Like so many, I'm new to REI. Kinda. I've done a little but I've fallen into it more than intentionally went looking for it. Luck can't take you very far in anything.
I was curious what I should look for in a Mentor and/or a partner for the entire REI process (and probably the best places to look)? I know I'd like to be on my own at some point, and I have a GC willing to help me get started with the rehab portion but neither of us have done anything more than purchase our own residents.
I've begun the important connecting portion of the business and I'm far from done. I know I'm several months out from making my first purchase, still consuming information and knowledge but I'm already trying to use the calculators, plan deals, ETC. The problem is my numbers are so far off that I know I'm doing something wrong. I'm using my own house purchases and sale experience since I know the costs in Texas are higher than many of the videos so those numbers would give me a false sense of security.
I still have a lot to read, a lot to learn, but having a guide say "start here" or even better yet "let me walk you through my last deal" would help so much more with the way I learn (Learn by doing and example). All that said, how do I even tell the good ones from the bad ones? There are sharks and con-men in every industry, just waiting to take money from a novice or naive person.
I am planning on going to several meetups and events in hopes of making friends and hopefully people I can work with. Is there any other way to find someone who might help point a newbie in a better direction?
Attend as many local REI meetings as possible and begin the process of building relationships with active, seasoned investors who can help teach you how to do the business legally, morally, and ethically. Choose wisely though as many are armchair investors who may not be what they portray themselves to be. Many ethical investors will allow you to bring them a lead and then work that lead through the process so you both make money while you learn the process. This business is all about relationships and your focus should be on building them daily.
Thanks. That's what I figured but after finding the "FAQ" on "how to find mentors" in the FAQ area (yea, I missed that before I posted this), it made a very good point:
Asking someone to mentor you is like asking them for cash with no strings. They are spending their time that they could be making money helping you make money, and then, to add to it, you'll learn what they do, where they do it, how they do it, ETC. They are training their competition.
I think one thing the posts pointed out was to offer them something in return (which I thought was a given), but I had to start thinking what could I offer that would be valuable enough to them.
A question for anyone here, what would you want in return to mentor someone? A helper to find deals? Every other deal is split between you and the person your mentoring? Work on both of them together (granted, making the trainee do more of their work to give them experience)? Work on a commission, hourly rate, % of the profit on a sale? Or maybe a barter system where they can offer other services, like helping the rehab process with their skills, or doing other business tasks not directly related to the process of REI but the back end work that secretaries, office personnel, ETC would do.
I'm just thinking off the top of my head but finding someone who will teach the business legally, morally, and ethically is important. That's a pitfall I really want to avoid.
All of those I help learn this business are through informal partnerships...they do marketing, they bring me leads, I work the leads and we both make money. With each deal they learn more about the process, contracts, negotiation, closing processes, etc.
This puts the burden on the new investor...they must do the marketing to find a lead or potential deal and only then will I share my time and experience. Doing so in advance provides no value to me, only to the new investor. My investor partners do marketing at their own expense and use a dedicated phone number in their marketing...a number I provide them. Those leads come to me to be processed since all of my investor partners have full-time employment and can't take calls as they come in. The profits on each deal secured by one of my investor partners is then split between 50/50 to 75/25, depending on how much time and money I have to commit to the deal.
Your focus should be two-fold. Build relationships at every opportunity and market, market, market.
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