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SHOW NOTES FOR EPISODE 069 – FINDING A GOOD MENTOR
One of the top 4 things you need to do if you want to in in real estate investing is to get a mentor. In this episode, we talk with Paul Moore, co-founder of Wellings Capital, entrepreneur and commercial real estate investor and developer, who has been both mentor and mentee. He shares practical advice on the importance of having a mentor how to go about finding a mentor.
What You Will Learn
- What is the sentence you should always say to a potential mentor?
- How do you define “a mentor?”
- The right mentorship can give you favor in the eyes of some banks
- What mentor is and what a mentor is not
- How to find a mentor
- Where to find a mentor
- A trick that can help you stand out with a potential mentor
About Our Guest
Paul Moore
Paul, who was previously interviewed on the Old Dawg’s REI Network episode #055, is co-founder of Wellings Capital, a commercial multifamily investment firm and the author of The Perfect Investment – Create Enduring Wealth from the Historic Shift to Multifamily Housing (2016). After graduating with an engineering degree and then an MBA from Ohio State, Paul started on the management development track at Ford Motor Company in Detroit. After five years, he departed to start a staffing company with a partner. They sold it to a publicly traded firm five years later. Along the way, Paul was Finalist for Ernst & Young’s Michigan Entrepreneur of the Year two years straight. Paul later entered the real estate sector, where he completed over 85 real estate investments and exits, appeared on an HGTV Special Real Estate episode, rehabbed and managed rental properties, built a number of new homes, developed a waterfront subdivision, and started two successful online real estate marketing firms. Three successful developments, including assisting with development of a Hyatt Hotel and a multifamily housing project, led him into this arena. Paul is married with four children.
Introduction
In episode #006, “How to Get Started in Real Estate Investing,” I discussed 4 things you need to do to succeed as a real estate investor.
- Get Educated
- Find a Mentor
- Write a Plan
- Take Action
Finding a mentor, however, can be one of the most challenging tasks to achieve as a newbie investor. In fact, I listed “not finding a mentor earlier” as one of the top 5 mistakes I have made in real estate investing in my recent Fun Facts Friday podcast entitled “My 5 Biggest Real Estate Investing Mistakes… So Far” (episode #064).
Today, our guest Paul Moore will be to zeroing in on number task #2 –“Find a Mentor.” Paul has a depth of experience having been both a mentor and a mentee and will share how he found a mentor for himself and what he looks for in mentees, when he is the mentor.
Definition of a Mentor
Paul defines a mentor as “an experienced person who you can really trust to not only take good care of you but who also has strong business ethics and morals. A mentor is also someone you want to emulate and be like.”
Seeking Mentors
- When he worked at Ford Motor Company in Detroit 25 years ago he knew someone who had the same entrepreneurial drive he had Before his friend left Ford, Paul told him something that anyone seeking an entrepreneur should say (to a person you would want to be your potential mentor) “If there’s ever anything I can do for you, just let me know.”
- One day, his friend said there was actually something Paul could do and Paul partnered with him on a new business. Paul left Ford to work with his mentor as a 40% partner in a new business and opened a branch office for the new company
- He did that for about 5 years, eventually increasing his ownership to 60%
- They sold the company five years later for $2.1 million and Paul moved to Virginia to start real estate investing
- Later, he met a guy who he asked to teach Paul and his son how to bow hunt. Found out the guy did fix n’ flips and buy n’ holds and he help Paul get started investing
- Stayed in touch as they went to auctions and bought their first properties
- 12 years later, in his 50’s, Paul moved on to multifamily investing
- Paid a mentor to learn multifamily
- The mentorship company provided detailed classes training, legal forms, contacts, and hand holding through acquisition and asset management
- The mentoring company owns 1500 units
- Lenders value this experience and being a student of the mentoring company actually helps when applying for large loans
A Mentor is Not…
- A parent
- Not a guru – with predefined program, lots of books, etc. with lots of upsales but produces no real fruit
- More than just a teacher
A Mentor Is…
- Satisfied when their students are successful
- Looking for more than just money
- Looking for honor (side note: if you recognize this and have a way to bring your honor to your mentor, they will be more interested in mentoring you)
How do You Find a Mentor?
- Find someone who is busy and successful who needs to conserve their time and wants to get more done in the same amount of hours
- Don’t be focused on what the mentor can do for you – you need to focus on what value you can bring to them
- Don’t give the mentor a carrot saying once you learn everything, you will bring them all kinds of deals
- If you have any skill that the mentor needs, use that skill to serve your mentor
- Paul had one potential mentee offer to make him a meal to honor him and asked Paul if he could just hang out and help Paul with odd jobs at the office
- He later started earning a salary and continues to be mentored and is on his way to a new career
- All because he had the courage to ask
Where Would You Find a Mentor?
- BiggerPockets.com
- Local successful people in your community (your church, etc.)
- REI meetings or other real estate meet-ups
- Meet people, ask them to coffee
If You Want to Go Through a Mentorship Company, What Should You Pay?
- Had a friend who went to free week-end seminar, was sold more and more and ended up paying upwards of $30K for a lot of training and never bought a property
- You need to be wise before you write a check
- You need to know the whole deal up-front
- What are you really going to get and how involved will they be with your first deal
- He paid $25K for his and received
- No additional charges
- One year of intense training
- 3 or 4 on-site visits
- Lots of meals
- All the forms
- Lots of hand-holding
- All the contacts
- Continued support indefinitely
- ROI should be evaluated with the depth of your passion and the certainty that you want to do it and the upside opportunity
What if the Mentorship Just Doesn’t Work Out or Doesn’t Sound Right?
- In 2010, Paul was investing in oil and gas and met a guy in Texas who ran a small oil company that told him, “You know, when I look for deals, I look the guy square in the eyes. I ask him a lot of questions and if anything at all doesn’t add up – even if I can’t figure out what it is. If there’s anything wrong at all, I run hard the other way. In other words, “If I see flies buzzing around, I know there’s some horse manure (used a different term for manure) down below and I run!” Then Paul asked him, “but what if it’s a really good deal and he just made a mistake?” And the guy said, I don’t know. You can just tell in your gut something’s wrong.
- Paul agrees — if there’s something in his gut and, he adds, “if my wife says something’s wrong” that’s how he evaluates a mentor
Paul Introduced Ben Kahlie, One of His Mentees
A Little about Ben:
- 23 years old
- Studied business and entrepreneurship in college
- Read about the importance of having a mentor
- Met Paul at his church
- Got real estate license and started working as an agent
- Contacted him 6 months later
- Had sold one house
- Called Paul to meet with him
- Paul shared that he was starting a multi-family business and sparked Ben’s interest to intern with the company
- Did a lot of things:
- Got LLCs going
- Web site coordination
- Collateral materials
- His goal is to eventually buy multifamily properties himself
- Ben’s words to those seeking a mentor “Do whatever you have to do to get a mentor. Work selflessly. Do not try to get something out of it yourself. Do it with a sincere desire to serve and learn. The law of reciprocity is real.”
Comment from Paul on Ben
- What really impressed Paul about Ben was when he received personalized “Thank You” cards via US mail from Ben
How to reach Paul
- Website: WellingsCapital.com
- Get his book, The Perfect Investment,” at amazon.com
- Email: paul@wellingscapital.com
Until our next podcast, keep moving forward and God bless!
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