A different kind of mentorship?
*Not trying to advertise, just thinking what people thought of my idea.*
I always hear/see a lot of young investors saying they want to get started in real estate but have no money or experience.
Wouldn't getting a job in construction accomplish this, over paying a guru "x" amount of dollars? I only have one to two houses im working on a time, but my cost and quality is always controlled since i do most of my own work. I have stability, since one project with keep me busy for four to six months, and i usually will have some more deals lined up by then.
Ive been needing to hire someone else to help do a lot of my punch, and have been trying to decide whether i'm going to have better luck finding another druggie who has been in and out of construction all their life or "hungry" real estate investor. I think the qualms about the latter, is i think a lot of investors would rather take the "academic" approach to real estate. I do most of my own work, not because it saves me a ton of money, but because i would rather fill my day with a saw in my hand vs. a phone.
Investors who take the "academic" approach are more likely to partner with you in the future if they decide to move on. Most of us know there is plenty of real estate to go around. If someone uses you as an "academic stepping stone" and you treated them right, you greatly improve the chances they would pass you a deal or help you in the future if you are in need.
Just to clarify: the mentee would be focused on the construction part of the flip project? Or would they be shadowing you from start (anaylsis and acquisition) to finish (sale/rent)? They are so many intricacies to real estate that sometimes the academic approach is more feasible in order to understand the different paths one could take in real estate. Hope this helps!
Mostly construction. Once you figure out an exact construction cost, the rest of the numbers are super easy. You just look at your comps to figure out an ARV. You subtract your fixed cost, and you know exactly how much you should be purchasing a property for.
I feel like 90% of the education is just understanding construction costs.
I think your strategy only works for someone who is interested in becoming an investor and wants to swing a hammer. If you don't have both, I don't think it will work that well.
Originally posted by @Damaso Bautista:I think your strategy only works for someone who is interested in becoming an investor and wants to swing a hammer. If you don't have both, I don't think it will work that well.
That's exactly the point, but im guessing there are a lot of investors who don't like to swing a hammer.