How to find a mentor without paying $$$$???

Question

It seem that every time I reach out to someone for help, they always have their hand out looking for something in return. I know we are all out here to make money but come on there has to be someone out there that just wants to help a newbie out.

Leo Kingston · Answer

Having mentored several (I've lost count) investors over the years, the first thing I'd suggest is for you to go find someone who will let you be a "bird-dog". That means you go find deals and bring them to the other person, someone who is an established investor with the skills, the cash and the banking relationships to close on the deals. As the two of you develop a trust relationship, and a written agreement, you can make money as an investor while you learn. Hope that helps you out.

Jon Holdman · Answer

There are lots of ideas discussed in the wholesaling forum for how to find deals.  Bandit signs, door knocking based on various lists, and direct mail are some of the most common ones.  All involve some cost for both getting the list of prospects and then for hitting those prospects.  Direct mail can get quite pricey.  You're looking at on the order of a dollar per letter for postage, the letter and envelope and the labor to get it into the mail.  And you'll typically send half a dozen letters to a prospect.  So, if you target a list of 1000 potential sellers, that's $6000 in letters.  You might get a 5% response rate.  That's 50 calls.  Most of those will be worthless.  In the end you'll be doing good to get one deal out of those 50.  So, that's $6000 in marketing for one deal.

The "cost per deal" question has been discussed a bit, and, of course, the numbers are highly, highly variable.  If you have lots of time and not much money you can usually grub through public records for free and just by looking at property records one after another you can find some prospects.  You can try giving them a call or knocking on their door for little cost.  Lots of time, minimal cost.  OTOH if you have money and not so much time you can buy a list that's already extracted and sorted based on your specific criteria, write some letters, and hand it all over to a direct mail company to send out the letters.  Little time, much more cost.

Jon Holdman · Answer

If you mean fix and flipping, then 100% funding is essentially non-existent.  Sorry to say this, but if you're a new, inexperienced investor it is non-existent.  You have got to bring some of your own cash to the table.  Lenders have more possible deals than they can possibly do, so they can afford to be choosy.

If you mean wholesaling, then you don't need nearly as much cash.  Just for marketing and earnest money deposits.

If you're wanting someone to walk you through the fix and flip process, find a rehabber in your area.  A REIA is a good place to meet some.  Offer your time in exchange for participating in the process.  Be prepared to jump when the rehabber says "we have to go do such and such."  Offer to do some of the work.  In other words, give the rehabber something in return.

Richard Rodriguez · Answer

I feel your pain. It's a catch 22.

First, a mentor doesn't want to just donate time. There are TONS of people who want to learn. All the risk is on him/her because SO many people never take action to begin with. So it ends up being a total waste of time.

There has to be "skin in the game" on your behalf. This way all parties both know, you will be more dedicated to making it work than not.

Jeff S. · Answer

Jeff

You might also read this related thread.

Jeffery Bigsby · Answer

Yeah I agree, finding a mentor is tough without them wanting you to pay them first.  I got lucky and sent over a bad a deal to a buyer and he asked me to come into his office and basically taught me what a good deal looks like, he told me that way neither of our times will be waisted...

Mike Nelson · Answer

I'm really surprised at the responses that I've got from you guys. This really helps me a lot and gives me a direction to go in.

@Jon - if I was to go into wholesaling, what type of marketing are you referring to? I'm aware of what an earnest money deposit is.

Manny Cirino · Answer

John is right! I was a carpenter before I was a wholesaler and the way I found my mentor was by searching craigslist for investors. I took all the emails I could find on there and I sent a big email blast stating that I was new to the business and I was looking for someone to teach me the ropes and in exchange I would do so free labor. Now let me tell you out of 30 emails 3 replied one guy was a newbie trying to get free labor, one was one of the major gurus you may now looking for a spanish speak person to join the team now at the time I had no idea who he was so I blew him off. And the last was a short sale investor who taught me everything and ask for my free labor. So the question is what do you have to offer someone who can give give you a lot of knowledge? If you don't know construction so what offer to put out bandit signs, clean up for them during a rehab trust me no one like to clean up after doing demo to a house.

Stinson Bland · Answer

What kind of help are you trying to get?  Most REI info can be found for free here on BP.

Most people expect some kind of exchange for their time, knowledge, and money. There is nothing free in this world. Even your parents and friends expect love and loyalty in exchange for their time.  If you are not bringing some kind of value to your prospective helper, you essentially have your hand out asking for free money. Time and knowledge is money... Think about it.

So i ask you this: What are you willing to provide in exchange for help?  Once you can answer that question, you may be able to take a different approach when asking for help.

For example;  Approach local REI's with this proposal.  I don't have capital or real life experience but I really want to get into wholesaling.  I've studied and will continue to expand my knowledge base of the industry.  I'm hard working and loyal. Id like to have the opportunity to work under you to learn the ropes  and possibly partner with you on some future deals of mine.  I am willing to knock on doors, hang bandit signs, and do any type of court house work that's needed  in exchange for this.  If I'm willing to help you grow your business. Are you will to help me with...?

Bart J. · Answer

Mike,
Sorry there are no 100% loans out there on flipping. If you do find someone doing 100% please let Jon and I know.

How to find a mentor without paying $$$$???

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