Should I Pay a Mentor?

Question

Hey Everyone!

I am in the early stages of starting a company that focuses on acquiring large multifamily assets through JV partnerships and syndications. I am considering paying a mentor or purchasing a training program to help me get this started, but I have some questions for the BP community before I make a big investment.

1. If you have paid a mentor or purchased a training program about syndication in the past, was it worth it? (And what program was it?)

2. What questions should I ask a potential mentor and what research should I do before applying for their program?

I have already spoken with someone who I think I would like to work with, but I want to make sure I am not jumping the gun. If you have had success in syndication after working with a mentor, or if you are a mentor yourself, let's get in touch!

V.G Jason · Answer

The only one's that'll tell you to use a coach, mastermind program, or anything in between are the one's promoting it. The internet is not always correct, but it is a resource. Read up on the facts, separate the noise, and move how it fits for you. You don't need to read endless "books", watch podcasts all day, and this mundane trash that people think makes them more qualified. You need to know your direction then get all the color you can on it; then do something. Don't just sit there like a lame duck.

Tim Ryan · Answer

For multifamily and syndications check out RE Mentor - David Lindahl.  I did his program and syndicated several properties and have own over 400 units.  Great program and great people.  I would have never known what to do as well as had the motivation to get out there and do it without that coaching program.

Richard Loniewski · Answer

Make sure you check them out thoroughly and have him send you specific details of what the program will offer, I had a mentor 6 years ago, spent 6k but he helped me get my first deal in 4 months and made that back 10 fold. Mentors are great just have to find the right one!

Evan Polaski · Answer

@Thomas Lebens, I have not paid for a mentor, but I did pay for a business degree with a focus on real estate (if that counts).

That being said, I have talked with many that have paid for mentorships, and thought about this as a business model, overall.

So, IF I was going to pay for a mentorship, first, I would want to make sure this is someone that is actively DOING deals TODAY.  There seem to be a lot of gurus out there that are making more money in their mentorship program than they are living in real estate investing. And if they are really so successful in real estate, why are they spending their valuable resource of time selling a mentorship program?

I would ask what resources they provide AFTER you are done with the course.  Will they meet brokers with you?  Will they help review LOIs?  Will they be an LP in your deal? Will they introduce you to real LPs?  Will the walk properties with you?  Effectively all the nuanced parts of actually putting a deal together.

When was they material they are presenting/providing you last updated?  What worked 12-18 months ago doesn't really exist anymore.  This is a dynamic field, so for materials to be relevant they need continually updated.

Lastly, I would ask WHO is actually teaching what?  Are you getting access and feedback from the person whose name is on the course or are they the marketer and then outsource the work to others?  If it is others, are those others actually doing deals in today's market?  I don't mean to discount having other experts help you, as long as these are people that are living in the industry.  If it is just other former students who are not working in what they are providing feedback on, I would not trust it.

Abel Curiel · Answer

Hello Thomas!Congrats on taking the early steps in your journey!1. I don't know many people who have regretted a coach or mentor. Good Coaches and mentors:- speed up the learning process considerably- share contacts and relationships (these take YEARS to acquire and nurture)- help you avoid common pitfalls- hold you accountable to provide the support you need to hit your goals* my coaches have been moreso in the general business space, RE sales,etc. I have not hired a RE investing mentor/coachAs far as courses, I purchased 1 RE investing course (Mark Ferguson from Invest Four More) in 2016. This was an entry-level course priced <$500 at the time.The course was certainly worth it. In my experience purchasing, creating and selling courses (most experience is in purchasing), I've noticed that courses are well worth the ticket price. Course creators aim to deliver about 10X the value on their courses - i.e. give $1,000 of value for $100. That said, most folks do not actually finish entire courses or implement all of what they learn. So if you find a quality course and take a few golden nuggets from it, you'll probably feel it was worth it.2. Research begins right here on BP! In addition to your post here, I would use the search icon at the top right of your screen to find past posts about the same topic. Check out the mentor's sites, find the testimonials, and reach out the past clients on there. Ask them to describe their experience, what they learned, what they implemented, what they liked/disliked; if they had to start over, would they hire that mentor again?... etc...Lastly, I'd recommend speaking with multiple mentors to compare/contract in order to make the decision you feel most comfortable.All the best!

Abel

Bud Gaffney · Answer

@Thomas Lebens no. These forums are free mentors. Hola !

Andrea Lane · Answer

I believe a good coach or mentor can be key to moving you from where you are to the next level.  I have been in the business for decades and I am always part of a coaching or mastermind program to bring me to the next level.

That being said, I do not believe you should spend a fortune when you are starting out.  If you have never done a real estate deal before spending 10's of thousands of dollars is NOT a good idea.

I would look for a coach and mentor who is actively participating in syndications and has been for a while.  What did the syndication promise/what did it deliver/what is the worst deal you have had then get into the important stuff how do you evaluate a deal/managers/the real estate?  They should be able to have these answers at their fingertips.  You want to know what the program really is, is it only webinars or meetings with a group?  How much one-on-one time will you get (this is important)?

I have been mentoring investors and those are the questions I answer before they ask.  I do not do syndications but if you want to reach out for any questions, please feel free.

Thomas Lebens · Answer

Thank you! This is great feedback. I will add these questions to my notes!

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