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How to Find a Real Estate Investing Mentor—the Basics

How to Find a Real Estate Investing Mentor—the Basics

by Brett Snodgrass | BiggerPockets.com

Finding the right mentor can make all of the difference in the world for your real estate investing career. However, there is a right and a wrong way to go about finding one.
In this blog post, I want to share a few best practices for how to find and approach a real estate mentor.

How to Find a Seasoned Real Estate Mentor

The best way to find a seasoned investor in your area is to simply go to where investors hangout.
My first suggestion is to start your search on BiggerPockets. This site is your one-stop shop for everything real estate, and it is an amazing way to network with other investors.
When searching for investors on BiggerPockets, I suggest using keyword alerts to find local investors in your area.
For example, if you’re based out of Indianapolis, your keyword alerts can include “Indianapolis,” “investor,” “Indianapolis wholesaling,” “Indianapolis wholesaler,” etc. Once you have your keyword alerts set, you will receive an email each time your keywords are used in a post. This will allow you to keep an eye on those who post frequently using your keywords.
I also recommend attending your local Real Estate Investors Association (REIA) AIACLUB.COM meeting, because a lot of investors hang out there, and it’s an amazing way to connect with local investors in your market.
If you’re a licensed agent and have access to the Multiple Listing Service(MLS), you can search for cash buyers who have purchase properties in your market in the past six months.
You can also utilize Meetup. There are tons of real estate investor meetings you can attend and connect with investors that way.
So now that you know where to find investors, I bet you’re wondering, “Well, how do I approach a seasoned investor?”
Here’s my advice.

Don’t Ask to be Mentored

At my wholesaling company, we receive lots of requests each week from people who want us to mentor them. But that’s not the way you want to go about it.
Think about it: When you find someone who you’re interested in dating or potentially marrying, do you approach them by immediately asking them to marry you?
No way! That would be so weird! The first time you meet someone, you don’t ask them to marry you. You get to know them first. You foster a relationship, and then maybe one day you pop the big question.
The same thing follows for approaching a mentor.

It All Boils Down to Relationship

Real estate is all about relationships, and you need to make sure the both of you fit well together. The hope is that you will mutually benefit from the relationship.
Once your potential mentor has been identified, invite him or her out for coffee or lunch, and spend time developing a relationship. Truly get to know one another.
In your first meeting, I recommend asking these questions:
  • What are your core values?
  • In life, what are some things you’re passionate about?
  • What kind of investing do you do? And how do you do it?
  • What would be your suggestions for me, as a complete beginner?
  • Do you partner on deals on a case-by-case basis?

Discover Their Needs

Real estate investors are extremely busy people. They already have a lot on their plates. If they decide to take on a mentee, they will be giving up time they may otherwise put into their own business, their team, or their family. Being a mentor is a time commitment.
Give your would-be mentor a reason to take time to invest in you.

If I were a newbie investor, here’s what I would do

When approaching a potential mentor, I would take the word “mentor” out of my vocabulary. I’d ask one of these two questions instead:
“How can I bring you value?”
“Hey, is there anything I can help you out with?”
This approach is more inviting because it’s not self-centered. Instead, it’s a great way to build a relationship with an experienced wholesaler like myself by bringing value to the investor.
You can do this by figuring out a way to get hired at your would-be mentor’s company. Even if they’re not hiring, find a way to justify a job.
If your potential mentor runs a small business, find areas of opportunity where their business is lacking. Offer to help in that area. Offer to drive for dollars, clean offices, take motivated-seller calls, manage properties, scope land—whatever it is, your communications should come across as simply eager to help and learn.

Create and Add Value

Look for opportunities to create and add value somehow. If you see the opportunity, you can run after it.
When I was working for the timber guy, I didn’t know how to operate the machinery. I knew I couldn’t add value in that area, but I also knew that any entrepreneur in the real estate business needs deals. Investors can never have enough deals, because that’s how they make money. So I added value by helping my mentor find land deals, and the deals were a huge value to him.

 

Healthy and Wealthy

Healthy and Wealthy: How Planning Can Boost Your Well-Being

– July 28, 2016

Key Points

  • Researchers have identified interesting links between health and wealth that underscore the benefits of planning.
  • Even if you’re not a born planner, you can still take certain steps to help reach your goals.
  • We discuss four strategies to help you start planning now.
Health and wealth are often related. That may sound intuitive, but the interconnections between the two may surprise you. They can also help shed light on some of the key challenges of retirement planning.
We know that health woes can hurt your finances. For example, a prolonged illness can lead to high medical bills and keep you from working. Researchers have also shown that financial troubles can be bad for your physical health, causing everything from stress, depression and insomnia to headaches, high blood pressure and eating disorders.1
There are other connections, as well. A growing body of research has revealed that efforts to preserve your physical and financial health can be hindered by similar behavioral obstacles. Fortunately, it’s also turning up some intriguing options for managing this behavior.
Here, we’ll take a closer look at some insights from the world of behavioral research and discuss how investors can incorporate them into their retirement planning.

Preserving well-being

Most people may know—intellectually, at least—what habits tend to encourage success. But getting into these habits can occasionally prove challenging.
For example, exercising regularly is generally considered to be part of a healthy lifestyle. But that doesn’t make it any easier to go for an early-morning jog. So it goes with working toward a financial goal, such as saving for retirement. We may appreciate how important it is to save and invest, but it’s not always easy to make the right financial call. So how do we make it easier to go from understanding what we should do to actually doing it?

A propensity to plan

Researchers have studied why otherwise similar households appear to accumulate different amounts of wealth over time and identified one major factor: planning. In fact, one study found that people who plan—that is, people who determine how much money they’ll need in retirement and create a savings plan to get there—at the median accumulate three times the amount of wealth that non-planners do.2
Unfortunately, not everyone is a planner. In fact, some people appear to have a natural “propensity to plan,” and researchers have shown that such people are typically better at controlling their spending and reaching their financial goals.3
They also tend, on average, to make healthier choices in their day-to-day lives. One study asked survey respondents about a variety of health- and finance-related planning topics—for example, “do you eat a healthy breakfast every day” and “do you have a monthly budget and do you tend to stick to it”—and found that planners do well at both.4
But what if you don’t have that propensity?

Forming habits

Wanting to accomplish a given task—whether it’s working out or saving enough for retirement—doesn’t guarantee that you will. Sometimes other habits get in the way.
The good news is that researchers have identified some planning tools you can use to change certain kinds of unhelpful behavior.5 Broadly, the elements of an effective plan include:
  • Intent. This is a simple matter of wanting to achieve a given goal.
  • Action steps. This is where you plan when, where and how you take certain steps toward accomplishing your goal. If your goal is to lose weight, this is where you might decide how often you’ll work out each week. If you’re saving for retirement, you might identify how much you want to save and how you’ll invest.
  • Coping planning. This is where you try to anticipate the obstacles you might face while carrying out your action steps, and make subsidiary plans to deal with them so you can stay focused. It’s where you ask: What if things go wrong? What if you don’t want to exercise? Or what if you’d rather go to France than save for retirement, or the market falls and your plan hits the skids? It helps to create supporting plans, in advance, to avoid distraction and keep you focused on your action steps.
How effective is this kind of planning structure? One study from the world of health research found that cardiac rehabilitation patients were better able to stick to exercise regimes as part of their treatment if they planned out action steps and developed coping plans.6 Could this be another area where health and wealth are intertwined?

What can you do now?

  1. Try to see financial planning in the same light as other areas of your personal life. Do you take annual vacations to improve your mental well-being and family relationships? Do you walk several times a week to improve physical health? If so, try to think about financial planning in a similar way. For example, in the same way you would plan a vacation or set a weight-loss goal, try to identify what you need to do to retire comfortably. Identify action steps like contributing to an employer-sponsored retirement plan or an IRA. And schedule an annual check-up with a financial advisor.
  2. Take small steps. Most people don’t suddenly decide to run a marathon on the day of the race. They generally do a lot of training first, building up their stamina and strength over time using a series of action steps. Building wealth can work the same way. Take small steps. Review your contributions to your retirement accounts, talk to a financial advisor about your goals and budget, total your expenses for the last year to see if they match your income, and determine if you have room to save more.
  3. Make it easyOnce you have a plan, consider taking steps to help you cope with potential hurdles. Decide on an amount that you can afford to save from your paycheck. Then set up automatic deposits and investment plans. Again, if you need help, talk to an advisor. If you’re already retired and living off savings, visit an advisor annually to determine an appropriate annual spending rate—and stick with it. Ask your advisor to help set up automatic withdrawals from your savings based on your plan. And then live your life, updating your plan annually rather than daily.
  4. Don’t wait to get started. You have to start somewhere. You can always find ways to exercise or save more in the future. Don’t let a modest beginning keep you from starting. Write out your goals and then talk with an advisor about how best to achieve them. If you want to build wealth, you’ll have to redirect some of the income you earn today to invest it to spend another day.  The rest is details.
How much are you spending? How much can you save? How are you investing?  If you have a detailed plan, that’s great. If you don’t, talk with an advisor and start one now.
Health and wealth interact in interesting ways. The benefits of developing and sticking with a plan—whether you’re exercising or saving money—are clear. And the research appears to suggest that health-promoting habits and good financial practices tend to reinforce one another. So why delay? Talk with an advisor, and start now.
1Barbara O’Neill, Benoit Sorhaindo, Jing Jian Xiao, and E. Thomas Garman, “Negative Health Effects of Financial Stress,” Consumer Interests Annual, 2005.
2Annamaria Lusardi and Olivia S. Mitchell, “Financial Literacy and Planning: Implications for Retirement Wellbeing,” NBER Working Paper Series, 2011.
3John Ameriks, Andrew Caplin, and John Leahy, “Wealth Accumulation and the Propensity to Plan,” The Quarterly Journal of Economics, 2003.
4Barbara O’Neill, Jing Jian Xiao and Karen M. Ensle, “Propensity to Plan: A Key to Health and Wealth,” Journal of Financial Planning, 3/2016.
5Peter M. Gollwitzer and Paschal Sheeran, “Implementation Intentions and Goal Achievement: A Meta-Analysis of Effects and Processes,” Advances in Experimental Social Psychology, 2006.
6Urte Scholz, Falko F. Sniehotta, Silke Burkert, Ralf Schwarzer, “Increasing Physical Exercise Levels: Age-Specific Benefits of Planning,” Journal of Aging and Health, 2007.

AIA LADIES NIGHT

AIA LADIES NIGHT
Monday night 5:30 at
Vestavia Chamber Conference room

Vestavia Chamber conference room will host the “AIA LADIES Meeting” on this Monday night @ 1975 MerryVale Road Vestavia Hills 35216. It is actually right on 31 hwy, but the turn in is merryvale rd. It is the monthly Meet Up meeting for July! My cell number is below if you get turned around. Be there at 5:30
Bring a small amount of your favorite dessert for tasting, and coffee or water, will be supplied. Plans are to do one of these ladies meetings per quarter if you all want to. I want a couple of ladies to step up, and lead this effort to involve all AIA ladies. AIA will do our best to meet your needs, and concerns, so you can do MORE Real Estate Investing. That is what this is all about plus networking. Let me hear your needs and concerns- contractors is likely #1, and can plan for in the next meeting.

I will speak a bit Monday on “Why Real Estate Investing compared to  Stock Market Investing is safer, more consistent, with great tax advantages for you if needed, with virtually no downside risk, that Tenants are not willing to pay for?”  Building Wealth over time with Real Estate for anyone who likes the idea of Real Estate, can be a terrific retirement plan. I have done both since 1975, plus some other things, that may help you in your planning. If this subject is currently something hot with you and your mate, that he needs to hear, then bring him, and we will do our best to get him in the room or can meet with both later 1 on 1. Bring calculators, and I will have TWO very key Tax Forms for you to learn & Master. Maybe even show briefly, how I built my own Banking System for real estate that I have never gotten turned down on for a loan, and how I funded  my personal Real Estate investing for 35 years. For me, and to my knowledge, there is no better Financial Plan than what I will show you Monday night (free)- if you are ok with real estate?

Sincerely,

Jack Eyer CSCS
205-586-4260 cell
AIA CHAIRMAN

4 Monthly MEETINGS FOR AIA MEMBERS:

4 Monthly MEETINGS FOR AIA MEMBERS: 

1st Tuesday : OF EACH MONTH –  BREAKFAST at
EDGARS-COLONADE 8am  Contact : Jeinsurance@aol.com
“PRIVATE LENDING”- get high interest with your CD money
or Retirement IRA, and supply Investors with needed funding.
BEGINS June 2nd..

2nd Tuesday : AIA LUNCHEON  1:15 pm @ Sol Azteca
Come and share your “I HAVE and I WANT”.

3rd Monday: AIA MEETUP for Eastern AIA Members
at 5:30 Jim Huggins Realty – Leeds. guests free.
Contact : KATHA  369-2250. or  Jim.

4th Monday: MAIN MEETING at 5:30pm.
Vendor & Networking Hour then Local or National
Speaker.

Next Meeting

JULY AIA MEETING will be education on Financial Markets to help you grow and preserve your financial resources for a better way of life. Either Charles Schwab or Fidelity Investments will give us two hours on the financial marketplace going forward for second half of the year.
Real Estate will be included in this review.
Bring a Friend and qualify for a drawing to win a prize.
NEXT MEETING DATE IS  JULY 28TH..
Seewww.aiaclub.com  for great savings from our Sponsors & Vendors.

July 4 – Archie

Archie

JULY 4th 2014  ARCHIE PHILLIPS & DOYLE ROSSER founders of AIA Alabama Real Estate Investors Association 35 years ago in 1978, AIA members enjoyed Archies BBQ at his Lake in Columbiana today. See Archies and his wifes photo – he is 78 yrs. old and recovering from sickness.  These two individuals mean a lot to AIA and we thank them for all the work they have done on behalf of the association and the countless number of investors they have educated, mentored and coached to a better way of life through Real Estate Investing. Six County Commissioners, and Congress individuals showed up today to honor ARCHIE. Archie serves today as our Governmental Affairs Chairperson- he is by far our most politically connected person and influence! His son Bubba serves along side of him plus other individuals.