Rejected by local mentor

[Ismael Ayala Jr.]

I recently bought a new home and rent my old home for cash flow of $400. Buying my second home with traditional lending was my first step into real estate investing. Throughout my research over the past 6 months I've learned about creative financing which intrigues me and is something I would need to learn about moving forward to scale my portfolio. 

I recently got in touch with a local coach/mentor in seller financing in my area. We spoke for a little while, but I figured I was being vetted. Coaching was not brought up in the first call, so I made a 2nd call to clarify pricing for his mentoring services. He said, unfortunately he had no more spots available as they were recently taken up the week prior. It kind of felt like I was being "let down" easily. Meaning I was not a good candidate for his student profile.

Here is my background info that I gave him.

1) I have 2 homes, I live in one, cash flow on the other.

2) I have little reserves, <10K but building up quickly. Should be above 10K by summer. 

3) I have a >$100,000 in equity that I am very hesitant to use. But only for the right situation. 

I couldn't ask him why he rejected me. As he technically didn't, but I kind of read in-between the lines.

My question is: Where can I be better for a coach to see the benefit in training me. Was I too close to the mentor and presented competition? Did I not have enough reserves? Or a combination of other factors I'm not mentioning. 

But in all transparency, I'm already leaning very heavily on just learning by myself via online, YouTube,  Bigger Pockets, books, and Carleton Sheets No Money Down course.

Thx in advance for any input. Brutal, constructive honesty appreciated, lol.

[John O'Leary]

Find a mastermind like the Boardroom. Think of a mastermind group like having a whole team of mentors at your disposal, rather than just one. Sure, having a personal mentor is awesome for getting targeted advice, but being part of a mastermind takes it up a notch. You're not just learning from one person; you're tapping into a diverse pool of knowledge and experience from everyone in the group. It's like having a brainstorming session where everyone brings their own insights and ideas to the table. Plus, being part of a mastermind connects you with a massive network of mentors across different sectors and backgrounds of REI, opening up endless possibilities for learning and collaboration. The initial investment might be large, but if you can't make that back in a few deals from leveraging the network you might not be in the right position within your business. I personally would pay to skip the line and condense time.

[Nathan Gesner]

Quote from @Ismael Ayala Jr.:

You need to ask him. He probably thought you didn't have enough money. If his coaching service costs $15,000 and you don't even have $10,000 saved up, how will you pay him and still have money available to invest?

I don't think you need a coach or a mentor. Focus on increasing earnings, reducing expenses, saving up, and investing. 

I also recommend you stop chasing the "get rich quick" schemes you'll find on YouTube or in books written within the last five years. Low or no money down can be high-risk and should only be attempted when you have a proven track record and really know what you are doing. Everyone talks about cashing out equity to buy more investments, but they fail to account for the cost of cashing that equity out, and they certainly don't mention the dangers of over-leverageing.

It was hard to fail 5-10 years ago because the market conditions were ripe for investing. A lot of the people that built big portfolios quickly - and then wrote books or built YouTube channels - can lose them just as quickly when they realize they don't know how to manage what they've got, a loan gets called due, or whatever.

I recommend you network with other investors and spend time with people that have more than ten years experience and that did it by saving and investing wisely. There is nothing wrong with buying and growing slowly. It's how people have done it for all of history, and it's proven to work.

[Sherry McQuage]

Quote from @Nathan Gesner:

Quote from @Ismael Ayala Jr.:

You need to ask him. He probably thought you didn't have enough money. If his coaching service costs $15,000 and you don't even have $10,000 saved up, how will you pay him and still have money available to invest?

I don't think you need a coach or a mentor. Focus on increasing earnings, reducing expenses, saving up, and investing. 

I also recommend you stop chasing the "get rich quick" schemes you'll find on YouTube or in books written within the last five years. Low or no money down can be high-risk and should only be attempted when you have a proven track record and really know what you are doing. Everyone talks about cashing out equity to buy more investments, but they fail to account for the cost of cashing that equity out, and they certainly don't mention the dangers of over-leverageing.

It was hard to fail 5-10 years ago because the market conditions were ripe for investing. A lot of the people that built big portfolios quickly - and then wrote books or built YouTube channels - can lose them just as quickly when they realize they don't know how to manage what they've got, a loan gets called due, or whatever.

I recommend you network with other investors and spend time with people that have more than ten years experience and that did it by saving and investing wisely. There is nothing wrong with buying and growing slowly. It's how people have done it for all of history, and it's proven to work.

 I like the suggestion in the last paragraph!  Keep trying, learning, and "failing forward" and you'll figure out what works for you.  You could also keep talking to people about real estate, and eventually you'll find someone that has similar world views/risk views as you.  Or, if you know of someone who's already doing what you want to do, lean into the relationship and offer to help them (ask them what they need and do it) so you can learn by doing.

There's no "easy button"; I do like the idea of paying a mentor to speed up the learning curve, but that's not always feasible.  Keep learning (Bigger Pockets, talking to people about real estate) and you'll find what works for you.

Best to you!