I guess I just wanted to rant or ask, what's with experienced real estate investors wanting to charge for mentoring? Or perhaps I have the wrong idea of what "menor" really is. I recently got in touch with a guy who's actively flipping and has been for some time. He offered me to chat with him and see if I he and I would be a good fit. After he liked my drive and determination, he hit me with his fee - $1500/mth for a minimum of 3 months, what?! I truly thought mentors did this out of the kindness of their hearts, lol. Do all (or most) mentors follow this same philosophy and I'm just going to have to bite the bullet at some point?
Time is money. I can understand his proposal to a degree.
Why not counter that he'll get x proceeds from your first x deals? Or perhaps pay him some money with the rest funded out of your future deals?
Years ago when I first thought about real estate investing, and local guru was also offering a mentor program and he charged a fee, but one thing about his program was that you would own a property at the end of the deal. You had to make sure you had enough money secured to actually buy a property in order to enroll in his program. He would help you buy your first property and flip it, giving you access to his contact list for various contractors and lawyers etc...
Don't pay for a mentor. There are too many people out there with free information that are willing to share. I operate a Real Estate Network group where I teach people about the different roles involved in a real estate, how much money each role earns and the amount of work each role has to put into a deal to make that money. I charge $25/workshop for this service (optional). Then we have a free meeting with our members to discuss possible deals, current deals and past deals to discuss what roles they are missing in their deal, what worked and what didn't work. Then we leverage our strengths to benefit each deal.
I know that if you are motivated and I teach you how to be a great bird dog, wholesaler or investor, that you will bring your potential deals to me first. In life it's all about relationships.
God Bless You!
It depends on the level of the investor and their time.
If someone averages thousands of dollars per hour in income then they aren't going to spend night and day with you and cost themselves money.
Many investors myself included give back to this site for Bigger Pockets with information. The time on here is control able and the post stays working 24 hrs a day 7 days a week unless site interruption where all the members can read etc.
Occasionally I will meet someone local to me that buys me lunch or dinner and give them knowledge and try to help them on their way. 90 plus percent of the time they do not end up doing anything with the information they have been given. They all talk a good game but do not follow through.
I will also meet with new commercial clients but they have considerable cash to invest etc.
I will get agents wanting to learn commercial etc. I say sure give me 25,000 upfront on a 50/50 split and I will take it off of your first transaction. So if commission is 50,000 to the brokerage I have already taken the 50% and so they will get the 50,000 as I have been paid the 25,000 already. I don't really want to train the agents or have agents at my brokerage as I am happy with my own clients and my own investments.
TIME is a worth a lot of money. People that do not have much money have a lot of time so generally do not understand. People with a lot of money tend to not have enough time.
It's one thing posting on Bigger Pockets, meeting someone occasionally for lunch or dinner, or doing one or two e-mails. It is quite another to train someone to be an expert in a field and successful from the ground up. That takes a ton of time and energy and they might peter out after a few weeks. That is why I get the upfront money so they have skin in the game. If they do not follow through with what I say then they stand to lose more than me and I haven't wasted my precious time I could have been doing something else. A lot of people once they see what goes on behind the scenes they say that is to much work isn't their an easier way?? When they say that I know they do not have what it takes to succeed as they have already quit before they have started.
Hope it helps.
Mentors don't charge -- they help you because they have a vested interested in your success.
Coaches charge -- they do this as a business (or a side business).
There are pros and cons to each; some mentors aren't worth getting free info from and some coaches are worth every penny. But if you're looking for a mentor, you're going to need to build a relationship with someone and give them some reason to have a vested interest in you succeeding.
I think the key is if someone doesn't want to be a coach etc. but people are trying to get them to train them etc.
The problem with mentoring people is that they do not follow through. I used to give a lot of time trying to help people years ago and the satisfaction was seeing them break free from the rat race and achieving something special. Every time they fade out it's just a waste of time for me. These coaches typically just take money and then if the people fade out they have made coin on them etc.
It's like J if you spend countless hours helping show people the flipping business and 1 out of 20 actually did something etc. We all have businesses and investments to run so have to put limits on our time.
If someone really wants to be mentored they will do almost anything to show they are motivated. They will not make excuses as to why success has to happen on their terms etc. They will just say show me the way and do it.
I could imagine if I met someone for lunch or dinner and they just blew me away ( hasn't happened yet ) then I would consider a mentorship etc.
I think this could go either way. If the guy has his ducks in a row and has great systems in place and local suppliers he's willing to share with you.... maybe that's worth the money? Or maybe your drive and determination is such that you don't need the help. (It's not a huge fee compared to some I've heard of- if he were asking 10k or something I'd definitely tell you to run away) I'd bet your 'mentor' has had some folks who wanted to learn from him who turned out to be duds, like Joel experienced. He may just be looking for a financial commitment to know you'll stick with it and pay attention.
If you really think this guy has something going on (that you can't get from @J Scott 's books!) then try @Mike M. 's idea of negotiating some sort of split on your future deal.
@Mike M. I get that time is money, but technically wouldn't I be doing everything on his time? It would be different if he had to take time out to shadow me or some to me, but I would be the one doing most of the traveling to and from his location - idk just not what I expected from the mentoring aspect.
@Justin Owens I like that idea better than the one I was hit with, heck I'd rather just dive right in head first and see what happens - to me that's the best experience anyways but I know a lot of folks say there's too much free information out here to be jumping into anything blind.
@Michael Evans Thanks! I'll be sure to keep my eyes peeled for an invite.
Thanks! @J Scott that's how I was looking at it...I guess I see mentoring as what they do with high school students.
Great information, thanks for posting and replies ... Looks like a nice group
Welcome to Biggerpocket the best free source of mentoring!
The one thing about Biggerpockets is our similarities as a whole end at the fact we all invest in real estate. Everyone here has a different "spice" and way to approach things. Many people love paying it forward. While they won't be at your beck and call. They will help when you they can! The great thing about the forum is people are located all over the world. So you probably will get your answer at various time sod the night.
Therefore, another great resource is to check out the signatures of those who comments you enjoy. My website/blog that I just launched is all about land lording, self management from long distance, buying class A properties and turning them into rentals with lots of other good stuff :)
I look forward to seeing you around the site and learning a lot!
P.S we had no mentor and have been able to buy 5 houses with 75k down in 2 years. So it is totally possible to be successful without a mentor!
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