Is this a good deal?

Question

A wholesaler has offered to teach me the business.  The deal is that 1. I pay for his gas when we are riding together. 2. We split any deals that result from our riding together 50/50 and 3. I pay him the first $1500 of my share as tuition for his teaching me.

He supposedly has a list of 1500+ investors and has been doing this for about 20 years.

Is this a good deal?  Is there anything I need to watch out for so I'm not being taken advantage of? Is $1500 a reasonable amount to pay for this knowledge?  Or should I keep looking for someone else to help me get started?

Thanks, I hope I don't sound too naive.

Jason T. · Answer

As long as the guy is legit and has credentials to back up his claims then go for it.

Bryan P. · Answer

I wish I had somebody in Harrisburg/State College, PA region that would do this.  I've advertised on Craigslist about somebody mentoring me in wholesaling but haven't gotten any responses.

You're fortunate...sounds like a good deal for both sides.

Robert Goodspeed · Answer

He told me he would teach me everything. But if I stop giving him 50% I would have to find my own investors.  I still think that might be a good deal.

Conrad Z. · Answer

I'd jump all over that! Very little risk and potential for huge reward.
This is allowing you to see the whole process in the real world and not some of that "guru" junk that is always flying around promising the world.

Robert Goodspeed · Answer

Thanks for your input J.  That is what I have been thinking but thought I should ask since I've THUNK wrong before. :D

J Scott · Answer

If you really think you can learn from this guy, it sounds like the only things you have to lose are 1. Your Time and 2. Gas Money.

Best case he helps you get your first deal done, which costs you 50% of the deal + $1500.  Even if that's the entire profit from the first deal, if you believe this investor has the knowledge, experience and skills necessary to teach you the business, it sounds worth it to me.

And clearly he believes he can help you, as he's risking his time and energy with you for potentially no pay-off (if there is no first deal for you).