How Can I Distinguish a Better Wholesaling Mentor Program From Another?

Question

In looking for a wholesaling mentor, there are many things to consider and I don't know how to weigh the relative importance of different criteria - and I'm sure I've overlooked some items.

A few of the different items I"ve identified so far are their accessibility, what marketing costs to expect, what the profit split is vs. the cost of the mentoring, the mentoring contract itself, experences of past mentees, and whether the mentor has experience in my local market.

The websites usually seem quite promising about ones future lifestyle to come, but having paid for a couple of trainings in other real estate areas I"ve become a little more discriminating. There are very skilled wholesalers who market their mentoring abilities nationally and I also don't know how important current knowledge of the mentee's market is.

What might I be overlooking, and how important is local market knowledge or having the mentor have a financial state in each deal in order to sustain their attention and availability? I also have to be careful about being marketed to by marketing pros - been there, done that...... I confess.

Jon Holdman · Answer

1) You're confusing "finding a mentor" with "paying for a mentoring program".  Finding a mentor means someone who's really doing the work and getting them to help you learn to do a job you want to do.  Paying for a mentoring program sounds similar.  Unfortunately the bulk of these programs appear to be more interested in separating people from their money than helping them learn a job.  Any program that starts it pitch with "lifestyle" pictures almost certainly falls into that category.  They're selling a dream.

2) Most of the people who say "the cost of your mistakes will outweigh the cost of a program" are the very same people who are selling the program.  I've sat through a bunch of these programs and the story is the same every time.  I swear, these people must go through some guru training program that gives them the scripts for their presentations.

Jon Holdman · Answer

If your prospective mentor is making so much money wholesaling, why is he or she selling programs?  Most likely very expensive programs.

Once upon a time, my wife had a wine at a dinner out that she really liked.  We grabbed the label, and I tried to find it at our local huge liquor store.  They didn't have that specific label, but had many other similar ones.  When I asked which was best, the lady replied "they're like chocolate chip cookies, each a little different, all delicious."  But in this case I think I'd compare these programs to what comes out of the back end of a bull rather than chocolate chip cookies.

Sorry, but I am very negative on these programs.  Real estate mentorships in general, but wholesaling in particular.  They're selling you a dream.  They make it sound easy.  If you just pay them their money, you'll be rolling in dough and having a whole new lifestyle.

Wholesaling is hard.  Really, really, really freaking hard.   Before you plunk down $1000 on a course, let alone $10,000 on a mentorship program, just buy a list or sign up with one of the local companies that provides leads and start sending letters.  Better yet, just go to real estate agent school, get your license and sign up with some brokerage.  Its the same job.

If you're willing to really get out there and work the job (and, wholesaling is just a J.O.B., and a commissioned sales job at that, no matter what any guru tells you), the program doesn't really matter.

Jerry Puckett · Answer

For the most part I agree with this. It does get easier with experience like most other things. Is it complicated? No. You can learn all the steps you need to take right here on BP (like I did 3 years ago).

For the most part, it seems like new folks get hung up in two areas:
1) Contracts and assignments....the Paper work. There are many great sources of info, including seeing a lawyer (as Timothy Rogers suggests) to help with this part. Thread after thread on BP.

2) Seller Negotiations. Just what do you say to the seller on the phone; in person? How do you handle objections? Saying the wrong thing has cost me deals. But I didn't really understand the problem until I started trying to coach someone else through the process. This is where having a coach (Mentor? I'm with J Scott- the 2 are not synonymous) really comes in handy.

So to answer your question, Burt L., no "program" is really going to help you with the fundamentals of dealing with people. This is a people business, and I think Ned Carey is spot on: find someone who can spend one on one time with you.

Timothy Rogers · Answer

Burt,

You are trying to keep from making a mistake and you can't go about it like that. My first wholesale deal did not go smoothly as I wanted to in the marketing phase of the deal. I had three investors at the same time in the seller's home while the seller was there. I was honest with the seller from the beginning by telling the seller I was a wholesaler and that I work with several investors. The seller was fine with it, but the investors did not seem fine with being among other investors at the same time. It was learning it experience for me, but I did sell the home that night to one of the investors. I earned a $5000 assignment fee. I have not made that mistake again. You just got jump in and go get deals.

If you can get the knowledge down on how to write a contract and what addemums to use to protect yourself(see an RE attorney) then everything else for you will get easier for you as you do more deals. Don't be affraid of making a mistake, you can only learn from your mistakes.

Robert Hanson · Answer

Burt,

What are you looking for in a mentor? Are you looking for a step-by-step guide on how to wholesale or looking for someone you can talk with and ask questions/get advice from?

If it's the latter, I honestly don't think you will find what you're looking for with any advertised program. I just don't truly think those "gurus" are in the trenches enough anymore, if they ever were.

I would suggest this, reach out to one of the many experienced wholesalers here on BP and make them an offer to help you as you get started. I don't think you would have a hard time finding someone who is proven to be successful and paying them a fee for a few months in order to pick their brain whenever you needed to.

Jon Holdman · Answer

I too have several thousand dollars of programs sitting on a shelf.  I've listened to every one.  Some had some kernels of good information.  I feel like I actually got real value from exactly one of them, and that was mostly a bunch of contracts.  That was Bill Bronchick's materials.  Not specific to wholesaling, though.

Ned Carey · Answer

Jon Holdman gave you a valuable dose of reality.

I have spent lots money on programs, bootcamps, CDs, DVDs, books, courses, etc. and I have learned a ton. The irony is I am very leery of recommending them for some of the very reasons Jon mentioned.

If  I was confident you would bring me deals I would be happy to mentor you for free. I suspect many successful investors would. Go to your local real estate investing group and see if you can offer to trade your services for their knowledge.

Joshua Dorkin · Answer

Burt - You said you've taken other training in other areas of real estate investing.  What areas are those?  Have you begun to invest already?

I'm just trying to assess where you are before offering my thoughts on how to proceed.

Account Closed · Answer

Sorry, did you say you made $1.6 million on your first deal?

Bo Sofola · Answer

I personally have gone to the Lance Edwards Apartment Wholesaling Seminars, I closed my first deal of 1.6 million in less then 2 months. Each Seminar is filled with new investors and new friends...

How Can I Distinguish a Better Wholesaling Mentor Program From Another?

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