Are mentorships worth it?

Question

I'm a first time OOS investor from Southern California looking at various mentorship programs. I'm looking to leverage someone's knowledge in order to make as little mistakes as possible...for a fee of course ;)

I'm curious if anyone else has used paid mentors for real estate before and if you have recommendations and price points that are typical when looking for mentors. Thanks!

Henry Lazerow · Answer

Absolutely not. Real estate is not rocket science, basically buy in a good area where tenants have 650+ or better credit (middle class+ people live there) and put enough down to cashflow. When out of state buyers go in lower quality areas they have a horrible time and often lose, these are actually the areas most of the mentors push as the numbers look the best on paper so easy sells.

Evan Polaski · Answer

@Austin De La Cruz, while i generally do not think most mentors are worth it, it does depend on what knowledge/skill you are trying to fill that you don't currently have.

No one can tell you what market to invest in.  Every market has its own risks/opportunities.

No one can tell you if a property is a good buy from a far.  You need to drive the market in the morning, afternoon, evening and night multiple days.  You need to have physical inspections.

A mentor can tell you to buy in "growing" areas, but that is only half the battle.  Most growing areas are expensive and now oversupplied with apartments, causing rents to fall.  And if employment is shifting a growth area may quickly be becoming a declining area.

I recommend you read these forums.  I would list out the questions you want answered by a mentor before talking with any, and then post them here and/or reddit and/or AI of choice.

If you go with a mentor and feel your questions are mostly very basic in nature.  How do I find a property manager?  Who should i connect with to start finding deals?  How much does a roof or insurance cost?  Then you should not pay more than maybe $500 for a mentor to ask those questions.  In fact, buy a couple books, watch some youtube videos or post here for free.

If your questions are very nuanced and specialized, then you can and should start paying more for that type of detailed knowledge, but then again, based on this post, I would imagine, when you get to that point, you will have already learned how to seek the knowledge and/or expert yourself.

Jason Malabute · Answer

Me personally, I have found mentorships beneficial in my growth both as a real estate investor and as a business owner. However, as a CPA, I have seen many clients spend money on mentorship programs before they became a client of our firm and never actually follow through with a deal or start the business.

One thing to keep in mind is the tax treatment. If you are not already in that business, the cost of a mentorship program may be considered a startup cost. Startup costs generally are not fully deductible in the first year. Typically, only up to $5,000 may be deducted initially, and the rest has to be amortized over time. A mentorship program could fall into that category, so before spending the money, make sure you are actually going to take action and use what you learn.

If the person is already actively in that business, the mentorship program may instead be currently deductible as a business expense.

Ken M. · Answer

.It depends.What do you want to do with real estate? If you want one house, you can get that experience through buying a house and joining a REIA. However, If you want to source good properties, buy multiple houses, understand asset protection, understand tax incentives, buy "off market", keep from getting sued and so on, sometimes a mentor is the way to go.I started off without a mentor and got sued, spent $125,000 in attorney fees, missed quite a few good opportunities because I was caught up in a lawsuit and so on. But boy, did I learn how the system works and what will get you into trouble (it's not what you think) and what will keep you out of trouble, while getting rich. Real estate has different phases. To grow, you need to go through those phases.So, decide what you want to become, how much you can afford to lose if you get it wrong, look at the cost/benefit of how you want to get to your goal, know the risks and you will have your answer. It's a different answer for each of us.

As for "price points", that varies of course in what you are looking for. Bigger Pockets doesn't allow for that kind of detail in the forums, but I have a Guide that I provide when requested, just DM me.

Drew Sygit · Answer

Majority of successful investors are too busy to mentor!

Majority of "mentor" classes you see online are NOT led by successful investors, but rather by salespeople with a few successes that decided selling classes was more profitable FOR THEM than actually doing real estate😮

Ken M. · Answer

The best point is: "make sure you are actually going to take action and use what you learn."

Ken M. · Answer

So say the successful investors. Lol Alas, the road is strewn with those who were not successful, because they assumed they knew how to pull off what you outline.My fiend's wife made a complete formal suit from scratch, bought the material, did the measurements and sewed the entire pants and jacket. It looked beautiful. I said it looked complicated, "Nope" she said, "you just have to know what you're doing" she said with a smile.I can attest to how hard it is but how easy a professional makes it look, be it sewing successfully or investing successfully.

Jay Toluganti · Answer

Oh yeah.. paid and got burned. Unfortunatly thats the reality of real estate. I would recommend joining your local REIA and talk to fellow investors who have taken that course or they have recommendation for you.

i would recommebd below books to read/listen:

Strategy:

Rich man in Babylon

Robert Kiosaki

• Rich Dad Poor Dad
• Cashflow Quadrant
• Guide to investing
• Real book of Real Estate

Real Estate Journey:

Ken McKelroy

• ABCs of Real Estate Investing
• Advanced book of Real Estate Investing
• ABC of Property management

Are mentorships worth it?

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