Following strategies and systems that have been proven to succeed is a safe way of creating a robust real estate portfolio. Whether an investor is pursuing buy, fix and flip deals or they’re looking to become long-term landlords, there is a set of processes to learn and follow.
“If you don’t follow a proven system, you are going in blind,” says Nam Ratna of Go Get It Real Estate. “A lot of people purchase a property without even determining properly what the after repair value is by studying comparables and properly budgeting for repairs. It’s a grave mistake and something that costs investors a lot of money.”
As well as teaching investors strategies for analyzing properties, a leading mentorship program will also prepare people for all of the issues that come into play that are often forgotten, such as permits, behind the wall issues, contractor issues, and project management blunder stories.
“A lot of it boils down to the price they bought it for, which is why your purchase price is where you make all of your money,” Ratna says. “If you understand the need to purchase 60 – 70 % below the market value to make a profit, you can generally make a solid return on an investment property. Back in the day, you could cut corners, put up a bad place up for sale and people would buy it. You cannot do that anymore if you want to be in business for a long period of time.”
Learning modern marketing skills is another area that leading mentorships programs help investors. With most of the bargains only available before a property hits MLS, investors needs to be able to get in front of people before opportunities hit the market.
“Consistency with marketing is crucial. 80% of transactions happen between the fifth and twelfth contact but very low percentage of people even make the second phone call or send out the second letter,” Ratna says. “You need to be able to track and analyze what you are doing and then continually adjust.”
Download this whitepaper to find out more about the impact that mentoring in real estate can have