Have you paid for a coach? Thinking about Michael Blank

52 Replies

HI BP community you ROCK! Thank you for taking the time to read and even respond:)

I'm thinking about paying for some one-on-one coaching with the Michael Blank team.

Has anyone specifically used Michael Blank's one-on-one coaching team and if so did you find useful?

There are some nay sayers out there about paying coaches in general: https://www.inman.com/2016/01/13/pay-real-estate-i...

Thank you BP community again, you seriously ROCK!!!

I have not, I never will, and I wouldn't advise anyone to do so. Most of these coaches have little to no oversight and are mostly hype people all the real information numbers are available for free online the main benefit these coaches offer is motivation.

a good commerical broker can probaby explain this over a beer or coffee frankly not that complicated

you have rent you have runnning cost and you have acquasition.. cost of capital. 

although MF right now is quite frothy.. and Ian Ippottio can out with a very good blog on it today..

Oh how to be a syndicate I see that's different. U know things are frothy when how to gurus pop up. That a space I don't think u just learn from a class

What's the value of 15k to you....if you don't have considerably more to invest then it's probably not the first choice I'd make. Lots of info out there for free, only constraint is time. 

Why not put 15k towards your first deal as a buffer and learn on your own. I caution though with money on the table sharks come out....

@Matt K. Thanks Matt! Excellent thoughts!

@Jay Hinrichs Thank Jay! I'm also reading Ian's blog now and he states, "So, when a bank shoots down a sponsor, what can that sponsor do? They could raise more equity in the deal so that their LTV goes down to say, a conservative 65%. But this also reduces the return to investors." My thought is that the more equity one has in a deal the larger percent of the cash flow they receive as there is less debt service. So how does this reduce return to investors?

I should also add... Classes are great and serve a need, but networking and proven track record trump a classroom.

Ask yourself would you invest considerable amount of money which may represent a person's retirement or life savings with someone who has no track reord, never done a deal?

Or would you feel better with the guy who said I took 15k I was going to spend on class and did my first deal, then I did another and another, then I got stuck and I spent some on classes keep moving forward. Now I have my own team and I'm ready to offer you (the investor ) a deal of blah blah 

Originally posted by @Skylar Vincent :

@Matt K. Thanks Matt! Excellent thoughts!

@Jay Hinrichs Thank Jay! I'm also reading Ian's blog now and he states, "So, when a bank shoots down a sponsor, what can that sponsor do? They could raise more equity in the deal so that their LTV goes down to say, a conservative 65%. But this also reduces the return to investors." My thought is that the more equity one has in a deal the larger percent of the cash flow they receive as there is less debt service. So how does this reduce return to investors?

not my area but what i have been told and understand for syndicators to hit their numbers or keep up with the competition max leverage is needed to increase returns

however having been around this game a few years..  me thinks that you need some deep understanding and experience in the space.. IE worked for large syndicator already and apprenticed ,, large institutional PM that manages these assets.. big commercial broker.

REIT Hedge fund... some back ground where you gain a lot of experience.. people are going to want to look at your track record.

and a graduate student of a guru class by and large is not going to cut it..   I worked for a billion dollar syndicator in the 80s  doing site acquisition... talk about a great job.. did it for alittle over two years.. draw against commish and i made some monster commissions bringing them deals in N. CA  Sacramento area .. plus got back end equity.. but I had already been a top producing Broker for a decade before they let me work with them. 

these guys started small doing garden apartments in Sac... 15 years later well over a billion under management .. we had MF  adult care 

MHP   land developments ( my specialty)    Anyway.. by the time these companies are going they have full on PM  they have 20 employees they have a sales and marketing department that also doubles as customer care.. they had over 5,000 investors.. 

why I will never personally do this.. is when things changed and the MF started to leak oil and lose value.. it was a nightmare and I watched these guys implode.. so who needs that stress not enough money in the world for me PERSONALLY to take sponsor risk .

and last thing i would do is invest with someone with very limited experience in the space.. you have no controls as a limited.

and things have peaked a lot in the MF space.. most guys i know that do it have to look at hundreds of deals to get one. do you have the bandwidth to do that.. can a 15k class teach you all of the above. ???? thats the question.. probably worth it just for the info but not sure on ROI for you personally IF you have no prior experience.

@Jay Hinrichs Roger that Jay. I definitely have the bandwidth to look at hundreds of deals and welcome the opportunity. In this MF climate I will learn a lot build a pipeline of investors. When the MF market yields more deals that are easier to find I'll be well prepared. At least this is my train of thought at this point. 

I live in Oakland CA. Do you have any large syndicators ,, large institutional PM that manages these assets.. or big commercial brokers you would recommend I contact to apprentice? Thanks Jay!

I don't mean to discourage anyone.... but how on earth could one realistically expect to be able to even come close to evaluating a deal on syndication level w/ out prior experience? I mean I get you could read and study till the cows come home, but unless you have the experience to grasp the numbers... you'd have no clue if someone was legit or not with the data entered.

It doesn't even have to be experience in real estate, even contracts or similar would help you tremendously.

Originally posted by @Skylar Vincent :

@Jay Hinrichs Roger that Jay. I definitely have the bandwidth to look at hundreds of deals and welcome the opportunity. In this MF climate I will learn a lot build a pipeline of investors. When the MF market yields more deals that are easier to find I'll be well prepared. At least this is my train of thought at this point. 

I live in Oakland CA. Do you have any large syndicators ,, large institutional PM that manages these assets.. or big commercial brokers you would recommend I contact to apprentice? Thanks Jay!

 http://www.jll.com/eastbay-oakland/en-us

http://www.cushmanwakefield.com/en/offices/oakland

http://www.cbre.us/people-and-offices/corporate-of...

for commercial side of thing

@Skylar Vincent unlike sfh you cannot do mfh unless you have the partners to do it. You can definitely tell the difference between those who go through a program and have a mentor. It’s night and day.

I never took courses or had a coach and thought that was a great thing. I can't help but wonder if I had gotten a coach or taken a course, would I have started buying apartments earlier. $15k is a lot, but if that is what it takes to make you cash flow of $15k/year or more, then it is worth it. 

@Skylar Vincent

There are tons of free coaching out there why pay for one? BP is an amazing community where you can get all the help you need, network with more experienced investors etc. In my experience most paid coaching will not teach you what you really need to learn. If you have some money to spare look for someone on BP with tons of experience in the field, take them out to lunch and spend a few days shadowing them. I believe that would be more valuable than a paid coach.

Good luck 

@Skylar Vincent Inagree with with what @Todd Dexheimer explained that if the 15k you invest to learn starts to generate 15k a year in cash flow, then it was worth it. 

 You are asking a biased group the question of whether or not paying for education is worth it. There is a higher percentage of people on BiggerPockets that have a negative opinion of paying for education. So when you create a post asking if you should pay for education you will get more responses of people who say not to but instead put that money in the first deal.

A better question to help you get what you are looking for might be to ask people who have spent more than 15K on mfh investing, was your education worth it, or looking back, would you have done it a different way.

@Skylar Vincent - Another good option too is that with Mr. Blank you can consult with him occasionally on an hourly basis as needed.  Why not dip your toe in the water with him, try to get a deal done, make a few bucks and take it from there?  

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