I'm new to investing. I don't yet have a property but am very close to taking the leap on a single family home. I started my education with books and attending a local REIA meeting. I loved it. I asked the guy who runs it (who's been in the game for 27 or so years and is very successful) if he'd ever consider doing a crash course in the basics so I wouldn't have to wait for a once-a-month meeting. He then offered to be my mentor. I couldn't believe my luck and how easy it was to find a friendly, local expert.
I've gotten a lot out of our sessions and have been so thankful for the opportunity. He recently offered to wholesale me a newly acquired property of his. I like the house. It needs some work but I've run the analysis and it should cash flow an amount I'm aiming for.
I think going through the whole process for the first time with someone on the "other side" of the deal that I won't be afraid of looking stupid in front of, or being afraid to ask questions, will be incredibly valuable.
I trust him and believe this to be a good thing but our mentoring relationship is quite new. So that gives me reason to pause. I hope I'm not just being used to close a deal but on the other hand, the knowledge I've acquired so quickly is the whole reason I'm doing this. There's no reason this can't be a good thing for both of us.
Any insight? Any advice? What are the first steps you would take?
You really don't have to trust people much, it helps, but trusting math is far more efficient.
What are the numbers of the deal and how do they fit into your overall strategy? if it's good, move forward and thank your mentor, if it's not good then he will not steer you towards a bad deal.
You should be analyzing tons of deals DAILY so when a good one comes across your desk you KNOW it and can move with lighting speed. The less prepared you are, the more you must rely on other people and hope they give you good advice. Use this person as a diving board, not a crutch!
Mentorship is fun and rewarding and most people are saints so this guy is likely doing the best he can for you.
Thank you Alexander. That was a perfect response and exactly what I needed to hear. Numbers don't lie and it's a win-win.
Show us the numbers and you will get all the feed back you need to make a decision.
Keep in mind SFHs are notoriously poor at producing positive cash flow.
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