Are you a new investor? If so, you likely have many questions and may even feel a bit of concern. Questions like, “How will I know if I have found a good property?” or “How can I figure the after renovation value of a property?” or “How do I know that my offer is a good one?” are all common as you just start out.
Like with anything you start new, it will take knowledge and experience to do it well and give you confidence. The problem is that real estate investing done poorly can be a very costly learning experience. If you choose the wrong property, make a poor offer, or don't understand the value of the property, you could lose out on profits or, worse yet, lose money on the project. This kind of “experience” would do nothing to help you gain confidence and would likely set you backward.
Why a mentor?
So, what is the answer? How can you minimize your exposure to loss while gaining knowledge and experience? It's simple: work with someone who can walk you through all aspects of your project. This someone is what I call a mentor.
Having a real estate investing mentor will:
1. Help you stay motivated. 2. Help you know the right path to take – no more wondering if it is the right house in the right location at the right price. 3. Be a valuable resource that can answer your questions about real estate investing. 4. Connect you with other valuable resources and people that are successfully investing 5. Help you discover investing opportunities you might otherwise miss 6. Provide you with feedback to help make each new venture even better than the last. 7. Teach you new skills that you will need for future investment opportunities 8. Help you set reasonable goals and timelines
Where Can You Find a Mentor?
Now that you understand why a mentor is so valuable, you might be asking, “Where can I find a good real estate investor to be a mentor who can walk me through all aspects of my project?”
There are many different options. Sometimes, you can find a mentor that provides you with their knowledge out of the kindness of their heart. Sometimes, mentors charge fees. Both can be quite valuable if you are getting the right knowledge because the more you learn, the more you earn.
Here are a few places that you may find a mentor:
1. Real estate investing club: Once you join a club, you will be introduced to many people investing in real estate. Be sure to choose someone that has a lot of past experience and is still active in the market. 2. Real Estate Knowledge Institute: REKI has experienced Real Estate investors that are ready to walk you through the process in a personal, customized, results-focused way. 3. Wealthy social scene: Start hanging out where the wealthy hang out, and you'll soon see that most wealthy people invest in real estate and are happy to share their knowledge with you. 4. Make a cold call: Call people that are in real estate investment firms, development companies, or even landlords. As you get to know these individuals, you may find someone that will make the perfect mentor.
In the end, a good mentor relationship will help you learn the ropes so that you can have the knowledge you need to invest with confidence. Since confidence is key, why not find the right mentor today?