Property Investment Advice – Mentoring?

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Property Investment Advice

 

Should I pay for Property Investment Advice?

property investment adviceIs mentoring worth the cost?

Rather than just ramble on about what I “reckon” I thought I would post a follow-up to my article on  property investment advice dealing with real questions about mentoring.

I like questions because I know that people have a specific need. I have spent over 20 years getting it all wrong for the most part, so when someone asks what finally went right for me I love to share. Perhaps I can help someone save a bit of time and learn from my mistakes.

 

A question (or four) from a reader asking about RESULTS Mentoring

“I like the way you’ve crunched the numbers on the properties on your blog – you might say an experienced investor should be able to do this easily. I’m curious though – after the RESULTs course in the first year, were you able to crunch numbers better and do better analysis of properties, so have you always been good with numbers given that you’ve been an investor in property since your late teens or just naturally good with numbers …?”

And my response

After 2 years I was able to go and find deals and complete them myself with a high level of confidence. My second and third buying trips to NZ were not done with Results. If for example I decided I wanted to push ahead with a new purchase and a new strategy I would not hesitate to beg to be let back into the program to get that support. I would need my head read not to. 

 

“I’m curious why you signed up for the RESULTs graduate program (for year 2) rather than stop the program after the first year? It is because you feel that you needed the mentoring to continue as you were in the middle of a project?”

It took me most of the first year of Results Mentoring to really decide what I wanted to do. I hope this makes sense. Initially I thought I was going to buy a house and sell off the backyard. After all, at the time it seemed everyone was doing it in my area. However when I looked at numbers in the deals I could not see how it could be done for a profit.

Eventually I thought that positive cashflow property was the way to go for me because I could actually see how I might be able to do it!

I was more than happy to keep getting mentoring support because I needed it to push me forward.I really just needed someone to say, yes, those numbers are right. I’ve done a deal juts like that up the road and it worked out fine for me. Here’s how you should approach the agent etc.

“Did the RESULTs mentors teach the more complex strategies like subdivisions and development well, in your opinion?”

The guys are really good at the other stuff like development etc but I wasn’t ready to do it myself. Leon is a real expert and a must have for bigger projects. He came and looked at block with my wife and I, and it’s having access to that kind of assistance that would tip the balance in your favour.

” Did you recently attend one of their roadshows around Australia? They got John Lindeman (former Head of Research at Residex) to speak at the workshop. I found his ideas very interesting. They say that John has predicted boom markets with over 95% accuracy. What do you think of John’s work …?”

John’s stuff about applying a forensic approach to property data is really exciting and beyond what was available in my time. I’m pretty tempted to buy his Boom product just for the sake of getting ahead of the curve, but realistically unless I have funds for another project I may just have to wait.

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Some further questions from another reader, Chris:

“I understand you have completed the Results Mentoring course. After much deliberation, I signed up for the coming year’s program and have been talking with the mentors as part of the early bird component of the course….

I’m wondering how you worked with the mentors over the 12 months to get the best from the program. Did you purchase any properties during the program and are you happy with the strategies you determined during the program? I currently own 4 properties – 1 white elephant and 3 CF+ve. I’m looking to investigate other investing strategies and have a mentor check my thinking.

I would be interested in comments/advice you could provide about how you approached the course.”

My Response

I think you have made a wise decision to enrol. Your investment will not be wasted if you stick through the program. As you already have a portfolio up and running you are not a newbie and will be able to leverage your current experience.

… Initially I thought I was going to change the world in the first 6 months and at times did lose a little momentum and vision. It took me longer to work out what I was going to actually do than I thought.

My initial plan was to buy and subdivide off a backyard/ live in the reno/ quick cash etc. This was all the rage in my suburb at the time and I thought if I just get some expert help I’ll be off and running…I couldn’t make the numbers work for me and spent a long time chasing deals that went nowhere.

By the end of the 1st year I had ended up buying CF+ properties in NZ. This was not what I had initially planned to do! It can take some time to work through your goals and then make decisions that will help you achieve them. Sometimes this is not ’fun’ and doesn’t feel like you’re taking a lot of ’action’.

In the end I stayed on for a second year and purchased at total of 7 properties in NZ. By the end I was confident to rinse and repeat so I didn’t stay in the program.

If I decide to do a different strategy or start buying in a different area or under different conditions I’ve already decided I will re-join RESULTS.

I hope this helps a little. We are all coming from a different base and have different needs but having someone along for the ride who’d already done it before was of greater worth than gold in my opinion.

Chris’s response

Many thanks for your comments … You have provided some great insight into the program and how you worked with the program. I think (like many people probably) that I will be somewhat impatient to get into the strategies (especially with some IPs under my belt so I can look into how my current IPs will work into my new strategies/approach). I’m also interested in the NZ investing (as a CF +ve strategy, not necessarily as an ’overseas investment’) and will look into NZ/CF+ve strategies to supplement my other strategies – I’m thinking about a multi-pronged approach.

I had a great discussion with Brendan today and he led me through his approach. I like his broad approach and gives the occasional proverbial kick when necessary which will hopefully keep my momentum.

and then…

Hi Dwight

Yep, certainly understand everyone’s enthusiasm that will soon wane if their wishes aren’t met quickly! It’s good to catch up with graduates to understand the workings so I can manage my expectations and the time requirements etc. I like your comment about training to think in a certain way – I said on my introductory page to the mentors that I wanted them to challenge my thinking, so I can understand what works and what doesn’t and why.

Pretty keen to get into it after my first phone call with Brendon (just wish that call was 4 months ago!). Onwards and upwards.

 

So it’s pretty clear that from my past experience and the experience of current members that if you have a serious desire to be a professional  property investor but need serious advice then getting a mentor can be invaluable.

Until next time,

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1 Comment

  • Hi Dwight, my wife & I are currently enrolled in the Results course and I have to say for someone who is well advanced in their property journey that it does not represent good value.
    If you are a cashed up newbie then the course is excellent. Because it is a a one size fits all course experienced students have to pay and sit through all the beginer stuff. So we are paying for a mentor to tell us what we already know.

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