Is it worth it? Real Estate Coaching

18 Replies

Hello Everyone,

A couple of weeks ago I paid a guy $500.00 to start coaching me in real estate. He seems pretty legit but I am wondering, is the cost of $500.00 per month really worth it? I had did a little research on it and they were stating that real estate coaches were highly effective.

$500 a month for a valid coach that can help you get going is a steal. not enough information to give a full answer but here are some things to consider.

Is the coach actively doing deals? Doing the type of transactions you are interested in? do you have the ability to do a deal if one is presented to you? Does he have other students? have you vetted him through the others? What do you get for $500? When should you expect to do your first deal?

I paid $10k for my 1st mentor - in the program you had to do a deal - I profited $25k on the deal 6 months after starting  - minus the cost of the mentor it was the most money I ever made at one time. Then I took that knowledge to do a handful of deals and always had the mentor as a resource. So it depends on who you are working with.

@Travis Sperr

How did you go about finding a reputable coach? I've pondered getting coaching as well. I've done a few deals and read a few books on real estate. However I'm still learning and am progressing I'm wondering if a coach will help me get me proficient faster.  I'd love to hear your experience.

Originally posted by @Travis Sperr :

$500 a month for a valid coach that can help you get going is a steal. not enough information to give a full answer but here are some things to consider.

Is the coach actively doing deals? Doing the type of transactions you are interested in? do you have the ability to do a deal if one is presented to you? Does he have other students? have you vetted him through the others? What do you get for $500? When should you expect to do your first deal?

I paid $10k for my 1st mentor - in the program you had to do a deal - I profited $25k on the deal 6 months after starting  - minus the cost of the mentor it was the most money I ever made at one time. Then I took that knowledge to do a handful of deals and always had the mentor as a resource. So it depends on who you are working with.

Hi Travis

Yes I have heard that it was a cheap price. I do not have any current deals going at the moment however, I plan on having some soon. It's great to hear on your first deal you made so much money back. He does actually have other students and I also looked him up on LinkedIn he appears to be pretty reputable. With the $500 he stated that he will show me the ropes of wholesaling, investing, flipping etc. He has directed me to some useful resources and gives me tasks to do every 4 days or less. I have learned a lot and its only been a few weeks. He stated that I should close something within 2-4 months.

Originally posted by @Account Closed :

@Travis Sperr

How did you go about finding a reputable coach? I've pondered getting coaching as well. I've done a few deals and read a few books on real estate. However I'm still learning and am progressing I'm wondering if a coach will help me get me proficient faster.  I'd love to hear your experience.

Jeanette. I just went out there and did some research. I needed some direction is the reason why I went ahead and paid him. Some people were stated that they have had awesome results with real estate coaches so I thought I would invest and give it a try.

@Account Closed Keeping in mind I would consider a coach or mentior to be someone in your market that is actively doing deals. Not someone coming into town for the weekend selling books, tapes and programs.

It is all in your network - one of the reasons I love real estate is the willingness to share with each other. Most people will tell you anything you need to know if they have the answer. If you feel you need a coach or mentor to take your business to the next level you may find that you just need to find someone you mesh with in your area - they may mentor you for free. If you have individuals offering coaching in your area - check multiple references and current students. Make sure you have a very clear understanding of what you expect to learn and accomplish before paying any money. And ultimately it is a good fit for you and your business - if you want to fix and flip don't hire a coach that specializes in owner finance!

You might find that a couple of nice lunches or dinners will get you the information you need. Consider starting a meetup or investor mastermind and invite the best investors you know to pick their brains over and over.

Hope that helps.

@Karlyn Brasselmon  

Lets use the term "good value" when referencing the $500 a month :)

So long as you have a clear understanding of what you expect to learn and it sounds like you are already getting value from the money spent it seems like you are on the right track. You might consider hosting meetings with the other students to get an idea of what everyone is seeing and work with others in the same boat as you.

Coaching is a tremendous investment if you get what you are looking for. Too many Guru's selling coaching give it a bad name - I have seen people drop as little as $3,000 all the way up to $75,000 or more in hopes of getting started - they would be better off losing money on a deal to get the education. 

The great thing about a monthly payment is you can probably stop when you feel you are not getting the value you need.

@Karlyn Brasselmon While I'm weary of "gurus" giving real estate coaching, $500 isn't a ton of money. Most people spend thousands of dollars in those programs. I have done a ton of wholesale deals here in Orlando, Fl and have never paid a guru. I went to work for a real estate company that taught me how to wholesale. Before spending too much money with this coach, I would really utilize the resources here on Bigger Pockets, and listen to podcasts.  

Ask a specific question, pertaining to what you are looking to accomplish on the forums. 

For example: 

  How can I get started investing in St. Louis with $5,000? or Where can I find a rental property for $65,000? 

Chances are there are a ton of people on here that can point you in the right direction and probably save you a ton of money. You would be surprised by the wealth of information on here.

Best of luck!

Hello All! 

@ Karlyn Brasselmon,

I attended a women's retreat a few years back; and on the last evening of the retreat, there was a panel of 3 older professional women to ask questions of. One was City Manager of a city in Florida, one was a REI professional in NY, and one was a retired Educator and Politician. I was just getting into the REI arena; and my question was "If you had a #1 piece of advice to a newbie Real Estate Investor, what would it be?" Her answer was..."Get a mentor, and get a coach". Then she explained the difference of each.

I'm reminded of one story about Oscar-winning actor, Sir Anthony Hopkins. In an interview, Mr.Hopkins was asked if he had a coach, to which he replied, “No, I have seven.” He then went on to list them all (an acting coach, a speech coach, a Broadway coach, etc.).

Whatever you spend on a "good" coach, education program, or mentor is worth it's weight in gold. I've paid (well) for both, and and it was (well) worth it! My belief is this...no matter how long we have been doing anything that we want to master, we must always keep learning, we must invest in ourselves and our professional education/certifications, and we must pay it forward. Hope this helps.

I cannot speak to the merits of coaching but I would suggest that along with that, you join your local REIA, continue reading BP, and start your RE library. If you have an idea of what your specialty will be (or the area you wish to start in) then buy books on those subjects. What to rehab and flip? Plenty of books on that. Want to buy and hold. Plenty of books on that. Investing in RE is not difficult. It takes some education, determination, and the will to succeed. Don't be one that stands on the sidelines forever and ever evaluating and dreaming of a deal. Find one that you think makes sense. Get a second or third opinion. Then take action.

When I first started I paid $5,000 for a 8 week coaching and it was a complete waste of money. Unless that person is helping with deals and showing you the ins and outs of real estate, he just pimping you.  

I strongly believe in having a mentor, however don't believe you need to pay to get one and learn relestate. You learn by doing. With the amount of knowledge thats easily accessible to us nowadays, you simply need to make it a priority to take time out each day to learn. Set your own daily/weekly goals. Be active and intentional with what you want to do and accomplish and make it known to people. You would be surprised how many people will reach out and provide guidance. But at end of day, it's up to you to research the advice you are given. Through this process sometime you naturally develop a mentor/mentee relationship. Get started In realestate forums, local RE events,  etc. 

I have been involved with relestate but wasn't active on BP until recently. However I did attend local events.  Simply reading forums on here as helped me. Hope everything works out for you and you get going soon. 

@Karlyn Brasselmon along with the other good advice you have gotten get a RE license its cheap and you will learn terminology so you sound educated when you speak to others about RE. you will surround yourself with like minded individuals if you take live class's and you can go work on a team when you get your license and earn as you learn.

RE can be a life long pursuit  so get yourself a base of knowledge and work up from there and in my mind the first thing is the RE license whether you use it or not.. YOu want to know whats legal and what is not... Many gurus teach universal techniques that are not always legal in all states. 

I speak from experience having had a coach and paid $8500 but was reimbursed upon agreement if we successfully bought 2 multi-fam properties (which we got 5k back ...2,500/property).

1st) I would ask is the coach LOCAL to your area? (although not a necessity, this helps as they can coach you on things that actually WORK in your area..as some things work differently in different states, etc.)

2nd If you get coached from an out-of-towner remeber that some of the techniques may be universal & may not work well in your area. So you may want to trial and error to find what works and what don't work... Most likely you will have to at least tweak to customize to what will work well for you and your area.

Also you may consider creating a Mastermind Group as suggested in "Think n' Grow Rich" which can be as simple as selecting an imaginary council that possess attributes you admire. This can create consistent reinforcement (unlike some other people in your life.)

Cut out pics & put them on a board on a wall. Who would you select? Warren Buffet (he's good at investing), Donald Trump... If you get discouraged think about what they would do? They can empower you & challenge you to reach higher.

Sincerely,

Kelly

Originally posted by @Jeff Joachim :

@Karlyn Brasselmon While I'm weary of "gurus" giving real estate coaching, $500 isn't a ton of money. Most people spend thousands of dollars in those programs. I have done a ton of wholesale deals here in Orlando, Fl and have never paid a guru. I went to work for a real estate company that taught me how to wholesale. Before spending too much money with this coach, I would really utilize the resources here on Bigger Pockets, and listen to podcasts.  

Ask a specific question, pertaining to what you are looking to accomplish on the forums. 

For example: 

  How can I get started investing in St. Louis with $5,000? or Where can I find a rental property for $65,000? 

Chances are there are a ton of people on here that can point you in the right direction and probably save you a ton of money. You would be surprised by the wealth of information on here.

Best of luck!

 Reviving this 2 year old thread...

I am in a similar position and trying to decide whether I should have a coach. I have already done some buy and hold type deals (that were found from MLS or similar sources), but have no experience with wholesale, etc.

@Jeff Joachim - Can you please explain how exactly you did this - "I went to work for a real estate company that taught me how to wholesale."? Are there brokerage companies that actually do wholesale type deals? How do I find them?

Secondly, do you recommend getting a RE license? Looks like what you suggested involves getting a RE license and then working for a company that does wholesale deals. Lately (before I came across this thread) I have been seriously thinking if I should get a license too. But I also have some seasoned investors (including the person who is offering the coaching program that I mentioned above) saying it's actually better not to get one if you are doing these type of deals.

Any advice will be appreciated. Thanks.

@Pinaki M. - I would chime in to suggest you build your network by attending meetings, being active on Bigger pockets and trying that route to find local, successful investors that might take you on as an intern before you pay someone to do that. Coaches can help you stay motivated, but there are some drawbacks to them as well (if they are greedy, they might set it up so that you are a little dependent on them, can't do deals on your own...)

Just do your due diligence before signing up for anything and you should be OK.

Good luck!

Karlyn,

The answers below are excellent to consider. I would suggest attaching a ROI to the coaching relationship. What return are you looking for from the investment and in what period of time? Then hold the investment accountable to producing the results. Coaching, when it is most effective, is a relationship of partnership between the coach and the client. What are you expectations from the coach? Are you clearly articulating them? Is the coach providing you with value on each call that is actionable? What level of accountability is the coach holding you to? Coaching can also be looked at from the perspective of taking three steps along with the client.

1. Buy in or commitment from the client to stated goals

2. Education, training, and necessary resources to achieve those goals

3. Accountability to assure that the actions and commitments necessary to achieve the goals are happening consistently 

If you have stated goals, are receiving the education and resources necessary to achieve them, and are held accountable daily to executing on the necessary actions then coaching will work and you will see your desired return on investment. Remember, the top athletes and business people always have a coach if not more than one. Finally, great coaches often do not teach us anything new, they remind us and hold us accountable to doing the things that are required to achieve our goals. 

@Matthew Teter thank you for your feedback that was great. Still working on getting in the game. Now currently looking for HML that will lend to a first time rehabber. someone gave me a suggestion to joint venture with someone. I think I may try that. Thanks,

At 500 a month it may be worth it if you get to interact with the actual coach and not one of his “team members”. If it’s not actually the coach it’s probably not worth it

The people who pay in excess of 10k probably never see the real value unless it’s in some very specific skilled niche like syndicating. If it’s something like wholesaling that price isn’t worth it.

Most people who buy coaching never actually do anything. They get excited and learn a lot, spend lots of money on courses and coaching then stop.

Where as those people who will do deals without coaching do deals without coaching. Funny how that works.

6k a year is still a lot in my opinion. You can learn most of this stuff for free on BP and other websites. I’ve done 3 deals, should do one more this year and I’ve only ever paid probably 30 bucks for a couple books. Everything else is done on BP, for free.

I joined a mastermind group and a local Meetup group a friend created. I get all sorts of education for free. You get the idea.

I still help people when I can and hope to do that for a while. When the day comes that I’ve got too much going on to do that, I’ll charge a small fee up front to filter out the tire kickers.