What type of coaching do you want?

Question

Here is a question I am pondering right now and would love to get your thoughts and feedback.

We are a small group of investors and kind of the core of the Brew City REI Club around @Rebecca Knox . We all frequently help new investors on and offline with all sorts of questions. We all have slightly different backgrounds: from hard money, to new construction, IRA investing, property management to apartment buildings and remodeling -  there is probably no question we can't answer well as a group and in the context of our local market. So Rebecca had the idea to start a Training Cafe and offer à la carte coaching - not a guru class from A to Z, but just that one custom piece of local coaching when and where you need it.

We believe the general information is already out there; free and readily available: here on BP, in form of many books and podcasts and at local meetups etc. All it takes is your time to absorb it, there is (almost) no cost to it and anyone has access. Yet, there is a flourishing guru industry that is selling dreams from TV shows for the amounts you can use as a down payment for a great median priced duplex! Brandon Turner just posted a great video about this: The #1 Real Estate Investing SCAM That You Can Avoid!

We think there is a gap between free information and expensive formal education and thought we might be able to close it. It can be a sit down meeting, a phone call, a property walk through - whatever you need. We all understand our local market and we are happy to help, but on the other hand we are all busy running our own businesses, sometimes more than one. None of us needs the money, but there is value to our time and to good advice so we thought an hourly consulting fee would be appropriate.

Now, it seems like the initial feedback, after the first public kick off event, was that there was a huge amount of interest until it comes to the point, where people have to go and actually book a paid session. Then they pause and say: wait, you won't coach me for free?

I think between a few books, BP and a few session with a local mentor you can get started much faster than one might expect - and be successful from day one! Like one of the coaches put it: all we have to do is make sure the bowling ball keeps going down the lane and guide it a little, so it stays between the gutters.

I wonder do some people actually like to be sold on an expensive education with all it's promises and glam - and pay a small fortune for it? Is there value in local mentor ship beyond let me pay you a coffee and then quiz you for three hours?

What do you think?

Josh Teunissen · Answer

https://tim.blog/2019/04/09/eric-schmidt/

I think this is a very relevant podcast, and answered some of my questions and eased some fears. It's an informative episode for both coaches and someone considering hiring a coach. I haven't finished it yet, but maybe there's something for everyone to learn from. I'm definitely a Ferriss fanboy so take it with a grain of salt haha

Rebecca Knox · Answer

Thank you Marcus for this post.  Sorry for the delay in response....I actually have been conducting my own market research :) Got some great feedback at the Happy Hour event the other night.

I actually got started in real estate by signing up for a seminar.  Real Estate was never my idea. I had worked as a general manager in the manufacturing industry for a decade. Nick was the one that took me to one of the real estate seminars that come to town.  My reaction---I was wow'd---I never had even heard of the things they were discussing and it all sounded so easy to do with their system....and also, they weren't just letting anyone in---you had to be 'chosen' which made it seem more honorable. Prior to this I had bought 1 house ever, had never heard of a REIA in my life or even knew any other real estate investors so I was truly amazed. I expected that I would be able to drop a small fortune for this program where I could pretty much have a completely automated system with a guarantee of success....I never thought it would be so hard.  I believe this is the average person's mindset that signs up with expensive programs, as naive as it seems to seasoned investors.

Now, after being in real estate, I realize that these programs are EXCEPTIONAL at sales and persuasion and they know what insecurities to feed off of.  I think the greatest benefit of these programs is the network you become a part of.  I don't regret signing up because I have learned and built mutually beneficial relationships in the program....I also may have not even made the leap because there is no pressure like the pressure of starting real estate $25k in debt. Now after being exposed to many different real estate education programs, I realized what they pretty much do is package everything you can find on BP and the internet in an organized way.

But what Brandon said in this video speaks volumes because I believe the majority of people get interested in real estate because they are looking for a fast solution to make money but real estate is not easy and much of the success comes from that person's grit and self-motivation....two things that you cannot pay anyone for.

The vision of the Training Cafe was to offer affordable, real life education provided by a co-op of all types of local investors. Each coach has the freedom to design their own program or to go items.  We felt like having a free market system of coaching would provide a competitive atmosphere that encourages the coaches and the programs offered to be optimal..... but no, you probably won't walk out with fancy brochures and catalogs of forms or programs to consider buying.....we aren't the people who see someone post on internet that they are a newbie and PM you to take you out to lunch to sell you education.  Our vision is no heavy pitching and the Cafe is a resource rather than a full fledged business.

What I realized from my survey talks is that it's not so much people need to be sold but they need to know specifically what they will get in return for their money.  Some felt like the descriptions need to be more detailed.

Here is a review of a one-hour coaching call:

"I went to the Brew City REI Training Café event on March 14th and had the chance to speak with a wide variety of investors including Rebecca & Nick. Since going to this event, Rebecca has helped me by giving me her contractor packet and inspection checklist to use and I am actually in closing on a wholesale deal with her—a rental property which will be funded through a lender I connected with through the Brew City REI Club. Additionally, Rebecca gave me a list of over 200 leads that we could work on together absolutely free. I’m amazed at how much progress I have made since going to this event on the 14th and how fortunate I have been to come across this great local real estate investment group of honorable people so willing to help."

Now my bio on the menu doesn't say that I am going to do this because each person's situation is different but even writing this, I know that I personally could do better with my description. For my coaching, before I get on the call, I send the student a 3-page questionnaire as well so that our call is well organized and tailored to what they are looking for or struggling with but I should even put this in my description of services so people know exactly how the call will go.

Jodi Graf, Premier Point, actually posted a video yesterday that is great---hits on the point where she really describes what you will get.

The next thing is reviews---people want to see proof and reviews.  This is a brand new idea and will take time but much like Brew City REI Club, we have faith that as more people use the services, they will understand the value and hearts of our coaches.

Josh Teunissen · Answer

Do you remember the BP podcast with Brian Burke? Where he was advised to over promise?

I wonder If people who spend big money believe they'll take a shortcut to their dreams they've been promised? They're probably heavily marketed to as well, i know my Facebook feed is littered with guru advertisements! Think of what people spend on the lottery.

I'm glad Brew City doesnt over promise.

When you pay for other services, and the person you pay doesn't deliver, or messes up,  although frustrating it's not usually a financial disaster. You can take your car to a different mechanic so to speak. If a newb investor buys a bad deal early in their investing career, it could be a big setback. Real estate Investing takes a lot of money (traditionaly) to get started.

Also, noone likes talking to lawyers. You pay every time they pick up the phone haha a neccessary evil no doubt

I'm not sure how you pacify those fears. I'm sure plenty of the interest you've received are just time wasters, you don't want to coach those anyway. But some like me, are just trying to be careful.

For me there's also this element where it feels weird to look up to local investors, but to potentially be looked at as a customer. Idk, I haven't figured it all out. It makes sense to charge, because it makes people put skin in the game and less likely to waste your valuable time. Also in corporate culture its maybe more common to pay for consulting and coaching ect, but us newbs arnt as accustomed to the practice?

I hope noone takes this post as a dig. It's just simply the first things that come to mind.

Or maybe the prospective clients email is drowning In the junk folder?  Who knows