Why I Started Paying For Coaching
I just got back from a Mastermind program with Daniil Kleyman in Richmond, VA. This program cost each attendee $5,000 and is likely to go up in price in the future. This was a pilot run (2nd pilot to be exact), and he's still polishing the program. Just a decade ago, I would have seen such expense as unnecessary and foolish. After all, most information nowadays is freely available online, or in a $20 book. Why pay someone thousands for it?
The answer is because the alternative ends up costing more. I've spent the first 10 years of my real estate investing journey going through trial by fire. Trying to learn everything on my own ended up slowing me down, and prevented me from scaling faster. I've dealt with tenants from hell and $20,000 evictions. And if I'm willing to spend $20k on a shitty tenant, why not spend that on myself instead? Why not learn how to improve my operations from someone who has already done it?
This year I've already spent over $10,000 on real estate training. Why? Buying a course is like buying someone else's business blueprint. You get access to their strategies, techniques, document templates, online support, and even their network. I could spend a decade putting together my own processes or I can be up-and-running in a few months by copying a process that has already proven itself. Plus, meeting in person provides some intangible benefits that simply can't be obtained from an online course.
Understanding How The Sausage Gets Made
It's one thing to learn theory from an online course, but touring another investor's portfolio and learning how they scaled the business adds a completely new dimension to learning. By participating in this coaching, I got to see Daniil's projects, understand his approach, and his mindset – aspects that can't be fully grasped through reading alone. I've been stuck at 6 figures per year for a while, getting personal coaching from someone already making 7 figures is a no-brainer for helping me scale.
We walked several of Daniil's sites, got to see how he negotiated with the city and contractors, and made new friends along the way. We also got individual advice as we showcased our own projects. One of the benefits of this mastermind was having someone with experience check if our numbers make sense. I didn't take full advantage of that since I do not currently have a deal I'm making an offer on. However, I'm sure I'd be able to hit up Daniil again in the future to glance over the numbers when I do.
The Power of Networking
I'd be lying if I tried to claim that I absorbed more information over a period of 2 days than I would have from following a course someone spent months putting together. Sure, we got access to Daniil's templates and advice on due dilligence. But the real value comes from networking and mindset shift when you see how someone 5 years ahead of you thinks.
We've all heard the adage that we're the average of the five people we spend the most time with. By surrounding myself with people who're ahead, I subconsciously strive to improve myself. Not just because their knowledge rubs off on me, but because there is a subconscious pressure to keep up.
But there is a lot more to networking. Networking means that Daniil will be there to advise on my first ground-up construction. Networking means that his extended network also becomes my extended network (ironically, I'm meeting another apartment building investor next week that Daniil introduced me to). Networking means that when Daniil or anyone in his network needs access to accurate analytics, Investomation will be one of the names that comes up.
Eating Your Own Dog Food
The concept of eating your own dog food gets talked about a lot in software. To make good software, you need to understand the target audience. The best way to get there is to be part of the target audience yourself. That way you understand the pain points other users are seeing, and what pain point the software is actually solving. Ultimately, my goal is to turn Investomation into a product that helps other real estate investors scale their portfolio. And to do so, I need to keep scaling myself, while learning from investors who're already ahead.
Final Thoughts
This mastermind/coaching is not for everyone. In fact, if you're not already making money in real estate, I wouldn't recommend it. If you're a beginner, read some books/forums and buy a duplex or two to understand the basics. For most people, the problem isn't lack of education, but lack of doing. If, however, you already have a few rentals, but feel stuck and need help scaling, then this mastermind is for you. Real estate is a team sport. You can't do it all alone. And you will always end up paying for education, your only option is how you will pay: time or money. At this point in my life, I feel that my time is the more valuable asset of the two.