Is a wholesaling mentor necessary?

Question

My wife and I are in the beginning stages of starting our wholesale real estate business.  We're really excited for the opportunity to work together as a team and the freedom this type of work will seemingly provide for our family. We've watched many videos online and have read through several blog posts on wholesaling and much of what we've read encourages new investors to seek mentorship.  While I find value in working with experienced professionals I am skeptical to spend large sums of money for mentorship right out the gate.  My question is 'who here has succeeded in absence of a mentor' and similarly 'who here has failed and this failure can be directly attributed to the mentor'.

Ruth Bayang · Answer

I was fortunate to have a mentor in my local market teach me everything he knows, just because.
I have also paid for mentorship programs. I received value in both scenarios.

#1 rule (in my opinion) failure can be attributed only to you. You are 100% responsible for your business succeeding or failing.

Jeff B. · Answer

IMO - - NO ONE needs a mentor, far be it one that takes large chunks of your hard earned cash that could have been a down payment.

• rule # 1:  read
• rule # 2: continue reading
• rule # 3: when confused, ASK

Brett Snodgrass · Answer

@Robert Richards ,

It really just comes down to "will it save you time and/or money". It's tough to know which of the guys out there offering will do the above, but I recommend trying the following as I've seen it work.

1. Set up a keyword alert for your specific area.

2. I'd then create a post on BiggerPockets saying where you are from and that you're looking for advice on how to find an ethical mentor in your area.

^This will help promote you with other people who have keywords set up for your area. (But make sure you don't say, "I'm looking for a mentor in my area, any takers?" As that will get you kicked off for solicitation)

3. Then I'd be on the lookout for established wholesalers and investors in your area that pop up from your keywords.

4. Once you find a few that look interesting, take them out to coffee. Make sure you interview them and get a feel for them. (working with them is a mutual agreement)

5. If you like them, and they seem like a good fit, then ask if you were to find some deals, if you could bring the deals to them for them to buy and then offer a 60/40 split (they get 60%) if they'll agree to walk you through the process of closing on it/selling it. And state that you'd obviously do a lot of the leg work, you'd just need to be shown what to do.

6. Then offer, if they have any other needs in their business, that you're really hungry to get involved and to learn the business, so if they needed help answering phones, cleaning toilets or whatever, that you'd love an opportunity to work with them and help out.

7. Then actually do it, if they offer you something.

8. Begin looking for deals via free resources, (here's a good guide to get you in the right direction: https://www.biggerpockets.com/renewsblog/2014/04/2...). Also consider driving for dollars, posting signs at coffee shops, etc.

9. Learn how to run comps and analyze deals the best you can (search on the BP blog for 65% rule for wholesalers) and then when you think one might be a good deal, bring it to the investor who has agreed to purchase the property, and ask him to confirm your comps and give you feedback.

10. Then if he likes it, boom: you now have a real estate mentor and you just rinse and repeat moving forward.

If you can land someone who you know is actually wholesaling in your area and approach them then obviously you know that they'll be of high value. Also don't think that it's just for beginners. I've been at this 10 years and I have a coach. Why? Because there are ways I want to grow my business that having someone who's further down the path than me can save me time and money. I pay them, but it's an investment that I'm seeing a return on. All the best!

Christopher Brainard · Answer

@Robert Richards

Finding a mentor certainly isn't necessary and finding a mentor doesn't cost money unless you want it to. Typically, the ones you pay for (or see infomercials for, or see on TV) aren't worth it. Many experienced investors come here to post and I'm sure many of them would be open to mentoring you, as long as the deals which came in somehow benefited them. I've helped one flipper start to finish before, I don't see why others wouldn't do the same.

-Christopher

John Hixon · Answer

@Chibuzor Nnaji Boomer Sooner.  Glad to see an OU person on here.  I am a die hard sooner fan.  My wife and I had season tickets for 7 years before moving to Dallas, we are originally from Tulsa.  My mentor is actually the same person who handles all of my direct mail.  It is a nice bonus if you go with him as your direct mail provider.   Let me know when you get to Dallas, possibly we can meet up and talk real estate.

John Hixon · Answer

@Robert Richards I have a mentor and I would not have been able to put together my first two deals without his help.  He also does all of my direct mail which is nice.  I would not pay for a infomercial mentoring program.  To answer your question I highly recommend one as long as they truly have your best interest in mind  and not just doing cause you paid them.

Chibuzor Nnaji · Answer

@John Hixon Boomer Sooner! That's awesome that you are sooner fan too, do you guys come up for games anymore these days? - I start work in Dallas in 4 months but I'm sure I'll be back at least once or twice before then. I would definitely be open to using your mentors service, because I'm starting to learn/understand how important marketing is in this business. Does he only market for the Dallas area? -  Lets stay connected, I will definitely reach out to you when I visit and also back for good. I wish you nothing but success this year.

Chibuzor Nnaji · Answer

@John Hixon may I ask how you found your mentor? I currently am in the OKC area but being from Dallas my company is transferring me down there here in a few months. I just graduated from OU a year ago and I'm new to real estate investing. I was wondering if the next time I'm back in Dallas I could take you to lunch and pick your mind. I'm very determined and something that I've seen consistency in real estate investing is, surrounding yourself with individuals who have experience and want to succeed and from your posts I've seen that in you.

John Mathewson · Answer

I think everyone should have a lot of mentors but I don't think they have to be in person or that you have to pay a ton of money to. This website, books, podcasts, videos all have been my mentors.

Robert Richards · Answer

Thank you both for the feedback.  Both interesting and insightful.  I suspect my wife and I will eventually get connected with a mentor as we continue to become more involved in the community.  We're very eager to get started with the business and are making every effort to ensure we're setting up ourselves to succeed.  Having mentorship along the way would appear to help.

Is a wholesaling mentor necessary?

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