I live in the DC area. I'm interested in buy and hold. I ran across a successful rehabber in the Baltimore area who had used a business coach....in fact he had more than 1. Has anyone had any experience with a paid business coach....as opposed to an unpaid mentor or a highly paid guru? Would love to hear some opinions and get referrals from successful investors who have used a business coach!
They can certainly be helpful. A couch is going to keep you moving forward towards your goals constantly doing things and I know its worked for me. I had some of the highly paid guru mentors and didn't like them because I was transferred to an experienced investor somewhere on the East coast with a bad connection and no insight into me, my business, market and strategy. My coach, because of consistent discussion and implementation of a plan was much more informed and knowledgeable of where I am planning to go.
Well if your choices are in unpaid mentor versus a highly paid guru I think you are going to have a hard time getting any help at all.
There are a lot of REI's that don't want to help other people because they're scared of competition, I believe that's true
Maybe you could find wholesalers interested in other strategies as in sub2, lease option assignments, multi's, wrap around mortgages, joint ventures, etc
I find wholesalers that their marketing is finding have pretty houses with no equity or little equity to do sub to, lease options, and wrap around mortgages
I don't teach them what I'm doing, I just do a joint venture with them giving them $500 a deal with those leads
I used a business coach for awhile with my business. It was a group called The Alternative Board (TAB). You had a specific coach and then once a month met with your other board members. The board members have similar size companies but are in different markets (my board had a pest control company, office furniture company, insurance business, and two very different software companies). It was about running a business and not working in a specific market or trade. It had good value.
Regarding an expensive guru, I am new to REI but not business. My observation is a number of people have posted disappointment in working with gurus (one more posted in this thread already) and I have not seen many if any positive posts about working with expensive gurus. I do not see how you get an ROI with the expensive gurus.
A good reason most on this site do not like Gurus is because this site is essentially a free guru. It is also more knowledgeable than any guru. That and a lot of the gurus out there are basically just marketing hype. Little content for a lot of money. With that being said there are coaches out there that are amazing at their niche and are well worth the money. I wouldn't sign up with any coach that do not offer personalized coaching.
There are "business coaches" that help you grow and manage your business in many ways and, particular to our business, there are "REI coaches" that teach you how to do real estate investing. The "gurus" we speak of in here are not the real REI coaches, but rather the guys (often reality TV show people) that offer the late-night-infomercial hotel courses. We're not big fans of the gurus because what they offer is a crappy deal (not even talking about their unscrupulous way of getting people to pay for those courses with their 401Ks, etc.). Gurus often offer a few days of classroom training for a higher cost than a year of personalized REI coaching.
Now, do you need a "business coach" for your real estate investing business? Not sure what value they provide. They will not be teaching you how to do this business. My guess is most people who are new to this business would get the most value out of an "REI coach".
REI coaches are - in my opinion - a good deal if they offer a flat-rate, 1-year program. I would never sign a deal that gives someone 50% of my deals in the future when I have no idea if they will even help me get those deals. And after you've done a few, you don't need the coaches help, so why would you give him 50% on deals where he (or his staff) did little or nothing to help you score that deal.
REI gurus are NEVER a good deal. NEVER.
Love the graphic too!
Here is what I do as a 1 on 1 coach for a year.
I've had experience with both an REI mentor and with a business coach. They have both been invaluable to me in different ways, which I think about in context of the E-Myth's paradigm of working "In" your business vs. working "On" your business.
The REI mentor started out as an informal/unpaid relationship where I would occasionally ask him a few questions (I tried to be respectful of his time and not overwhelm him). I decided that I wanted more of his time and that I was willing to pay for it and so he and I collaboratively worked out a "paid" mentorship where we partnered on two rehabs (I put up the money, he provided a hard money loan, and we split profit approximately 60/40 - don't recall specific split but I know I got the larger share). That worked out wonderfully for me in terms of getting out of it what I wanted (we were very upfront and clear with each other on our expectations before we agreed to partner up). I believe that he got a significant amount of personal satisfaction out of it and I also know that he now has a local client for hard money loans. He and I continue to have an informal mentoring relationship and meet for lunch as often as we can. From this REI mentor I received experienced insight into how to find, analyze, and run a rehab project. I also was rapidly able to grow my local network since I had a formal relationship with an established player. My REI mentor helped me lay a good foundation for how to flip houses (that is, how to work "in" my business).
On the other hand I have a paid business consultant who is helping me work "on" my business. This individual (he is truly an individual - not a large consulting company) is guiding me through the process of building and growing a true business (my goal is to have a business that doesn't need ME to run it). My business consultant doesn't know the first thing about real estate investing, but he doesn't need to.
In short, I think both an REI Mentor and a Business Coach can play valuable roles in your growth, but don't put the cart before the horse - which is to say before you can work "on" you business you need to know how to work "in" your business.
Good question and good luck!
Chris, I have some comments on this that I think might help you. First of all, I agree with several above, and think Dev said it best. Personally, I have had a few REI mentors that have helped me over the years (unpaid), but nothing helped me more than creating a mastermind group. We meet every other week and have for over 8 years. In my opinion, find some local, like minded people that you can trust, and put it together. It takes time to build it, but you will not believe the value you will gain from it.
I have been an active real estate investor since 2002 (doing SF and MF deals) and a hard money lender since 2005. Altogether, I have completed over 1000 transactions. I would not be where I am today as a real estate investor or hard money lender without them.
Coincidentally, I have since added a paid for, business coach (hey, stop laughing), about 1.5 years ago for my hard money lending business. I was very skeptical at first, but quickly saw the value. He has real, big company experience, is wildly successful, and has a proven system for coaching. With that being said, you don't need one for real estate investing. By the way, I am very new to BiggerPockets. I think someone above said that this site is a free guru. I couldn't agree more. I wish it was around when I got started :)