Why do investors choose to mentor newbies?
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Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
12yChris,
Life is about giving. People feel good when they can afford to give. Some people are more than happy to give without expecting anything in return. I've been fortunate enough to be part of this giving and receiving cycle and understand how it feels.
I've found a mentor on line during this down turn. Using what I learned from him, I made over $300k. Fortunately, I was able to return the favor when he needed it most. He was able to make a lot of money using my niche too.
A 30 year old kid found me on BP last summer and asked me to mentor him. I said sure. Coincidentally, he has the same last name. I always kid with my family that he's a brother from a different mother. He flipped 5 houses in the last year and cleared $350k. He now has 4 rental properties. On his last deal, he was able to get seller financing. I helped to walk him through the process and negotiation.
Ironically, it doesn't have much to do with me. It has everything to do with him. This kid wants to be successful and here he is. Maybe he will share his success story here one of these day. My wife always ask me if this kid is real. A couple of months ago, he sent me a thank you letter and a $50 Starbucks gift card. I showed them to my wife. She smiled and said cool.
My family is going up to Portland Oregon next month for a wedding. Guess what, this kid will drive from Washington to meet my family face to face. Finally, I will get a chance to meet my brother from a different mother and father. Now, I just have to make a trip to SoCal one of these days to meet my mentor and put a name to a face. We all have achieved some success without paying any coach a nickel for mentoring.
Remember that the top 10% of the people own 70% of the wealth. It's because the top 10% are willing to work for it. It's hard to make it to the top. Once you have made it, the view is in incredible. Are you willing to make the short term sacrifice for long term gain? Find someone local to shadow. Ned Carey is a successful investor from your neck of the woods. He's also on BP. Hit him up.
Good luck Chris.
43 Replies
- Homewood, IL · Member since 2013 · 48 posts · 6 votes12y
I understand your suspicion Chris. There are a lot of selfish "It’s all about me" people out there. However I can also say that there are also a lot of thoughtful people as well. At my current profession (not real estate) I have been mentored by more experienced coworkers, and I, have mentored my juniors’ (it's kind of surreal to call myself a mentor). Personally I was thankful for the guidance provided to me, and I wanted to return the favor to someone else. It was also nice to know that someone respected me enough to ask for guidance. Before I would have still been leery but, having a chance to be a mentor myself, and reading through the posts on BP, I realized there are genuinely helpful people out and about.
Best of luck to everyone.
- Real Estate Investor · Somerset, KY · Member since 2011 · 211 posts · 64 votes12y
Many reasons really but sometimes the teacher learns during the process. If you have to reflect on how you did something "by the book" it makes you evaluate your own situations the same! Then again when you are being creative teaching anything you think of things you never have before.
When I encourage people in any way it recharges my positive mindset batteries!!!!!!!
- Irvine, CA · Member since 2013 · 144 posts · 67 votes12y
@Chris M. I like to think most people are good and want to give back. We've all been beginners in something and know how hard it can be to get off the ground. Those who have had the success in their respective field, understand the value of giving back and ultimately get joy from it.
Personally, I give back to teach myself as well. I figure, if I can teach someone else this concept, then I understand it. Brian Tracey has a great quote, "You can have whatever you want, if you just help enough people get what they want."
With that in mind, if you need anything, please feel free to reach out.
George
- 12yCurt DavisBusiness MemberFlipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
This is a touchy subject for some people. I lead a lot of the " Getting Started Right " classes at our local REIA club and I truly enjoy it. I also will meet with new investors who want to go to lunch to pick my brain for the time I am with them. I dont normally coach or mentor people as you are correct, to take someone by the hand and help them is time consuming and we are all busy.
I am personally not a fan of the coaching/mentoring programs that rob people like Rich Dad or Fortune Builders.
I was fortunate to get into real estate bc a friend of mine believed in me and took me in to work with him and this is how I learned this business so I sort of feel like helping other investors with no financial expectation is a small way of give back to others who are trying to do this.
Curt Davis - KAIZEN Realty538 Reviews - Rehabber · Smyrna, GA · Member since 2013 · 864 posts · 510 votes12yYep, I've mentored people and been mentored, it's never been about financial gain for the mentor. There 's LOTS more to living life than money. Personally, I get bored as hell driving around by myself in my car all day, and so few of my friends have any clue what I do it's fun to come on here or chat with newbies about what I do and help them do well if I can. It's kinda like watching your kid hit a baseball when you taught them to swing the bat. That's worth way more than money, especially when you've got enough. I went broke in '07, but was a millionaire at 30 and can say I cleared a mil in a year (although $600k of that was property Id owned for years). I think it takes having that kind of money to realize how little it really matters. This is off subject, but I agree with the 4 hour work week recommendation. I make a fraction of what I used to, but also work a lot less, am typing this from Hawaii, and live one heck of a better life now than when I was working 80 hour weeks making way more. I've rebuilt my business with lifestyle as my primary focus, not income and net worth. That's not to say I'm living on anything resembling median income, btw, there's good money in this game when you get it figured out, just saying the guys that get it aren't looking for every dime under every rock. Anyway back to the original subject, I used to have a quote written out in my day planner, it was the first thing I saw several times a day: "We make a living by what we get, we make a life by what we give" Plenty of people out there that think that way...
- Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes12y
There have been previous discussions here about the difference between coaching and mentoring. Lots of varying opinion, but the general consensus is that you pay for coaching programs and that mentors want to help for free. I've seen lots of fees creep into what used to be called mentoring. There's good money to be made in coaching/mentoring, and good money in offering REI educational materials. As entrepreneurs we should be able to relate to that. Also, there is really good money to be made in creating and commodifying your internet presence with an REI educational angle. If you could clear $300K/yr keeping up your site and blog compared to doing 8-10 flips, wouldn't you?
I'm initially totally self taught off the internet. I'm a generally good student and a fast learner, but the internet message boards that cropped up in the late 1990s were my dream come true when it came to my learning style. There were no prerequisite classes, I could ask questions in any order, and I could ask challenging or out-of-the-box questions and no one thought I was challenging their authority (finally!). The group of experienced investors hanging out on those message board were from a different time. They didn't know anything about the internet, they just liked talking shop.
So it's fun and rewarding to pay it forward by sharing for free here. I get asked to mentor a few times a month. I get several private PMs every week asking for specific, step-by-step instructions on how to be successful in REI(?!). I have no training to offer. I'll brainstorm on anything REI related, and share my resources. I'll answer questions. There's only so much time, so I always ask everyone who writes to me to post here. That way they'll get more feedback and others can benefit from the thread. But they are often disappointed. It seems many newbies believe there is a magic formula and all it takes is a few emails and they'll be on their way.
I've paid for newbie's BP memberships, set up people with my title reps so they can get accounts, looked up hundreds of property profiles and documents for those without good data. It seems hardly anyone actually uses the info to do a deal or buy something. I've had coffee with many people who supposedly want to learn about title and probate issues. Talk about eyes glazing over! So maybe my service is helping people learn what they don't want to do? I also know that I've talked many a CA landlord off the ledge here when it comes to their very bad DIY ideas for evictions, security deposits and other tenant problems. Sometimes those people write and thank me later, saying it's what they needed to hear, even if they didn't want to hear it. I'd want someone to do the same for me and I'm thankful for an online community that makes that possible.
- Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes12y
It's easy to become friends with people online when you have common interests. I met K. Marie Poe on Ward Hanigan's board some years ago, as well as Minh and countless others through ForeclosureForum and later CREOnline (does that latter site even exist anymore)?
This is the bargain that is made by helping someone: I will help you because I feel good when I help another. If we have a common interest, that even better. If I learn something new by teaching you something old (to me) that's really great. If I post online, it's for fund and for free. However, don't expect me to give you trade secrets online, for free.
If you attend an REIA, the simple truth is that the great majority of attendees have never done a deal. Which isn't to say they won't, but they haven't so far. That's why people are amazed when they meet someone who actually does this stuff for a living, let alone closed their first deal.
Most people will never do anything with the information, that is, act on it, unless they have invested something of value. Maybe not even then. However, that's really none of my business, nor is it my place to predict who will succeed and who will fail.
Consequently, many people never get into the trenches and pay their dues, so to speak. There are definitely people on BP who are energized helping people who are brand new and do not know the first thing. Me? Not so excited.
When I started, I really didn't have much of a plan, didn't have much guidance, nor any viable criteria, etc.
John Beck was of tremendous help during my early foreclosure equity purchase days. My friend Mike Quaid became a mentor by teaching me what was really required to have a marketable hard money deal. I avoided most of the real estate groups during the 80s and 90s because I had some bad experiences with dream merchants.
When I taught probate for Jim Banks and later the clown from Florida, I realized that they were not in real estate and only made their living through info products.
However, when I put on my own probate seminar, in 2009, I tried yo give people 5 days worth of material in one day. K. Marie Poe was on my panel, as a matter of fact. What surprised me were the people who complained that it was too much information. That's like complaining about a bank cashier putting $1,000 in your new checking account when you open it with just twenty bucks.
So, I enjoy the comradeship and well-thought-out questions by people who are actively pursuing deals and taking action as well as investing the time, money and effort in their education. For those who insist on using the forums and only taking away and not contributing, I doubt you'll find much long-term satisfaction here or anywhere else.
- Real Estate Investor · Los Angeles, CA · Member since 2014 · 143 posts · 29 votes12y
I am fortunate enough to have incredible meters in my life. Most of these folks are extremely busy, and we are not working on deals together. You have to give to receive. Just like Zig Ziglar says, "You cab have everything in life you want, if you just help enough other people get what they want."
It's true! Even if you can pass down a little knowledge and education, it's so important.
@Jerry Jaco I have a friend who's an investor and also a vet. I would like to try and connect you guys. Send me a PM, and I'll get the ball rolling.
Andrew
- Real Estate Investor · Phoenix, AZ · Member since 2014 · 4 posts · 0 votes12y
This is great info, and my opinion is that most investors would definitely want a cut out of the profit or an upfront cost to coach someone. I do love hearing stories of investors helping beginners out of the goodness of there heart. That is so rad to hear those success stories. Just keep taking action and big things will happen in your life especially if you have a mentor. Knowledge is so beneficial for beginners and long term investors.
- Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes12yThink mr miyagi. Gets all that housework done in exchange for teaching karate. Youre correct in realiZing you dint get something for nothing....because u dont
- Jersey City, NJ · Member since 2014 · 27 posts · 5 votes11y
i think a lot of it has to do with how the investor or mentor was taught.
For example. I knew nothing about credit, and was taught by others. For no charge, just because they knew I genuinely wanted to learn.(although RE vs a credit model is very different in terms of teaching and learning) Could I ever pay them back? No. Would I want to. Of course.
But, now when others have questions - I feel like I should do my best to answer . I was once were they are and did not learn what I did on my own... But from some one who was willing to teach me.
- Wichita, KS · Member since 2013 · 235 posts · 46 votes11y
I have also wondered the same thing lately. I have been asking so many "newbie" questions to a lot of people recently. It BLOWS my mind that people take the time to go through in detail all the questions that I have.
- Brownstown, MI · Member since 2014 · 344 posts · 98 votes11y
What a difference it makes when you can surround yourself with experienced investors. It gives you a leg-up, a big head start from trying to figure it all out yourself. The people that I am involved with are very knowledgeable and extremely successful. Every time I talk with them they say something or tell me about a deal they are doing and some of the terms of the deal are such that you realize just how well they are doing, and how they are clearly NOT in the rat race.
It's where I want to be and what better way than to surround yourself with people that are already there and willing to help you get there. Just makes them look that much better.
- Real Estate Investor · Redondo Beach, CA · Member since 2015 · 55 posts · 5 votes11y
I look forward to paying it forward one day!
- Contractor · Clive, IA · Member since 2014 · 20 posts · 13 votes11y
Did you ever see a child struggling with a problem they couldn't figure out. You went to them and asked a few questions to trigger a new idea in their minds. Or maybe you actually took them by their hands and showed them how to tie the knot, hit the ball or how to dance. Then it happens, they look up at you and you can see a light that just came on in their eyes and you know they understand. There's a connection there that can't be described. So it is with all ages. Teaching what you know and seeing that light come on, that's a connection on a very personal level. We all remember that certian teacher who could connect with us and show us how. As we got older we realized that those who taught and connected with the us were worth their weight in gold. To them the gold was the light that came on.
- Point Roberts, WA · Member since 2015 · 102 posts · 18 votes11y
I do lots of volunteer work and give to food banks, health clinics, and battered women shelters.
I mentor others who also give back to community - whether the impact is local or global.
I'm new to REI so don't ask me for advice. I'm being mentored by someone who grew up poor and gives back lots to charity. He knows his advice will help me help others.
- Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes11y
Some people just have that goodness in their heart. I met a great mentor on here and for months tried to figure out what she wanted. After a while I knew it's just a character trait. Got me through my first rehab. I've learned things and people ask me for advice every now and then. I have no problem in paying it forward. I've always been that way but was surprised to find others.
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