Houston Rookie Investor - Mentor or No Mentor

Houston Rookie Investor - Mentor or No Mentor

New to Real Estate · Member since 2020 · 4 posts · 0 votes

Greetings - 

Last weekend I attended a three day webinar class with a Texas based REI group, to supplement all of the reading and podcasts. There was a lot of interesting/valuable content: the first day the husband of this husband and wife team went in depth about owner financing and wrap-around mortgages; the second day they covered every marketing strategy you could think of for finding distressed properties/deals. A little after noon Saturday is when the pitch came - it took an hour and a half to hear that the cost of an apprentice membership is $50,000. The next day I found out that the lowest tier membership is $20,000.

I passed, but decided that the most appealing part of any level of membership was the accountability/coaching, and working with someone experienced. The pricing given in the webinar was the high end for mentors, but I'm finding they typically go at least four figures.

 I'm starting to think my best option is to begin marketing, find a what looks like a good deal, and then pitch it in a place where mentors/investors frequent - and offer to split the deal.

I welcome and appreciate any thoughts and suggestions.

And, was BP Pro worth the investment?

Thank you!

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  • Investor · Member since 2020 · 324 posts · 278 votes
    6y

     A mentor can be very helpful, but $20k is pretty steep.  There are lots of mentor opportunities out there that can be a lot more affordable.  As for splitting deals, that's usually more of a partner thing than a mentor thing.  

    Most of the time, to partner you have to bring something to the table. Money is most common (ie there's a lady in Denver that partners on remote deals with other people, but they have to bring funds and credit). Sometimes people will partner with someone that invests a lot of time (manages a construction crew, does lots of mailers, door knocking, cold calling, etc). Think about what you could contribute and that will lead you in the right direction.  

    You can 100% do investing on your own, but a mentor can speed things up. Think about what your goals are for REI and that will also take you where you need to go for deals and mentorship!

    Best of Success! 

  • Turner WrightPro Member
    Investor · Houston, TX · Member since 2019 · 87 posts · 38 votes
    6y

    I'm new and almost went with a mentor I met at a local meetup.  He took interest in me, because, I was willing to visit properties and knock on doors, as well, as having 20+ years construction experience.  He told me that the more I brought to the table, the more I would get out of a closed deal.  This included money, too.  One scenario he gave me was, visit properties he assigned me, put some money down on a closed lead, manage the rehab completely, and I would get 60+% of the profit on a flip or the cash flows generated.  He declined to work with him after feeling he was playing games with me.

    Another possible mentor was a big-time wholesaler with a marketing budget of $20-30,000 a month.  He has a nice office on the west side of town and a 5-man team to manage the leads.  He offered to share every aspect of the business, including how it works and how I could grow my wholesaling business as big as his if I could drive4dollars and phone call leads.  His business was focusing, mainly, on the return calls/emails/texts of leads he was marketing to and not on identifying distressed homes or follow-up phone calls.  I was ALL IN and anxious to get started, but then COVID hit after the third meeting and we haven't met, since.

    In both scenarios, I had something to offer; albeit, nothing to compare to the wealth of knowledge and experience they were willing to provide me!  But, this just goes to show how great and helpful the investing community is and how important it is to network.  Today, I have my own small-scale wholesaling business I'm building up every month.  It didn't quite work out working with mentors the way I wanted, but I'm glad I wasn't depending on them or anyone else to get started.  And, I'm glad I didn't fork out thousands of dollars to learn the business!

    I'm not understanding your plan of marketing and pitching what looks like a good deal to investors in different forums for a split of the proceeds.  Ordinarily, you close on a deal and assign it to a buyer for a fee.  You will, either, go to your preferred buyers and/or promote the lead on different forums or groups.  But, you won't 'split' the deal with anyone, unless you are considering partnering with someone on a FLIP or HOLD for share of the cashflows.

  • New to Real Estate · Member since 2020 · 4 posts · 0 votes
    6y

    Andrea Weule, thanks for the input. My thinking was aside from time, bringing a deal to a mentor or partner would provide the most incentive for them to work with me. I understand the distinction you're making, however. 

  • New to Real Estate · Member since 2020 · 4 posts · 0 votes
    6y

    Turner Wright, thanks for going in to detail about your experiences. I need to explore some of the local REIs and Meetups, sounds like that's where I'm going to get some guidance.

    My thinking was driving/walking for dollars, or checking probates, foreclosures, late tax listings, anywhere I can find a potential seller, then find a buyer with poor credit, but money to put down, and try to do a deal that way. I'd need to find an experienced investor to show me how that works mechanically. 

    I've also considered wholesaling - it sounds like you've done pretty well for yourself going that route. 

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