I don't know if these kinds of deals are common. What I will say is these guy's aren't gurus. They don't have any books to sell or cd's or speak at REI meetings.
The two guys offering this program are local wholesalers and rehabbers. I found the program while I was on their site looking for properties to buy.
The program is setup like this. I would pay $5k upfront.
In exchange for this I would get 2 things. Obviously all of it would be laid out in a contract.
1) Approximately 35 hours of instruction. According to them half of this would be reviewing their methods and how they structure their deals in their office. I would get access to all their contracts and scope of work documents and written materials they use for evaluating and estimating costs on properties.
The second half of the instruction would be a series of tours of their current rehab projects ( they said they generally have 10 to 15 going at any time) and properties which they are considering purchasing as flip projects.
2) Guidance through 5 flip projects. I would have to find out exactly what this includes but basically they will help me select a property ( they are also wholesalers so they can also help me source property) , evaluate rehab costs, get comps, manage contractors and market the property at sale time. They can also help me go through the process of getting hard money.
We would split profits on these rehab projects 50 /50. If i finish the full 5 rehab projects with them, I will also get my original 5k investment back.
I have very mixed feelings about this. I know anything where you pay up front is a red flag but I would imagine if it was specified in a well constructed contract it could be safe.
On the other hand I have talked to them on the phone and they were very professional. I would be able to visit them at their office and speak with references they provide of other people who have done the program.
I believe that they are extremely experienced rehabbers and know their market as well as anyone, it's more of a matter of how seriously they are going to take the partnership and if they are going to take the time to work with me step by step on these deals.
Anyway I'd like to hear any thoughts as to how I should approach this or if you think I should just avoid this right off of the bat.