Real estate investing has proven to be one of the best vehicles for wealth creation over the last century. There is an undeniable power in cash flow, mixed with appreciation, using leverage, all incentivized with enticing tax benefits. On top of that, there are countless strategies for investing such as long-term rentals, short-term rentals, fix and flip, and syndication, to name a few. The allure of real estate riches mixed with a plethora of strategies is a combination that encourages many investors to seek guidance through a real estate coach.
Some investors look for a real estate coach starting out, while others look for assistance when they feel they have plateaued and need help getting to the next level. When I started investing, I was determined to learn everything I could, especially through the free or low-cost resources available. Why would I hire a coach when there were so many free resources available?
I read books, listened to podcasts, browsed articles and forums, and attended several events. Through these steps, I managed to acquire a small multifamily portfolio, but not enough passive income to create financial freedom or even cover my living expenses. When my employer went bankrupt unexpectedly, I realized the flaws in my approach. My strategy was building equity but my acquisition strategy was limited by the amount of capital I had personally saved in the bank.
To truly grow and get on the path of financial freedom, I needed to work with other investors, but investing with my money was one thing. Investing with other people’s money was more daunting. I was afraid I would make a mistake and because of this, I knew I needed help. I needed to hire a coach.
Hiring a real estate coach can be a catalyst for growth, allowing you to curtail the mistakes and pitfalls that derail so many real estate dreams. However, hiring the wrong coach can set you back or even leave you in a worse spot than where you started.
I met Joe Fairless towards the beginning of his real estate journey and hired him to coach me on apartment investing and real estate syndications. He has since built a portfolio worth over $2 billion. With his guidance, I’ve been able to scale my own portfolio and partner with others on over $125 million worth of real estate. Today, I continue to partner with investors on apartment investments and get to coach others on syndications by sharing proven systems, strategies, and tactics to scale a portfolio.
I wish I could tell you I engaged in a deep due diligence process and KNEW Joe was going to scale a huge portfolio and be a great mentor. I didn’t. We had lunch, and he seemed cool enough. We chatted about real estate and eventually, he told me about his coaching program. We bonded over our shared experience as advertising executives. He was living in Cincinnati, where my wife is from. I liked him and I thought he could help me.
I had wasted money on plenty of other things in the past, so if this didn’t pan out, I figured I’d at least learn a thing or two about raising capital and deal structures. Months earlier, my wife and I had considered investing around $35,000 into a coaching program from a TV guru. However, when they told people to call their credit card companies and ask for an increase in their limit to pay for the program, we escaped to the nearest exit.
Unfortunately, a small number of unsavory real estate coaches have manifested an industry-wide reputation that rivals the disdain reserved for slumlords. Because of this, determining who to hire as a real estate coach becomes more challenging. Hiring the right real estate coach was pivotal in my growth, but there was a certain amount of luck involved in my process. If I were taking a more calculated approach, I would share these four signs to watch out for.
The best way to anticipate what a coach can do for you is to learn what they have done for others. In any business references, referrals, and testimonials carry a lot of credibility. We want to know if someone else has used a product or service and has been satisfied with the results. While each investor’s results may vary, we want to ensure that we are selecting a coach with a demonstrated ability to help us get to where we want to go.
Yes, everyone starts somewhere, but you want a coach who has already helped others achieve their investing goals. Your coach should be able to provide referrals and testimonials for other clients. If you are considering working with someone who does not have an established track record, they should at least be able to demonstrate the knowledge, capability, and plan of action to help you succeed.
There’s an adage that skeptical real estate investors reference: “Those who can, do. Those who can’t, teach.” While there may be some truth to the statement, there are many reasons that “those who can” decide to teach. Yes, it’s for the additional money, but it could also be greater access to deals, capital, or even potential partnerships.
With that noted, your coach should be active in the strategy they teach. While some timeless strategies and concepts date back decades, efficient and effective tactics emerge and evolve with market conditions and technological advances. The market is ever-changing and you want direction from someone who can keep you current with the best strategies to win in today’s economic conditions.
This may be a personal preference, but I believe it’s important for coaches to have coaches. There is an antiquated perception that your coach should be the know-it-all expert and therefore shouldn’t need a coach. However, the most successful people I know in any field have coaches and advisors that keep them sharp. Having a coach (or coaches) shows they value growth and seek out new strategies and ideas to grow their own business. This will arm them with more and better tools, tips, and strategies to serve you.
Mastery is a journey, not a destination, and I would take precautions working with anyone who believes they have learned everything there is to know. A coach without a coach may just be in it for the money or teaching outdated strategies and tactics. You want a coach as committed to your growth and personal development as they are their own.
This is definitely a personal preference. While your coach doesn’t need to be your new best friend, you should have some level of connection. Despite being “good people,” some folks are simply not your vibe. No matter how knowledgeable or effective they are, you just may not connect with them. It’s okay and completely normal. You should seek out a coach that you feel comfortable with as long as they meet the other criteria.
Someone’s vibe or flavor is highly subjective, but there are a few things you should watch out for. Someone who is highly opinionated or political can rub folks the wrong way. While you may not find a coach with all your preferences, you should find someone who shares your core values, principles, and commitment to helping you break through as an investor.
Looking out for these red flags will help you weed out would-be charlatans and find a coach who can help you scale your portfolio. And if anyone tells you to increase your credit card limits or sell Grandma’s car to pay for their services — run away fast.
About the Author:
John Casmon has helped families invest passively in over $100 million worth of apartments. He is also the host of the #1 rated multifamily podcast, Multifamily Insights. Prior to multifamily, John was a marketing executive overseeing campaigns for Buick, Nike, Coors Light, and Mtn Dew: casmoncapital.com
Disclaimer:
The views and opinions expressed in this blog post are provided for informational purposes only and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.