attending salary who have maxed out their 401k, backdoor Roth, HSA, met all additional savings/debt payment goals set out in their written financial plan, and want to invest in real estate with what’s left over. If this does not sound like you, get the rest of your act together first. Gotta crawl before you can run.
If you buy before 9/26/22, an introductory discount knocks it down to $1799; that’s still expensive.
The good news is there is a 100% refund policy if you return it in <7 days and <20% of the course has been completed.
Opening Act
The first couple of modules introduce the players and outline the game. You’ll recognize trusted finance bloggers like the Physician on Fire, the Frugal Physician and Financial Success MD.
There are industry insiders from syndicates like 37th Parallel, DLP Capital, Realty Mogul and others (many, not coincidentally, have promotions on the WCI website). If you are skeptical how they’d walk the delicate balance between sales pitch and explaining their business model, I was, too.
There are cheerleaders who, contrary to the course title, made their names by hyping real estate: Semi-Retired MD and Passive Income MD. If you can see past their pom poms, they do have valuable lessons to impart. But their unbridled enthusiasm demands a counterweight: Enter Jim.
Everyone’s Favorite Killjoy
The most compelling speaker in the opening modules turns out to be Dr. Dahle himself. Jim speaks with the authority of a 1950s dad having a safer sex talk with you, his hormonal teen who’s getting a little too excited about jumping real estate’s bones. His perspective on the disadvantages of real estate and on managing the risks serve as a sobering counterargument to the cheerleaders. STDs people, remember STDs.
Learning The Language
The extensive module on the vocabulary of real estate is dense, high yield, and a little overwhelming – reminiscent of the first year of medical school, where you learn to talk the talk. While these definitions could be gleaned from time spent with a couple of decent books, you are paying to have this summarized and explained by a speaker you trust, and you get precisely what you paid for.
Explanations are easy to understand, pros and cons of evaluating a deal using the metric in question are highlighted and complex terms are rendered intuitive. I particularly appreciated the discussion of how certain metrics are over-emphasized inappropriately or can otherwise be used to mislead potential investors.
This module encompasses a lot of terminology (32 bite-sized videos lasting 1-2 minutes each). Examples are provided with simple math to demonstrate concepts, reinforcing each lesson. The concise organizational structure is helpful – many of the topics are important enough that you will want to rewatch certain videos to ensure you fully grasp the concepts before proceeding.
Challenging Risky Practices
Jim takes some of his guest speakers’ more exotic practices to task. He challenges the wisdom of liquidating one’s 401k or tapping home equity in order to invest the money in real estate. Sure, certain docs have used these strategies successfully in their unique situations, but the vast majority of physicians would do best to avoid the risk implicit in such practices.
In this way, Jim allows the real estate enthusiasts to share tips and tricks without misleading course participants into thinking they’ll enjoy equal success. While it’s entertaining to hear Babe Ruth regale you with stories of memorable home runs, you as an investor are rightfully directed to focus on base hits.
Demystifying Private Investment Vehicles
The modules covering private funds and syndications represented the greatest value to my learning in this course. The 15 minute video on Fee Structures and Waterfalls is bound to be a particular highlight for investors trying to decipher syndicate payout structures, complete with the wry commentary and skeptic’s voice that make WCI feel authentic: “Very few people feel passionately about providing housing for others. They’re in real estate for the money.”
The list of over 30 questions to ask when “speed dating” a fund manager are thoughtful, thorough and clearly explained.
There’s a careful line to walk when you invite advertisers to a party billed as educational, and this course tries hard to respect that line. One module, for example, is formatted as a Q and A with fund managers who advertise on the WCI site asking them what to seek in a fund manager. Is this a way to tap the minds of seasoned veterans in the space, or a chance to introduce general partners seeking capital to wealthy physician real estate investors who were serious enough to shell out big bucks for this course?
Probably both. If you decide you trust one of these voices over the others, it’s on you to decide whether you want to follow up. Their company information is included in the final module, but otherwise there’s no sense that you are being given the hard sell by any of the speakers.
Given what you paid to take this course, I’m relieved it lacks the feel of your neighbor’s kid entering your kitchen and goading you to purchase overly expensive knives.
Comprehensive Scope
The strength of this course is that it tackles an enormous field of knowledge in an encyclopedic manner, exploring each of the many niches inch by inch. The laws that describe who is an accredited investor are named and the criteria are explicitly quoted. It’s a trade-off: covering the important if not very interesting material deeply feels both more honest and less slick than many competing courses on the market, but it means that at times your head will spin with facts.
There are 17 modules, 27 hours of content, and ~220 videos. Instead of listing every module that the course includes (each of which consists of anywhere from a handful to 30+ videos), here is a shorter summary of the types of real estate investments that are covered:
- Real Estate Investment Trusts (REITs)
- Private funds
- Syndications
- Turnkey
- Long- and short-term rentals
- Fix and flip
Each topic is discussed in great depth, citing pros and cons, tax benefits, methods for evaluation of specific investments, multiple valuation approaches for individual properties – it’s basically a video reference library, a synthesis of years of study and experience.
In addition to covering how one can invest, there are modules on the logistics of investing:
- Where to obtain funds, how much leverage to assume, and how to prioritize your investments
- Motives for investing in real estate (The “fuzzy” topic of finding your why is explored without overshadowing the course; I feared excessive focus on mindset could result in a superficial approach. To the contrary, the nuts and bolts covered at every step of the process can feel overwhelming – a positive attribute, as targeted videos make for useful reference material.)
- The full spectrum of real estate investments, with pros and cons of each
- How to organize your real estate holdings, and where to locate them within your portfolio for maximal tax-efficiency
- 1031 exchanges, and rules governing depreciation
- Titling and asset protection
Talking Heads
You won’t confuse this for Tik Tok or any other addictive social media platform – you are paying for videos of talking heads (most of them Jim’s) accented on occasion by tidy, intuitive graphics and spreadsheets displaying straightforward calculations.
As for the guest speakers, some are filmed in professional studios, others in Crate and Barrel inspired home studios, and a few appear to have settled for using the camera on their desktop.
Reviewing real estate terminology, learning how to perform due diligence on a syndicate deal and understanding tax law can run a little dry.
No Hard Sell
The good news is it never feels overtly like a sales pitch from affiliates – the fund managers whose impartiality I had the greatest skepticism about largely came across as candid experts looking to help you find a good match while avoiding a big investing mistake with the wrong partner.
Even the cheerleaders of real estate laid out clear guidance to the asset class: what they were portraying was a vision of a future built on elbow grease, not snake oil.
Who Should Consider Purchasing This Course
If you need to be entertained as you are educated, head down the street to the real estate course offered by the breastfeeding mother fighting off a bald eagle attacking her pet goose.
If, on the other hand, you:
- Have sufficient cash leftover after meeting your current financial priorities
- Want to allocate a portion of your portfolio to real estate
- Want to understand both the pros and cons of this asset class in great depth
- Have moved beyond curious to serious about acting on what you know
- Don’t mind spending significantly to advance your financial continuing education
- Are convinced you are not otherwise going to read books on the subject, speak to acquaintances in the space and take full advantage of online resources (a more frugal route to similar knowledge requiring less cash but more leg work and discipline on your part)
Then WCI’s new “No Hype Real Estate Investing” course may be right for you.
[If you’ve found this review helpful, and you decide to purchase the course, I’d be grateful if you’d use my link. I’ll make a commission at no additional cost to you. There’s nothing unique about the discount I’m offering, it would just be a nice way to say thanks.]