All Forum Posts by: Orlando Paz

It's been a few years since I last visited Bigger Pockets. I was never able to see my dreams of getting into real estate investing, let alone find a place of my own. Although not as "sexy" as what many actual real estate investors do, I've recently decided to start looking into REIT's. It's probably laughable compared to what others with deep pockets can invest in, but I have to be realistic with what I can afford to start with. I've already opened a Fundrise account and I am also looking into "Groundfloor Financial". They are a crowdfunding company that makes it possible for anyone to invest in mortgage notes without the snobby accreditation requirements. Right now I am still looking into it and I am also open to any other recommendations. Any input is greatly appreciated.

@Angela Boone - I would guess that the logical approach, would be to put everything in writing prior to buying the house. Perhaps work with an attorney. Once all intentions have been made clear and final on paper, then proceed with the purchase / rehab / sale of the house. Once the house gets sold, you can split the profits. Not sure if this could be done, so consulting an attorney beforehand may be your best initial approach.

Although an exact cause for the leak was never actually found, the wall that was suspected of having intrusion problems had any and every imaginable hairline crack patched up. In addition, it was also given two coats of Elastomeric paint. I haven't heard any more complaints about water issues. Whatever was done worked. 

Everything you describe about the mobile home sounds like a nightmare. Perhaps you can get the land, and move one or more MH's that are in better condition to it. Make money from selling the homes, then collect lot rent. Other possible options... buy/hold, buy/resell, buy/build (then rent or flip).

@Bill Neves - Hey Bill, Long time no hear! lol!... Got to check out the video. Lots of good information. I don't know how often MH's are actually moved in such scenarios, but the approach certainly lends itself to starting a dialogue and gaining a positive exposure with management.

I think that John will probably chime in and respond directly to your question. In the meantime, I have seen one of his videos where you learn to approach park managers. One of the methods discussed, is telling the park manager that you are looking at a particular home that you are interested in moving to their park. Then ask the manager, if they have any type of concessions, where they would move it into their park. John mentions that this would probably tie you down to the park for a certain period of time, but then again... why would you want to move?... Anyway, That's my two cents. John, let me know if I missed anything on this. I'm still learning as well! lol!

I'm not one to give much advise on this, but I am aware that there is such a thing as wholesaling REO's. Just do a search on the topic right here on BP.

I think that betting on someone who lacks experience is always a liability. This holds true for any line of work. Inexperienced college grads are liabilities to the companies that give them their first break. The added gamble is training someone who could move on to work for a competitor, or become your competitor.

So in a sense the managing partner would take on a sales rep. role. The partner would seek out investors who are strong players seeking funding, and be a liaison between your organization, and the investor. Sounds like an interesting concept, and a good way for a student to get their foot in the door.

The compensation sounds very appealing, considering that it’s a student/mentor type of role.

Overall, it sounds appealing and straight forward. Sounds like a role that is networking intensive, which is something that investors should be doing anyway. Why not profit from it.

@Kevin Yoo - I am glad you liked my post and appreciate the vote. I realize that my post could come across as a bit self-centered, but my focus was on answering the question… “What Qualities Do You Look For In A Coach/Mentor?” So I tried to answer the question strictly on that point of view.

Putting myself in a mentor’s place, I would want to work with someone who has an equal desire to learn, and a goal in their journey. The person I mentor would need to work alongside me as a partner. By taking on a partner role. This person would learn by doing and asking questions. For many of us, when we graduate from college, we begin the learning process all over again. The work environment provides real life problem solving, and work experience. My role as a mentor would be to provide direction and support, much like a trainer at a company or a journeyman to an apprentice. I would not want to bother trying to teach someone who does not want to put in work and effort.

As I mentioned in my post, it would be great if we all had a "Mr. Miyagi" type investor appear and help us become his/her protégé without putting money up front. But even Daniel had to wax all of Mr. Miyagi's cars, as a way of compensating while learning basic moves. What I have seen with paid mentors, is (a) The high upfront cost, (b) No reasonable financing, and (c) No creative approach to making the training more attainable. In other words, many (not all) will offer training but won't consider compensation via partnered deals. Most of my local guru's will only partner with you, if you spend $10k and up. One of them will partner with you after spending $10k, then sells you on using his VA and other products. Another common trait I see with many of the guru/mentors (especially the local one's), is how they generalize everyone's unique circumstance. Basically, if you can't buy into their program, then you lack ambition. It's funny to see how quickly some of the students who follow these guru's will shun you, when you are seen as someone who can't buy into the program. You are instantly categorized as a tire kicker or someone who does not take action. I can only speak for my own circumstances. At the end of the month, I am responsible for two households… mine, and the one my children reside in, as I am a struggling separated dad. My responsibilities simply come first. I don't think my landlord would be too understanding if I told him I could not pay the rent because I was taking a guru course! Lol!

I can understand your views on the possibilities that could come from taking on a student. Like you said, the ambition may not be as strong as anticipated. As there are many ways to invest in real estate, a potential student needs to understand the pro’s and con’s behind the basic strategies. Not everyone wants to be a landlord. Not everyone wants to be a flipper. Not everyone wants to be a full time marketer (wholesaler and lease options). A student who works with a mentor who specializes in flipping, may discover that they don’t like that type of investing. Unfortunately, it may simply be a mismatch for that particular student/mentor scenario.

Finally, to answer your question… I am looking to close some deals initially with help from my mentor. I am also looking to build a solid relationship with my mentor, where it does not end when my mentorship ends. Ideally we all learn from each other. My goal would be to learn and close deals with my mentor, start closing my own deals as well, and have an ongoing partnership with my mentor. For me, it would be an ongoing relationship. 

I am personally looking for a knowledgeable mentor, with the heart of a teacher. Someone who has a sincere interest in helping, and has my best interest in mind. A mentor who can be a friend and partner. Someone who can initially do some "hand holding" through the first few deals.

My experience thus far has been somewhat disappointing, as most investors are too busy growing their own business, or they simply have no interest in mentoring someone. Then you have the mentor/guru's, you have to pay. These mentors tend to be overpriced, for someone who is struggling to begin with. They tend to be firm, and unwilling to provide reasonable payment plans. Basically, it's a sink or swim scenario with these types of mentors. If you can't afford their steep price, you are shunned, and labeled as a "non-action" taker. Go figure! 

Can an organic mentor-ship exist? I'm sure it can. Especially if you have a close friend or family member who is an investor. But finding a "Mr. Miyagi" to guide you in real estate investing seems like something you would only see in movies.

I realize some may question my rationale, when it comes to what I bring to the table. Well, helping to find deals and develop partnerships is one approach. If I have to pay to have a mentor, then I would say that making reasonable and affordable payments would be realistic. Perhaps forming partnerships and offering a split that is favorable to my mentor, is another creative way to compensate my mentor/partner. 

Rather than looking for mentor's to guide me through the process of "creative financing", I may simply consider more traditional ways of investing and start using realtors.