I have been investing part time for about a year and a half and I feel as though things would speed up with the help of a mentor as all the books suggest. This is easier said than done however. How can you find an investor that’s willing to take you under their wing? At the local REIA group it seems all the heavy hitters keep to their own clique. Does anyone have advice on how to 1) Find a mentor and 2) What can a beginning investor bring to the table and offer in exchange for mentoring?
Do you have good credit? If not repair it! They will be interested in loaning you money and they won’t let you go wrong. I did alot of networking. I spoke to hundreds of realtors until I finally got lucky and found one who was studied and we have a great working relationship where we mentor each other.
I have good credit, although I’m not looking to borrow money from a mentor. I’m looking for someone I can help in some way while they teach me “the ropes.” The problem is, I don’t know know what experienced investors are looking for in mentees. What help/services would a mentor need that they’d be willing to exchange experience?
Maybe if you could help find the good deals, your partner may take you under his/her wing. shrugs…sorry I can’t be more help, but I’m new also.
the heavy hitters became heavy hitters by paying there dues making mistakes and learning from them. Ask the right questions and they will tell you where they went wrong when they started, and learn from there mistakes and don’t make the same. It takes time and re pore in this business to be taken seriously. There are a lot of newbies in the business right now and everyone wants a mentor, remember they are being approached left and right by people who want to be mentored. Just take it slow build a relationship first most likely they will ask you if you want to learn.
Dan
You need to get involved with your community. Maybe there is a score chapter in your area (score.org) That’s how I found my mortgage broker and then thru him I found a realtor who I work with hand in hand and also is being a mentor to myself for my REI. Talk to realtors, banks, mortg. brokers, local investment clubs, etc. Stay after it. 3/4 of the battle is not to give up.
Nate-WI
That’s the group you have to get involved in. There’s a saying if you want to fly with the Eagles you can’t swim with the Ducks. At the REI club if they are all in one group try to sit next to them just to
hear there conversations and what they are doing, be polite and respectful and ask them about themselves most people like to talk about themselves just keep trying and don’t fear rejection eventually they will want to talk about you and your situation.
good luck.
In my opinion it is best to show yourself the ropes. I am 19 and have been investing since the day I turned 18. Last month, I netted 23K in two wholesale deals. I have never picked up a RE Investment book, nor do I intend to. I feel no need to make the rich richer. I did however surf the net and read a few free articles, got some free contracts. Then I got started. So I would say that after reading a few articles you basically know the ropes. I mean this is not rocket science. I think that if a person can’t grasp it with a few articles and a learning deal or too they should get into another field. Anyway, besides that I would advise building relationships (Ill elaborate below) with your key players. I really know of no investor that will take a person under their wing so to speak and actually share all of their knowledge. I know I wouldn’t. Read carefully ALL INVESTORS ARE YOUR COMPETITION. If you don’t believe that you are doomed to fail, simply because it is true. Why do you think a wholesaler won’t ask an investor if they are interested in a property that they know of unless they already have it under contract. This is dog eat dog. Now as for building relationships, I find that for me being a young female in this field with a child is advantageous. I can make myself appeal to all potential sellers, and most potential investors assume that I am naive, and can be taken advantage off, which is also to my advantage. All of this works in my favor. Your key players are, a seasoned RE Agent, your assessor, an appraiser, the most expensive general contract in town (if you plan on rehabbing, or doing a short sale), a reasonably priced general contractor, your family (children, wife, ect), and a direct hard money lender, plus a few private lenders. A few things to remember:
Sex sells, when meeting up with a buyer or investor of the opposite sex alone turn it up. It works for me. Leave the kids or spouse at home.
Family sells, when meeting up with an older couple take along a kid or two with your spouse that works for me also.
Being a baby faced 5 foot 1 inch female sells. Who doesn’t adore a baby face, it works for me.
Being a starving college student sells. I am in college, so when going to see potential seller with the initials J.D., M.D., PhD, N.D., or the like bring some of your texts books with you. That works for me too.
Work what cha got. It may seem funny but believe me it alls works. I don’t think the REI is all about rushing to get contracts signed, structuring the perfect deal, or building the list. It is about relationships. If you appeal to a person in some way you can work them, and they really never see it coming. I am not being craps here, but we all know that REI is about working someone, to get yours. We all can say that we are trying to help people, but bottom line, if you cant making anything off the deal you’ll walk, period.
Remember what I said all investors are competition including me. I also said that I doubt any investor will share what got them where they are. That also includes me, I have given you some pretty good info in this post, if you apply it correctly, but notice I didn’t tell you how I use all of my tools, or why you need those particular key players. That is your job. I would say do yourself a favor, and do it on your own, you will come out with a much more vast amount of knowledge.
what part of PA?
hi, how do i find investors to wholesale to. seems like alot of them want property for half of wholesale???
Where are you located in PA?
Advertise in your papers that you have property under contract and want to assign them to cash invstors. Also look for ads by folks who are advertising as “we buy homes for cash”
Nate-WI
Whats a hard money lender?
A Hard Money Lender is a lender that makes Hard Money Loans…
Hard Money Loan - A loan that is underwritten with the condition and value of the property as the primary criteria for approval. Secondary issues may include the credit of the borrower, the ability of the borrower to repay the loan and/or the ability of the borrower to manage the property or successfully complete a rehab and sell the property. Owner occupancy, debt ratios and other issues are seldom a factor. Appraisals rather than purchase prices are used to determine value. Cash out purchases are often allowed and are another key benefit. These loans are usually approved within days and are often funded in two weeks or under with times as short as two or three days not uncommon. The cost for the benefits of speed of funding, lax underwriting and other advantages is typically a moderately high interest rate (usually low to mid teens) and high points (usually 5 to 10). (See definition of “underwriting” below.)
From the REI Club Investing Glossary (in the margin to your left!)
Keith
Thanks Keith