Mentor Test:  4 Steps to Identify a Good Mentee

I frequently get asked to share my knowledge by people who are attracted to the entrepreneurial life.  If I don’t watch out, too much time can be lost in helping those who won’t help themselves.  I’ve discovered the Mentor Test.

A long-time friend of mine introduced me to a young (24) ambitious man who wants to kick his real estate career into gear.  I’ve never met him in person nor do I know what he looks like.  We had a chat about 6 weeks ago, and I applied my “Mentor Test”.

Side note on this young man’s journey.  He has been property managing his parents’ condos as he works his way through University.  Acting as a landlord is a really great way to introduce young adults to real estate.  The learning they go through is an essential part of becoming an adult.  It is good to have kids take on such a varied responsibility.  As the Property Manager, he does sales, book keeping, maintenance, customer service, and all the varia of Real Estate.  What a wonderful gift his parents gave him.

The “Mentor Test” is designed to identify the seriously ambitious people from the wannabes.  I like helping people, but I do not like wasting my time.  So, I typically assign a task that involves spending some money and/or putting in a few hours of work or study.  Then I tell them to reach out to me when they are done.

In the case of this young man, I decided within one hour that he was worth putting through the Mentor Test.  So, I assigned him two books that were relevant to his situation.  The first was Rich Dad, Poor Dad, By Robert Kiyosaki.  The second was Real Estate Investing in Canad by Don Campbell.

I promptly forgot about him and went on with my life.  6 weeks later, a text from him, asking “can we talk”?

In our next conversation, I immediately asked him if he read the books. Well, he bought one and skimmed the other.  Hmm.  Pretty Good.  I asked him what he liked about “Rich Dad, Poor Dad”, and he said he now understands what cash flow is and wants to acquire assets.  Good!  We are starting to share terminology, and I know we are on the same page.

The main purpose of his latest call was to talk about a student housing project.  Three partners want to convert a house using a $55,000 down payment.  Two of them will live there.  A different two of them will qualify for the mortgage.  Wow.  Underfunded and overcomplicated for a first deal, but brave.  He peppered me with some questions:

1. What are the typical costs when buying a property?
2. Should the partners incorporate?
3. How does the partner not on the mortgage secure his ownership?
4. Should the people living in 2 of the units pay rent?
5. How do we calculate profit?
6. How do we distribute profit?
7. How do we pay for cash calls?
8. How do we get the best mortgage?
9. What is a pro forma (yes, really)?

All of them are absolutely fantastic questions.  I answered all of the questions as best I could.  I remember very much being in his situation and not knowing where to start.  I was 37 when I first asked many of these questions and he is just 24!  What a head start he has.

I promptly assigned him two more tasks in the Mentor Test; I do that at the end of every conversation so that action needs to be taken between talks.  If at the start of the next talk, no action has been taken, then I promptly end it.  I assigned him Real Estate Joint Ventures.  I emailed him my own “Property Analyzer” spreadsheet that I use to calculate profitability for every residential or commercial property I am considering buying.  (Reach out to me if you want it). He also has to pick and analyze a potential property.  I’ll happily review it afterwards.  I look forward to his next call.

So why do this at all?  Why should I help?  For me, it is a combination of things.  First, I really enjoy helping people be successful.  Mentoring/Coaching/Sharing is just great.  Second, I get energy and motivation from like-minded people.  Third, I can’t wait to see where these successful people will be in a few years, and I may be invited to participate.

Just give to the Universe and It will Pay You Back.

Here are the 4 steps for the Mentor Test

1. Homework.  Give her homework that will cost time and money.
2. Callback. Ask her to call you back.  Add an optional Deadline.
3. Verify.  At the beginning of the next call, make sure she completed the homework.
4. Repeat.  Continue this cycle with every meeting.