Paying for a Real estate mentor?

Question

Is it a good idea to pay for a real estate investor coach?

If so, please message me with recommendations or tips on good coaches.

Erik Hitzelberger · Answer

@Chris Lynch Like all of life's great questions, the answer is "It depends."  I've been doing this for 7 years and have spent a substantial amount of money on coaches and seminars and I don't regret one penny.  In fact, my only real regret is that I tried the DIY method for too long.  Now, I actively seek out training and info every year to grow my business.   More to your point, I have had 2 mentors whom I paid significant amounts of money too and I will attest that I'd probably be out of REI if I hadn't done so.

Mentors will accelerate your growth by keeping you from making mistakes (big and small), teaching you things in hours or days that would take you months or years to learn, and by holding you accountable to do things that add value.  All of that being said, they can't do it for you.  You have to be in the right place mentally; ready to receive instruction willing to listen and to take action.

So, how do you know you are ready?  If you aren't sure you want to be a real estate investor, don't have defined goals for what you are trying to achieve, and don't have real reasons to invest ('making money' doesn't count), it's probably best to wait.  A good mentor will make you do things that aren't comfortable.  Many people don't like this and give up because they weren't in the right frame of mind to start with.  However, if you know what you want to achieve and how you want to get there, find a person who is successful at doing exactly that.  You will make more money being excellent at one thing, than being good at 5.  Pick the one you want to be excellent at first and find the best person to teach you.  If you do this, the price won't matter as it will take you to a level you would not otherwise achieve.

Melanie Hartmann · Answer

I just found someone in my local area that is extremely reasonable with their fee, provides excellent value, AND allows you to pay the majority of the mentoring fee via splitting deals they help you with. If you make no deals within the 12 months of mentorship then you are under no obligation to pay the remaining fee. Like you said, they "put there money where there mouth is."

I'm so glad I waited to find one. I tried on my own for a bit but realized I was stuck. However, I didn't want to waste time/money on a crudy mentor - particularly one who was just there to make money.

Taking the time I did to try and figure things out on my own was beneficial as it allowed me to realize exactly where I was stuck. I had time to figure out my "why" and my goals. These pieces together allowed me to be open to finding the right mentor to take me by the hand.

As someone mentioned previously, you HAVE to be committed and ready to be coached, otherwise it will be a waste of time and effort for both you and your coach/mentor and money for you (if mentor is paid).

Initially, I was against a paid mentor because any I had come across had seemed scammy and not worth my time. However, with the time and effort I have put into trying to figure this all out on my own, I've made mistakes and spent countless hours trying to teach myself. I now see and understand the value of paying someone for their time to mentor and coach.

Again, it all depends on your needs, funds/value you can bring, and your commitment/goals. I'd strongly suggest finding someone who works the market you want to invest in (if it's a large market) to guide your way.

I'm excited to begin my mentee journey. I wish I could say, "I wish I had acquired a mentor earlier," but I really don't think I was ready before now. I was too head-strong and wanted to do it all on my own. That's silly. It does work for some but not most. Even if it "did work" with me doing it on my own, I think that ultimately would have held me back from realizing the true potential of what's available in the investing world.

Laura Alamery · Answer

Yes, there are plenty of mentors out there, who want to take your money for the bootcamp and training, but at the end you still struggle to close a deal and getting answers and help when you need them most.

Hire someone (investor/mentor) who is willing to put "money where the mouth is," like split with you on the proceeds for the bulk of their training fee. That is what I do and it is a win-win situation.

Mark Scarola · Answer

I think there's also another way to potentially look at this. You should ask yourself what it is that you're hoping to get out of working with a mentor. Are you brand new and looking for someone to teach you the basics? Do you have a specific niche that you're looking to learn more about or are you still trying to figure out what niche is right for you? Do you want someone to watch you do a deal and provide feedback or would you prefer to help someone else out and ask questions while they do a deal?

For instance... I wouldn't consider myself a mentor as this point, but my partner and I  would likely be open to sharing our experiences as we went along if someone would help us to fund a deal.

Marty Stockdale · Answer

@Laura Alamery I totally agree with the “put your money where your mouth is” approach. I am open to working with a mentor for an extended period of time with an initial significant (90-10) split for the first deal and then walking it down toward 50-50 after additional deals. My problem has been finding a mentor willing to make that kind of commitment.

Curt Davis · Answer

@Chris Lynch

This is a very great question.  Some people will say you should and others will strongly advise against it.  Some questions to ask:  What exactly do you want a mentor to teach you? How much are you willing to spend on a mentor/coach?

Here is what I can tell you from people I have known personally and what they did:

1.  Rich Dad program - You can spend upwards of $60k, totally not worth it.

2. Fortune Builders - You can spend upwards of $25k-$40k, again not worth it.

3. Dean Grasiosi -  You can sign up for a quick $3,500 to get a weekly 30 minute coaching phone call, cheaper but not worth it as you just get someone based out of Utah in a call center who is following a script.

Have you looked to see if you have a local REIA in your immediate or close area? The cost to join and the knowledge and connections you can make will be totally worth it to join.

I dont think its a bad idea to attend boot camps or trainings offered by national speakers as you usually get some materials and several days of training and the average cost I have seen them go for is from $999 - $3,000 on average.

Be cautious regardless of what you do.

Spencer Cornelia · Answer

@Chris Lynch One recommendation for thought: attend all of your local meetups of every category related to real estate.  If your experience is at all close to mine, you will start getting in touch with people doing deals in your area.  Additionally, you will connect with wholesalers who are connected with the buyers.  Over time, you will come in contact with experienced investors in your area, and you will have the option to offer them the opportunity to mentor you.  One option is money of course.  Another is equity in any deals they help you with.  Maybe 50% equity for them to walk you through your first deal as an example.

Frank Wong · Answer

@Curt Davis

Has a good breakdown on his post.  I think mentors are important when you are fresh or seasoned in investing.  Anyone that can fast track you to your end goal is worth the money.  You are paying for time and knowledge. The hard part is finding someone who is the real deal.  You want to get to the source not someone on their team.

Steven Trumpet · Answer

Good post- even its a few years old...thanks.

Robert Ebeling · Answer

Dean Grasiosi not worth it.

Paying for a Real estate mentor?

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