Real Estate Funding

1 Reply

So I found this deal where the price was $110K obo & I contacted an agency that said that they would coach me, fund the entire project, and then split the profits. I would have to give a $1,500 deposit to them to get started. However once I found this deal and told him of the price he said that’s not a deal and didn’t even hear the comps, nor did he hear how many beds or bathrooms it was. Does this guy sound like he’s trying to take advantage of me? Seemed like he just wanted me to give him his deposit.

Hey Kweku, 

Interesting topic. From my short time (2 months) diving into RE investing and BP I personally wouldn't hire an agency or a "guru". Watching probably over 100 podcasts by now it seems the majority of successful investors are against this practice as well. BP is a HUGE resource and I'm certain you could find anything you need or want on here by networking; and the best part, it's all free. The members of BP are extremely knowledgeable and helpful, post the deal on here and get their opinion, don't hire an agency. 

I do always like to understand both sides of the argument though. IF this agency knew the area or market you were referring to, maybe they were right, it's not a deal that fits their scope of work. Doesn't mean the deal can't work for you. Hope that helps.

Best, 

Derek