Real Estate Mentor has me suspicious

Real Estate Mentor has me suspicious

Member since 2019 · 9 posts · 4 votes

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? 

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
4y

@Joshua Melendez

Run away as fast as possible. You are getting scammed. Find a new mentor immediately

If he was going to mentor you he would not be selling you properties $40k more than purchased whether they were his or not - he should have showed you how to buy those properties at that price or similar ones

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  • Rental Property Investor · Orlando, FL · Member since 2021 · 4 posts · 0 votes
    4y

    @Joshua Janus I recently bought a LTR in Fairborn. Looking to add and expand my portfolio. Would like to connect with you if possible.

  • Rental Property Investor · Orlando, FL · Member since 2021 · 4 posts · 0 votes
    4y

    @Joshua Janus would like to connect with you if possible. I have a LTR in Fairborn currently. Looking to add/expand my portfolio. Thanks

  • Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    4y

    Bolt!  

    You're not being mentored, you're being played.

  • Nicholas MischPro Member
    Investor · Broadview Hts, OH · Member since 2016 · 310 posts · 280 votes
    4y

    Just get a really good investing agent in the area you want to invest who will give you comps, contactors, and everything you need, and who gets paid when you succeed, and not someone who gets paid from your inexperience. Mentors can be very helpful when it comes to scaling larger and business building, but when starting you just need to learn as much as you can and get into groups of people who want to, and are doing what you are. 

  • Member since 2019 · 7k+ posts · 4k+ votes
    4y

    almost everything about mentoring/training/coaching/advisors these days are 78% fraud..... they resell something that's available publicly.

  • Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    4y
    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? 


     This does not sound good. As a realtor my job is to help you find great deals, a mentor is someone you can bounce these ideas off of and ask for advice. It sounds like he is taking advantage of you. I would get out of it, find the market in which you want to invest in and great your core 4 started there. When I was looking for a mentor I would call and email anyone who was doing what I wanted to do. I offered to take them out to lunch or coffee, just those meet ups alone helped me in leaps and bounds. 

  • Rental Property Investor · Canton, OH · Member since 2021 · 30 posts · 18 votes
    4y

    @Joshua Melendez he should show you how to find deals. It's not a problem if he sells you something and makes a couple thousand but definitely not 40k

  • Rental Property Investor · Canton, OH · Member since 2021 · 30 posts · 18 votes
    4y

    @Joshua Janus I'm in Stark county

  • Investor · San Diego, CA · Member since 2019 · 286 posts · 135 votes
    4y

    @Joshua Melendez

    I would run away ASAP. You should not be buying anything from your mentor, that is a conflict of interest. A mentor should be looking over your shoulder and guiding you through deals and not trying to sell you stuff.

  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    4y

    Hey @Joshua Melendez - I totally agree with @Henry Lazerow - SCAM and RUN!  Find someone here on BP or at a local meetup.

    I've had some of my best connections at some of our local Chicago networking events.

  • Investor · Chicago, IL · Member since 2018 · 352 posts · 176 votes
    4y

    @Joshua Melendez sounds like your guy has a strong relationship with the seller, that's a conflict of interests if I've ever seen one. Not sure if your mentor is bad news through and through or maybe he's just bending the rules for a friend? Anyway, whenever somebody offers to spend a lot of time mentoring you for free, first ask yourself, "why?" Working with a real estate agent at least is a transparent relationship. Find one who is active as both an agent and an investor, and is willing to help you find a good deal and not just sell you on the first deal you stumble across.

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