Very New – Mentorship? Mastermind? Out of state investing?

Question

Stating the obvious, I am very new to the real estate world other than owning my own home. A 2024 goal for my family and I is to “do” real estate, 19 days into the new year and MANY bigger pockets podcasts listened to I finally decided to join the website. Consuming all of this content has been very enjoyable, MUCH more positive and inclusive than I would have guessed, the “you can do it” mindset is refreshing. To the point where I ask myself why is everyone NOT doing this? It is too good to be true? Things that seem that way frequently are. Anyhoo…

A few questions that I have not yet really found the answers to that I would like to get some insight on with a post. (I am sure the answers are on this forum but holy moly is it massive.) All of these are connected to a point, but they are also unique questions.

Mentorship: I find that reading books, listening to podcasts and reading forums is helpful, but I feel that finding a mentor is my best form of education – hands on. Being new to this site I assume that I will eventually bump into someone that I can learn from. I have found the Meetup section and will make it a point to show up to a local event. It seems like the Denver area has an agent that has them on the regular. Any other advice on finding mentors?

Masterminds: Seem like a mentor for hire while others are free? How is a mastermind in Alaska useful for helping me the Denver market? Paying to be a part of a group where education is shared / given is not an outlandish notion but at unless it is local, I question how it can be relevant. Are they worth it?

Investing out of state: Currently the BRRR is the most attractive method to me, perhaps starting out with a good ol’ fix and flip to test the waters, however the Denver market seems very expensive to do this and the cost of skilled labor (at least for things on my own house) is SKY HIGH. The podcast talks about people buying property not local to themselves like it is a piece of cake. How the heck are you able to rehab a property in TN, while living in CO? Hiring a trustworthy PM seems like it would take away most/all of the profit.

Just 3 of the many burning questions that I have. Thanks so much for any thoughts on these!

Nicholas L. · Answer

@Chad New

the reason everyone isn't doing it is because it's expensive and it's difficult.  the podcasts are all the success stories.  there's no "BP failure" show where they interview people who gave up. =)

mentorship - i believe that you don't really go "find" a mentor, you just build a network, and if you're lucky, you'll get mentored.  so yes, go to lots of events.  network.  ask questions.  RE investors love to talk shop and share what they're doing.

i think masterminds ARE worth it but only once you're at a point where you can benefit from them.  so, not really a beginner thing, in my opinion.

investing out of state: again, it's not a piece of cake.  at all.  you're just hearing the success stories.  although they do occasionally find the tougher ones.  find Spencer Cornelia's podcast.  he did a flip in Cincinnati from Las Vegas.  it was a disaster.

investing out of state was also a lot more forgiving a few years ago when interest rates were lower and prices were going up. if you bought a so-so deal, you just waited 2 years and the market helped you. that's not the case anymore. so, a lot of investors in Colorado, California, New York, etc. find a property in the midwest that looks great... and then it just turns into a money pit, and deferred capex consumes years and years of cash flow. so: you're correct. it's not easy at all. and as far as I can tell, the position of "inexpensive out of state BRRRR supervisor" does not exist. i do local BRRRRs and they're very, very challenging. i just did one that didn't quite work out, so i sold it. it was a great project and i learned a lot, i just couldn't turn it into a BRRRR because it wasn't going to appraise OR cash flow.

here's a great thread about a CA investor who invested out of state and, i would argue, did everything right. and guess what? there were a lot of headaches, and the cash flow was not life changing.

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

hope this gives you some things to think about.  ask any follow ups you want.

Nicholas L. · Answer

@Chad New

here's something you can do.  form your own mastermind.  find 9 other aspiring Denver real estate investors, and see if you can all purchase a househack within the next 12-24 months.

there was another guy in Denver in your same situation, find him and start there.  good luck.

Dan Guenther · Answer

Hey @Chad New - Welcome to the BP community! "Your Network is your Networth" - every successful real estate investor ever

Denver and Colorado in general has a massive and very welcoming community of investors. There are literally 15-20 monthly Meetups in and around Denver. When I first started this was where all of my now business partnership connections were made.

If you take some time to search through old posts in the forums you'll quickly learn the pros/cons of investing in your own back yard vs out of state investing, especially for your first deal.

My biggest piece of advice when getting started is to take advantage of the FREE resources out there and try to avoid getting sucked into paying for expensive coaching/mentorship programs that provide basic information that you can get for free online or through another experienced investor that's willing to spare a minute of their time. Try to think about how you can provide value as you learn the real estate game and people will be willing to help you out.

Jake Baker · Answer

@Chad New

Hi Chad, congrats on joining the BP platform and getting started on your REI journey.

1. You are correct that hands on learning is the best form of mentorship. The best way to find mentorship is to attend meetups, network with investors, and most importantly, get your feet wet with some deals.

2. I am a part of a few masterminds and find the networking aspects invaluable. However, you may not see the return from it right away.

3. I live in San Diego and flip/brrrr 15-20 properties per year in Jacksonville FL. "Who not How" is the answer. Network with investor-friendly real estate agents is a great start to building your core team. They will be able to lead you to contractors and property management. After you do a couple of deals, you will find people that you trust.

Happy Investing!

Stephen DeThample · Answer

Investing out of State is not easy until you have people you trust helping you.  You also need systems in place to get things done.  If it is a flip, You should do a hands-on local flip yourself first to understand how they work.  If it is a long term hold rental, it makes things much easier.  You need a great Realtor <------------ (me) who can help you get information and ideas for your specific goals.

Good Luck 🍀

Wale Lawal · Answer

@Chad New

Welcome to the thrilling world of real estate investment! That you're eager to start your adventure and that you're actively seeking information is wonderful to hear. Let us handle all of your inquiries:1. Mentorship: One great tactic is to show up at neighbourhood real estate events.Take into consideration engaging with investors around the country by joining online groups such as the forums on BiggerPockets. Look into Denver's neighbourhood investor or real estate associations.2. Masterminds: Although they could be more immediately relevant locally, national or internet masterminds can nonetheless be useful. If a paid mastermind provides specific instruction, connections to successful investors, and a community of support, then there are some that are well worth the cost.

3. Investing Out of State:Building a trustworthy team locally is essential for out-of-state investing to be successful. Investigate the target market thoroughly. When choosing a property management business, give your research first priority.Recall that there is no one-size-fits-all strategy for investing; every investor's path is different. As you negotiate the complexities of real estate investment, never stop learning, be flexible, and exercise patience. Wishing you success, and please don't hesitate to get in touch if you have any additional questions!

Crystal Smith · Answer

Welcome to the Forum.

Mentorship:- What I'm about to advise is difficult, but not impossible to do if you're looking for a mentor outside of your market.  Once you know what market you want to do business in find someone that has closed on a lot of deals in the past 5 years.  It's not an easy thing to do as many investors either close inside of an LLC or Landtrusts and their names may not be on public records.  But via meetups, working with realtors and other investors, over time you'll find someone or maybe a few someones.

Mastermind- I'm not sure a mastermind in Alaska will help you in Denver unless there are members of the Mastermind who have been investing out-of-state.

Investing out of State- In our experience the key to investing out of state is to almost become a local. What does that mean?  Developing a business and friend network in the location where you're considering investing.  This also may mean investing with someone in the local market.  Developing the network may take some time but once in place, while you are out of town, your network is not.

Tim Emery · Answer

@Chad New Hey Chad, Great questions. I have a few answers for you.

My events The John Fisher Breakfast Club, The Invest Success Happy Hour and RIG Realty Investors Group are all open to the public. Breakfast Club is the second Sat of the month at 7 am. Usually 50+ investors in the room. Happy Hour is the 1st Wed. of the month at Burndown. RIG is the second Tuesday of the month at Frolich Brewery. All of these events are listed on the BP events page.

We are also a coaching mentorship program local to Denver. Reach out if you want to learn more.

Anytime you go to an event, do your due diligence on who you may want to work with. This goes for out of state investing as well.

I hope to see you soon

Eric DeNardo · Answer

@Chad New

The best advice given to me about mentorship is find people you want to learn from and figure out how to give them value.

You can always pay for mentorship, but I have found that mentors that you are willing to put your time and energy into are everlasting.

For investing, you're right about how the high prices in Denver make it challenging to do flips, but people continue to do them! Denver is still a great place for house hacking!

Very New – Mentorship? Mastermind? Out of state investing?

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