Need Advice for Helping a Struggling Mentee

[Lotus Eli]

Hey BP Fam,

I just started mentoring folks interested in real estate investing and could use some advice. I’ve got two mentees right now. One of them is absolutely crushing it—she’s always hunting for leads, making calls, driving for dollars, and more. But my other mentee is having a really, really ,REALLY tough time, and I want to help him out.

Here’s some background : He’s been trying to get into real estate for 6 1/2 years. He goes to forums, meetings, markets to leads HEAVILY, studies like crazy, and more. But despite all this effort, he hasn’t closed a single deal. It’s strange because most people, including me, think it should take about a year to get a deal.

He’s faced some serious challenges—he’s been homeless, tricked out of deals, and more. It breaks my heart because he’s really trying his best. He reads the books, takes the courses, visits the forums, and keeps re-strategizing. He won’t give up because he never wants to experience homelessness again he tells me.

I’m reaching out for advice on how to support him better. What tips or strategies can I offer to help him finally close a deal? I don’t want him to waste any more time and want to steer him in the right direction so he doesn’t have to suffer unnecessarily. I feel like I can't mess up with this one. It's a lot of pressure.

Any tips, guidance, or advice would be super appreciated!

Thanks a ton!

[Randall Alan]

@Lotus Eli

I find myself asking if he is really positioned to do real estate investing?  By "positioned" I mean - ready to pull the trigger when the right deal comes along.  We know no more about him than you have told us, but just the list of items you mention give me pause - "He's been trying to get into real estate for 6 1/2 years."  Being interested in a topic doesn't make him ready to do it.  Does he have the financial resources to even do a deal?  Does he have 20% to put down on an investment property?  When you 'cross' that with 'having been homeless' it makes me think of someone grasping at straws who is desperate for a solution.  I don't mean to sound rude or insensitive, it's just my outward observations.  

You don't say this as much - but is he just trying to wholesale?  If so, a lot of that can come down to how he carries himself - something that can't always be taught.  For instance - is he an outward people person, is he friendly, dress appropriately, appear confident, know what he is talking about, and have the charisma to pitch an idea people might not be familiar with where he builds their confidence in doing a deal?  Those are traits that are often internal to someone - not something you can easily coach.

Often what I hear is that you should start off by owning your own home... and let that be your first investment.  From there, you can either continue to own that, or turn around and rent it for a start to owning investment real estate.  

While wholesaling is probably the cheapest way to try and get into a deal, it isn't the easiest.  I think I would work towards positioning him to be successful in a typical job, build savings, and position him to be able to do a more traditional purchase.  It doesn't require all the finesse that wholesaling does - you have the money, you buy the property - regardless of your personal capabilities.  I just wonder if the path he is pursuing is the best path for him?  If he has diligently been trying for 6 1/2 years, it doesn't sound like wholesaling is for him.  But that doesn't mean real estate is not for him.  He may just need to look at a different approach.

All the best!

Randy