I'm looking to dive deeper into the wonderful world of REI. My husband and I have one SFR which we've been renting out for slightly under a year. It was actually our starter house so it wasn't purchased with investing in mind and therefore isn't performing as well as one would want as an investor.
I'm at the stage where I'm ready to start branching out and doing more. I'm interesting in wholesaling, rehabbing, and holding multifamily rentals.
I'd love to sync up with a mentor in the CT/MA area but I'm curious how that typically works. Does one normally pay the mentor and if so is it typically a flat fee for a period of time or number of deals or would it normally be a monthly fee? Or does the mentor put the student to work in some fashion and that's how they benefit from the relationship?
On one hand I'm happy to pay to gain knowledge and experience but I also would be a bit more skeptical of the relationship if I'm paying. How do I know that Joe Shmo investor isn't just trying to take my money and run without showing me the ropes? Or perhaps he doesn't even know the ropes? How would you all do your homework on an investor?
@Meghan Reed Welcome to BP. It is always good to see others from CT on the forums.
What I would say is to do your homework on all of the REI disciplines you are interested in learning more about and see which one or ones you want to focus on. Biggerpockets is a great free resource between the forums, blogs, articles, and podcasts to really educate yourself, build a foundation, and decide which strategy fits you best.
Once you have decided which path you want to go down, start reaching out to local people who are where you want to be. There are plenty of active investors on here from Connecticut including myself that would be glad to help you once you have identified what it is you want to accomplish through REI.
Also, I do not know of anyone around here that charges money for their time to mentor someone.
I have a foreclosure property that may or may not get approved by the court in your neck of the woods. If you're interested in being involved in prepping/flipping a townhome post-foreclosure, I may be willing to trade some knowledge for a more local presence around the property.
What are you looking to learn exactly?
Thank you Hal and Michael for your responses. Hal, I'm really just looking to gain some real world experience in putting some deals together/working through them. I've been reading a lot about real estate and reviewing the Bigger Pockets posts/podcasts on a daily basis for a couple of years now but I just feel like I need to be involved in some actual deals to become comfortable enough to do it on my own. Wholesaling is especially elusive to me. The concept is rather straight forward but I have no idea what type of paperwork needs to be put together since I'm not a realtor myself. (I'm also wondering whether that's something I really should do.)
I would definitely be interested in being involved in the prep and flip on your townhouse assuming it gets approved. Perhaps we can take that offline at some point and determine what type of work I would help put in and where the property is to see if that would work out for us.
@Meghan Reed I never liked the term wholesaling. I don't think it really reflects what is involved. Basically, wholesaling is just putting a property under contract, and assigning the contract to someone else. As part of the contract you sign with the seller, you have a clause that says it can be assigned to a third party, assuming that third party is willing and able to close.
The problem with wholesaling is that you are a middleman, and therefore must have both a network of interested sellers, and of interested buyers. The most successful wholesalers are generally real estate agents who already have these connections through other means.
Many years ago I accidently got involved in wholesaling without knowing it. I went into contract on an apartment that I actually wanted to buy so my ex husband, who had fallen upon hard times, would have a place to live. Well, unfortunatly he died before we closed, and my lawyer said I could sell the apartment to someone else. I did that and discovered that I made a few thousand dollars in the transaction. it just shows you, do a good deed and it will pay you back.
Totally agree with @Michael Noto on the approach.
Welcome to the Best Real Estate Site on the Net.
It is always nice to see another Ct., Resident in the forums.
Click on the “learn tab” at the top of this page, and you could be spending many hours on the Information that is available.
@Meghan Reed welcome to the BP community. The BP blog under "Learn" is a great tool also.
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