Joint Venture Partnerships: Upfront mentoring fees

2 Replies

I have been presented an opportunity to JV for 1 year with an experienced real estate investor with verifiable references and a proven track record. I have conducted my due diligence and found everything about this potential partner to be on the up and up. He was even willing to show me the HUD 1 from his most recent deal and his LLC bank statement for the month of October. I hesitate because this opportunity requires a $3,000.00 fee upfront to prevent tire kickers/time wasters. The fee is refundable after 60 days if we are not able to complete any deals. The JV partnership includes education, training, deal funding and 50/50 equity split on any deal I bring to the partnership. I see this as a leg up into purchase options and rentals as a less experienced investor. For the mentor it is an opportunity to scale his business in a geographic region that he doesn't currently live in. Any advice or feedback about this type of partnership from someone with this type of experience? Has anyone paid upfront for mentoring/training/equity partnership? Your comments are appreciated. Thanks!

sounds like a small price to pay for valuable experience  Will you be the contractor on the projects? 

@Steven Picker Thanks for the reply! It is possible that I would superintend rehabs but I'm an HVAC contractor not a B license, so no general contracting .  We will be doing some residential quick flips & rehabs, land contracts, and multi-family repositioning/quick flips. My goal is to put down the tools ;)

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Get the Ultimate Beginner's Guide

Sign up today to receive the popular eBook for free!