“One good mentor can be more informative than a college education and more valuable than a decade’s income.” – Sean Stephenson
Starting out in real estate investing without any guidance is hard. Working your way through the process of setting up your business, finding deals, making offers, and having the right exit strategy can be daunting.
Having someone to help give you advice along the way can be the difference in a “few deals a year” to a “few deals a month” very easily. Mentors offer invaluable lessons on a personal level that you can’t get from an online search.
Every mentor is a bit different but there are some common benefits for new investors to get out of building this type of business relationship.
1. You Can Learn from Their Mistakes and Their Successes
If a mentor shows you their previous deals, they’ll no doubt have some home runs and some strikeouts. Learn from them so that you don’t have to struggle in the beginning like they might have.
If they’re willing to share information about their past deals, listen closely and take note. Odds are that their advice will help you out in a future deal.
This will help you tremendously so that when you go on an appointment, you have a frame of reference to help you figure out if it’s a good deal or not.
For members of our Investor Machine coaching program, we have bi-weekly group phone calls where they can ask questions, get feedback, and learn from mentors. Learn more about the Investor Machine.
2. They are Able to Help You Analyze Deals
Have a deal but aren’t sure if it’s going to bring in enough profit? Depending on your mentor, they might take a look at the deal to help show you any red flags or give you the thumbs up.
If you’re able to get another set of eyes on the deal for your first few deals you do, you can make sure you’re analyzing the deals properly and this should help your confidence if you know you’re on the right track.
Some deals will be black and white. You’ll be able to easily say if it’s going to be a good deal or not because you have good comps and the seller expectations aren’t too far off from your offer.
Other times, you won’t have any comps nearby that are close to your property’s size, location, and condition. This is when it can be difficult to determine what to offer and if your offer is going to bring you a profit. Mentors can provide you with their recommendation so that you’re making a confident decision.
3. You’ll Have a Solid Foundation from the Beginning
The problem when you’re getting started is that you don’t know what you don’t know!
This is where a mentor can save the day.
They can help fill the gap of what you don’t know. Ask them questions so you can feel more confident when you start going on appointments.
Confused or want more information about something investing related? Talk to them about your areas of weakness so that they know what they need to teach you. Especially in the beginning of your mentoring relationship, help them by letting them know what your goals are and what you strive to accomplish in this business.
It’s natural to be uncertain about various aspects of the business. Don’t hide these uncertainties from your mentor. They need to know them so they can help you to the fullest.
A mentor can help bridge the gap in what you don’t know and what you know so that you’re starting out with a solid foundation. With time and experience, you’ll find your own strategy but until then, let them point you in the right direction.
4. Mentors Can Provide Connections and Recommendations
This is an industry where it helps to have connections. You’re going to be working with a number of vendors and it can be hard to find the right fit for your business needs.
Your mentor will most likely have connections to different vendors and can help explain which one might be best for your deal and why.
Having a mentor who can provide suggestions on who to use for various aspects of the business can be quite helpful. Not having to “trial and error” different companies can not only save you time and money, but it can also allow you to concentrate on finding more deals.
A Shift in the Type of Mentoring
As you become more comfortable doing deals, you’ll be able to shift your focus to be more so on your goals and growth as an investor instead of the basics.
In addition, having the same mentor with you from the beginning will allow them to know your strengths and weaknesses and push you to become your best self.
Mentors are a game changer for your real estate investing business. They have been in your shoes and are ready to help you jumpstart your business and share their expert knowledge with you.
If you’re looking for your own mentor, the FlipNerd Investor Coaching is a 90-day program that offers video training, 24/7 networking, weekly group calls, and access to our systems and templates we use for our own business.