5 Ways a Mentor can boost your success in note investing

Having a mentor or a couple of mentors in different areas of your business will dramatically speed up the success rate with a high degree. Mentors have been in the business before and they can steer you in the right direction, after all, they have been where you were and made the mistakes. Your job is to learn as much as you can from their mistakes so you won’t have to make the same ones.

You will learn in this article how Mitch and I’s journey has been with and without mentors during some parts investing in non performing notes and general real estate. Investing in non performing notes has scared loads of people away from this niche. The players in this industry are relatively small compared to the traditional fix and flip and buy and hold models. Most new investors want to start wholesaling because there is a small degree of risk that’s associated with it. It’s not until someone actually does the business that they know what they are getting themselves into. Let’s start out with the first way a mentor can speed your success in note investing.

Holding you accountable. Most people start out investing in notes with a full time JOB. That’s the way my brother and I started. We know we needed to learn the business first before jumping full time in industry. This was several years ago, but we started with Partners for Payment Relief in second position mortgages. The was this training went was they gave us a really hard note to rework, but gave us the tools, resources and support to keep us successful. We had a checklist of how to legally proceed with this asset and Dave, the owner, kept us accountable for what we needed to do. The trick in with investing in notes is to systematize everything and do it consistently. Whenever we were behind, or did not send a demand letter in time, Dave would ask what happened. We know he was looking over our shoulder, but that helped get the note reperforming in no time.

They’ve been there before. When we finally transitioned to only working with non performing first position notes, we added Scott Carson of We Close Notes to our rolodex. Scott has been in the industry since 2004 after numerous years of banking experience. He has done it all, from being divorced, bankruptcy, discouraged, he still picked himself up to teach others how they can make a nice living investing in real estate. In many of Scott’s training, he says “just follow what I say, and you’ll be successful.” I have to say that’s exactly what you need to be doing. There is no need to reinvent the wheel in this industry, it’s simple enough. I have a link for Scott’s workshops in the recourse center in my blog.

They are there for you and your cheerleader. A mentor is there for you! More than likely, and I hope you are, you are paying them a lot for their help. I feel the only way you find value in a mentor is when you pay them. They are worth it and because you are paying them, you will do what they say because they create tremendous value in the learning curve. There were times that some of our notes just aren’t performing, or we couldn’t establish contact with the borrower and we were very discouraged. We thought we had done it all, and sometimes our ego got in the way of asking for help. As time passed and we just weren’t achieved the results with a note in NJ and one in FL, we went to our mentor and asked how can we do this better. They answered back the next evening, and added an idea that we never thought of and provided a resource for a door knocking service that we dearly needed. We used this service, paid some money, but within two days the borrower had contacted us back. It was awesome! I often ask why didn’t we contact our mentor sooner, I mean we were paying them and all right! Needless to say they were happy the solution worked and gave us a high five swift kick in the rear end because we wasted time feeling sorry for ourselves.

Mirror your actions to your mentor. Typically, your mentor is way better off than you at the time right? At the time our mentor was making nearly 20k a month, and we thought that was very cool, as we were making close to 30k per year. So how does a person get from making 30k a year to 20k per month investing in notes? Do what your mentor is doing! Mirror their habits from the moment they wake up until they go to bed. Realized this, SUCCESS LEAVES CLUES! Very successful people are very focused on one thing. They exell extraordinary at it. We asked our mentor what was his thinking about money, wealth, family etc. We asked how he spends his 24 hours of this day. Does he use a planner or does he plan everything in this head? What kind of legal entity does he have? What books does he read? Asking them what do you think they could have done better when they were at your level will give you tremendous insight into your business. This is why a mentor is worth the money! They information and advice about real world activities associated with investing in notes will speed your success and, in turn, make you money faster.

They can private money lender: Investing in real estate in general can be a very capital intensive business, meaning you are always looking to raise more money. Specifically, as a note investor, you don’t always want to your own cash for deals, so there is a significant amount of time networking with private money lenders and investors to fund your deals. We’ve approached our mentor as a joint venture partner several times. We have our agreement set where the investor puts up all the money, we do all the work and there is a 50 /50 split at the end of the deal. We both make out very handsomely at the end. You can also show your mentor how good you’ve gotten too and if you have questions, I’m sure you could ask them as well.

As you have read, mentors have numerous benefits and I encourage anyone who is exploring a specialized niche in real estate such as non performing notes, to get a mentor as soon as possible.

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To your success,

Matthew Hell

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