Is $10k too much to join a real estate mentor group?

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Is $10k too much to join a real estate mentor group?

Alec DeAngelo
Member since 2022 · 6 posts · 5 votes

Hello Everyone,

My wife and I have been wanting to purchase STR for years, but are now ready to finally start purchasing properties in 2023. The biggest issue is that I need help purchasing my first deal from start to finish to make sure I am finding the best deal possible.

I found a real estate investment group through Instagram that allows 1 on 1 calls, group calls, and a facebook forum. The only problem is that this program is $10k which seems pretty steep, however, would it be less expensive than paying to learn from my own mistakes?

If anyone has any experience with buying into mentorship programs such like this, or if you think there is plenty of information out there to go out and do it myself, please let me know your thoughts as I would appreciate your input!

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Alec DeAngelo:

All the information you need to get started is available for free on BiggerPockets forums. You could probably read a few books, watch some podcasts, and spend a couple weeks reading/interacting on the forums and gain more knowledge than what they'll share for $10,000.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Alec DeAngelo:

    All the information you need to get started is available for free on BiggerPockets forums. You could probably read a few books, watch some podcasts, and spend a couple weeks reading/interacting on the forums and gain more knowledge than what they'll share for $10,000.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    16Reply
  • Alec DeAngelo
    OP
    Member since 2022 · 6 posts · 5 votes
    3y
    Quote from @Nathan Gesner:
    Quote from @Alec DeAngelo:

    All the information you need to get started is available for free on BiggerPockets forums. You could probably read a few books, watch some podcasts, and spend a couple weeks reading/interacting on the forums and gain more knowledge than what they'll share for $10,000.

    Thanks Nathan! I figured as much, just seems like there is a lot of information to digest out there, but probably not worth the heavy upfront payment of $10k with nothing being guaranteed. I appreciate your input.
    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y

    INSANE. I have never read a RE book been to a guru seminar and certainly would never spend a penny, let alone 10k for a mentor and I have done it all. All you need to do is connect with someone doing deals, they will show you how to find them and pay you a fee. Learn, save then apply what you learn 

    All the best 

    6Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    3y

    NOOOOOOOOO...BOLT. Everything you need to get started is available online and AirBnb/Vrbo - and others - have great resources for starting the business. Find a realtor who specializes in STR; it's a different animal than other properties and in this case, zoning is critical. And, buying from "a program" is never recommended...that's a whole conversation of its own.

    Glad you posted...hope you've left that "investment group" behind.  The only thing they're investing in for $10k is themselves.

    Best...

    6Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    3y
    Quote from @Alec DeAngelo:

    Hello Everyone,

    My wife and I have been wanting to purchase STR for years, but are now ready to finally start purchasing properties in 2023. The biggest issue is that I need help purchasing my first deal from start to finish to make sure I am finding the best deal possible.

    I found a real estate investment group through Instagram that allows 1 on 1 calls, group calls, and a facebook forum. The only problem is that this program is $10k which seems pretty steep, however, would it be less expensive than paying to learn from my own mistakes?

    If anyone has any experience with buying into mentorship programs such like this, or if you think there is plenty of information out there to go out and do it myself, please let me know your thoughts as I would appreciate your input!

    Short answer-- yes.

    Long answer-- you have to do the work regardless. Having a mentorship group buy in is only going to lead you to other leads. It's not going to do the work for you. You need to do the work. Or if it's too much of a risk for you, go buy REITs and stick to equities.
    2Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    You will learn more if you don’t join a paid group.  Counterintuitive. If you pay $10,000 your going to do what they tell you versus learning. 

    Up front decode why you want to invest.  Appreciation or income. 

    Income.  At $200 per month how many units do you have to own to cover your day job?  Develop a plan to get to your goal.  

    Appreciation.  What aspects of a property or location will gain you the most appreciation?  

    Once you decide your path then start searching for knowledge. 

    3Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    3y

    @Alec DeAngelo

    Don’t ever pay a cent to gurus. I come here for free advice from people who have been doing this for years. Free valuable advice from experts on here who have been there and done it is what I focus on.

    0Reply
  • Andrew Carlson
    Rental Property Investor · Rochester, MN · Member since 2017 · 224 posts · 323 votes
    3y

    @Alec DeAngelo

    I would not do it. The people in that group are likely not from your area, which makes them essentially useless if you have questions about buying in your own back yard. Like someone said, find a realtor in your area that knows STR. Once you've done some deals and feel like you've taken it as far as you can on your own, then think about paid mentorship. (You may even find a free mentor along the way)

    0Reply
  • Mike Eichler
    Realtor · Pocono Pines, PA · Member since 2019 · 183 posts · 108 votes
    3y

    Do not join any paid mentor groups of that price point. They make more money "mentoring" than they do Airbnb'ing. There is a plethora of information on the forums here on BP. YOu can also check out youtube and other platforms to learn specifics. Small plug I have a weekly podcast with @Jonathan Dempsey, specifically geared primarily to STR investing. Feel free to DM me for the link. I am also more than happy to answer any questions you have related to STR investing. I have one STR property myself and work closely with a property management company with over 200 STR units under management.

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    You don't need a mentoring group. Even if it was $500, I'd pass.....

    If you asked all the veteran members on here, I doubt any of them had a 'Mentor Group'

    1Reply
  • Manco Snead
    Investor · Spokane, WA · Member since 2015 · 238 posts · 133 votes
    3y

    To answer your question: yes, 10K is too much.

    A fair price to pay for education on this stuff is about $0. With the exception of maybe the cost of a few books. And know that even alot of the books are fluffy and sales pitchy also, so you have to weed out the books and some of the fluff within them.

    The more you can rely on yourself instead if other people the better you will do.

    1Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Alec DeAngelo:

    Hello Everyone,

    My wife and I have been wanting to purchase STR for years, but are now ready to finally start purchasing properties in 2023. The biggest issue is that I need help purchasing my first deal from start to finish to make sure I am finding the best deal possible.

    I found a real estate investment group through Instagram that allows 1 on 1 calls, group calls, and a facebook forum. The only problem is that this program is $10k which seems pretty steep, however, would it be less expensive than paying to learn from my own mistakes?

    If anyone has any experience with buying into mentorship programs such like this, or if you think there is plenty of information out there to go out and do it myself, please let me know your thoughts as I would appreciate your input!

    I've been at this a little while. I have heard from some "mentors", people I know, that in paid groups 95% of the people won't do the work to become successful. For the 5% that do the work, there is benefit.

    I've tried to "mentor" (for free) over 50 people at various times from Bigger Pockets who approached me and said they were "very motivated" and guess what, 95% wouldn't do the necessary work. There is always an excuse or they just drift away. (No, I no longer "mentor". ) If you contact me to mentor you, of course the answer is "no", politely.

    That is not to say you are not in the 5% that will buy a property, none of us know that until you get started.

    Here is what I know,
    1. You can find everything you need on Bigger Pockets and youtube.
    2. You have to MAKE time to learn and do, just like anything else
    3. In my world, you spend a lot of time talking to people to see if buying their house is a good fit. Since I use "Creative Financing" I have to talk to a lot of people since I don't buy off the MLS.
    4. The house I just bought has an appraisal of $725,000 and I bought it for $526,000. It was worth taking the time to make the phone calls.
    5. Always use Escrow
    6. Always get a Title report
    7. Don't use a Quit Claim Deed unless instructed by Escrow.
    8. Always disclose, disclose, disclose, be honest, be up front
    9. It takes time, this is not a "get rich quick scheme"
    10. Don't let anyone tell you it can't be done, not even yourself.
    11. Act as if your future depends on it
    12. Join a free (or low cost) REIA (NationalREIA.org) The one I joined is $20 a month
    13. Generally: Socialize, meet people, let people know that you are looking for a property to buy
    14. You don't need an LLC to get started
    15. You don't need a website to get started
    16. You need a phone and a finger that dials and you can drive neighborhoods looking for fixers
    17. Team up with someone who is an active investor
    18. Throw out your TV ( we got rid of ours in 1983. I read the news about people and their shows and I have no idea what they are talking about. I've never seen the show Yellowstone or dozens of others. 
    19. Your time is sucked up in doing non-productive things. STOP that! 
    20. Decide if you want to fix & flip, wholesale, STR, Rentals, commercial, storage units, land, or whatever and go for it.
    21. If you are particularly interested in Creative Finance read my post at 

    Using Subject To, to Get "Free" Properties

    https://www.biggerpockets.com/forums/311/topics/1060320-using-subject-to-to-get-free-properties-a-quick-guideline

    There, I've just saved you $9,500 spend that toward your first property. The other $500 use to pay for phone usage and gas and go find a property.

    12Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    I wouldn't pay that.  You can find what you need online or local meet ups that are free (or a small fee-eg $10 to help pay for the space).

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y
    Quote from @Alec DeAngelo:
    Quote from @Nathan Gesner:
    Quote from @Alec DeAngelo:

    All the information you need to get started is available for free on BiggerPockets forums. You could probably read a few books, watch some podcasts, and spend a couple weeks reading/interacting on the forums and gain more knowledge than what they'll share for $10,000.

    Thanks Nathan! I figured as much, just seems like there is a lot of information to digest out there, but probably not worth the heavy upfront payment of $10k with nothing being guaranteed. I appreciate your input.

     There is always a lot of information.  First step is to narrow down what you want to do, then see where you are at financially and make a plan to get to where you need to be and then follow through.

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    @Account Closed pretty much nailed it.....

    1Reply
  • Kimberly Beltran
    Homeowner · Lake Arrowhead, CA · Member since 2022 · 14 posts · 14 votes
    3y

    That's a scam operation. I just bought my first investment property and all I needed was David Greene's BRRRR book. A wealth of information! Every situation is unique, no "mentor group" can hold your hand through every single transaction you're going to need to take. Time to put your big boy pants on and learn through trial and error.

    4Reply
  • Leo R.
    Investor · Member since 2021 · 591 posts · 695 votes
    3y

    @Alec DeAngelo there's already plenty of great feedback in this thread--I would agree with most people that $10k is probably not worth it--esp. given that all of the most fundamental info is widely available for free (or for a few bucks for a book).

    Having said that, I do think that having a mentor of some type can be extremely valuable, and that a truly experienced mentor can provide value above and beyond what forums, books, podcasts, etc. can provide.  The reason being: a mentor who actually knows you and your circumstances can provide feedback that's far more personalized than what you'll get from podcasts, books, etc.

    When I was first starting out, my main "mentor" was my agent--who has a TON of experience buying, selling, rehabbing, maintaining and managing properties. ...back before I had any experience of my own, he was an incredibly valuable resource who helped me navigate some pretty complex problems that podcasts, books, etc. don't address...real estate is a complex business, and every time I think I've seen it all, I encounter a new problem/challenge that just isn't fully addressed in books/podcasts etc.

    I didn't pay my agent directly for his mentorship, but he realized I was a serious customer (especially after I bought my third property with him), and so he was willing to provide a lot of guidance because he knew his time would be paid for the next time I bought another property...today, I'm his best client, and we regularly have multi-hour long discussions about countless issues/challenges/problems we encounter in REI.

    So no, I wouldn't suggest paying $10k for a guru, but I WOULD suggest surrounding yourself by highly experienced, highly competent people, and figuring out a way for you to bring value to those people so that they're incentivized to bring value to you!  ...as the saying goes: "you alone can do it, but you can't do it alone."

    Good luck out there!

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y

    if that cost is only 1k and teaches why you should not invest in real estate, I am interested to that class.

    1Reply
  • Joseph Crunkilton
    Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
    3y

    Alec, 

    Sometimes, but I wouldn't recommend it in your case. All you need to buy a rental property is a bit of information and the ability to pull the trigger. 

    When I started out, I was helped along by @Zach Lemaster and his team at Rent to Retirement. They helped me find a great deal and worked with me through the whole process. I still have that rental and it's been a positive experience. 

    I bring this up because Zach has been a mentor to me and could help you get started. 

    8Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Joseph Crunkilton:

    Alec, 

    Sometimes, but I wouldn't recommend it in your case. All you need to buy a rental property is a bit of information and the ability to pull the trigger. 

    When I started out, I was helped along by @Zach Lemaster and his team at Rent to Retirement. They helped me find a great deal and worked with me through the whole process. I still have that rental and it's been a positive experience. 

    I bring this up because Zach has been a mentor to me and could help you get started. 


     yeah, guy like Zach and any other turnkey guy that has real established business is just going to teach you everything for free. I am flying to Alabama for this and making the first transaction. They teach what to buy and what not to buy, and area mistakes by investors.

    4Reply
  • Joseph Crunkilton
    Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
    3y
    Quote from @Carlos Ptriawan:
    Quote from @Joseph Crunkilton:

    Alec, 

    Sometimes, but I wouldn't recommend it in your case. All you need to buy a rental property is a bit of information and the ability to pull the trigger. 

    When I started out, I was helped along by @Zach Lemaster and his team at Rent to Retirement. They helped me find a great deal and worked with me through the whole process. I still have that rental and it's been a positive experience. 

    I bring this up because Zach has been a mentor to me and could help you get started. 


     yeah, guy like Zach and any other turnkey guy that has real established business is just going to teach you everything for free. I am flying to Alabama for this and making the first transaction. They teach what to buy and what not to buy, and area mistakes by investors.


     I'd be careful, though. Not all providers are the same and there are unfortunately a lot of bad actors. Zach's team is the highest rated on here by a long shot. 

    6Reply
  • Curtis Mears
    Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
    3y

    @Alec DeAngelo

    Why would you pay $10k when all the info you need is available for free. It is on this site, YouTube, books, and other areas. Save your money and spend time researching str (unless you make so much money on your day to day job and have literally zero down time.)

    0Reply
  • Jarrod Covey
    Lender · Austin, TX · Member since 2018 · 241 posts · 136 votes
    3y
    Quote from @Alec DeAngelo:

    Hello Everyone,

    My wife and I have been wanting to purchase STR for years, but are now ready to finally start purchasing properties in 2023. The biggest issue is that I need help purchasing my first deal from start to finish to make sure I am finding the best deal possible.

    I found a real estate investment group through Instagram that allows 1 on 1 calls, group calls, and a facebook forum. The only problem is that this program is $10k which seems pretty steep, however, would it be less expensive than paying to learn from my own mistakes?

    If anyone has any experience with buying into mentorship programs such like this, or if you think there is plenty of information out there to go out and do it myself, please let me know your thoughts as I would appreciate your input!


     I was in your shoes a little over a year ago and I can confidently say yes that is too much money. They have almost no accountability and they expect you to do the vast majority of the work. 

    There are individuals purchasing leases from STR lease brokers and while that is the same situation relateive to accountability, the "finders fee" is much less expensive $1K - $3K

    There is value in a mastermind group to kickstart your learning experience. For me, BiggerPockets forum and their podcast have been most listened to/read to date. 

    I would also recommend checking out Kyle Stanley's kickstart group

    1Reply
  • Eric Gerakos
    Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    Yes.

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    I’m going to add to my input and change my answer.   I’ve always wondered why an expert would help another person, write a book, or give programs.  Personally I do it because I’m bored or taking a break from mowing, landscaping, plowing snow, waiting on construction, waiting during rent up phase or a new one, eating Gnocchi.  We do self storage.       

    Today we can make $1mm capital gain in two years on any construction project we do.   Again self storage.   One year of that is just holding it a year to be taxed at capital gain 20% versus ordinary income at 38%.   So even if I had 100 people willing to pay $10,000 I wouldn’t do it.  Even if I made $10 per book and sold 100,000 of them I wouldn’t do it.   

    So what would I charge to help someone get into the Selfstorage business?   If you ever sold it, I would want 10% of the capital gain.  Around $100,000. 

    Ongoing I would want 5% of gross revenue once you hit 60% occupancy forever.  For the average location that would be around $13,000 per year at 100% occupancy.  

    Why would someone do the above?  They would have an equity value of at least $900,000 in two years.   Operating income around $91,000 per year in about 4 years.  On an investment of $210,000. No dog pee carpets, painting walls or bathrooms plugged up at Xmas time.  

    So why would someone give the above to them for $10,000? Realize $10,000 scenario is for sfh or MFH, but that's the difference versus commercial. If the program is good I say pay the $10,000. I've made probably $250,000 of mistakes in my time. Most importantly though, if this is what gets you to jump off the cliff into REI, then it's cheap.

    Don’t call me.  It’s not worth it.  Having to much fun with our success.  
    Start small and Make Your Big Mistakes Early.

    Got to love Gnocchi.

    1Reply
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