Review of Mike Watson Investments

by Kendall Matthews on February 24, 2009

Do You Still Think Real Estate Investing Is The Path To Liberation?

Name: Mike Watson Investments

Purpose:Their mission statement states “To create and liberate partners by instilling in them financial prosperity, balanced lifestyle, career satisfaction, and freedom by providing world-class education and hands-on participation.”

3 Things You Will Learn From This Review

The exact outline of the “Foundation to Success”
How I used some of the techniques I learned
What I Didn’t Like

Before I go any further, I’d like to make a few things crystal clear. I’ve been involved with Mike Watson program since 2005, however I’m not an employee and I don’t receive any kind of compensation from them.

I’ve been to multiple “boot-camps,” workshops, and tele-seminars. The most eye-opening programs I attended were the on seller-financing, raising capital, and even a door-knocking event.

What’s The Scoop About Mike Watson Investing In A Nutshell

This is not a Nouveau Rich or Carlton Sheets, basic-real-estate-information-for-the-masses training courses. Mike Watson specifically tailors his information to appeal to experienced Realtors and real estate investors.

Mike Watson Investing does not offer a plethora of educational programs. When you visit their website, you will see he offers 8 “degree camps” for $16,000 . Yes, this is not a typo. That kind of cost will weed out many of the get-rich-quick types, but not all.

Most of the live events are held in Phoenix, Arizona or Provo, Utah.

Like most things in life, it doesn’t work… if you don’t work it. Before you whip-out your credit card, be a pessimist… check out the free information on his website and implement those ideas into your practice. If you get measurable results, ask yourself, “Do I really need to un-thaw the Visa credit card from the block of ice?”

What I Like About Mike Watson Investing

Foundation To Success: Mike crafted a clear guide of what he feels are important broad factors to having a profitable project. I have the poster in my office and it reads:

Know the Foundation to Success.
Find your red button statement (your why) and your who.
Find properties using competing and non-competing methods.
Analyze those properties for highest and best use and future potential.
Write offers with the two OPM’s.
Put the property back up for sale.
Create and enhance equity
Sell for a short-term profit or refinance for a long-term equity position
Prosper.
Share with others and repeat the process.

Change From Mike Watson Institute to Mike Watson Investments

I noticed Mike changed the name from “institute” to “investments.” It may be a slight change to some, yet it bring them more inline with a super-charged real estate investment group, like AZREIA on A-Rod steroids, where action lead to results.

Training Programs Are Extremely In Depth

I’ve never went to any other real estate investment program, like Carlton Sheets or Ron Legrand. Take that back, I did go to The Donald Trump Institute, I’ll do a review on what I learned, but I can tell between fluff and functional. For example, the MLS search cd, the deal evaluation submission forms and the seller financing workshop has helped attract, negotiate and close more deals with my own real estate investor clients.

Since the real estate market collapse, I recently was involved in a very intense re-negotiation for an 11 acre land development project. This project would not work if the seller would not only drop his price nearly a half million dollars, but also became a long-term partner in the project.

This deal got done because of my team’s deep understanding of seller financing and how to clearly explain terms that everybody wins.

What I Don’t Like About Mike Watson Investments

The Price is High. You don’t have to pay anyone thousands of dollars to learn how to invest in real estate. All you really need to know are two cliches:

“Location, Location, Location”
“Buy Low and Sell High”

Other than that what else is there? Some would say, “Time and experience, my friend.” Listen, if you feel you made a $16,000 mistake in investing with Mike Watson you’ve gained more real estate investing knowledge that no one can take away from you. If you make a $16,000 mistake on a real estate transaction you’ve gained knowledge and a tax bill from the IRS.

The Ultimate Salesman or Teacher.

I was sitting in a degree camp in Phoenix. As Mike was doing his final remarks, he prodded those who did not sign up for the next camps to do so. A gentleman who flew in from Florida was sitting next to me. He claimed he had enough. He stated, “I flew out all the way out here not to be sold on to another program. I already bought in to this. I’m leaving.”

This episode reminded me of what William Arthur Ward wrote, “The mediocre teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires.” Many times inspired people don’t need to be sold.

Forum Participation Has Dropped

Thanks to Web 2.0 you can tell the health of online communities through member participation on forums. From 2005 to mid 2008 participation on the Mike Watson Forum was great. People were sharing their challenges, successes and new strategies. Now just like real estate prices, the participation on the Mike Watson general forum has plummeted. Will it ever come back?

Who Shouldn’t Invest Into Mike Watson Investing

If you ever read “Rich Dad-Poor Dad” you understand that the only way to get out of “the rat race” is to become an investor. If you still have it in your spirit to call someone other than yourself your best client/employer, then this program is definitely not for you.

Don’t put it on your credit card. Like other things you have purchased that are now collecting dust, like Gary Kellers’ book “The Millionaire Real Estate Investor”, you are only going to get out of it as much as you put in (cliche alert). If you don’t have the ability to generate massive action and don’t have the disposable cash to invest in the training, just devour the free information.

What I have learned is to apply this process across different industries. If you don’t understand the concept of multiple streams of income, you shouldn’t invest in the “camps.” I have applied the concepts that I have learned in a pool business, internet niches, and in a restaurant. Specifically, I took what I learned from the raising capital workshop invested in a pool business and made a short-term profit of 35%.

Final Thoughts On Mike Watson Investing

Mike is a very personable guy. I have talk with him outside of the workshops during a field event, and I do appreciate some of the intimate things he observed. Like my own self-limiting beliefs that I had held on for years, but no longer.

Even though, I won’t be unthawing my credit cards anytime soon, what I have learned from being a part of the community is that everyone of us can be great… we just have to first believe.

Here’s The Link!

www.MikeWatsonInvesting.com

Happy Investing!

Kendall Matthews

P.s. In 2007, Mike Watson held a “Retire in 5 Years” Super Camp. According to Mike, the 8 main components of retirement are:

A paid off life
Residual positive cash flow
Passive Income without property
Lump sums of income over time
Income for life
Equity positions in properties
Great tax strategies for retirement
Own a sellable business that provides income

Is there anything in this list that is missing or you would add?

Jim May 14, 2009 at 9:02 pm: Mike Watson is broke. He cant pay his investors, and millions have been lost by following his advice. STAY AWAY. He is being investigated by the SEC for securities fraud, and is going down. Everyone who has been damaged by him is coming out of the woodwork. Check it out:

mikewatsonsbroke.wordpress.com/
Kendall Matthews May 14, 2009 at 10:06 pm: Thanks Jim.

Does anyone knows Wayne Hyatt of “The Phoenix Five?” He’s down here in the sunshine state of Arizona, I would like to hear if he is still a part of MWI program.

If someone can corroborate what Jim is saying that would be great.
Don and Connie May 24, 2009 at 12:44 pm: Have you heard anything more about the Mike watson Institute? Have you heard anything more about Wayne Hyatt being an on going student of Mike Watson?
Kendall Matthews May 29, 2009 at 1:32 pm: @ Don – I’m still on the Mike Watson email list. From what I’ve been receiving, it looks like he has changed his model to do more joint ventures promoting other real estate gurus.

Since I’ve been getting so many calls/readers from people trying to find out if a Mike Watson Scam or Legit Real Estate Training. I did leave a message on Wayne Hyatt’s voice mail today.

Wayne always seemed like a straight shooter. Since he’s a local Phoenix real estate guy, I would like to get his take on his experience and write another in-depth article on his experience.
Paul June 6, 2009 at 5:24 pm: While I was a Mike Watson sutdent, I loaned Mike Watson my retirement. He promised several things; that my investment would be secure, that he had hundreds of thousands of dollars a month in positive cash flow, that he had a 50% equity position in the properties he owns, and that I could get my money back within 60 days if I needed it. In February, Mike had a webinar for his investors only. He said he needed to restructure all his debts. He had no money, no equity, and no ability to borrow. My note is due. Josh Escobedo, Mike’s right hand guy, is offering to settle for pennies on the dollar. He says Mike is broke. I advise caution, both with investing with MWI and even taking his classes. Why take investing lessons from someone who is over leveraged, cannot pay his debts and is defaulting on personal loans?
Paul Two June 7, 2009 at 6:52 pm: Hi Kendall,

I bought Mike Watson’s course, invested, worked day and night, and wouldn’t get Mike’s staff to look at the deal evaluation to partner with him, as he advertised, his top hook to get folks to make the leap. Away from Utah, he does not know local market nor requirements of local government, yet he insists that people follow (he used the word obey) his teaching to the T, which in the end meant investors running around in circles and wasting valuable time and money. His claim to “partner” with people serves him better to learn about what happens and what works in that particular market, only at times when he doesn’t think he is god.
The last time I heard, Wayne was in deep trouble and was suing Mike, whose recent teachings seem a rehash of what other guys have been teaching forever, like investing in mini storage – dah.
You also notice that Mike Watson’s website no longer has the forum, or it is said to be “under maintenance”.
If anybody has any idea of getting unused tuition back I’d be interested.
Kendall Matthews June 7, 2009 at 7:28 pm: @ Paul Two: Thanks on the update on Wayne. I did call him and told him I wanted to do a story for an article on real estate investing during the boom. He did leave me a message. But we haven’t been able to connect yet.

I haven’t checked out the forum in a while. I’ll go there now. I like to confirm everything that I read on blogs….

All right I’m back, and you’re right the forum now redirects to facebook visit http://community.mikewatsoninvesting.com/
Cindy June 9, 2009 at 8:46 pm: I have been investing in Real Estate for 20 years and Mike Watson’s teachings are right on. There is never a 100% guarantee on any investment and always has some risk involved. If you are a student and have learned anything is that you have to have a short term and long term strategy even if you are the one providing the capital. Sometimes it requires great flexibility and patience. The real estate is still there…it has not been swallowed up…be glad you did not invest in the stock market with those funds. Prices may not come back to the same levels, but they will go up again. If the real estate investment was sound to start with, it just may take longer to get the plan completed in this market.

I personally, am still trying to take in as much knowledge as possible from the Mike Watson Institute. His classes are 80% education on all aspects of real estate, and 20% hype. I pride myself on being a real estate expert after 20 years of investing, but I still get some aha moments when listening to Mike’s lectures. Some of the ideas he has presented have panned out, some have not but it is up to me to take what he teaches and make it work for me.
jerry June 20, 2009 at 1:07 pm: Just read at mikewatsonsbroke.wordpress.com. .I. K. Mike watson is a fraud
Danny Dore August 25, 2009 at 9:41 am: Is Mike Watson a thief? Is Mike Watson a liar?

In good faith I put down $2000 after listening to Mike Watson sales pitch for his real estate CD’s and boot camp with a guarantee that if it did not change my life I would get a full refund. Five hundred people heard him say those exact words and I can get witnesses to corroborate that statement.

I have been training in real estate for only a short time and have taken only one previous home study course. I was hoping to move to the next level in real estate with Mike Watson’s course and boot camp.

Unfortunately, Mike’s home study course and boot camp was far beyond my comprehension at this time. I was totally lost listening to Mike’s CD’s and just as lost at his boot camp.

After the first day of the boot camp, I became so frustrated and aggravated with the speed and amount of information presented I realized it was useless for me to return.

Regrettably, I requested a full refund on all money’s paid and was denied with no reason.

I have recently filed a dispute against Mike Watson with the credit card company and am waiting a response.

Is Mike Watson a thief? Is Mike Watson a liar?

I think you can now answer that question yourself!

With the internet and the ease of communication, I do not know how anyone can even think they can operate a shyster business like the one Mike Watson is operating.

Mike Watson, you should be ashamed of yourself and I am sorry I ever met you.

August 24, 2009
Tom A. Wilson November 18, 2009 at 2:48 pm: The people I really want to hear from are the people ACTIVELY using his system. No seminar is going to do everything for you and ALL the free seminars are just advertisments for the paid training. I know that and don’t expect it to be anything else.
The one thing I have heard about where I can possably speak to real students of his face to face without spending a lot of money first is at the ROUND TABLE MEETINGS. These are from what I understand, casual meetings usually in a R.E. office made up of students actively in his program. If anyone knows of any of these I could go to in the Southern California area I’d be interested. Preferably in L.A. or OC. area.
Kendall Matthews November 18, 2009 at 5:50 pm: @ Tom, Kendall Matthews here and I am actively using what I learned from Mike Watson. The core principles are still solid.

There were round table meeting here in Phoenix and they had been beneficial. I haven’t received an email about them anymore and I stopped going when I realize most folks weren’t taking action.

However, if you where a student or not. Mike mentioned that you should attend the local real estate investor association. I have been to AZREIA and it is great. I will become a member ($147/yr) at the beginning of next year. If there is an investment association in L.A. or O.C. you should check them out. Google them, but don’t join until you interview people who are currently attending or have in the past.

Like others who have commented, two years ago, I signed up for a boot-camp and paying monthly for something that I might never go to. Yet, I realize one thing… the best way to predict the future is create it!

Feel free to comment about things on my website.

Be You Own Best Client,

Kendall Matthews, 860.469.5526

P.s. Thanks for commenting.
Kendall Matthews November 18, 2009 at 5:52 pm: @ Danny: How did the credit card dispute go?

Moving Forward,

Kendall Matthews, 860.469.5526
Tom A. Wilson November 18, 2009 at 6:52 pm: Thanks Kendall for your advice. I’ll see if I can find a R.E. Investor Association near me. I’ll also see about the round tables. I’m not ready to invest $16,000 but buying his book on Seller Financing for $20 is something I can handle. I think I can probably get a lot out of that and talking to people who are actively investing. Good luck to you.