Paid Mentors? Yay or Nay ???

23 Replies

Hello everyone! My name is Chasity and I am wanting to start working in real estate, doing wholesale mainly until I start building up my company. I am really needing instruction and hoping to speak with people who know more and can assist me. Well I just was in touch with someone who offered to mentor me for $1,000 a month for a year, she walks me through it all (using her tools & office staff) we split 50/50 each deal. I would love to have someone like this, to help with all of my worries... but 1.) I am starting out and that is a lot for me to come up with 2.) Is this a good rate for a mentor? I'm not sure since I've never done this before.... HELP ????

@Chasity Couch   

i believe it's a good deal if you're the mentor.  not so much if you're the student.  i know that i have helped people, and tried to answer questions along my real estate path.  i have also found some investors (not all though are willing of course) that are ahead of me in the real estate game, and have helped me.  i would not have been able to afford 1k per month when i started out.  then to give up 50% of the deal on top of that.  seems a bit much to me.  that's just my opinion.  best of luck.

adam

If you can't afford 1k per mo, then real estate investments might not be a good idea. That's 12k/yr which doesn't take you very far either as a down payment or remodel/construction costs. There are plenty of other ways you can get involved though...if you have the time knowledge is free and not hard to find. 


Again, this assumes that this person's ideas align with your etc... investments aren't a one size fits all...

@Chasity Couch

It might be worth it. I would suggest you exhaust all other sources of cheap information first. Amazon will sell you dozens of used books on wholesaling for $1000. Why don't you read through $100 worth of books on how to wholesale, ask some questions here on BP, and then see if it's still very difficult to grasp what you need to know?

I don't wholesale, but I buy dilapidated properties and fix them up and rent them. I'm reasonably successful at it, I would say.

I spend a lot of money on Amazon but the most I ever spent for someone to tell me what to do in this business was $150 for a very popular three-day seminar. I would say that the value of joining the BP community and just seeing what other people are doing has far, far eclipsed what I learned in that seminar.

I mentor everyone and anyone that is serious for free. This doesnt mean I think myself to be this good. I however am good at what I am good at and people that approach me all ask me to help them with SEO.

There is nothing wrong with gurus charging to be a mentor as it takes a lot of time and effort. BUT...

You absolutely do not need it. If you need mentorship I seriously believe you do not have what it takes to be make it!

If you don't have that drive and that determination to make it work no matter what.... someone else that does will always surpass you.

Now, mentorship is a great offer in some circumstances. If you have a family, work 3 jobs to feed those little mouths and you just don't have enough hours in a day to do this on your own.. sure.. that is a good reason to get a mentor, HOWEVER if this IS your life, I still doubt you will make it simply because you have other priorities. I strongly believe that you need to give it your all and more to rise above the rest...4

This I strongly believe.

So should you get a mentor?

Woman... for 1000 a month I could get a sweet little DMM campaign going which pretty much will give you much better chance to actually make money!

But..what  am I.. I am just a silly lil ape with an ego from here to yonder :P

pshhht... don't get mentor ship!!

;)

@Chasity Couch

Find investors in your area who have a process of consistently finding & closing deals (you can look up who bought properties under LLCs, or just Google "we buy houses" or something). That means they have a repeatable process you can learn from.

Offer to do whatever work that needs to get done. Admin work, social media, online stuff, phone calls, pick up supplies from Home Depot, etc. 

Be persistent, follow through, show initiative. A lot of investors would love to help someone just getting started, as long as they know they're not a flake, and bring a work ethic. 

That's how I got started. I didn't even ask what my cut was going to be. Once I paid my dues, things naturally progressed to where I got equal partnership, but you have to earn it. 

Real estate is like flying. Eventually you have to go up in the air. You shorten the learning curve working with someone who's actively doing it. 

Trade your work ethic to gain experience, but I wouldn't pay someone $1000/mth. 

I believe in mentor-ship. Is always good to find people that has worked the path you want to walk and follow their instructions. It cuts you unnecessary time waste since time is limited and of cause it is nice to have someone to ask questions especially when you are not sure of what you are doing however for 1k is expensive. You can work it out were you do a 50/50 split only. Is a give and take relationship.

Put me down for a big NAY. 

If you can't afford $1k/mo you're not going to be able to build up a company. You should focus on finding a job in real estate where they pay YOU, not you pay THEM. That's how jobs work, except in the world of slimy gurus. 

Learn everything you can, save up some money, and then you can start thinking about heading out on your own. 

People seem to assume you can't afford $1,000/month.  I will assume you can afford it.  I think it's too much ON TOP OF a 50/50 split.  I think it's okay for a mentoring fee, if you get LOTS of help and hand-holding and explanations from which you can learn.

I think a 50/50 split may also an equitable way to pay for their help, but both is WAAAAYYYY too much to give up.  I would prefer to pay a set price for mentorship, and keep my deal money, it should amount to way more after a year.  But, splitting the deal forces them to ensure it's a great deal, so that's valuable also.  It's all give and take and cost/benefit analysis you need to consider/decide upon.

As others have said, go to local REI meetings, meetups, or just try to connect with people here and see what value you can provide these people in exchange for their help.

Maybe you can re-design their website for them, or do some bookkeeping, or clean their office, or whatever skill you have that you think they might benefit from.  Don't ask them to help you, ask how you can help or add value to them, and they will reciprocate.

If you just want to throw money at it, look for and talk to at least 5 other mentors, and see what they offer, or what you can barter to get their help at a lower cost to you.

@Matt K.

$1k per month is a lot of money to spend.  i have never bought an investment property where my payment is anywhere near $1k per month.  ofcourse, you're in california where it costs way more to live.  

Originally posted by @Adam Drummond :

@Matt K.

$1k per month is a lot of money to spend.  i have never bought an investment property where my payment is anywhere near $1k per month.  ofcourse, you're in california where it costs way more to live.  

 You need more than just a payment.... investments typically need 15-25% down per property plus closing costs so that's usually what another 2% or so. Then on top of that you have cash reserves required by the bank (typically few months of mortgage payments cash).


1k isn't a lot to someone making 200k for example, it's probably worth their time to pay that and do what they're already doing. They will probably be in a position to make use of that training at an accelerated rate also... Assuming the training aligns with what they want to do.

Conversely, if you're not a high wage earner then maybe your time is better spend researching and mastering the knowledge yourself. Nothing wrong w/ that, I did that and still do. But, there have been times when I pay someone for their knowledge to help me achieve whatever it is I'm doing faster. 

I'm not suggesting that this mentor is good fit or good value, but i am suggesting if it's going to cause you finical hardship to pay 1k mo consistently... then hold off on investing. Going to be hard to fix that water heater or get unit rent ready and pay the mortgage and then go through extended vacancy during the holiday........ and even harder if you don't have the resources to pull through.

What I learn from Bigger Pocket and my daily work life as an acquisition/contract professional, always put a "subject to"/ exit clause to your agreement. say for example subject to his performance or ROI of mentorship. In that case, both of you have some skin in the game. Good luck and keep blogging how that goes and share your lesson learned?

I find it puzzling that people trash coaching. I have had a coach for some time now and I couldn’t imagine working without one. I am a fairly accomplished guy I’d like to think so what is a coach good for? Well first of all, anyone who promises you fast results or “secrets” is not a coach...I would run not walk ....for a coach or mentor to be effective you have to have clarity regarding what you want and appropriate expectations...a coach can go a long way to shorten what is a long learning curve...you can do it without one...your odds of it taking longer , losing money or otherwise failing to take action are much, much higher....if you aren’t ready for a coach you should listen to every podcast on BP .  You should read as much as you can.  In the end, reading and doing are different and that is when you should consider if a coach might help you.  Either way, don’t split your deals with anyone. It sounds logical but I think its a conflict of interest as it encourages you to take risk that perhaps isn’t right for you.  Good Luck

Find investors that have already walked down the road you are going to travel and pick their brain and get their contacts and then you pay it forward no charge. What comes around goes around. The more people I help, my net worth through RE keeps getting larger 8 apartment complexes and 122 front doors total and counting.

Swanny

I would advise against it. Hang out here and join the local LL association, go to meetings and develop a network there and here. That will get you going to the point where you do not need a paid coach.

it depends on your learning style.   Many have chimed in, but it's up to you.

If you prefer to be mentored then go for it.  if you are self taught and can read a book and go, then mentorship would be overspend.

I got mentored, and the people doing it offered a guarantee.  if you don't make XXX (cost of mentorship) in the first deal, we keep mentoring until you do.

I did make it and then some on the first deal and went on to make 4 deals that year.

so it's worth it, if it's backed up with a guarantee.

You can find lots of success in real estate by educating and networking. 

Most people will be friends with you for free

most people will teach you for free

Not saying mentor ship is bad, but what are you paying for? Is it information, because then that's a waste of money. Are you paying for hand-holding? then maybe it's worth it, but the mentor would have to hold a THOROUGH track record of success for that. Some people need to pay out just to get them committed, maybe this is you?

if you have 12k per year to spend on networking and education then you can travel to a LOT of seminars, buy a lot of books, spend time on this site (free), and expand your network massively. You'll get a lot more diversity of opinions and facts as well from this method rather than paying 1 person to teach you just waht that 1 person knows. 

@Chasity Couch IMO I would say try to negotiate with the mentor. Especially if she is the person you want to work with. Why not ask, just do 50/50 split for 6 months...or something along those lines. And if you do decide to go with the deal of the extra 1k a month, you have to keep in mind that it’s investment in yourself.

Hi @Chasity Couch a great mentor can be invaluable and take your career to enormous heights. I would say nay for two reasons. You are starting out and your capital should be spent on growing your business, plus I don't like the idea of paying a monthly fee, your mentor should be paid on results. Secondly, if you are patient, network and find someone who is willing to help because they want to help you and they see the mutual long term benefit of doing so, this person will be invested in your success and will see you more than another business transaction. Best of luck!

In my opinion working with a mentor real time can put you years ahead of just failing forward. So I chose to go the mentor route. Not because of a poor work ethic or the need for someone to push me along. It's to gain the knowledge of the nuances that can only be learned with experience from someone who has been through it. That being said, I would not pay 1k a month plus the 50/50 split. 50/50 on a couple deals if you are really gaining ground from your mentorship, sure. But I'm brand new too so it really is just another opinion. If you do go that route it would be interesting to hear how it works out for you. Good luck.

The question is not if you should have a mentor/coach or not. The question is if your coach is good and worth it! There are many coaches out there, who talk about something they have not actually done. Amateurs try by themselves, professionals have coaches, often more than one.

However, you can learn most of what you need to know here on BP. It takes too much time for a mentor to tell you everything, but a mentor will be great to help you apply what you have learned and keep you from making a mistake.

I usually mentor my clients along the way, it just happens while we are out on showings or they call me for a specific question. I don't have time to explain everything from scratch, if someone is totally green I usually tell them to read a few books and get on BP before we talk more.

When I started out I signed up for a one year coaching program with Rich Dad Education. My coach was a rookie, I don't think she owned any real estate, but the books and the weekly assignments were good. I had to do a lot of self study and research and it gave me a good overview about all areas of REI. It was $3,600 for a year and included all the books and worksheets. However, it did not help me to actually get my first deal, because I had the theory and not the street smarts.

That's where a mentor comes in, a mentor can help you make the first step and make it a good one. However, for $12,000 and 50/50 I would expect a well developed curriculum, materials and very professional hands on coaching.