Spend money on hand-held coaching, or my first REAL marketing campaign?
Rental Property Investor · Stuart, FL · Member since 2014 · 280 posts · 68 votes
Hey BP,
Just wanted your guys' opinions..
I've spent the last 3-4 months heavily researching how to be a good wholesaler, and I'm at the point now where I want to take massive action.
Should I:
a) Spend money ($6,000) on a coach who will hold my hand through my first couple of deals? He will give me all of his resources (contracts, scripts, etc.) and essentially help me shorten my learning curve and avoid costly mistakes. His program is a 1-on-1, 8 week course, and I KNOW he'll make me work my butt of the entire time (which is a good thing). This guy is very successful, and I can trust that his coaching will work. However, I'll be getting my deals/leeds the HARD way by doing more cold-calling, and sweat-equity type activities. I'll also be splitting my deals 50/50 with him.
b) Spend money ($10k) on my first REAL direct marketing campaign, where I'll learn as I go, and get deals/leeds the easy way by just taking calls? This approach is more risky, since its more money, and I don't have the real-life experience yet of closing deals.
Thanks BP!
Jordan
I personally would spend the money on the marketing campaign. There are plenty of people who will answer your questions here on BiggerPockets for free. Unless you are the type of person that needs someone else to motivate (carrot or stick) you; which obviously you aren't or you wouldn't be trying RE (else it will be a short career for you). I think paid coaching has a place after you have taken your first steps and need a hand up to make your business grow to the next level. Just my 2 cents take it or leave it.
I personally would spend the money on the marketing campaign. There are plenty of people who will answer your questions here on BiggerPockets for free. Unless you are the type of person that needs someone else to motivate (carrot or stick) you; which obviously you aren't or you wouldn't be trying RE (else it will be a short career for you). I think paid coaching has a place after you have taken your first steps and need a hand up to make your business grow to the next level. Just my 2 cents take it or leave it.
Yes
@Jordan Archer I recommend that you contact @Jerry Puckett on here. 10k is a great starting budget. He does the yellow letters. Included with the cost of your mail (which you get a great deal through him) is access to him as a mentor. He can walk you through any of the questions/specific deals you run into. He provides scripts and all of that as well. Not to mention you are starting a relationship that will last longer than 8 weeks.
On that same hand if you ever need help with the aspects of taking the calls, negotiating, etc I am here for you. We have used Jerry for 6 months and will continue to use him for years to come. We have wholesaled one property, added two SFR rentals, have two more wholesales under contract, and are negotiating on a potential flip. I have made WAY more than I have invested.
I second contacting contacting @Jerry Puckett . He is a great guy and his mailings really work. He will also help you out on your first deal i believe.
For me a coach is nice to have, but it's like GPS. Sure you'll get where you want to go, but will you understand how you got there?
Hi Jordan No need to spend 6k for coaching and don't even think about spending 10K on marketing with out small tests first.
@Jordan Archer I would recommend taking action first and asking questions later. You can start with a minimal investment in marketing and learn as you go. You would learn things from the mentor, but for 6k, you can learn much more by using SOME of that money to start your business. You will get hands on experiences versus someone telling you about their experiences. Don't be afraid to make mistakes, they will happen and you will learn from them. There will be many hurdles, but you will become a Olympic hurdler before you know it!
Learn before you leap. It's true you can learn from your own mistakes, but it's cheaper to learn from someone elses.
The problem paying to learn from the mistakes made by others is that they will always thing the value of what they have to share is more valuable than it really is, most mistakes are unique, you'll never replicate the same situation of their mistake.
If you're going to pay for an education, make sure your mentor is fully informed and current, many aren't. My bet is that most, like 95%, of those offering mentor programs couldn't pass their state real estate exam and that is nothing but basic real estate.
What you're paying for is their opinion and ideas, usually they are old strategies under simple concepts, there isn't any rocket science going on. The industry is full of old timers teaching what they have done since 1980, problem is, what they teach may no longer even be legal.
I don't really know Jerry, except from here, I doubt he charges that kind of money, but he might, no idea, he's a sharp guy, I also remember him getting started too and answering his questions. No inference there, just saying, price paid should probably be reflected in education, experience and ability to communicate aspects that can be replicated easily. Depends on the complexity of the "class" or "strategy" to be taught and mentored.
To your question, save your money to make money, like on a down payment, cash reserves, settlement costs. If you can't find a deal spending less than a grand, you need to get out of the marketing strategies and learn the basics again, understanding the basics will get you further in investing than a paid mentor. Why do or can I say that? Because I never paid a mentor in my life! There should be folks in your area that will be willing to pull you along a bit without getting deep into your pockets.
Pretty obvious, those who offer mentoring will advocate the need for a mentor, those that don't will tell you otherwise! Those that paid for a mentor will tend to justify their decision, not admitting they messed up, and suggest a paid mentor. Someone like myself who made it without a paid mentor will advise much as I did. :)
I feel the same. I've spent so much time on this site, I would feel like a "donkey" having someone just repeat it all back to me...especially for a lot of money!
I think my problem is just trying to pick up all of my momentum too fast. I have a decent amount of money that I can spend every month on marketing, and I think I'll just stick to that. Honestly...I probably wouldn't be able to handle the call volume yet anyways.
Thanks guys!
I remember the second time I "started" in RE, I had owned rentals before, but decided to make it my full time business. I understand the pressure and desire to get going to make money. You really need to slow down and really learn real estate, not how to market aspects of real estate.
When you know the characteristics of RE, the economic functions and relationships, learn proper terms and have a source to find them, understand government powers and influences. Know the forms of ownership by deeds and how such are passed, understand what rights exist in title and leasehold interests, types of leases and tenancy. Learn aspects of easements, encroachments and liens and how such effect RE. Learn the flow of RE settlements, understanding of contracts, required disclosures and what finings do. You need to understand business law and real estate law, laws of agency and basic contract law. Then understand the relationships and effects of all these matters to valuation, then you're ready to look at strategies.
Then comes financing, you need to understand conventional financing before you attempt to be creative and you can't be creative without understanding all of the areas mentioned above. Financing is too involved and regulated to try and learn this to drill very deep, all you really need is an overview, how to pre-qualify a buyer, identify credit issues and understand basically aspects of the ability to pay. Financing is the key to the door of real estate.
Then you're ready to hit the streets and not before you have a grasp of such material. It sounds like a lot, it is, but it's not drilling that deep in any of these aspects, just the basics. Understanding the cause and effect of these aspects, a light will go off and you'll know how and why strategies are used to accomplish some goal. You will know more, at this point than half the people on real estate investor sites. You'll know more about real estate than 85-90% of homeowners (guessing 10-15% are attorneys, Realtors, lenders or title folks).
Time wise, for most people, this can be learned in less than 30 days, it's basically what real estate agents are tested on for a license and those schools are 2 1/2 to 3 weeks long, or about 80-90 hours.
If you're motivated, you won't really need a handholding mentor after you learn this and having a quick reference source, you can jog your memory in just a few seconds to address some strategy. I have seen several people offering mentor programs and coaching that haven't mastered these basic aspects, some don't have a clue as to some of these areas. There are many who approach the business as a marketing mission trying to move monopoly houses as they might deal with a car or some other commodity, it's not that easy. The reason newbies are chasing their tails and trying to get help or getting suckered into programs and schemes is because they didn't learn the basics.
Don't study to know it all, you'll never know it all, I don't know it all and never will, but you don't need to either. :)
I remember the second time I "started" in RE, I had owned rentals before, but decided to make it my full time business. I understand the pressure and desire to get going to make money. You really need to slow down and really learn real estate, not how to market aspects of real estate.
When you know the characteristics of RE, the economic functions and relationships, learn proper terms and have a source to find them, understand government powers and influences. Know the forms of ownership by deeds and how such are passed, understand what rights exist in title and leasehold interests, types of leases and tenancy. Learn aspects of easements, encroachments and liens and how such effect RE. Learn the flow of RE settlements, understanding of contracts, required disclosures and what finings do. You need to understand business law and real estate law, laws of agency and basic contract law. Then understand the relationships and effects of all these matters to valuation, then you're ready to look at strategies.
Then comes financing, you need to understand conventional financing before you attempt to be creative and you can't be creative without understanding all of the areas mentioned above. Financing is too involved and regulated to try and learn this to drill very deep, all you really need is an overview, how to pre-qualify a buyer, identify credit issues and understand basically aspects of the ability to pay. Financing is the key to the door of real estate.
Then you're ready to hit the streets and not before you have a grasp of such material. It sounds like a lot, it is, but it's not drilling that deep in any of these aspects, just the basics. Understanding the cause and effect of these aspects, a light will go off and you'll know how and why strategies are used to accomplish some goal. You will know more, at this point than half the people on real estate investor sites. You'll know more about real estate than 85-90% of homeowners (guessing 10-15% are attorneys, Realtors, lenders or title folks).
Time wise, for most people, this can be learned in less than 30 days, it's basically what real estate agents are tested on for a license and those schools are 2 1/2 to 3 weeks long, or about 80-90 hours.
If you're motivated, you won't really need a handholding mentor after you learn this and having a quick reference source, you can jog your memory in just a few seconds to address some strategy. I have seen several people offering mentor programs and coaching that haven't mastered these basic aspects, some don't have a clue as to some of these areas. There are many who approach the business as a marketing mission trying to move monopoly houses as they might deal with a car or some other commodity, it's not that easy. The reason newbies are chasing their tails and trying to get help or getting suckered into programs and schemes is because they didn't learn the basics.
Don't study to know it all, you'll never know it all, I don't know it all and never will, but you don't need to either. :)
Thank you Bill! This information is very helpful. When I was studying to get my license, the exam prep book I used (by John Henderson) covered a lot of what you mentioned. I'll continue to refer back to it when needed.
Jordan, learn the basics as Bill suggests. Your understanding of RE will soar through the roof. Good luck!