(Note: I am not writing this post as a mentor request but rather guidance on how to find mentors).
Hi all,
I've been reading and listening to a lot of materials on how to get started in multifamily investing (apartment syndications specifically). One great book I read suggested that finding a mentor is essential - not only to guide me in the right directions, but to leverage his/her experience/network when pitching to potential investors, finding great property managers, brokers, securities lawyers, ect., and more.
I understand that I can meet experienced syndicators at real estate meetups, but what is the industry norm? Is there a way that an inexperienced person can add value in exchange for mentorship besides payment? Also, if mentors in real estate expect to get paid, what is considered standard levels?
There are some mentors who would take you under their wing and let you work for them, and maybe if you find a deal they'll be a partner and help you, in exchange for equity in the deal. But those types of mentors might be hard to find, and you would also have to convince him or her that you would add more value than all the other people who are offering to do the same thing.
As for the paid mentorship programs, I'm a member of one program where the mentorship is around $25,000 the first year and $5,000 in following years (I joined at the much lower level because I only want to invest in these deals, not do them myself). I know of one or two other programs that cost about the same. There are probably other mentors that cost less but they might not offer the same level of hands-on support. My suggestion is meeting students of the various programs and deciding which you like best. I'd strongly recommend checking out Brad Sumrok though. There are New Yorkers who are members....I'll PM you some more info on how you could meet them.
There are some mentors who would take you under their wing and let you work for them, and maybe if you find a deal they'll be a partner and help you, in exchange for equity in the deal. But those types of mentors might be hard to find, and you would also have to convince him or her that you would add more value than all the other people who are offering to do the same thing.
As for the paid mentorship programs, I'm a member of one program where the mentorship is around $25,000 the first year and $5,000 in following years (I joined at the much lower level because I only want to invest in these deals, not do them myself). I know of one or two other programs that cost about the same. There are probably other mentors that cost less but they might not offer the same level of hands-on support. My suggestion is meeting students of the various programs and deciding which you like best. I'd strongly recommend checking out Brad Sumrok though. There are New Yorkers who are members....I'll PM you some more info on how you could meet them.
I would recommend to just start attending some of the large player's conferences and networking your way into a relationship there. Recently attended a large multi-family investment conference and connected with a number of big players in the industry. All were nice and welcoming. I am sure if you went to a few of these with a pitch of your specific skill set and the desire to work for free they would love to have you on their team. Also, when I say skill set, it needs to be something that will directly help their business, examples include developing and implementing a social media marketing program for their company, being a deal finder with a concrete plan of how you can find them off-market opportunities, being skilled in excel-macro VBA programming such that you can automate and improve their underwriting process. If you don't have any of these currently, work on them and persistently communicate with these guys until they let you join their team. Started at the firm I am at now as an un-paid cold caller.
A typical rule of thumb is to provide value first before even asking for anything. Btw, this rule applies in any industry, any business. How does one provide value? Well, when you meet syndicators (or anyone really you're interested to learn from), ask them what do they need help with? What are their biggest challenges?
As a side note, the two largest areas for people interested to bring value to syndicators have been:
(Note: I am not writing this post as a mentor request but rather guidance on how to find mentors).
Hi all,
I've been reading and listening to a lot of materials on how to get started in multifamily investing (apartment syndications specifically). One great book I read suggested that finding a mentor is essential - not only to guide me in the right directions, but to leverage his/her experience/network when pitching to potential investors, finding great property managers, brokers, securities lawyers, ect., and more.
I understand that I can meet experienced syndicators at real estate meetups, but what is the industry norm? Is there a way that an inexperienced person can add value in exchange for mentorship besides payment? Also, if mentors in real estate expect to get paid, what is considered standard levels?
I’ve been asked to mentor and been offered payment but have turned it down (not to sound all 1%’er but I don’t need the money). I’d rather someone come to me with something they can add value. Maybe it’s my Wordpress site that has a cheesy plugin. Or my property pages don’t have floor plans and maybe you’re good at doing those. Or maybe good pics/staging. Or render a few possible building redesigns.
Anyway. That’s what I might suggest. In terms of where, hm. Meetups? I went to a few when I was starting and even as a n00b with only a few deals under my belt it sure seemed like I was the only one there doing deals. Everyone else was there to talk about RE but no one seemed to have done anything.
Could be I went to the wrong ones.
I lucked out and met a few other owners that were doing what I was doing (investing in the same sub markets). We’d talk talk talk. Email email email. Drink drink drink :) it became the best thing by MILES for my career.
Tldr: rather than meetups, try to meet buyers of properties of the type you’re looking at (real buyers. Not syndicators). Try to figure out what skills you have that will add value to them. As chances are if they have knowledge you want, they don’t need your $
@Jung Won Kim Pay me $50K and I will teach you the secrets that the elite don't want you to know. You will also get access to my ultra-elite private FB group (after all, do you really exist, if you're not on FB?)
Honestly, I would echo @Cody L. point. Most of the meetups I have gone to are a massive waste of time. The best bang for my buck has been in developing a relationship with owners directly and/or engaging with the right folks on BP. Attending conferences is another solid and highly recommended way of expanding your network.
@Omar Khan
Haha thanks for your feedback. By mentor I was thinking more of a one on one type of deal from a relatively successful syndicator.
Def was not thinking of gurus or syndicators with an established program with tens of thousands of students. The recommendation to find a mentor was from Joe Fairless in his book on apartments. Not 100% sure but I imagine his mentor didnt have as many students as he does now (though I may be wrong)
@Jung Won Kim - have you though about joining a mastermind group? I’m amazed at how many people don’t even know what a mastermind group is, let alone how one can benefit.
Thank you everyone for giving feedback and also DMing me various tips and guidances. This was my first post on BP and my expectations are already surpassed and am greatly encouraged by the community support here.
I would recommend to just start attending some of the large player's conferences and networking your way into a relationship there. Recently attended a large multi-family investment conference and connected with a number of big players in the industry. All were nice and welcoming. I am sure if you went to a few of these with a pitch of your specific skill set and the desire to work for free they would love to have you on their team. Also, when I say skill set, it needs to be something that will directly help their business, examples include developing and implementing a social media marketing program for their company, being a deal finder with a concrete plan of how you can find them off-market opportunities, being skilled in excel-macro VBA programming such that you can automate and improve their underwriting process. If you don't have any of these currently, work on them and persistently communicate with these guys until they let you join their team. Started at the firm I am at now as an un-paid cold caller.
Hi Joseph,
Can you share more about the need to automate and improve underwriting via excel-macro VBA programming? Have you found this to be problem for established syndications?
I don't see what's wrong with going to a few Meetups, especially for someone just starting out. Of course those of you who are already in the game may not learn anything new, but often the Meetups are run by someone who is indeed buying and syndicating, and it's a more intimate setting so you can have a longer, more personal, conversation on how to get started. The conferences are certainly worthwhile but when there are hundreds of people, you might not get more than a handshake a business card with the people you want to meet.
Best way to find a mentor is through referrals. Find someone who is a few years ahead of you in their investment career and ask them who their mentor is.