So I have a family friend that has been in the real estate investing field for 15 years and is very successful at it. I confronted him and told him that i want to start getting into real estate. He has been helping me a lot over the past month and some of the things he has had me do i feel was just a test to check my commitment and dedication. None of these things by the way has cost me money, only time and effort. Well we have reached a point now where I think i have shown him my dedication for this so he told me to look for an email that he going to send me. That email is a mentor-ship consulting agreement and has 3 options to choose from. Looking over all three of them I can honestly say i have no idea what would be the best option to choose so im coming to the bigger pockets family for advise. Below i will have listed the 3 options and if y'all could please list from your first choice to your last choice and why. Keep in mind this is a good guy, and family friend, and I trust him. Thank you all for you help.
1. $15,000 provides you access to my 15 years of personal knowledge
and for myself to help to find your first investment property only, we
can discuss after 1st deal is closed.
2. 50/50 Split. You use your money and I use my creativity to find the best ROI within 90 days
3. 35% fee based on running equity. Investor agrees to pay a onetime 35% equity fee for all acquired property upfront.Example
Cost to buy is $25,000
Property worth $100,000
Equity is $75,000
My fee is 35% of $75,000 = $26,250 upon closing and funding.
@Jacob Turner this guy is a friend? I would be insulted if I were in your position.
If I actually knew you I would give you a 2 hour outline of my best methods to grab an easy deal, set you on your way, and tell you to call me if you ever needed me.
Greed is a son of a gun
Hi Jacob! Great work stepping up to the plate and knocking the tasks given out of the park, which has given you further opportunities! I'm glad to see you seeking wisdom here instead of jumping into one of these without thought.
My personal thoughts about the options are as follows:
1. Absolutely not. $15,000 provides you access to their knowledge, which is paltry and lacking compared to the cumulative CENTURIES of experience from MORE EXPERIENCED investors available for $FREE.99 on the interwebs. Unless this person is Warren Buffet himself, this is a dud.
2. This one is an interesting option. It's a partnership. If this person is truly a rockstar and they're willing to partner with you 50/50 (you bring the money, they bring the deal and execution?) this is a deal!
3. I honestly don't understand this one, but Occam and I agree - simplicity is key and this ain't simple, so I'd scrap it. There are ABUNDANT people rocking out in investment around this globe and you don't need to journey down some complicated path in order to achieve your goals in investing . . .there many simple and efficient paths to most goals.
Continue to seek growth, seek opportunities, and seek to deliver value to others and you'll NEVER FAIL!
My first deal I did a partnership, the only thing I learned is I don't need a partner.
@Jacob Turner , I never ‘confront’ someone when I want their help. I consult them.
The answer is: Not only no, but hell no. ;-)
Haha wtf, this dude is kind of a jerk.
Wow! This is a friend? Doesn't sound like it to me. A friend would want to help you. He should help guide you through out of the kindness of his heart because he values your friendship. If you made a decent profit, you should then give him some of it to thank him for his guidance. That's what friends do. It's sad that most people are that greedy. If he taught you well, you two could then do work together where you both could benefit. A win-win relationship and that is how you truly grow. Hope you figure things out without his help and become far more successful than he is. Good luck to you!
This is why I don't have friends. Yikes.
Please tell us you said no.
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