What is in it for the mentor

Question

I am thinking about getting into real estate investing.  My initial goal is to create an additional income stream since my wife stays at home and want some protection in case I have employment issues/laid off.  I have always been interested in real estate.  I am initially thinking of rental properties but am open to other things.

I hear alot of people talking about mentors and I don't know that I completely understand this relationship.  I under stand what I can get from a mentor, but what do they get from me?

My cousin is very successful at a young age in real estate.  he started with rent houses and has moved into fix and flips as well using wholesalers to locate deals for him.  I have talked to him and he is willing to come talk to me about getting started.  I don't know exactly what he is wanting to do and how engaged he is willing to be but I don't want to take advantage of his offer.  What do mentees usually offer?  How does this relationship work and how long does it typically last?

Thanks in advance.

Bill Gulley · Answer

LOL!

I do agree in the first degree, but if it gets into money, then keep it business like.

ROTFLMAO, I didn't read it that  way, good point...

Tod R. · Answer

Shawn Thom, sounds like you have a great opportunity to learn from your cousin.  Hopefully, he's someone you can trust that there's no hidden agenda.

Shawn Thom · Answer

Thanks for everyone's help.  He does seem to be genuinely wanting to help me out.  Even offered to come to my house (30 miles away ) to talk about it...even after I offered to take him out to dinner to meet :)

I originally talked to him over a year ago and have been saving my pennies ever since.  He was on vacation when i emailed him and he called me the day he got back.... so he is on top of it.  I am looking forward to talking to him about it and am appreciative of his enthusiasm.

Mike H. · Answer

Let me say this. I've been doing this for about 4 years now and I love helping people get into investing - provided its not in my area. :-). Just kidding.

I think part of it is that I can only do so many deals and I really hate seeing these deals go to waste. I'd much rather they go to a friend or relative. I've got two friends doing it and I help them out all I can with advice.  My brother in law is also looking to get back in - although he and I tend to differ on the home condition and tenant interaction so I'm not sure how much use my help will be for him.

I don't expect anything from these people. Just the satisfaction when I see them grabbing a good deal. I love talking real estate and enjoy looking for deals - even if its not for me.

I would question anybody that would charge you for advice. Now if you're asking him to go in on stuff with you, then all bets are off. But don't think you're imposing on him at all with your questions. If he's like me, he'll love being able to look at houses with you or talk real estate and see someone else get into the game with him.

I think in the back of my mind, the other thing that I see is the possibility that I may invest with some of these people in a larger project at some point. Not sure thats ever going to happen but you just never know. I may be helping someone that will figure out a niche so great, they bring me in on it for helping them and I'll make more money in my investing.

So try not to feel like you're burdening him. If he's got the bug, he's going to be enjoying every minute of helping you.  Just try not to steal too many of his deals. :-)

Don Konipol · Answer

So basically Bill agrees with me, but OTOH he doesn't! LOL

Bill Gulley · Answer

I agree with Don, OTH, if you get involved financially with family I suggest you keep it as business like as you would with anyone else. Written agreements and understandings as money can ruin family relationships.

Don Konipol · Answer

There are no hard rules of mentoring relationships, especially with family.  It is possible that your cousin just wants to do something nice for a family member.  Sometimes the thanks of an appreciative person, or the increased standing he would receive within your family, is enough.  The return to your cousin does not have to be monetary.