$20-50k for a mentor?

[Brandi Graham]

My brother and and have been studying the business for a month in a half. We are currently attending a 3 day training with great content!!! They are soliciting their others services which consist of a personal mentor with phone number, email and access to their time for a price of $20-50k. Can anyone share thoughts or concerns?

[Brandi Graham]

@Anthony Rosa thank you! Today is day three... I’ll be looking for the final push. 😁

[Brandi Graham]

@Chuck Hupert thank you!!

[Alishea B.]

Morning,

 I'm all about "putting money in you not on you" but that's a lot of money. I was a part of Sherman Ragland DCREIA a few years back. That was about 200.00 a month and it gave me the mentor and access. I gave myself a year to learn all I could. I also did his apprentice class. That was maybe 2 or 3 thousand. Since then I made my money back several times over but I left DCREIA after a year. 

My point in saying all this is do your research and there are other mentors and so much information right here that's a couple dollars a month. I did that in 2012 and didn't know what bigger pockets was. 

Use that 20 grand to buy a property. There's a podcast that Brandon Turner did that talks about what would I do if I only had 10 grand to invest. Try to find it and listen to it. 

Also check out Lisa Phillips. She's a bad chick making money moves and has a mentorship program. 

Hope this helps. Good luck.

[Stanley Jean]

@Anthony Rosa can you recommend a rei meet up in the NY, NJ area.

[Brandi Graham]

@Alishea B. I’ll check out both references.

[Brandi Graham]

@Joel Owens thanks for the insight!!!!

[Scott Tarantino]

I would agree with most of these posts. I got into buy-and-hold REI about 18 months ago (at age 50) and currently own 4 properties and about to offer on a 5th....all with the BRRRR strategy. Here is my advice to you...

1.  Do as much reading as you can (books, BP, etc) and watch FREE webinars/podcasts, etc.

2. Decide what you want to do in REI.....wholesaling, buy-and-hold rentals, flips, etc.

3. Definitely get a real estate coach or mentor who can help you, but someone local you meet with face-to-face and someone familiar with and actually doing what you want to do in the geographic area that you want to do it. You can find them on-line, at local meet-ups or REI clubs in your town. It makes no sense at all to pay a mentor who lives far away and is unfamiliar with your market.

4.  Take action and actually do what you want to do.  Most people do the first three things and then sit back and wait for stuff to happen--it won't.  I was terrified with my first purchase, but it is all part of the learning process.  

Best of luck to you. I wish I had started with REI 20 years ago.

[Michele Williams]

This is a hot button for me... I made that costly mistake. Don't do it, no matter how good they make it sound. I agree with those that chimed in before me that you could have made better use of that money, albeit put on a credit card. 

However, what I would suggest is that you find a LOCAL mentor, perhaps through a reasonably priced REIA coaching program, and be willing to put some skin in the game, with some money up front for the coaching/mentoring program, and money for effective marketing.

Since I learned from my negative experiences of paying well over $50k when starting out (BAD IDEA!!!), I decided that I would offer a FREE course to new investors so to save them that up front expense, but yet to offer to teach/guide/mentor them the knowledge and skills, and the arrangement would be a equal profit split. Oh, I also offer FREE transactional funding, free access to my buyers list, free access to my network and systems, free documents, free, free, free. ....  I would have jumped at this opportunity when I was a newbie. At least that's what I thought.

Well, let me share that experience..... People loved the free education and free everything else (of course).  Some people complained about doing profit splits, so went out on their own after their free 6 week program, and then wanted to come back and rejoin because they made some costly mistakes and/or needed ongoing support. Others after 2 years in a free program never did a deal, never did marketing, never made an offer, and never really did much of anything except passively received information.  So as a mentor, how was I compensated for my time and energy if there were no deals done to profit split? You can figure it out.

Bottom line, if you want a mentor that will get you faster results, be willing to pay; however, make sure it is reasonable.  Don't waste their time, and don't waste your money. But if (1) all the free avenues of education are not working for you, ie BP podcasts, books, webinars, networking, conferences, etc, and(2) the free methods of obtaining leads are not working ie DfD, craigslist, zillow, etc, and (3) you can't figure out what you are missing in your overall strategies for making deals, then it is time to look for an experienced LOCAL coach.  Don't discount profit shares, because 50% of something is better than 100% of zero. And ya gotta have some skin in the game. 

[Nate Marshall]

Would it be worth it? It depends. What does it come with besides the coaching and mentoring? For example I obtained my Certified Private Money Broker through Lee Arnold and if I take his Master Broker class I can get 100% financing through his COGO Capital. That's only about 10k plus the air and hotel to Idaho. Is that worth it to me? YES. 

If someone can bring you more value than just the mentoring and coaching then maybe it's worth it. The truly busy and successful investor probably doesn't have the time for a lot of students but some of them own companies that have people on board to help with that among other duties. For example if you want to do multi family I would suggest working with Rod Khleif or Adam Adams. 

[Jacquey Bradford]

@Brandi Graham if you don't mind me asking is it nick vurticchi

[Jay Hinrichs]

Originally posted by @Michele Williams:

This is a hot button for me... I made that costly mistake. Don't do it, no matter how good they make it sound. I agree with those that chimed in before me that you could have made better use of that money, albeit put on a credit card. 

However, what I would suggest is that you find a LOCAL mentor, perhaps through a reasonably priced REIA coaching program, and be willing to put some skin in the game, with some money up front for the coaching/mentoring program, and money for effective marketing.

Since I learned from my negative experiences of paying well over $50k when starting out (BAD IDEA!!!), I decided that I would offer a FREE course to new investors so to save them that up front expense, but yet to offer to teach/guide/mentor them the knowledge and skills, and the arrangement would be a equal profit split. Oh, I also offer FREE transactional funding, free access to my buyers list, free access to my network and systems, free documents, free, free, free. ....  I would have jumped at this opportunity when I was a newbie. At least that's what I thought.

Well, let me share that experience..... People loved the free education and free everything else (of course).  Some people complained about doing profit splits, so went out on their own after their free 6 week program, and then wanted to come back and rejoin because they made some costly mistakes and/or needed ongoing support. Others after 2 years in a free program never did a deal, never did marketing, never made an offer, and never really did much of anything except passively received information.  So as a mentor, how was I compensated for my time and energy if there were no deals done to profit split? You can figure it out.

Bottom line, if you want a mentor that will get you faster results, be willing to pay; however, make sure it is reasonable.  Don't waste their time, and don't waste your money. But if (1) all the free avenues of education are not working for you, ie BP podcasts, books, webinars, networking, conferences, etc, and(2) the free methods of obtaining leads are not working ie DfD, craigslist, zillow, etc, and (3) you can't figure out what you are missing in your overall strategies for making deals, then it is time to look for an experienced LOCAL coach.  Don't discount profit shares, because 50% of something is better than 100% of zero. And ya gotta have some skin in the game. 

I think I can sum this up.. you can lead a horse to water but you cant make them drink.. we do JV deals as our day job.. most cant get one done let alone make it a career even though we are there to fund the deals for them.. real estate is TOUGH its not a Hey you deserve it business.. like MLM or the guru's who start the presentation with a picture of the family and this is why we do this.. you see it on all the info mericals I am doing this so I can spend more time with my kids.. I did it so I could educate my kids and not burden them with student debt and get them out of the house as fast as possible.

For those starting out I like to suggest just go on e bay every guru has tapes CDs books .. its all the same info.. people will sell those kits for 20 to 50 bucks go buy those listen to all the different gurus..  

Bottom line a real estate license and start with a brokerage on a team will teach you what you need to know faster than trying to learn this when you don't even know the vocabulary.  

[Jay Hinrichs]

Originally posted by @Mike Dymski:

Most people don't follow through on expensive mentorship programs and would be better off putting $20k down on red or black on the roulette wheel.  Some do follow through though and start real estate careers.  We can't assess that from an internet post.  It's less about the program and more about the person.

AS I have stated on this site many times.. I have been an invited guest and vendors for some of the top Trainers in the industry.. providing capital for fix and flips or non recourse loans for their students that wanted to use IRA to buy rentals.

So as an observer in the background then going on the bus tours and my wife and I chatting with students through out the 3 or 4 days.

To me its just a cross section of America..  you have the no clue dreamer.. you have real estate agents or brokers looking for the next level and surprisingly quite a few pretty well off folks who just sold their business for 2 to 5 million and now are looking for something to do and real estate tickles their fancy.. so for them to cut a 50k check no biggee right ?  

So like in any endeavor your going to have those that kill it.. those that do OK those that never do a thing for various reasons.  I have worked with many successful investors that got started paying for one of these type of courses..  But have also seen many destroyed IE they had no money got talked into putting the fee on credit cards. and never did a deal and ended up in credit card hell.   

I would personally like to see this industry regulated a little more than just the quick tiny print disclosures..  But then again there are probably folks that used the credit card and it worked so who is to say ..  But  these programs genesis is all based on MLM that came before it.. the sales techniques the pulling at the heart strings its all MLM.. and the fulfillment companies still do both..  IS a huge industry as we know.. one of the bigger fulfillment companies in Utah has over 400 employees.. they do fulfillment for Tony Robbins and the flip Vegas folks and *************o  (sic)   etc etc.. 

At this point in the cycle its get a flipping show that is popular  then get one of these companies to back you and your on your way.. make far more money as a guru than a home flipper hands down..  The top players make over 10 million a year .. its real money.

[Zach Lemaster]

@Brandi Graham My opinion is to take that $20K to $50K and buy some actual assets to gain some actual cash flow!  Nothing beats first hand experience.  There are plenty of people here on BP who can give you just as much resources as a highly paid mentorship.  There are even forms and contracts here you could use to do deals.  I would be curious to see who the actual company is if you feel comfortable sharing.  Maybe there have been people here that have actually used them and can add some insight.

[Jordan Thibodeau]

Originally posted by @Brandi Graham:

My brother and and have been studying the business for a month in a half. We are currently attending a 3 day training with great content!!! They are soliciting their others services which consist of a personal mentor with phone number, email and access to their time for a price of $20-50k. Can anyone share thoughts or concerns?

No. Read every article on BP, build your RE network, listen to as many BP podcasts as possible, and read great RE books. But for the love of god, never pay for mentorship. 

[Jackson Pontsler]

@Brandi Graham i’m guessing its fortune builders correct?

[Darius Ogloza]

For that price you can buy a cheap house in Midwest and actually learn something by doing rather than by listening to some guy tell you what to do.  Seriously.    

[Henry Lazerow]

$20-50k can be the downpayment on your first property!

These things are mainly scams. They give a really good sales pitch for free and then try to get you to pay an absurd amount of money. Some of the success stories are even actors lol 

Real estate investing is honestly pretty simple. Find a reputable broker to represent you and ask for them to send you the best deals in your area. Double check all their numbers with the BiggerPockets calculator and run sales comps making sure you are buying in the bottom half range of prices for a 3 or 4 unit. 

There is other stuff like wholesaling and all the get rich quick schemes but 99% of people flop out on those. 

[Mike Lowry]

Brandi .. spend your time and money learning Business Law, Contract LAW, Construction and Local Building Codes, Mold troubles and what to look for, Real Estate Law. Use that education in your determination of what not to work with... the good deals are what is left . Use your education wisely by what applies in the City, County, State any property under consideration is Located. Lastly.. who will buy your " deal " eh ? Finding Buyers is something that is not supplied in any course I have previewed.. ( many of the best out there. ) Lee Arnold System is the most realistic as you can also partner and get financed with his enterprise.. but if you do not get the education I recommend your in danger of big failures.. do you want to gamble or make money ? Real Estate Successfull Investor since 1985. I actually also took a Real Estate Agent Certification .. to learn what is up with Realtors as well. They are not investors but most are dismal failures and making good incomes. Unless.. you find one that is also an investor. When you find one.. hopefully you may partnership to your long profitable future. Wish you the best !

[Austin Dickey]

@Brandi Graham Don’t do it. Just learn and network with everyone on BP. If you have a question someone will answer it for you. When you feel semi-ready just dive in and you will learn first hand from your mistakes and successes. Remember “a deal a day keeps the fear away”

[John H. Hill Jr.]

@Brandi Graham I'm just now starting out myself and I can tell you for sure that is entirely too much for our levels. I have already wasted money myself trusting that someone knew more than I do. Tell you what, for a fellow Chaparral how about I try to throw you as much knowledge as I know for free. P.S. I'm still sad to see they shut us down.

I'll message you a little later. It's cool seeing a familiar face in here.

[Tim Harwick]

Just wondering what everyone thinks IS a reasonable price for a mentor. If $20-50k is too much, what would be a reasonable amount? Assume the new investor has done some research/learning on his/her own. 

[Jeremiah Mon]

@Brandi Graham

Its not about the mentor and their program, it’s about YOU.

How committed are you to succeeding?

There are plenty good mentors out there for 25k, and they are committed to helping you land your first multifamily deal where you make all your money back after closing. And as you know, its all about that first deal.

When purchasing a 10million dollar multifamily, a small mistake in your underwriting for example, could cost you more than 25k.

When looking for mentors, look for those actively doing deals that you want to do. For example, if I want to learn how to actively do Value-add B/C class multifamily deals in the southeast, I would find a mentor who is doing that AND the have a track record of 1000+units. Look for reputation and skill. Are they actively educating others? Do they have a podcasts, etc.

End of the day, it is YOUR decision and it is YOU who decide the outcome of that decision.

Good luck!

[Dennis M.]

I’d Take the money and just buy something . Even if you suck and your a dud at your niche , you can always sell the property and move on to other endeavors. When you give someone 30k you are out all that money forever. In my market 25k is an old duplex that brings in 1000 a month . No brainer to me

[Justin R.]

@Brandi Graham the best mentors are the best investors. The best investors are successful, and wouldn't charge (or be a salaried employee) for their "mentoring."

Instead, find someone doing what you want to do, ask them if you can trail them (or better yet offer some form of value to them) and use that chunk of money for your first deal. Best of luck!

[Michael C.]

@Brandi Graham

Take that money and start investing, buy a property, invest in marketing depends on goals and let experience be your mentor, heck I know if you have good leads coming in, most likely you will run into a mentor for free because you are providing value up front by finding the deal!

I wouldn’t pay for a mentor, just my 2 cents! Use BiggerPockets, books, and take action, you will do quite well! The blue print is out there available for free, ! It’s always good to have a mentor but again I wouldn’t pay for one! Provide value, network and you will find your mentor in no time!