Is my mentor charging me to much or is this normal???

[Rafael Brown]

Hello all, 

I just signed up with a mentor the other day and I paid $15K for a year long mentorship. It includes, providing a proof of funds letter, the mentor will lead calls when requesting private funding from my contacts, work with me to set up my business (i have the llc already set up) which would include: selecting the right realtor, contractor, forwarding me his deal analysis sheet as well as his sku's for the items he uses in his properties, contractor agreements as well as walking me through every deal. We have monthly meetings (no time restrictions). His office will also help me set up a virtual assistant and mailers. Lastly, we will review each deal with me, meaning I have to submit a video and my analysis sheet with every deal and why i think it's a good deal. 

With regards to the splits, if he gives all the funding he takes 75/25(mine). If he funds 50% then he gets 50%. I told him my goal is todo 4 properties this year but he thinks we could do 10-16. He told me that he truly believes that I can do it based on my understanding of real estate (i have 15 yrs of commercial and corporate real estate). He did tell me that he is a firm believer in "what ever you put in is what you'll get out of it". 

My question is does this make sense to pay $15K for a mentor or should I just keep going maybe doing one property at a time (2-3 per year) and trying to catch my own mistakes? I just picked up my first flip and we will begin rehabbing on March 20th (we close on the 18th). 

[Wade Sikkink]

If you are paying him $15k/yr then you don't have a mentor, you have a consultant.  I agree with those above that the terms he has offered you seem pretty steep.  If he's all the financing and you are all the work on a deal, then I think 50/50 is fair.

Personally I would skip his offer.  Setting up a company is easy and you can post every deal you see here on BP and get a through analysis for free from the community.  If you want to use him as a private lender, that might work, but I would get better terms.

Good luck!