You would be hard pressed to listen to a single podcast episode or watch a Youtube video focused on real estate, business development, or entrepreneurship without getting pitched on a mastermind program. They are everywhere. And they cost money. Most of them – a LOT of money. How do you know if the one you are considering is legit? Is it worth it? What questions should you ask before committing a whole lot of time, money, and energy into a program? Read these tips below and let me know if I missed anything.
Does the leader have experience in your preferred asset class?
Has the leader, figurehead, or teacher actually done the deals that you are desiring to do? I know this seems obvious, but you really need to be sure of this. Because, if not… why are you considering this Mastermind? There could be good reasons to still consider it (like access to a network), but this would be a pretty big red flag for me.
For starters, literally anyone can start a Mastermind. Maybe somebody with a large following on social media decides to start a Mastermind in an area in which they have no experience. It’s possible a person like this could have value to share, but it’s probably more possible that it’s a money grab and will provide little value.
On the other hand, the Mastermind could very well be a legitimate group that delivers value… but in a totally different area than which you are interested in. Maybe the leader is an expert in syndicating apartments, but you are passionate about mobile home parks. Or perhaps the group is focused on SEO, but you really want to learn how to start a Youtube channel. For reasons that should be obvious, these groups might not be a good fit for you.
Does the Mastermind tell you what to do or teach you how to do it?
I’m probably a little biased with this question because of my teaching background. It’s the ol’ “give a person a fish” vs. “teach a person how to fish” conundrum. I understand that there is a certain part of the population that simply wants to be told what to do. But, I don’t think that technique is good for anyone. It’s short-sighted. It my mind, it is much better for a Mastermind to teach students how to think rather than what to think. After all, your real estate investing journey will almost certainly outlast your involvement in this Mastermind. If you are completely dependent on the Mastermind to be told what to do, what happens when the Mastermind is over? The Mastermind should be teaching how to analyze deals, create systems, build a team, raise capital, and analyze a market – not simply telling students what to do.
Is there actionable advice provided or only theory?
With that being said, a Mastermind student still needs a push in the right direction in order to take the right action. Let’s say at one meeting, the group is learning about choosing a market and they learn about looking at employers, population growth, and building permits. I would expect that students would have explicit homework that week on the next action to take. For example, choosing any five markets they want and analyzing the factors discussed in order to get closer to choosing a market or two in which to invest.
Does the Mastermind embrace nuance and understand there are many ways to be successful in your asset class?
This might be tricky and could be personal preference (see teacher-bias above). Most Mastermind leaders invest (and have likely been successful) by doing things a certain way. But we all know that there are approximately a million ways to have success in real estate. It’s possible that you will want to put your own spin on investing that might differ from how your Mastermind leader experiences success – maybe just for personal preference, market differences, access to capital, or stage in life and investing. Will your mastermind leader encourage and embrace differences in investing? Or will you be told that you are doing it wrong (even though it might not be wrong, just different). For example, imagine you are in a mobile home park Mastermind and your leader teaches you to only buy parks with city utilities. But you have bought parks on septic and have found great success and continue to find opportunities in this niche. How will the leader respond? My ideal Mastermind leader will embrace this and recognize that there could be multiple ways of doing deals, while also continuing to teach his or her preferred method. Heck, the leader might even ask you speak for a few minutes about buying parks on septic and what to look out for.
Does the Mastermind provide access to an experienced network of investors for partnering and problem solving?
One of the key aspects of a Mastermind should be the ability to access experienced investors in your asset class to either: 1) partner; or 2) help problem solve. Expect that there are going to be newbies with little to no experience in the Mastermind. And that’s fine – hey, we’re all here to learn. But there also needs to be some experience in the group. If I have an issue come up that I am dealing with or I am looking to partner, I am almost always seeking experience – not a newbie.
Is it organized?
This one might also be personal preference. But if you’re like me and lean a little towards the Type A side, you might want to know exactly how the Mastermind is going to be structured. It would be great to get a Welcome Packet with resources, links, videos, and book recommendations. There might also be a syllabus – or at least an outline – of what topics will be covered and when. Are emails returned with prompt and thorough answers to questions? If these items are not present, are you OK with that? Are you OK with proceeding not knowing exactly what you are going to learn?
Do you have access to the leader?
I was once part of a group where the leader recorded some videos for students to watch, but you never really had access to the figurehead of the Mastermind. This particular group had a fairly narrow focus, but it still left me desiring a little more access to the person with the real experience. We had access to some of the leader’s team members and our fellow group members, of course. But access to the leader was lacking. You probably signed up for this Mastermind because of this person, so you should be sure that you have access.
Are there in-person meetups and property tours?
Many Masterminds will also include in-person meetups. It’s one thing to talk theory over Zoom, but it is an entirely different experience meeting your fellow students in person, walking properties, and networking in person. It can be a game changer. After a few years of Zoom-everything, I think we all agree that there is a certain magic that can happen with in-person meetings. The questions, the conversations, the chemistry… all of this is much more possible in person versus over a video call. Be sure to clarify if there are any up-charges for the in-person meetings.
Will there be any up-sells?
Level 4! Platinum Member! Super Network! Personal Coaching! … You can upgrade for the low, low price of… Nevermind. You get it. Just know what you’re getting into. Is the price you pay the only fee? Will there be ongoing monthly fees in addition to the initiation fee? Are there video fees? Networking fees? Meetup fees? What else will be offered that I will be asked to upgrade to? Up-sells aren’t necessarily a bad thing, but you have to know what you’re getting into from the start.
Bonus: Click HERE to Upgrade to the Super Ultimate Infinite Success Plan! Just kidding. 😀
Ultimately… is the price worth it?
Only you can decide this one. Many of these Masterminds are five and six figure investments. Most people seeking a Mastermind are in the the beginning stages of their investing journey and this is not a small amount of money. Based on the information you have and your personal financial situation, make a thoughtful decision. Let me tell you that YES! You can still experience success as a real estate investor if you do not join a Mastermind. I promise. You can go the DIY route. Between books, podcasts, conferences, and Facebook groups, it is certainly possible to learn real estate and build a network without a massive investment into a Mastermind. A Mastermind could speed up the process and make it easier, but it is not a requirement to invest in real estate.
Good luck – you got this!