Need help is it worth spending $1500 a month for 6.5 months

10 Replies

I need help with deciding is it worth spending $1500 a month for 6.5 months on a coaching/partnership deal. Know a little bit about my situation is that I'm just starting in the real estate industry and I'm on limited funds. I really was just going to do my mailers and maybe some cold calling to start with. I don't want to rush or force myself to spend that kind of money, but I'll explain a little bit about the coaching/partnership program. What this program does is they run the comps, tell you what you should offer, fund the deal 100%, fund the rehab 100%, no funds at all needed starting out, but the $1500 a month is steep. I truly understand that I have to invest in myself and I see the value in it, but i just dont want to put that kind of strain on myself and my family. I would appreciate any response if anyone can help me with this thanks.

And what do YOU get out of this, if they're funding the deal 100%, funding the rehab 100%, and what do you have to do for it, aside from paying them $1500/ month?  That seems really suspect to me.  It looks, at face value, that you're paying them for you to bird dog for them.  In short, they want you to pay them for the privilege of you working for them....  

There must be something more to the story. I would re-read the fine print, perhaps bring it to a lawyer. Also speak with people in the program or look for more reviews/complaints online.

Like @Michael Goldsmith  said, it isn't super clear what you're getting out of this deal. Paying 1500/mo to watch someone work would not be something I would spring for. Don't buy into the 'invest in yourself' guru hype. There are SO many resources available for free. You could spend months if not years learning for free. If you have $10k to spend on a mentorship program, honestly just use that money to buy a deal. 

@Michael Goldsmith said so well Michael, that's exactly what I was thinking am I bird dogging for them. I really do trust and believe in my own abilities and platforms like BiggerPockets are there to help if needed. I am certain if I have any questions or problems concerning real estate i can reach out on the BP platform and get the necessary help. Thanks again Michael.

Save your money for a deal. There's a ton of free information available - I'd start with that. And really, if someone else is doing all the work, how will you really learn?

@Gaspare U. I was thinking that as well Gaspare. It truly sounds like a bird dogging situation to me. Know what they do is take 10 zip codes in your area and find the deals that way. Then they find the sellers in that area and run the comps and tell you what you should offer. After you possibly get the house under contract they fund the deal 100%. Then they fund the rehab 100% and you have a 50/50 split after that and that's basically it.

@Ethan Grier thanks Ethan,this is basically how the deal works. You give them 10 zip codes near your area and they find the sellers in that area. Then they run the comps and tell you what you should offer. After that once you get the deal under contract the fund the deal 100%. Then they fund the rehab 100% and after the house is sold you have a 50/50 split.

I would keep tabs on what comes off the top. Their "charges" may eat into a lot of the profit to leave you guys splitting 5k in net profit. 

Also who is DOING the rehab? Are you expected to be a contractor and put the sub the work out?

Yeah... you don't need to pay them $1500/ month for that. If you're feeling fancy, get yourself a license for propstream at 100/ month so you can run your own comps. Get to know a good realtor who specializes in dealing with investors, and find a local REI group to you and you can find investors on your own- or your realtor might know of some that they can introduce you to. Hey look, I just saved you $1400/ month. Feel free to paypal me half the difference. That's a reasonable split right? ;)