Should I pay 30,000 dollars for a Mentor Program

71 Replies

I'm Tanesha from Florida the sunshine state.

I have been looking into investing for quite some time and have found some mentorship opportunities that all want a outrageous fee. However, they have sense talked to me and said that I can pay for just the wholesaling portion for $2000. Instead of paying 30000 for the whole course. Is it possible to just learn to do it on my own or must I have a mentor and pay for this course?????

 I don't have the money to just throw away and feel that its possible to do but not so sure. Sombidy help me with this decision.

Nope. I feel you could find better knowledge on here! I have called and spoke with mentors that charge monthly 2k-10k and truth be told no one knows your market like you! 

No, please don't give that kind of money to a "mentor." You can learn plenty right here on this site and by meeting other investors at local REIA meetings. Eventually, you need to just jump in and take action. There is no better teacher and confidence builder than trying it out for yourself.

For $30K, you could put it down on a rental property or two.

Hi @Tanesha Mills and welcome,

I have a habit of not telling people what to do with their own hard earned money so whatever you decide I wish you the best of luck! I will however tell you what I would do if I had 2K to get me started and wanted an education. Personally I would take that 2K and get my Real estate license in the state I am in. Then I would join the local realtors association and hang my license with a broker that offers a lot of training. Then get to know the players and follow along an agent that is a top earner in the office and do all their grunt work (open houses etc). You will meet their clients and start getting their overflow. In that process you will also see deals as they enter the market and know the players in the area. That will allow you to start to understand what a real deal is just by being immersed in the business. As you pick it up you can stop the agent part or just use it for your own deals.

That will get you in with your local market, the people that actually buy where you are and in your neighborhoods. Overall it will cost more in time than you would spend going to a class, but it is local and gets you the contacts you will not get from a trainer in another state. Those are just my thoughts and best of luck!

um, everyone has their own opinion but mine is NOPE. I honestly have learned so much just by doing it. $30k bought our first 2.5 properties. Each to their own but I would rather learn by doing with that kind of money. You have BP and all of its free advice and resources. Good luck!

Hi Tanesha, Here're my two cents after 15 years of being in the business:

You get out of anything what you put in physically, not financially. So my advice is BE VERY CAREFUL about paying (usually a LOT) of money to be part of a system or education program that brings you deals, education or whatever. Most of my clients that have been involved have had very bad experiences. I have sued a few to recoup their money. A tiny few have had good experiences. I'm sure a lot depends on the individual investor and of course the company, like I said. 

But I find that most of these companies over promise and under deliver. They are great at selling you the program, and less motivated to work with you once you're in. If you start taking a back seat, so will they. At that point you're just work and time to them. If it's deal-based, they also bring you into a eco-system where they control all parts of the deal: hard money financing, wholesaling fees, property management fees, sales commissions, etc. They make money at all levels and those fees really drive down your return. Most deals from these companies are also out of state, and I'm not a big fan of doing that unless you're a VERY sophisticated investor. The deals, when taken as a whole, are never that great to the investor. And you can get the same opportunities, and possibly better education and networking at the REIAs, and for a just a few bucks.

In short, educate yourself cheaply first, Attend REIAs, talk to others, read books, jump in inexpensive or even free webinars (I do a free one every month, and all my educational stuff is free on my website). Then you are in a better position to analyze the value of what you are buying. I have very sophisticated and successful clients that pay 10s of $1000s of dollars for education. But they are at a very different level and have the expertise to chose wisely!

Happy Investing!

Jeff

Hi Tanesha,

If I were in your shoes, I would do the following:

  • Read every article Bigger Pockets has to offer. And, read the forum questions and answers. There are great participants who are willing to share their knowledge.
  • Get my real estate license so I have access to the MLS (and not be dependent on other agents).
  • Align myself with a local real estate office that has lots of experienced agents I could learn the from. I wouldn't work as a traditional agent but I would learn the agent's role and the buying process (from an investor's point of view).
  • Take every class (usually less than $50) I could from the local realtor associations (especially, the courses on contracts).  
  • Read real estate books that seem interesting - at least 20 minutes a day.
  • Join at least two real estate investment groups (found on meetup.com) and attend their meetings.  
  • Network, network, network... learn who the players are in the local market and how they operate.

Anyway, that's what I would do.  And, those things will probably cost less than $2,000.00 and take a few months.  But, in the end, you'll know much more than you would if you paid a single mentor to teach you only about wholesaling.

Originally posted by @Tanesha Mills :

I'm Tanesha from Florida the sunshine state.

I have been looking into investing for quite some time and have found some mentorship opportunities that all want a outrageous fee. However, they have sense talked to me and said that I can pay for just the wholesaling portion for $2000. Instead of paying 30000 for the whole course. Is it possible to just learn to do it on my own or must I have a mentor and pay for this course?????

 I don't have the money to just throw away and feel that its possible to do but not so sure. Sombidy help me with this decision.

Absolutely Not! You can learn everything there is to know through reading books, networking and diving into it. Hold on to that 30k and invest it into a property. Get with a REO specialist to help find properties in your area. With 30k you can start your house flipping business using a good hard money lender until you have more cash. READ READ READ. NETWORK and DIVE.

I'd also note that there are plenty of ways to find properties via finding them yourself through networking, online searches, and pinpointing your area of interest and finding for-sale signs, etc. I feel like getting a license simply to be able to search the MLS is overkill unless I'm missing some other benefit.

@Tanesha Mills   I my self am not on the ANTI paid training train like Most BP members.

As I have paid multi thousands of dollars over my career for training.

Although what I do not recommend is you pay for something you cannot afford. If you can't cut a check for 30k and still have a bunch of liquidity left over then I think your under capitalized for virtually any type of investing..

You can risk your seed capital and try to wholesale ( 95% failure rate) when starting with only  a few grand.

if you want a career you may wish to spend that money on getting a RE licnese

Hi @Andrea Alexander ,

I can't speak for Texas but in NY you have to take a 75 hour course (You can do it online at your own pace) for a couple hundred dollars. Then take the state test (Around $20) and hang your license with a broker who will train you for a piece of the commissions you get. You also have to join the local Realtor organization I think ours is around $1500 a year (that includes MLS and other things). So around 2Kish you are started. Different brokers will offer different levels of training and different commission splits so shop around a bit.

That's it in a nutshell though, takes a little time but not like having to go out and attend a 4 year University or anything. Not saying it is the end game unless you decide you really like being an agent, but it does get you in the business and meeting the right people.

Boom, boom, boom, another one bites the dust! (The guru mentor)!

Read my blog "How to develop a good BS Meter"

And yes, you can get the basics free, but I'm not advertising here, LOL, look at my signature.

$30,000, what a rip! $2,000 to learn something wrong, Another rip!  

Just ask the right questions, I'll teach you!  :) 

Hi @Nicole W.,

The other benefit is the training that all of those agencies provide. Depending on who they are they have sales training and training on how to do comps and teach lead generation etc. I read it as she was looking at training, using that method she gets training while being part of it for a whole lot cheaper than paying the same amount for learning the one aspect of Wholesaling. I agree with @Jay Hinrichs when it comes to training. I am all for it, if you can afford it. If you are going into debt to do it you are not starting off on the right side of the equation (My opinion of course)

I did one of those really expensive educational training programs & found out much later you can get all the information you need to run a very successful real estate investment business from guys on BP & many other places. For a fraction of the 30,000.00. This 30K sounds really familar . And trust me it's not just 30K they will come after you for another 20K.   BEWARE!!!!!

I will share my experiences if you like 

Tanesha Mills   Most of us here have said and will say, it's not a wise move to spend $30k in mentorship from a roadshow guru seminar. Although, I personally have invested a few thousand here and there in the past from these gurus and have no positive experiences from them. Fortunate, I was able to get some of my money refunded.

Most of them are there to sell you recycled education with high pitch selling and upselling.There are wealth of webinars, podcast, blogs, free courses in the "Education" button.
Check out the recent podcast > BP Podcast 149: Early Retirement, Real Estate Bubbles, and Dangerous Scams with Radio/TV Star Clark Howard

I would rather invest my 30k as down payment on a 2016 Tesla Model X, park my Tesla on a sandy beach by Ocean Shores, WA, open up the falcon wings and enjoy the rain drops and listening to the BP podcasts.

NO! I took a class from a guy yesterday that was being offered at the local RE school. It was $149 and I felt like walking out after the first 15 minutes. They want to sell more classes for only $99! If you think you want to pay for training, check the program VERY carefully and get lots of opinions from people that have paid. Find people that credit their success to the company. If you can find LOTS of people giving credit for their success to one of these companies, maybe consider it. If not, more than likely they are not in the business of helping new investors reach success but rather in the business of building THEIR net wealth at your expense.