I am 19 year old college student very interested in every aspect of real estate investing. I honestly hated college after my first semester and that’s when I began researching other career avenues. I knew from a young age I wanted to be an entrepreneur, coming from a family of business owners. Over the past few months I have learned more just from YouTube, podcasts, books, and Bigger Pockets forum then I could have ever imagined. I have become obsessed with educating myself everyday though the sources I listed above and have been promoted an opportunity where I need the bigger pockets families opinion.
About 2 months ago a family member had received an email from Real Estate Sales LLC - Flip Cheap Houses. This is a mentorship program where I would be assigned one of the companies mentor/coaches who would teach me how to wholesale. I know the basics of wholesaling but I value the companies lead system more then anything. They have access to your county court house documents where you are encouraged to send out 200 letters a week to the leads you are given. On top of the seller leads you also are given a list of investors in your area who have bought and sold 2+ properties in a 60 mile radius, which is "your area".
Now into the numbers. The company has two options to start their program. (12 month)
1. $13,750 start up costs and 50/50 split of profits with your mentor
2. $18,750 start up and 80/20 split of profits with your mentor
The website “promises” $100,000 in wholesaling profit after the first year and if not, the mentor will work with you to complete the promised sales for free after the first year.
As a 19 year old who is desperate to get into real estate anyway I can, this opportunity looks promising. I’ve been in contact with one of the owners Amy Keith and have had several great conversations about her company. My parents are willing to take a chance on me because they see the passion I have to get started in real estate. They are willing to finance this opportunity for me and I need your guys/girls opinion of the legitimacy. Thank you!
Don't do it! Hold onto your wallet and run away. We've reached the point where there are now more gurus selling their get-rich-quick crap than there are properties for sale in America. Also, the myth of wholesaling does not often equal the reality of the strategy. Sounds enticing: buy property after property for .35 on the dollar, quickly flip it to someone else for a fast, fat profit. Rinse and repeat. Oh, the joy! Reality check: how many homeowners are going to sell you their house at such a substantial discount? What about the competition? I have an investor friend who is a successful wholesaler and has been for many years. We had lunch a while back, where he told me he drops 10,000 direct mail pieces each and every month. Can you compete with that? There are easier strategies for a n00b to start with. I'm not trying to discourage you, Jack. I'm trying to save you $15K.
Don't waste your money. Invest in a monthly subscription to PropStream, which will give you access to MLS data, county data, and so much more. All the other information that you need is on here and other platforms such as YouTube for free. Join your local REIA and find a mentor there. There are some good books that are low cost as well. Take the money you were going to use and capitalize your LLC.
I’d also recommend taking your state’s mandated training/education for real estate licensure. Whether or not you choose to take your test and get the license is up to you. Wholesaling while licensed can be more complex, but people do it (and do it well). The main thing is, taking the training will educate you in the foundational aspects of real estate which only helps you.
Wholesaling is but one of many strategies and depending upon the property and situation, you would leverage one over the other.
Best of luck in your investing. Put you money to work for you, not in someone else’s pocket.
I don't know anything about that company but there are so many of them it's hard to keep track. I would say NO, do not spend your money or your parent's money on any real estate training. Everything you need to learn is available for free and the rest is up to you to put in the work. It's NOT an easy business but if you're passionate about it you'll find a way.
When I first started my monthly budget was $500-1000 a month, closed 8 deals my first year. In my 2nd year, I closed 42.....monthly budget started to increase as the more deals I closed, and slowly but surely I was able to build a business. I have yet to pay for ANY training. You can put that money to better use. Just my 2 cents.
Best of luck.