This "mentor" ( we can call this individual this for now) is encouraging me to take out a small loan from the bank about $10,000-$12,000 to invest it with him.

It could go 3rd party so, let's clear that up.Any lien junior to the foreclosing entity gets wiped out (With few specific exceptions)You might be tempted to start paying them but, you risk acceleration of the note from the bank by doing so.

As a student I will be sure to provide value in return to whoever mentors me, by helping them in their business any way they might need. 

I have been reading a lot and there seems to be a push for mentors.

You will need to find actual contracts and get them vetted.I'd also reccomend a mentor who specializes in these transactions, and learning other strategies than just one in case lease optioning doesn't  work since it's only attractive to certain parties with certain situations.Just my 2 pennies.

Hi,I am new to real estate investing and willing to pay the price for mentor. i would really appreciate if you can mentor me for making real estate deals. 

I'm not sure if I'm in the right place to start investing in real estate and I'd be happy to buy someone a coffee or a beer and chat for a half hour if anyone's willing.Just saw the warning before the post and I want to make it clear I'm not soliciting a mentor.  

.:)Hopefully you have some good mentors.

I think my first step is to find a Mentor who is willing to show me the ropes and steer me from the dark halls and pitfalls this industry contains. 

I endeavored to make 2015, the "year of the mentor", but alas...