REI Club or Meeting vs Coaching Programs...Which is best?

Question

I'm a newbie who is researching wholesale investing in Atlanta and Athens, Georgia and mobile home investing in the more rural parts of Lexington, Georgia. I've been reading the forum here on Bigger Pockets for the last 2 weeks and there is still very much to learn. Previously, I submitted a post in search of a mentor; hoping to find someone in the immediate area to assist me in learning as I assist them with the grunt work in their business.

I've also looked into REI clubs and meeting groups. The closest to me is 2 hours away and although I know that it would be beneficial, I must say that with limited income and the cost of gas these days it behooves me to cautiously travel so far, only to not meet anyone there who can help me. No, I'm not saying that I won't travel but in my efforts I'd like my time and energy to produce results instead of nothing at all. That's why I'm looking at it as my last resort and I sure do hope I'm right.

All of this leads me to my question(s).

First off, after no responses for mentorship, I started to research coaching programs on the web. I've signed up for many newsletter and email notifications and now I'm getting so many mailings that they're beginning to become SPAM with most of them being GURU solicitations.

Fortunately.....well that's the way I see it.....I received a message from Carlton Sheets. His message stood out to me because his face and name is familiar and he is very well known in the real estate industry. I've even seen one of his many informercials on late night tv ...... In this particular email he was promoting his coaching program. So after reading it over and over again, I decided to call the number listed in the email for a free consultation.

As I was speaking to the representative, he mentioned that it costs $995 to enroll into the program and the cost could be broken down into three payments with $190 down. He also said that this program will guarantee me at least one deal but, he didn't say how long it would take or if I didn't successfully complete a deal that my money would be refunded back to me.

Now I don't want to sound negative or anything as I always try to take a positive approach to anything I do....but 'm wondering if this is a legitimate program and if it indeed guarantees a closing where I can make money while in the program because I am in this for Financial Freedom.....but I can't risk a chance of paying out $995 with no return.

So I ask the forum, has anyone of you tried such a program and did it work? What about the cost? Is it a reasonable price to get a deal done? How effective is it? And in further question; would it be best for me to drive 2 hours to a REI meeting rather than pay $995 of my currently limited income for a coaching program?

Lastly, Geez I wish I can find a mentor .....

Thank you for your comments.

Sean Terry · Answer

Hey Tershant, This is what I would suggest. Find the 2-3 of the biggest wholesalers in your market. Call them up and ask if you found a deal would they help you out for a 50% profit split of the transaction. Big wholesalers are always looking for motivated "bird-dogs" to find great deals. When talking to several of these big wholesalers, try to find one that you connect with and is willing to help. (Let me define "help": They are willing to take your call and answer several question.) It will take some digging, don't call two people and give up, there will be a large wholesale in your market that will be willing to spend some time with you IF you able to produce results. Now, let's talk about producing results. You've got to get the phone to ring first with motivated sellers. This is the easiest way to break into the market with the least amount of capital and no risk. Stay away from REO's & short sales. Here are the 3 best ways to find motivated sellers: 1. Bandit Signs going to an eVoice.com number or Google Voice. Hand written saying "We Buy House Fast 4 Cash" then your phone #. 2. Yellow Letter Marketing, just Google "yellow letter" and find out more. The best list to mail: 1. Inheritance List 2. Absentee Investor 3. Free & Clear Your phone will melt with curious motivated sellers. 3. Internet Marketing: Pay Per Click ads to a squeeze page. (A little more advanced) Expect 1 deal out of 25 calls. Now, tie up a property and bring it to your new wholesaler friend. Even if it's an OK deal you'll show them that your serious and are willing to put forth some effort. If you have questions along the way give them a call. If you want a cheap source to lean some great information you can check out Larry Goin's book at Amazon or Barnes & Noble called "Real Estate Day Trading" this is a very well written book. The idea is to build a relationship with one of these wholesalers and the best way is by producing results. They're busy making money and that's what you want to be doing as well, so dive in and offer up a way you both can generate revenue together. Hope this helps, Cheers :) Sean

Bill Gulley · Answer

Geez, you don't need to do that! Gurus can gurantee whatever, when their time is up, they are gone unless you pony up more money. If you don't get a deal done, it's not their fault you did not follow instructions or find the deal. Anyone will likely help you on specific questions or if you get in a deal and need some guidance You don't need to spend a grand to get what you can have for free. Just stick with it.....alot can be done on the phone. If you email 20 questions, it will take that person some time to weed through all the information, long involved emails don't work. Call people and ask questions. Any mentors out there answer their phones? LOL, Bill

Don Hines · Answer

I have never studied any of Carlton Sheet's stuff so I can't advise. But, I have invested in seminars and learned just enough to get myself into big trouble. So, my advise is to study the BP threads for education. We are having difficulties getting a REI club off the ground in Little Rock. About twice a year, a lot of new people will show up after the seminars come through town. Then my in box gets flooded with "Great Deals" in the Hood from all of the new wholesalers in town. But, I have started networking with other investors in the area, I have a list of contrators, and have a great realestate agent just by being involved. So, I say read all you can. And join any REI club you can. I am not so convinced the Guru route is the one to take. Don

Bill Gulley · Answer

Hold on to your socks folks.....I agree with every word Bryan just said! Well done Bryan! Not only can a mentor shave years off the learning curve, they can also shave your wallet, so make sure what is customary in your area and network with others to see what they get. That's part of the due diligence, IMO.

Bryan Hancock · Answer

A coaching and mentoring program can be a very good investment if you find the RIGHT program. The trouble is that the industry is littered with charlatans, quacks, and downright thieves that simply want to part you from your money. I have not seen Carleton Sheet's program, but I can almost guarantee you it is a waste of money. Find a LOCAL mentor or coach and have them educate you on what works in that market. Mentoring programs take a ton of time for the mentor and the good programs will be selective about who they take on. I would look for a program that charges to advertise on your behalf and makes the bulk of their compensation when deals close and you both make money. This places the carrot in the right place. Given your limited resources I would strongly encourage you to invest in the real estate club option first. Spend a lot of time on BP reading current posts and researching old topics. There really is a ton of great information on here if you take the time to study it. Nothing will replace field experience though and a scrupulous mentor can shave years off of your learning curve. Make sure you do loads of due diligence on any program though before you part with your money.

Lou Castillo · Answer

Tershant, Let me begin with a disclosure that I have a real estate training company and that I do have a mentorship program so of course I am somewhat biased. Having said that, I also want you to know that I have been investing since the early 1990s and I felt some of the same frusrations getting started that you are feeling right now. REI clubs are fantastic for networking, for getting specific questions answered, and for building great relationships. I also highly recommend having a mentor. A mentor (who has your interests at heart) can significantly increase your rate of success. Before you select a mentor make sure that you kno what niche of real estate investing you want to start with, then find the mentor that specializes in that area. Purchase some of that person's less expensive products first and make sure that you like their training style and that they actually deliver information. Then ask to meet the person who will mentor you -personally. Many of the mentorship programs out there are sold by a sales team, and then you are assigned a mentor. You want to make sure they have the right experience and that you get along with them. I never accept a student into my mentoring who I have not personally spoken to first so that I can make sure that I understand their goals and objectives and that I can help the reach those objectives. Bottom line answer, mentorship will make a huge difference in your success - just find the right one!

Curt Davis · Answer

Tershant, you are at a crossroads. One one hand I feel the guru material can work but I am not a huge fan of those programs. I think you would be better off buying a course or something to study. If you are wanting to wholesale then buy a course specific in doing wholesaling. You have to understand that people dont want to mentor anyone for a few reasons, no one wants to train their competitions, its also a lot of responsibility to mentor someone, plus their years of experience can not just be given to a new person either. I see it a few ways, its going to cost you money regardless but the REI club is a good option. Normal yearly cost of $150 and you can mingle with others and get real life experience for free in most cases. People are willing to help out but not mentor. Good luck