Masterminds: Scam or Critical for Success?
If you’ve done a real estate syndication or gone to a conference, you’ve probably been pitched or told about a mastermind group that will help you take your investing to the next level.
The reality is some masterminds are extremely valuable and others are a total cash-grab, so the skill here is being able to tell which one is worth your time and money (often, LOTS of money).
When we started Accredited Status, I couldn’t believe how little information is readily available online for investors to research and learn more about the common topics, syndications, and masterminds that are out there. It’s even quite difficult to find good conferences to attend, which kinda makes sense because they aren’t spending millions of ad dollars trying to reach investors on social media.
Below we’ve attempted to provide some basic parameters to look for or avoid in mastermind groups that you might consider joining:
The size of the group. This can cut both ways, but in my opinion, a large mastermind with 100+ members is going to make it difficult to receive 1:1 attention from the leader of the group and while it can provide greater networking opportunities with other members, there isn’t a guarantee that those people will be able to add value to your investments or strategies. On the flip side, a small group with an experienced leader can provide tremendous value and knowledge and be worth whatever the entry price is, as long as that additional individual attention translates to more success for you. Ultimately, I think a more intimate MM will be more valuable for most people. There are certainly outliers, but do your homework on the size of the group and get a good idea of the access you’ll have to the leader.
Group niche. This one should be obvious, but you’d be surprised by the number of times that an early investor is blinded by a big name and ignores an obvious issue. Before joining a MM, make sure the leader’s experience is in the type of investment that you are wanting to learn about. If there is a $10k MM with a background in multifamily investments, don’t join if you are trying to learn about commercial development. Just because someone has had success one area, doesn’t mean they are an expert in your area.
Multi-tier level groups. In my humble opinion, having various tiers in your MM is nothing more than a cash-grab. I respect it. If you’ve built a name that people are willing to pay to be associated worth in anyway possible, good for you. The issue is that most of your lower/mid-tier members are not going to receive much benefit from their level of access or attention. While the triple diamonds might be killing it, your bronze tier is getting left in the dust. Investors: don’t fall into these traps, no matter how awesome the potential networking is positioned.
In summary, masterminds are a great tool for networking with like-minded, motivated, and successful investors. If you’re able to get access to industry leaders in a 1:1 capacity and learn from some of their most successful followers, that experience can be invaluable. However, there are plenty of scams that won’t provide value but will make sure to collect their yearly fee. Be smart and use our community to gather feedback before making that wire.
CO
