Real estate is a smart investment. Land and housing prices are soaring, and we’ve all seen the television shows with people flipping houses and turning a huge profit. A lot of people become rich from real estate investing, but a lot of people also go broke.
You’re making a massive investment, but you can also invest in something like an REIT and turn a 6% profit on average.
But you want the real money. You want cold, hard cash in the palm of your hand.
Trial and error can make you go broke, and that’s why people choose to work with real estate mentors: they don’t have money to waste.
When you choose to work with a mentor, you’re choosing to:
1. Leverage the Mentor’s Experience
Your mentor, if properly vetted, should be a success. The mentor you choose should have experience, and they should know how to turn a profit in real estate. If they don’t and they don’t provide proof, you’re not going to be able to leverage your mentor’s experience.
Mentors provide leverage so that you can learn from their experience. This means:
- Avoiding costly mistakes
- Learning insider tips and tricks
- Learning from all that the mentor has done right
You’re not reinventing the wheel when you work with a mentor, so you’re less likely to make a costly mistake in the process.
2. Sales and Negotiation Insights
Mentors provide insights into sales and negotiation that can make or break a deal. You may go into a deal with a bid of $150,000, but your mentor’s negotiation skills may push this bid down to $110,000.
There’s a finesse behind the sale and negotiation of real estate.
And even if you’re a good negotiator, you may not know how to deal with:
- Foreclosure purchases
- Ethical guidelines
- Legal verbiage
- International buyers or sellers
There are a lot of sales and negotiation tactics that you don’t know. And a mentor is supposed to be there for you to lean on and learn from. It’s a great relationship, and it’s a relationship that should save you money.
You’ll also make more money, too.
3. Networking Can Prove to be Priceless
Networking is an essential part of life and business. When you have no contacts, it’s difficult to get things done. You have a lot to build on when you have a mentor. The mentor you choose will help introduce you to industry contacts that can get things done.
For example, maybe you plan on buying a foreclosed home.
How will you get the funding? You’ve called your bank, and they won’t lend you the money. It’s a major problem, but your mentor has a contact that specializes in lending for foreclosures. These are the contacts that will benefit you the most.
Mentors also have the connections you need to work through legal issues, get cash or even find partners. Some mentors will also invest with their students, offering a unique partnership with some investments.
Large-scale investments may also be possible thanks to a mentor.
So, before you get into flipping houses and making potential mistakes along the way, at least listen to a trusted mentor who might be able to help you.