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 reasonable to me IF he is actually going to mentor you and be available and spend time pointing you in the right direction. After a few deals when you know what youre doing, you will appreciate his help but will want 100% profits so dont get bound up in something you cant get out of (like signing your life away in a contract).
The 3k might be worth every penny if he provides valuable knowledge and puts you in a position to make money for the rest of your life. Its about he same price as 6 credit hours at a community college.
@John W. Thanks for the reply. The partnership agreement is 50/50 for 1 year and then reevaluate. I agree about the 6 credit hours. You won't be getting anywhere near the value from 6 credit hours at a community college. Appreciate the feedback!
@Brian Rhodes you don't have to spend anything, meet some investors and just ask for help, that's how I did it. And if they want something then say you can help them in any way they'd like in return. I'm 14 and that's what I did to learn everything I know about real estate, I'm also about to get an internship this summer as well just form talking to these investors and helping them out in return. Pretty much I'm saying you can get it for free, no need to pay. Also, networking is key, go to some reia meet ups if you can and meet some people here on bp as well, there are so many options, you don't need to pay. I hope this helps you out!
But from what this looks like, you will get payed back if you find the deals, so it seems good as well. Good luck!
@Account Closed thanks for the reply! It does sound good, that's why I'm on the extra due diligence.