Salt Lake City, UT · Member since 2020 · 47 posts · 37 votes
I have done a few residential buy and hold investments, but I am wanting to get into commercial real estate and apartment syndication. I have a lot of money saved up from a sales job, and I am thinking about doing Michael Blank's 1 on 1 mentorship program that guarantees getting a 30-60 unit deal within a year, but the program costs 30k. Is this a bad idea? Am I crazy? Thoughts?
Investor · Kansas City, MO · Member since 2015 · 128 posts · 89 votes
5y
I don't know who that is, so I might be wrong but be careful with those kinds of programs. A lot of those gurus will promise the world and underdeliver.
Since you have experience as an investor, why not just start to scale it up? You already know how to do it. You can use stepping stones. For example, purchase a 12 unit then a 20 unit, ect. After a couple of those it will all be the same, it won't matter the size of the deal.
If you're interested in the Kansas City market, I can help get you started here. Either way, I can help you find an excellent agent in any market in the country. Let me know!
Investor · Kansas City, MO · Member since 2015 · 128 posts · 89 votes
5y
I don't know who that is, so I might be wrong but be careful with those kinds of programs. A lot of those gurus will promise the world and underdeliver.
Since you have experience as an investor, why not just start to scale it up? You already know how to do it. You can use stepping stones. For example, purchase a 12 unit then a 20 unit, ect. After a couple of those it will all be the same, it won't matter the size of the deal.
If you're interested in the Kansas City market, I can help get you started here. Either way, I can help you find an excellent agent in any market in the country. Let me know!
Rental Property Investor · Dallas, TX · Member since 2015 · 501 posts · 504 votes
5y
I'm part of another mentoring program (Brad Sumrok) that costs about the same, although I'm at a lower level strictly for passive investors. I would say that many students have found this program to be worthwhile, but you're looking at one that actually guarantees a deal within one year? That sounds too good to be true. Anyone can get a deal if they overpay. I am not even saying Blank's program is bad. I don't know because I haven't checked it out. But I think it is dangerous to make such a guarantee.
I would tend to spend my 30k on a new TPO roof or marketing to find deals, however, I think if you can get going on MF investing then 30k is an insignificant rounding error. If 30k helps you get going, then I’m sure it’s worth it.@Paul B. made a great point that anyone can close on something if they overpay. The thing that is hard to find in this current market is deals. Usually the thing you’re agonizing over doesn’t matter. If I had spent 30k to get going 4 years ago it wouldn’t have any effect on my today. So don’t sit around debating spending 30k. Do get started with investing.
Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
5y
Hey Ben!
Finding a good partner/mentor can help you a lot by cutting your learning curve tremendously. Depending on what the program offers, they could partner on deals with you, you could leverage their credibility, they can help you get financing on loans you would not be able to qualify for alone, and if the group has a network of people that collaborate you get access to awesome people all working towards similar goals. To me it comes down to the group you choose to go with rather than the price to get in.
Professional · Murrieta, CA · Member since 2013 · 405 posts · 458 votes
5y
Ben, I think getting a mentor is a great idea considering I a. Invest in mentors myself b. Have my own mentoring program for raising money and apartments, so it would be stupid of me to say otherwise.
However, there might be some value in just passively investing in someone else's deal with a friendly sponsor and then asking to "tag along" for the experience. Michael Blank is a super nice guy, so I wouldn't want to take anything away from him, but tagging along might be a temporary and easy solution.
Our mentoring program is by invitation only and our request for invitation is not open currently. I do however have a bunch of free stuff and a private Fb community. If you are interested in that, you can private message me.
Investor · Charleston, SC · Member since 2021 · 120 posts · 108 votes
5y
Ben, I have a mentor and could not be happier. The knowledge and experience that a good mentor brings can be invaluable. I know 30k is a lot of money but depending on your goals and how fast and big you want to grow, a good mentor who has been there can catapult you there faster and help you save money from mistakes you might of made on the way. In multifamily one error in the underwriting could easily cost you 30k and if you have a seasoned mentor who is there to catch it, well then it probably paid for itself.
I would suggest interviewing multiple mentors/coaches and see which one is the best fit. Make sure your goals aline with what they are doing. Good Luck!
Salt Lake City, UT · Member since 2020 · 47 posts · 37 votes
5y
@Senate Eskridge I bought and read his book a few months ago. I honestly just think I bought it because it was a best seller in the Real Estate category at the time. I have been listening to his podcast ever since. It has been really good content so far from what I can understand. I think it's valuable to look into other options as well, and I will definitely look into Jack and Gino.
Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
5y
@Ben Bolingbroke, decide what you want out of it. I know that raising money for someone else's deal can qualify you as having "done your own deal," but do you qualify it like that? Maybe you are more interested in acquisitions or asset management, so make sure you know what you want, and clarify that to the mentorship. Also, coaches don't make players, so make sure you are committed and will have the time available to make it happen. It is what you put into it.
I guess I got overzealous and tagged everyone who responded as you seem to have good input. I had no idea these guys were charging this kind of money to supposedly learn how to syndicate an apartment deal.
I'm kind of the opposite - I dont want to use other's money and think if some of these bozos can do it I can - and if I get successful and someone wants to meet me for lunch I wont charge them $30k - we can go hunting or to the gun range or drive off road somewhere and I'm good. Same thing for the senior living deal - I've had a bunch of people reach out - I'm not an expert but have been in it a bit - but no one has been willing to come meet me where I live and the business is at.
Anyways I've come to the conclusion the apartment deals I'll want to look for I'll be getting Hud or some sort of other non recourse loan and will just do it myself with no one elses money. I personally think there is a sweet spot of deals in the $2m - 8 or 9 mil range where institutional people shy away as it's not big enough and it weeds out a lot of other smaller investors. Im selling some single families and if I can work things right will hopefully buy a small 12 unit deal due to getting a # from an owner 2 years ago - I talked to him yesterday and he shot me a price -seems fair - he told me he's 80 and has others - I'll be meeting with him in a month or two for coffee and see what happens. I get that deal done I'll go get a big one. I messaged the original poster about talking stuff through - would do the same with anyone else.
I have done a few residential buy and hold investments, but I am wanting to get into commercial real estate and apartment syndication. I have a lot of money saved up from a sales job, and I am thinking about doing Michael Blank's 1 on 1 mentorship program that guarantees getting a 30-60 unit deal within a year, but the program costs 30k. Is this a bad idea? Am I crazy? Thoughts?
I would appreciate any advice. Thanks!
I recommend finding a great buyers agent that enjoys working with buyers. I have worked with many buyers who are part of these kind of programs and I can tell you that the deals that they try to make work are far off based on today's market. Might get a deal done the first year but it will be in no man's land in an unknown state with no appreciation, no boots on the ground and marginal actual returns. Hope that helps!
I guess I got overzealous and tagged everyone who responded as you seem to have good input. I had no idea these guys were charging this kind of money to supposedly learn how to syndicate an apartment deal.
I'm kind of the opposite - I dont want to use other's money and think if some of these bozos can do it I can - and if I get successful and someone wants to meet me for lunch I wont charge them $30k - we can go hunting or to the gun range or drive off road somewhere and I'm good. Same thing for the senior living deal - I've had a bunch of people reach out - I'm not an expert but have been in it a bit - but no one has been willing to come meet me where I live and the business is at.
Anyways I've come to the conclusion the apartment deals I'll want to look for I'll be getting Hud or some sort of other non recourse loan and will just do it myself with no one elses money. I personally think there is a sweet spot of deals in the $2m - 8 or 9 mil range where institutional people shy away as it's not big enough and it weeds out a lot of other smaller investors. Im selling some single families and if I can work things right will hopefully buy a small 12 unit deal due to getting a # from an owner 2 years ago - I talked to him yesterday and he shot me a price -seems fair - he told me he's 80 and has others - I'll be meeting with him in a month or two for coffee and see what happens. I get that deal done I'll go get a big one. I messaged the original poster about talking stuff through - would do the same with anyone else.
Investor · Bergen County, NJ · Member since 2016 · 32 posts · 37 votes
5y
Following and reading through this thread as I am in a similar position to the original poster.
I have evaluated some of the programs out there such as Brad Sumrock, Gino, Rod K, and others ..
For me, the value has to come from the ability to have access to people who can help provide deal flow and others who are in a similar position as I am that would be willing to partner with complimentary skillsets.
So I'm curious from others if the paid mentorship programs have provided a quick-start way to their first 2-3 deals which then helps get you a track record and establish a team.
Investor · Member since 2021 · 23 posts · 21 votes
5y
@Ben Bolingbroke personally I wouldn't spend a dime on it. My family has been investing in multi-family for almost 65 years and have almost 900 units in the Los Angeles market. Most of these programs give some good info but at the end of the day its really never worth it. I personally dont like syndication either. Build your own empire!
Investor · Fort Worth, TX · Member since 2019 · 120 posts · 147 votes
5y
@Ben Bolingbroke There's great feedback and experience on this thread. My personal opinion - completely worth it IF you get in the right group. (Our first deal alone will return 9X the coaching investment - so worth it if you get deals done). The mentor/coaching space can be confusing for sure - and was especially hard for us to know what to look for when we started (and we paid some "dumb tax" getting in the wrong group at first). BUT that experience helped us figure out exactly what to look for in a coach and group to be successful - happy to share the experience if you'd like. Best of luck in your journey - multifamily is a wild but fulfilling ride!
Syndication Expert and Investor · Indianapolis, IN · Member since 2016 · 591 posts · 808 votes
5y
Courses, gurus, books, getting your MBA ,etc - it always comes down to: you get out what you put in. You know, the love you take is equal to the love you make.
Like most things in life, it's not black a white, gurus/coaches can be both incredible and horrible.
It was AFTER doing about 8,000 units of MF projects, about 4,000 as an LP and 4,000 as a GP, and scaling our syndication business before I signed up for Michael Blanks Platform Builder course. My first multifamily course. I have mentors in the space, but they're colleagues/partners/associates.
Could we have figured out how to build a marketing system and investment platform ourselves? Of course, and we were already in the process of doing it.
But we wanted to go faster and build it TODAY, not kick tires and experiment for a year. We wanted to understand best practices, SOPS, and to get a view "under the hood" of Michaels marketing machine.
I love what @Lee Ripma said - $30k is a rounding error in any decent size syndication deal. If you are serious and you put the time in and getting into a network is going to get you where you are going faster with less risk/mistakes - then I don't see a problem with it.
In my Platform Builders Course/Mastermind with Michael Blank, some of the other syndicators in the course are the real deal and taking action, some are frankly wasting the $25k and will never do a deal.
Real Estate Investor · alexandria, VA · Member since 2008 · 26 posts · 5 votes
2y
If you have cash its not hard to analyze a property and get the loan. when you don't have cash then that is where you have to do complicated things to pay for a property that will be profitable