Using a Coach - Pros/Cons?

2 Replies

My fiance and I are budding real estate investors, still learning the ropes. We have not even found our first deal yet and are truly in the infancy stages of our venture. Finding this community has been fantastic simply for the breath and depth of knowledge in these forums.

I went to a local REIA Meetup this evening and was presented with an opportunity to have a coach/mentor. Listening to the BP podcast, I recall several people mentioning they have used them as well.

How do coaches typically make money off somebody like me? I'm trying to gauge what I might be in for prior to contacting this potential coach (who btw seems like the type of person I would like to learn from).

Does anybody have experiences with a coach they could share? Open to any suggestions and thanks in advance for any advice!

@Michael Muro Typically there are two types of coaches/mentors out there.

1) will charge $5k - $50k for their services and will help show you the ropes, maybe provide you with some "proprietary" spreadsheets or software, and give you encouragement along the way. This is good for someone with extra cash and still has plenty of cash to do deals. Just know that you are buying time savings because ALL the information they share with you will be available in books, podcasts, or webpages. It will just take more time to sift through it all and find the gold that will pertain to you and the area you are in.

2) will charge a small fee but will take a % of your deals. These coaches/mentors will be more invested (they have skin in the game just like the banks will want from you when you borrow) and are a little easier to get a hold of when you need help. They will provide much of the same info as the first type.

DISCLAIMER: I have not used a mentor and much of this information is gathered from investors I have networked with or stories that have been posted on BP forums.

I recommend going with the second one if you really need a mentor. I know some people are really anti-mentors but I understand the need/want for them if you have the extra cash available. And it makes sense they are expensive because that is time that they would normally be spending making real estate money and so the hourly rate is a lot higher when investing than when teaching.

Good luck in your journey!

Thanks for the heads up Ryan! I'm definitely learning as much as I humanly can right now, reading books, listening to podcasts and audiobooks, watching videos and webinars and even taking the real estate agent class. I just know there is still a huge knowledge gap between me and this coach, who has been investing for 25 years. I'm considering the idea to help me minimize mistakes and potentially save money, but I definitely agree with you that I can learn all this myself. Another angle I thought of is the networking potential. This person could introduce me to others who might be of benefit down the road when maybe I'm putting together my own deals. Something to think about for sure. Thanks for taking the time to reply, I appreciate it!