Is Paying a Mentor Crazy?

[Krista Walker]

I've been lurking in BP for a year and listen to all the podcasts. There are lots of experienced REI on this site...does anyone ever pay one of them to be a mentor? I feel like I have analysis paralysis and would benefit from a mentor but don't want to be one of those that posts "Hey, anyone want to be my mentor?" I know I bring nothing of value to them. It seems like there are so many variables to consider that I've just kind of become paralyzed.In-state vs. out...turnkey vs. not. Cap rate, IRR, Buy outright or finance. Any thoughts on paying a mentor? Has anyone ever done this?

[Alan Grobmeier]

Krista:  There are a zillion ppl that will take your hard earned money to 'mentor you'.  I have a number of SFRs and I am looking for a mentor myself.  I've 'interviewed' a number of them, some even on BP.  I found that my needs do not equate with what is generally taught, which is either fix/flip or wholesaling.  I have gone to 'seminars' that have came thru town.  Most are basic (and free) while the next level is expensive and doesn't fit my needs.  You can learn the same things via BP and going to real estate meet ups.  And most of the meet ups on meetup.com are free!  ;-).  I noticed you are in the phx area, as am I.   If you want to talk more, let me know.  AG

[Mindy Jensen]

@Krista Walker , paying a mentor a reasonable fee can be an excellent idea. Paying a mentor an enormous fee - think tens of thousands of dollars - is not the best choice when you're first starting out.

A meetup is also a great way to connect with other people. You could find a local mentor there, or get recommendations for one.

Don't jump into anything mentor-wise. Our intrepid @Scott Trench  wrote an excellent article for the BiggerPockets Blog that is a relevant today as when he wrote it. Check out The Ultimate Guide to Finding Incredible Mentors .

[Jay Hinrichs]

one thought @Mindy Jensen  that I like is to get your real estate license and go work for a top producer EARN while you learn.. the top producer will pay all the over head except your license fees

most mentors are of a few varieties.

1. expensive trainers and it really takes self discipline to succeed there.

2. use and abuse you .. IE simply looking for their own deals at your expense .

I know a few BP members that have gone the other extreme and paid big money for year long basic one on one training and have done very well.. but its like buying a business.. they spent the big bucks the trainer mentor spend untold hours with them and a few other students and it was a year long process to learn the wholesaling end of it.. which is really just marketing..

you MUST have strong people and sales skills to do well in transactional real estate world regarless of what form you choose... And you will find that most top producing RE agents have all gone and paid for expensive sales training over the years.. I know I did.. WE honed our craft through expert leader ship which was not free.  and not everyone can learn on line I know I can't

when I started flying... I needed to fly to learn .. sitting in the class room playhing with a model airplane to learn power ratios and other things bored me to death I needed to be behind the controls learning it as I went along... LOL.  and scarring my instructor straight.

[Krista Walker]

Thanks, @Alan Grobmeier . I will make it a priority to get to the meetups. I tried to make one in my area in November but the night didn't work out. Which one do you attend?

@Mindy Jensen  Don't worry! I've listened to the podcast and read enough posts to know that paying the gurus isn't worth it! As I said above, I will get to a meetup!

@Jay Hinrichs -I'm more thinking in terms of investing/buying a rental but not being a realtor

Thanks everyone!

[Alan Grobmeier]

Hi Krista:

I could probably write a small book on the different meet ups I have attended.  Some were really worthwhile.  Others were worth what I paid ($0).  It really depends on your focus and the focus of the presenters. 

IMHO, buying with leverage is not a good idea at this point in time.  I have a unique and successful business model with a positive (but not 'sexy' like flippers) track record.  My entry point is usually a 5-6% cap rate, but will rise significantly over time.  I am patient, but I am a buy and hold type.

I was a member of AZREIA for a year, but found more 'pretenders' than 'doers'. It's also hard to weed thru a couple of thousand ppl to figure out which is which. As a result, I dropped my membership. I did attend a number of AZREIA buy and hold meetings, which were good. But a number of them felt my business model was 'unprofitable' in their eyes. A big focus in the group is mobile homes, which I feel are loaded with a lot of involvement, hassles and risk. I am a SFR only type of person. And I don't chase 'shiny' objects. Lol.

A recently started looking at alternative investments and have started to research tax liens and deeds.  I'm not doing it, but more in an information gathering mode.  Same thing with notes.  

Part of the problem is who do you trust.  There is a person that is offering good interest rates on deeds of trust.  But a little research has shown that the person was part of a fraud investigation where they were forced to relinquish their real estate license.  Not exactly the type that would make feel safe.

Although I do believe prices are high, I am writing a business plan to raise funds for a SFR that meets my successful business model. The property will be paid 100% cash, no leverage. I have had preliminary discussions with former co-workers and supervisors that were positive, so I am going to move forward on my plan.

But I have also purchased owc (owner will carry) and self directed Ira properties in addition to properties my wife and I own.

I know this was really LONG.  And I apologize.  Just go to meetup.com and search real estate and see what interests you.  Different strokes for different folks.

AG