Advice on Mentor Programs. How to vet them?

Advice on Mentor Programs. How to vet them?

Annapolis, MD · Member since 2019 · 31 posts · 3 votes

Recently I attended an event (only two of us showed up) in my local area. The format was pretty typical with the presenter showing success stories of people who worked their program. At the end he broke down the cost of their product which is a whopping 14K. He then took us to a different room which we had the opportunity to sign up to get this content for a monthly fee of $200.00. 

This $200 membership basically, from what I can tell, is a mentorship program and actually sounded very appealing to me. I would get to watch and and participate in putting deals together. Tuesdays and Thursdays I would have access to meetings about deals and one on one time with individuals. Access to all the different team members is available. When they feel I'm ready I can start handling my own deals. So, I get it, they're providing value and charging for it. I'm sure the idea is that only a very low percentage of people will be consistent and achieve whats possible, but that will benefit everyone.

The problem is when I pressed for more information I got the run around sales talk. When I asked if I could take the paperwork home to do my due diligence I was told no. I imagine this guy might not have known the answers to the questions I was asking and might get a kick back for signing people up. So I just got his card.

This peaks my interest very much (they have a "sapphire plan" that specifies in commercial. That's what I'm interested in). How can I get more information? What are some textbook pitfalls or red flags to look for?

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Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y

@Jeremy Willis this sounds like the typical seminar funnel circuit designed to get you in at a low price and only give you enough info to get you to purchase the next level of whatever they tell you you need. Very predatory.

The presenter often has no experience and have never done any deals. They are pros who get paid to sell from the stage and get you in the funnel and they make an override on everything you buy in the future. 

There is a lot of great info out there on how to invest in real estate including commercial. 

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  • John FortesPro Member
    Multi-Family Syndicator · Abington, MA · Member since 2017 · 603 posts · 347 votes
    7y

    You're better off reading and listening to podcasts than committing to those salesy mentorship programs. If you do your homework, you can find great content or even a few mentors on this platform. 

  • Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
    7y

    I did an interview the other day and they provided great insight into mentor red flags (they lost ~$30k from a bad mentor):

    • Lying about their track record (i.e., they say X and after doing your due diligence, you find out that they straight up lied or exaggerated)
    • They are the loudest person in the room
    • Aggressive and overly pressure you to join their program (i.e., "you must join today!"
    • No referrals
    • Make you feel bad for asking questions

    Overall, the biggest red flags are when they obviously have bad character

  • Rental Property Investor · Tampa - Lakeland, FL · Member since 2019 · 21 posts · 15 votes
    7y

    @Jeremy Willis we attended one of those and found out through the grapevine that they required $50k later on. Here’s what we found about programs like that.

    1) some people actually need a strong mentor, deals platform, and someone to basically tell them what to do. Others don’t (we don’t).

    2) they do what others will do for free. Those that work with you for free will do it a lot less (and you should not demand the same).

    3) you can learn so much through a paid program and that can help you accelerate your acceptance and risk tolerance of getting into REI. I liken this to a gym membership or a trainer. I'm a former US Marine. I know 60% of what I need to do to stay fit. The other stuff I network and research to plug in the 40% gap. Others choose to get the gym membership and the personal trainer because it gives them a push. That person with the trainer will probably learn techniques and methods that I don't because they paid for that knowledge and assistance. Who is more healthy? That depends on the person and how they spend the rest of their time.

    4) paying for services you can do differently is a personal decision and one that you should not apologize for. If you’re the type that needs that extra assistance and guidance, then it might make sense. If you’re a research and network junkie (like me), you can easily get there without paying for services. In the end, it only matters to how the investment gets you to your strategy.

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