If you’re new to the real estate investing world and feel overwhelmed by all that there is to learn and by the risks you might find along the way, finding an experienced real estate mentor to guide you through the process can help you move forward with confidence.
While finding a seasoned investor to be your real estate mentor is certainly no easy feat, the benefits of having someone to turn to when you’re faced with difficult decisions cannot be underestimated.
Figures show that the majority of first-time investors will fail within their first year, and one of the most common reasons for their downfall is making expensive mistakes early on. Having an experienced mentor by your side can help you make better choices with your very first investments or scale your business for reliable passive income, setting you up for future success and a sustainable portfolio — which is exactly what our training program is all about!
So, if you’ve been sitting on a hefty savings fund and looking for the best way to invest your hard-earned $50k in real estate, here are the best questions you should ask your mentor, plus a few questions you should avoid asking altogether!
Questions to Ask a Real Estate Investing Mentor
Before we dive into the most productive questions you should ask your real estate investor mentor, let’s first see why it’s so important to have someone to guide you through the process and what, exactly, a real estate mentorship can do for you.
In the golden age of the Internet, there’s certainly no shortage of free information available online for those willing to look— but that doesn’t mean that all the information you find online is reliable or up to date!
Low-quality sources and so-called experts who only want to prey on the inexperienced are common. Finding an honest, seasoned investor willing to let you in their real estate mentor program is the best way to avoid business-ruining mistakes.
On top of that, finding an experienced investor to look up to can also help those who have been investing in real estate for a while to level up their business: There’s nothing like a fully personalized approach to investing to bring a new wave of creativity to your real estate business!
So, what questions should you ask a real estate investor mentor if you’re strapped for time or just want to get the best advice as soon as possible?
What are your credentials?
The online mentoring world is filled with coaches who are not walking their talk, and the real estate investing industry is sadly no exception.
One tell-tale sign of a real estate coach not practicing what they preach is the fact they stopped investing themselves and put all their resources into coaching others.
While many full-time mentors are accomplished investors who are only looking to help others achieve the same success they have, there are just as many professionals who have abandoned investing altogether due to unsuccessful investments.
So, what you’re going to be asking for first are verifiable references: Who has worked with them before and what are some of the best properties in their portfolio?
A reputable mentor won’t have any issues sharing their past with you, and they’ll be able to provide you with several mentee references as well as portfolio credentials to ease your concerns.
What are the worst mistakes you’ve made early on?
One of the most common mistakes mentees ask when meeting with their investing mentor for the first time is asking for a roadmap to success, enquiring about the mentor’s biggest wins rather than asking about their biggest failures.
The reason why you should make sure to ask about their worst investment mistakes as a beginner is that there is much more to learn from one mistake than there is to learn from one’s successes.
You’ll never be able to replicate the exact situation like the one that allowed for their successes, but you can use their stories as a cautionary tale of what not to do under any circumstance.
What investment strategy has worked best for you?
Whether you’re just starting out or looking for better strategies to scale your business, asking your mentor about their best strategies will help you put you on the right path.
If their best strategy mirrors what you’ve been doing or planning to do with your financing and properties, then your student-teacher relationship truly is a match made in heaven!
So, before you continue on with your mentorship, make sure to ask: Do they prefer focusing on residential properties or commercial ones? Short-term or long-term, multi-family or single-family properties?
You might also want to ask whether they’ve had more success with investing in rental units or flipping fixer-upper properties, so you can make an informed choice on whether you share the same views and goals… or whether you want to change your approach to fit theirs altogether!
What should you look for in an investment property tour?
When you don’t have much time to discuss specific investment opportunities or even ask the pandora-box question of “what you should be looking for in a property”, ask your real estate mentor for tips on how to spot a bad deal during a property tour.
This will give you plenty of practical insights on what to look out for when assessing a prospective investment, including how to spot a profitable fixer-upper and avoid projects that will eat into your profits.
Their expert eye can tell what property features are worth renovating and what properties should be left alone altogether. So ask your mentor to take you on a virtual tour and explain what factors would make them back out of the deal.
It will inform your choices going forward!
How do you finance your properties?
Finally, you’ll want to ask about their financing strategy as the last practical piece of advice you can incorporate into your business plan.
Finding a reliable way to finance your investments is often the hardest part of starting out in the real estate investing industry, and even more experienced investors can often fall short when it comes to securing investment cash.
That’s why asking your mentor for their financing habits can be so crucial for success: You can review your process (mortgage loans, equity, etc.) and compare its pros and cons against your mentor’s tried-and-tested strategy, clearing up doubts on one of the hardest investment steps to master!
Questions NOT to Ask a Real Estate Investor Mentor
Now, knowing what not to ask your mentor is going to be just as useful as knowing what ques