At the start of their professions both real estate investors seem to be doing similar things.
They learn about the market, recognize how to use different financial metrics to identify rental properties with good potential, and build a system to hold the deal in place. After a short amount of time, however, only a number of investors are rising above the others while leaving everyone else behind.
There may be a number of whys and wherefores for rental property investors are more effective than others.
In this article, we will clarify why getting a real estate mentor is so essential, what you can and should not expect from a mentor, as well as how to find and maintain a real estate mentor that is perfect for you.
Who is a property adviser or mentor?
Think of a real estate coach as a consultant or tutor. Usually, though not always, a mentor is older than a student– often known as a mentee.
A good property mentor will provide suggestions, input and direction. But don't assume a guide to teach you what they know about real estate and industry. Mentoring is a mechanism that inevitably evolves and takes place over the longer run.
Realistic expectations for the partnership with your real estate mentor
- Your mentor's basic principles should closely align with your own.
- Mentor and mentee should have common passions in life and industry, since investing in real estate is always interconnected.
- Investment approach and style will be the same, otherwise the feedback and suggestions you get won't be nearly as helpful.
- Give your future mentor a good incentive to spend their time and experience with you, because the best mentors are extremely busy with a successful real estate investment company.
- Expect a mentor partnership to provide value for both parties in one way or another, creating a win-win situation for both mentor and mentee.
Why do you need a mentor?
Now that we know exactly what to expect and what not to expect from a real estate mentor, let's take a breather and ask why you want to be coached. Start by asking yourselves a few questions:
Why do you buy real estate in the first place?
It could be to flip properties or wholesale, or to create a working capital portfolio with investment income, or to engage in long distance rental land.
There is no correct or wrong answer to this issue. But make sure that you understand why you're engaging in the way you do, so you can look for a mentor who can give you what you need.
What kind of performance do you want your real estate coach to have?
Success is a relative word, which has different meanings to different individuals.
That being said, it's vital that you're happy with your advisor's level of performance, because they're somebody you're going to imitate, and they're going to set the bar for your own potential growth over the coming years. When you're not 100% sure that your mentor will help you get where you want to be, you're better off going elsewhere than wasting your time and theirs.
What kind of a risk taker are you?
Almost every investing action comes with a certain level of risk and investing in rental property will be no exception. The secret to effective investment is to find ways to reduce risk while optimizing reward.
Your coach is expected to have the same individual risk attitude as you do.