Ok lets Throw down a bit.
I want this post to help newb investors (like myself) make informed decisions about mentors and their programs.
I want to hear the arguments FOR givoing a mentor money up front and AGAINST giving that mentor money up front.
So those who support it, tell me why.
Those who oppose it, tell me why.
Again this is to help newbie investors make informed decisions.
This is not mathematics. It is not black and white. It’s a very nebulous field like one painting being worth $10 million while another isn’t worth more than a buck at a local second hand store. I’d pay Donald Trump a few grand to have a one-on-one convo with him because I’ve read his stuff, believe he’s the real McCoy with his success, and know talking to him would make me more money and I would get a lot of value out of it. IMO he deserves it. There’s a lot of nobodies out there I wouldn’t pay a cent for for advice. They don’t deserve it because I’m not convinced they’ve proven themselves first. It’s up to the end user to do their own research to decide what someone’s value is worth and justify their own reasons for reaching that conclusion.
Personally I have never hired a real estate mentor… Unless you consider the few agents I used when I first started… There is something to be said for just doing it… However when I started things seemed easier… Maybe it was easier because I didnt know how hard it could be…
When I wrote my goal pamphlet I put within it the 6 areas we should set goals for
• Family and Home
• Financial and Career
• Spiritual and Ethical
• Physical and Health
• Social and Cultural
• Mental and Educational
All six should have some mentor associated with that success. Just not certain any or who one should pay for… I know I have spent thousands of dollars getting in shape and learning to hit things… I could have just gone to the gym instead, maybe more playground fights would have taught me a thing or two… Definitely know that having a spiritual leader in ones life is important and some of us believe that tithing 10% is appropriate compensation. I know when I call my attorney or accountant I seem to get a bill for that… Its nice knowing that I have someone to call when needed… So I dont know your answer… I do know that when I buy something I tend to use it over when something is given to me…
With all that said… Not everyone needs one… There are very good people in REIAs that can help those which that kind of help works for… I think the real issue is that this business is unique in that it doesnt have a minor league where new investors can go and learn the trade working for someone… Most successful investors are mom and pops… Not large Trump companies and Trump only hires very intelligent and educated people. Who BTW paid their colleges thousands of dollars for an education…
Happy house hunting…
Michael
Btw im not asking a question for myself. I already know what i think and how i would do things. However theres alot of ppl saying you should and shouldnt pay mentors up front and im simply interested in what the arguments on both sides might be. I love debate, so i cant help asking these questions.
You mentioned that it depends on the person, lets say you did some research and found they are fairly successful (done 100+ more profitable deals) and they specialize in an area youre interested in (lease options, flips, wholesaling, commercial) and they live nearby. Now lets say they want $5,000 upfront and 50% of your first few deals. This is all hypothetical, but its to eliminate confusion and the aforementioned variable.
So simplified, hes a pretty successful dude who wants to help others but charges a nominal fee for his services.
Again, do you think a newbie should pay him or not? Why?
Why should or shouldnt he charge money for his training?
Education always costs something: time, money, self-respect, something. Good education is worth money in your pocket, so I consider it to be worth paying for.
With the number of scam artisits out there, I would be uncomfortable with cash up front, especially if it is large cash upfront. Pay with success would certainly be more attractive.
But you are talking about someone who has done 100’s of successful deals right in your local area. If he really has, then he should be able to provide you with good information. On the flip side, I always wonder why he isn’t making his money doing deals instead of coaching beginners.
Anyone with a national program is not going to know enough about your local market to be useful except in a very general way.
Well lets say he makes lots of money and has made lots of money. A couple of deals a week is all he needs to do anymore. Say the mentor just enjoys helping others succeed, but hes afraid too many newbies who dont really have the guts to do REI will want his help but waste his time. So he makes sure theyve got a reason to work hard, because theyve financially invested in his time and advice.
Thats the reason why hed want such a large upfront fee. Does that make sense? I know of some mentors who will refund that money if you dont make $XXXXX amount of dollars on your first deal or theyll refund the money you paid as soon as you do a deal. Its kind of a way to just get them motivated.
“to all you chefs out there, keep doing what you’re doing, but ask yourself this…are you ready for a Throwdown?” -Bobby Flay
I’d like to say all of these responses were really good. That was a great idea for a post Jeremy, as you can see by the amount of responses that it has already gotten.
I don’t have too much to add, the previous responses covered pretty much everything. I would like to say that usually there is is nothing for something. I think it is fair that there be some sort of cost up front. For example…Let’s say that a truly ethical, experinced, and overall good mentor takes someone on to help them invest and make money. Now, after putting in time and effort for several weeks or even several months, let’s say the beginner just up and decides to quit and go do someone else…Is that fair to the mentor? The mentor didn’t do anything worng. He was there for support and and was sharing his expertise. It’s not necessarily his fault that the beginner decided to quit. And many do do, as Michael says only a small percentage of new investors see the process through tot he point where they are making money.
Now, am I an advocate of the coaching programs that cost $25,000. where a company will fly out a so called professional coach to your home for 3 days. No, I’m not…and it is nothing against the coach that goes out there…just keep in mind that if you are going to pay someone $10,000 or $25,000…you better be pretty dman sure that you are 100% committed, and are in the understanding that you may nake a lot of mistakes, and you will not become rich over night.
Many people have gone out there and done it for themselves. Many have gotten an educational course and learned as much as they could from it and gone on to become successful. Many have gotten the course and also gotten a mentor or coach to become successful.
I myself researched and chose one real estate field to go with. Then I researched and chose one course…Now, I got a lot of mentoring…a real lot, but I didnt have to pay for it. But I think my situation is rather unique, and does not really apply to most.
The mentoring will speed up the education process and provide you with a quicker learning curve. If you feel “I can do this on my own!”…then that is great…If you feel “I want to do this, but I want to have someone guide me>”…then that is good to…Whatever your choice, if you want to get started…then start somewhere."
In closing, I do not think there is a right or wrong answer to this post. Which makes it a fantastic topic. Really good topic JJ…There has to be somethig in it for both parties…Whether it’s in real estate education or any other type of business…most people will say “whats in it for me?”…Unless you are performing volunteer work, there has to be a benefit for both parties…there is always a feature & benefit for everything…RESULTS!..bosses pay employees on results…people who buy cars go back to a certain car salesman because they are happy with the results
So, choose your mentor wisely, and review his program…is it something you feel is fair, and do you see yourself benefiting from his help?..if you do, go for it and dive in with both feet.
Happy Investing!
i talked with a guy recently - he said he tries to make an offer everyday…
would you consider that someone who could mentor you?
No. Just because he makes an offer a day doesnt mean hes doing any deals nor does it mean their profitable. It also might not be a real estate investing technique im interested in. Id want to know far more about him.
I did not read any of the other posts…
don’t spend money up front unless you know someone else that has made money using their investment system. not a testimonial, a friend.
there are mentors that will help you for free. all of mine have. BUT, be prepared to work for them for free for a year. If you are willing to do that, then go find your mentor.
Let me see if I understand what you are asking? You want to spend money that you don’t have to buy something you don’t need from someone you don’t know. Sounds great to me.
redhawk
No you dont pay a guy you dont know. You get to know him and research him.
You never pay anyone money you dont have. Thats just stupid. You invest in your education. You wouldnt say that if i was paying college for my education and they charge much more.
And finally you dont NEED it in the sense you dont NEED a car. You could walk everywhere. But thatd be stupid thing to do if you could get a car and drive everywhere. In the same sense, i can trip over myself and flounder and fail my way to success in ten years, or i could pay someone to teach me the ropes so i learn in one year what it took him ten years to learn.
No matter how i look at it, every extremely successful man who ive studied recommends and had a mentor. So why would someone not recommend a mentor?
I know of one really really GREAT mentor, and it is EXPERIENCE.
He’s really really expensive but I guess it will be worth the pay.
Instead of a mentor that you pay as such I am suggesting that you build a team of advisers that you trust, over time. Anything that a single mentor could teach you ,you can learn on this forum for free. Education is important but doing is understanding. If you are afraid of making mistakes then you will never get started no matter how many mentors that you have. You need to develop your own style and niche and that comes through experience of your own not someone else.
redhawk
That is SOLID advice take it.
I was just wondering what motivates a mentor (besides money) to teach someone else???
Let’s say you are a succesfull investor and have been for some time now.
You already have your nitch or nitches on how to profit from this business.
You know the ins and outs of real estate investing.
Why in the world would you teach someone else to do what works for you.
Aren’t you just creating competition for your self???
The next thing you know, you will be competing against your student for the same deals.
I just don’t get it.
Good to meet you
Great question…
Its all about the money and the relationships… Mentoring is a business just like Walmart or McDonalds… However 899.00 for a year mentoring works out to about minimum wage… My goal is to make certain my mentees earn 100k profit and I split that with the student…
The relationship is nice and frankly more rewarding at times then the actual income. When you hear someone who actually cares teach someone how to work with buyers and sellers… How to do the deals and what needs to be done… Then you will understand better.
A lot of people think you dont need one… And frankly some dont… I didnt have one…
So for those that need one we mentors are here… For those that dont we write and answer questions on the board… I get a kick at people saying that someone doesnt need a mentor while at the same time those people come to the boards and ask questions… That’s human nature I guess.
Again you asked a great question
Michael
Hi Everyone
I’m a newbie to and I feel what the guy is going through.I have been going through the same thing and I have no real money I lost my job in 2008 and It’s been really hard.I’m a female and I live in Mo I have been battling this every since I lost my job.I have been doing webinars hoping that I would learn something.I did a little but I no I still need that person in my ear that can give me some direction.I just don’t no what I going to do because I really don’t have no money and I agree with the man who said that there should be some one willing to mentor me for exchange of me working for them for free.Which is something that I would be willing to do I try to put that out there every chance I get.I guess I just want to believe that because I refuse to give up and I want this bad because I no that this would change my life for the rest of my life so for the newbie’s out there don’t give up but don’t get taken advantage of either.
To the person who said why would you want to teach someone if you no all there is to no in real estate.for one I think it’s selfish for someone to even say that.Because when you bless some one you receive even more because you are not selfish.I no for a fact that when ever I do start making money I want to take somebody under my wing and give back.I think they call it paying forward you can’t possible make all the money it so much money to be maid.Even though you may never train or mentor anyone you will never make all the money it a lot of people right now that homes are in distress and you can’t go to ever city or state and help them out even if you where Donald Trump that’s why it good to pay it forward.I feel sorry for anyone who is that selfish and my god have mercy on you.Everybody need help from time to time I’m just saying no harm intend it .
Hi Shell,
This is too funny. You must be the religious type.
What is this thing pay it forward??? Did they teach you that in church???
First of all, I never said that the mentor knows everything there is to know about real estate. I just said that if something works for you, why would you teach that to someone else??? Again, my argument is that by doing this, you’re just creating competition for your self.
Second, about being selfish; When the mentor charges you $5,000 to teach you how to invest, is he/she not being selfish??? When you work for him/her for free, is he/she not being selfish??? When he/she takes a greater cut from your deals, is he/she not being selfish??? Let me know if you can find someone that will teach you for nothing in return (good luck on that one).
Please read my post again, my question is: What motivates a mentor “Besides Money” to teach someone else???
Note: I feel sorry for you thinking that when you bless someone you will receive even more. If you truly believe this, then bless me with 100K, but don’t worry about it because you will receive even more.
Just being realistic.