Real Estate Mentor has me suspicious

21 Reply

Eric James

Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes

If you're doing vanilla SFR you don't need a paid mentor. Or really any mentor.

8 Reply

Account Closed

Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes

Quote from @Joshua Melendez:

I paid an experienced Real Estate investor to be my mentor so I can have some guidance and coaching to get in the game. I'm looking to acquire rental properties for cashflow. After a few talks I got sent 2 properties that showed they were recently sold. My mentor mentioned not to worry about them showing sold, that they knew the investor who purchased these properties and would reach out to see if they would re-sell. The next day I got a message saying the prices were negotiated and there was a deal being presented. This deal is about 40k over what they recently sold for (when I looked them up) but they ensured me that it still made sense to purchase and rent. Long story short I start some paperwork and when I get sent the contract, the seller on the document is my mentors company... When I asked about it, they said that they secured the properties under their company... Can they "secure" the properties over night and take ownership and what would be the benefit if im signing docs the next day? Or have they owned these the whole time and flipping me 2 properties for 40k profit on my first deal and just telling me its still a good deal and not being honest about ownership?

He is "wholesaling" it to you. It's legal, but not ethical for a "mentor" to wholesale to you without telling you ALL of the details up front so you can decide if you want to go that route. A $10,000 profit on a wholesale deal is more than adequate to be fair. I'd thank him for his time, ask for my money back and join a REIA where you can learn this stuff and use your money to actually invest. The local REIA in Phoenix is over 2,000 investors of all sorts and it costs $20 a month, just to give you an example of a reasonable REIA.

5 Reply

Arsen Atanasovski

Investor · Rochester, MI · Member since 2017 · 1k+ posts · 584 votes

I can mentor you for free, let me know what you want to do and I’ll show you what I do. Knowledge is nice and I wish I had someone to help me back in the day

15 Reply

Kathleen McDowell

Realtor · Scottsdale, AZ · Member since 2018 · 65 posts · 47 votes

Hi Joshua. I am sorry this happened to you. Follow your instincts - as they are good. A mentor is an experienced and trusted advisor - someone who share's their experience with you so you can grow. They should not be bringing you deals. And you often don't need to pay a mentor. In many cases, people will mentor you in order to have support - as an extra pair of hands can help their business grow as well.

It sounds to me like what your 'mento'r is doing is wholesaling. Although wholesaling is legal, many states are adding more regulations to the process to increase transparency for buyers and sellers.

From what you have said, this company does not seem reputable or trustworthy. I would cease doing business with them and use the BP network to see if there is someone you can partner with to show you the ropes of finding off market properties.

I would also suggest using the MLS to find ON MARKET properties. The market is shifting now, and many buyers are hesitating. Good investment deals can still be found on the market. I suggest finding an investor friendly REALTOR in the area you'd like to invest. Realtors are fiduciaries which means they are duty bound to put your best interest first. It's best if you select a realtor who owns rental properties - they'll have the tools to help you estimate cash flow and key indicators such as ROI. And the best part is in most cases, REALTORS are FREE for buyers. Reach out to me direct if you'd like me to recommend a realtor in your preferred area.

Best of luck as you start up your real estate business.

Kathleen

Henry Lazerow

Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes

RUN! You are getting scammed forsure. P.S. You don't need a mentor atleast not one that tries to make money off you. Just read on biggerpockets and go buy a A/B class property where the rents cashflow a bit after expenses. Real estate investing not rocket science and the biggest thing is need to act.

Bob E.

Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes

@Joshua Melendez Like others said, you need to bail on this supposed "mentor", he is NOT looking out for your interests. I invest roomily in Milwaukee and Cleveland, feel free to reach out if I can be of any assistance. No charge and I have nothing to sell.

Joshua JanusBusiness Member

Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes

[email protected]614-502-5316 Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)

Cleveland is a great market for cash flow and areas such as Berea, Lakewood, Edgewater, Ohio City, Tremont, Detroit Shoreway, Downtown, Cleveland Heights, Shaker Heights, Euclid, Kirtland, and Geneva have been successful as of recent and are effective areas for STR as well.

Find a market and review the numbers on properties and the areas they are in. This guy looks like he is just trying to use you.

Nick Shri

Rental Property Investor · VA · Member since 2020 · 218 posts · 133 votes

First, Run from this so called mentor. Second, have you not spent time on bp forums to learn about acquiring cash flowing properties? Spend some time in the forums, chat with investors, agents, lenders and you will be able to put the pieces together.

Goodluck with your investment journey.

OP

Member since 2019 · 9 posts · 4 votes

That's what I was thinking. Thanks @Chris Seveney

OP

Member since 2019 · 9 posts · 4 votes

@Eric James foegive my ignorance. I'm not sure what Vanilla SFR is. Can you enlighten?

Thanks

OP

Member since 2019 · 9 posts · 4 votes

@Mike Hern thanks I'll check for that in my area.

OP

Member since 2019 · 9 posts · 4 votes

@Arsen Atanasovski thanks, sent you a connection request.

OP

Member since 2019 · 9 posts · 4 votes

@Kathleen McDowell thank you! I sent a connection request

1 Reply

OP

Member since 2019 · 9 posts · 4 votes

@Henry Lazerow thanks bro

OP

Member since 2019 · 9 posts · 4 votes

@Bob E. Cleveland is one of the locations I'm looking into as well.

OP

Member since 2019 · 9 posts · 4 votes

@Joshua Janus thanks for the feedback bro will be looking into these markets

Jonathan R McLaughlin

Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes

wow, and he had the nerve to charge you a fee for this. Nice guy. A real mentor is never paid, its a pay it forward kinda thing.

I could see a "win-win" situation where someone is upfront about this, takes the fee and and gives you a workable rental property even at the new price. We have bought stuff from investors who made money on a foreclosure and fix, and at a low enough price where we were glad to pay them for all the work of gaining cash flow.

But this? Just wow.

1 Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Podcast Guest on Show #222

Quote from @Account Closed:

Quote from @Joshua Melendez:

I paid an experienced Real Estate investor to be my mentor so I can have some guidance and coaching to get in the game. I'm looking to acquire rental properties for cashflow. After a few talks I got sent 2 properties that showed they were recently sold. My mentor mentioned not to worry about them showing sold, that they knew the investor who purchased these properties and would reach out to see if they would re-sell. The next day I got a message saying the prices were negotiated and there was a deal being presented. This deal is about 40k over what they recently sold for (when I looked them up) but they ensured me that it still made sense to purchase and rent. Long story short I start some paperwork and when I get sent the contract, the seller on the document is my mentors company... When I asked about it, they said that they secured the properties under their company... Can they "secure" the properties over night and take ownership and what would be the benefit if im signing docs the next day? Or have they owned these the whole time and flipping me 2 properties for 40k profit on my first deal and just telling me its still a good deal and not being honest about ownership?

He is "wholesaling" it to you. It's legal, but not ethical for a "mentor" to wholesale to you without telling you ALL of the details up front so you can decide if you want to go that route. A $10,000 profit on a wholesale deal is more than adequate to be fair. I'd thank him for his time, ask for my money back and join a REIA where you can learn this stuff and use your money to actually invest. The local REIA in Phoenix is over 2,000 investors of all sorts and it costs $20 a month, just to give you an example of a reasonable REIA.

this reminds of the guru who charges 10k to bring them deals.. its called the deal finder or something like that.. then they set the bar so high deals are rarely funded unless they are screaming deals. which most newbies simply cant find unless they luck into one..

JLH Capital Partners51 Review

1 Reply

Eric James

Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes

Quote from @Joshua Melendez:

@Eric James foegive my ignorance. I'm not sure what Vanilla SFR is. Can you enlighten?

Thanks

Vanilla = Basic, plain, uncomplicated SFH rentals.

Scott TrenchPro Member

Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes

Podcast Guest on Show #223

This is one of the reasons why BiggerPockets exists - to help people like you avoid mentors like the one you found. You have a dozen mentors on this thread ready to help you avoid what sounds like a sleazy situation. I wish you the best of luck and encourage you to meet more potential mentors on this forum, for free, instead of using this person.

7 Reply

Matt Bishop

Rental Property Investor · Dallas, TX · Member since 2020 · 161 posts · 88 votes

@Joshua Melendez, I get the feeling at best, he is not working for your best interests. He has divided loyalty.

Wale LawalBusiness Member

Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes

[email protected]832-776-9582 Podcast Guest on Show #469

@Joshua Melendez

I would suggest you to do thorough due diligence of numbers and records as this will insure you are not falling into any problem.

If you think you mentor is wholesaling to you you should discuss with him and then decide.

If you are not comfortable with everything going on with this deal, start finding another deal and start by creating a team with well defined roles and profit share.

All the best!

NETWORTH BUILDERS5236 Reviews

Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

https://www.biggerpockets.com/...

@Joshua Melendez ask this "mentor" why he's charging you wholesale fees if you're already paying him.

To be blunt, you've obviously hired a national so-called "guru" that is setup to prey on newbies. Notice the use of the word "guru" NOT "mentor"?

Find a local mentor that can assist you or spend more time here in BP teaching yourself.

Also, you might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

[email protected]248-209-6824

Logical Property Management4.9460 Reviews

Kenneth Mooney

Rental Property Investor · Augusta, GA · Member since 2016 · 348 posts · 171 votes

@Joshua Melendez Definitely something odd going on here it seems... Seems like he either owned them this whole time and/or is wholesaling them to you. I'm not as concerned with someone making $40k as I am the method in which you are acquiring the properties. Your name needs to be on the purchase contract and/or assignment contract, not his. If you are signing an assignment contract get a copy of the purchase and sale agreement prior to signing the assignment contract.

There is the off chance he is just doing it this way so that you do not lose the deal - but I doubt it.