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Updated over 8 years ago on . Most recent reply
Best choice for a mentor?
Most Popular Reply
Originally posted by @Amanda Groover:
Thank you Jon. :) I'm not looking for a shortcut. I know it takes hard work which we are willing to do. Being an educator I just know that most people need guidance when learning something new. That's what I'm hoping to find, I was just wondering who the best professional for the job might be. It's all still new. I've been reading a lot and listen to the podcast almost daily. We drive neighborhoods several times a week and look for listings in our town. We just feel a bit overwhelmed and a mentor may be able to help us focus. Thanks you for the advice.
I don't know what you are talking about. "You" are the best "professional for the job if you really intend to become an investor. Experienced investors are busy...at least the good ones. They likely will not mentor you, at least not for free. Their time is worth money and the good ones don't give it away unless they generally get something back (ex. potential investors, deals, etc.).
I get 1-3 new investors a day asking to meet with me...if I gave away my time like that, I would not be investing, I'd be selling books tapes and other BS. I make money by using my time to invest it. And, because I was there, I sometimes, but rarely answer questions on BP so that the community can leverage my response.
Definite Plans + Faith + Emotion + Action = Achievement
Be your own leader. Keep going forward without fear and you'll get where you want to go.
I wish you the best.
Hey Amanda,
Having a mentor who has been in the real estate game will defiantly help a lot. Most realtors will be very bullish on ARV. There job is to sell you the house and do anything possible to get it done. We have had many instances where realtors have been way off on ARV, or they will only show you the top comps and not the bad comps. Need to always verify all details before moving forward. I would highly recommend trying to find some sort of a mentor to guide you through the first few deals!!
Hello! I too have struggled with this aspect. It is absolutely fair to pay folks who assist you, but like you said, they have their own agendas. I've been reaching out to professionals in my area, like real estate and business lawyers, CPAs, and various real estate agents. It is tough because people have their specific knowledge and only really cater to specific services.
I just joined some meet ups in my area and look forward to attending those soon. But, I feel like finding a real estate broker or agent who deals specifically with the product you're looking for, in the area you are looking, and offering to pay a "finders fee" of some sort could help establish a buyers agent. Haven't quite gotten to that point since I'm still deciding what I'm looking for precisely.
I hope that you do post more about your journey and experience as you discover someone to mentor you. I am interested to see what works out!
To success!
Eamon
So true! I sent out an email just to feel things out. I asked them to email me back if they were interested in answering some questions. I sort of wanted to see who actually read my inquiry and emailed rather than instantly called. I got about 5 instant responses and two were calls. I hate to base my choice on that but I also feel like I want to choose someone who listens to me rather than is just a shark hungry for the next commission. On the other hand, that could be a good characteristic when it comes to finding deals. I'll be sure to share my experiences!
That is an interesting method of screening people. It does make sense though. Usually when it is your job, you're more responsive than when it is something that you would be doing on the side, as a favor. Interesting... Which type of professionals did you reach out to? Real Estate Agents or Brokers? CPAs? Lawyers?
Eamon Conheady just real estate agents so far. I probably won't get hung up on it but it was interesting to see who did listen/read since I was so specific (and polite) about emailing only. I'm a teacher so I probably rely on relationships too much.
There is no shortcut. No one will do your work for you. Read REI books. Learn how to evaluate, conduct investment analysis, and analyze deals. Join a local REI group. Based on your research, pick a market. Call a local broker in market you're interested in and go from there.
Thank you Jon. :) I'm not looking for a shortcut. I know it takes hard work which we are willing to do. Being an educator I just know that most people need guidance when learning something new. That's what I'm hoping to find, I was just wondering who the best professional for the job might be. It's all still new. I've been reading a lot and listen to the podcast almost daily. We drive neighborhoods several times a week and look for listings in our town. We just feel a bit overwhelmed and a mentor may be able to help us focus. Thanks you for the advice.
Originally posted by @Amanda Groover:
Thank you Jon. :) I'm not looking for a shortcut. I know it takes hard work which we are willing to do. Being an educator I just know that most people need guidance when learning something new. That's what I'm hoping to find, I was just wondering who the best professional for the job might be. It's all still new. I've been reading a lot and listen to the podcast almost daily. We drive neighborhoods several times a week and look for listings in our town. We just feel a bit overwhelmed and a mentor may be able to help us focus. Thanks you for the advice.
I don't know what you are talking about. "You" are the best "professional for the job if you really intend to become an investor. Experienced investors are busy...at least the good ones. They likely will not mentor you, at least not for free. Their time is worth money and the good ones don't give it away unless they generally get something back (ex. potential investors, deals, etc.).
I get 1-3 new investors a day asking to meet with me...if I gave away my time like that, I would not be investing, I'd be selling books tapes and other BS. I make money by using my time to invest it. And, because I was there, I sometimes, but rarely answer questions on BP so that the community can leverage my response.
Definite Plans + Faith + Emotion + Action = Achievement
Be your own leader. Keep going forward without fear and you'll get where you want to go.
I wish you the best.
Hey Amanda I would start going to real estate meetings in your area and just start talking to people there. People love to talk about what there doing and some are eager to help others. I have actually had coffee with several people just to try and help them. Also some of them have helped me grow my business by partnering up on deals. Try a and think how you can help another investor and they will help you.
I can tell by your questions that you still have reading to do before you take the next step. Please re-read my initial response... ask for a reading list if you need one and locate a local REI group.
Rich thank you, that's what I was thinking! I love the idea of community members helping each other.
To find focus, develop a definite investment goal. Your focus, your investment strategy and all actions should flow from that.
And don't believe everything you hear. Just because other investors have done something, doesn't mean they share your goal, lifestyle choice, and therefore strategy. Investing is a personal sport. Others can help, but you're in charge and at the end of the day must make decisions for yourself.
@Amanda Groover, I strongly agree with @Jon Q. about giving as well as getting value. I don't know if @Steve Vaughan is near your area, but maybe he can give advice on your local area or even his criteria for buying. Having a mentor is great but nothing beats hands on learning.
Thank you everyone. I think I'm getting misinterpreted a little, I want hands on learning for sure I just lack the experience. Like you said Jon it's that fear that holds me back, like anything in life. My husband compliments me in this way because he is more about just going for it than I am right now. I'm still trying to learn so much. I do appreciate all the advice! Jon I will always be reading more books and I don't think that will stop after I take the next step. I hope it never stops because even the most seasoned investors can always learn more, I'm sure. I absolutely agree not to listen to everything people say, the way I'm planning my strategies and the vision I have is certain to be vastly different from the next person's. I have heard this repeatedly on the podcast. I was in touch with a guest on one episode of BP and he gave me some very encouraging words which really helped me. I'm so thankful for this site and resource.
My husband is actually very interested in sending some direct mail to try and find deals that are off the market but have potential for becoming obtained. I think this would be something I can get into because I do have a fairly extensive background in writing. So we shall see!
@Amanda Groover - based on my (somewhat limited) experience, REI is as much about relationships as it is about anything else. Build relationships organically and a mentor will probably reveal him or herself in time. @Jon Q. seems interested in selling mentoring services based on his profile (not saying that's good or bad) so his belief may be that you should pay for it and not expect anyone to offer it for free. Personally, I disagree with that. I'm not saying you should never offer a mentor something in return, but I have found that many people are generous with their time because they know that it will generally be reciprocated and often in quantities more than expected.
Again, these relationships are built organically over time. Offer to take people out to lunch or buy them a cup of coffee or a beer. The worst they can say is no. And always ask (even if they say no) if they know of anyone else you should talk to...other investors, agents, lenders etc. Eventually, you will really connect with someone and hopefully build a long-lasting relationship with them that will prove mutually beneficial for years to come. Many of these principles transcend real estate and apply to many aspects of life, whether you're networking to find a new job, raising funds for a community project or school or trying to start a business. It's all about relationships. Though no one wants to feel taken advantage of, many people get great satisfaction by helping others.
Dan Marzec your post really connects with what I was (clumsily) trying to accomplish. Thank you! As a teacher my own philosophy revolves around relationships. The analogy for me is that by building strong, trusting relationships with my students and families, I get so much more potential out of them, which mostly benefits them but allows me to feel pride and gratitude in my work. We've just started connecting with a few sources of inspiration and knowledge and I don't intend on just taking things for free but my hope, like you said, is to build that foundation of networking. It's the same for my husband, a general contractor; he builds rapport with subs and they help each other build clients and their businesses. I could not agree more with you and I truly appreciate the positive spin you put on this subject. :)
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If I were starting out again and all of these new platforms were available to learn from (podcasts, free audiobooks from libraries, BP, etc) that weren't in 2000ish when I started, I would listen to both until a niche struck me. RE investing is very broad as you know. Narrowing it down to one avenue and mastering it before moving on should help.
With a husband in construction, it sounds like flipping may be an option. That's just a job as an operator, but a good way to build capital from what I've read. A DM campaign to find a 70%-repairs pricepoint may be in order. Not my sandbox. It looks tough in today's market.
Also mentioned was creative strategies. Learn about Sub2 and lease options. With your direct mail, you may come across a low equity, pretty house. What's a 'flipper' to do with that? Have some creative strategies in your toolbox. Some fast action solutions for sudden sellers that don't fit the 70% mold.
Thank you for the mention @Jerry W. I am humbled you thought of me. Unfortunately I am far from Medford and farther from being a mentor, but appreciate you and wish @Amanda Groover the best!
Amanda Groover I have confidence in what I read so far that you will do well in this business. Your husband is a contractor and that's 50% of the key in this business which is rehab to flip,rent, buy and hold and etc.
Your a teacher and I'm sure your good with numbers, that's the other 25% being good with numbers so you could analyze your budget, cash flow, deals, profit and etc.
You have all the tools and the advantage than what most investor had when they first started.all mentors will charge a fee or programs of $5k-$30k, you don't need a mentor because you already read the REI books and now all it takes is making that first deal happen.
Hands on training does help and if that's something you must have then you have to partner up with another investor on a few deals and split 50/50 on everything.
Don't worry you will be fine, I'm in the NYC market and its tough here but I never failed because I have an edge of being a contractor.
@Amanda Groover My trainer and Mentor helped immensely. Google Robyn Thompson
@Ben Leybovich is my choice. His program, material, and communication is second to none, in my opinion.
He's saved me thousands already. Best damn investment I've ever made.
Look for a third party CPA, financial planner. Most have a realtor license, and can advise you what not to do. Expect it will cost you perhaps by the hour.
Dan,
Actually, no I'm not interested, but if I'm going to provide meaningful assistance it's going to be long-term and yes, I charge for my time. No one with experience and valuable time is going to give it away for free for very long. Expecting anything else is rediculus.
All relationships are build on reciprocity, so I suggest ensuring anyone you work with while investing gets paid fairly. Otherwise, your reputation will suffer and you won't be in business very long.
I'm fine to agree to disagree.
Originally posted by @Brian Lacey:
@Ben Leybovich is my choice. His program, material, and communication is second to none, in my opinion.
He's saved me thousands already. Best damn investment I've ever made.
You just made me blush. I bet @Joshua Dorkin didn't think that was even possible :)
@Amanda Groover It seems like you have been getting some great feedback. Since I too am in a similar place with my investments, I've been reading lots of books. One of the best I've read is The Real Estate Finance & Investment Manual. I think the last version was published in 2008, and although mine is even more out of date, it has helped me develop a foundation for where I should research more deeply, at least with the financing aspect. I'm not to the point that I'm ready to make a deal, so now I'm reading up on writing a proper business plan. From the few conversations I've had with various advisors, I have found that I absolutely must have a yellow brick road to lay on them, otherwise I'm just being told "Great, come back and talk to me when you know what you want." Which just makes me feel kind of silly for trying to make contacts... Best of luck!