How much is my mentorship worth?

[Jacob Lapp]

Hey everyone,

In the last year I have completed my first 2 deals and now have 5 units total (living in one).

In the last 2 years I have immersed myself in books, podcasts and this forum and have gained a lot of knowledge. My prior experience has made me pretty good in the fixing aspect to increase rent. I also have my real estate license in PA which has helped a lot too.

When I talk to my close friends about the details of what I’m doing, to most of the smart ones it’s a no brainer to get started at this age (low 20’s) if possible.

I’m currently working with 3 friends, they are sending me deals we analyze them together, run numbers and I answer any questions that I can. I’ve put them in contact with a good network mortgage, title, insurance, inspection etc. Schedule showings going through with them and am really trying to help them get started on the path that I know will take me to financial freedom.

I worked something out with my broker so I am technically a referral agent at this point but when I buy a house for myself he gives me a higher commission, because I didn’t want to be spending all the money to stay active ($150 a month) to $150 for the year as a referral agent.

Anyways, my one friend just closed on his first multifamily and for the hours and hours I spent with him. Which I was happy to do. I might see a check for $500.

I didn’t have someone helping me through my first deals and I think even though I’m new to this I add a lot of value to my friends getting started.

It doesn’t feel right charging a friend for guidance but when my phone is going off non-stop all hours of the day. It feels like I should be charging..

My question is should I be charging for this type of service? If so, how much?

Thanks in advance!

[Cody Barna]

@Jacob Lapp that's a good question, considering they're close friends and potential partners in the future, I would think twice before charging them for my time. If you really feel like you're spending an unreasonable amount of time helping them then you could work out a partnership on those deals. Also considering you're a licensed agent, you could work as their buyers agent, which would help you build a reputation as a investor "friendly" agent. At the end of the day we all need to generate income in order to grow and scale our RE businesses.