Where have I been? Let me update ya!

Question

Hello BP members!

Okay, last time I posted a question, I was looking for help with my forst wholesale deal. That was awhile ago and I just wanted to pop in and tell everyone what I am presently up to.

I approached a couple of local investors about them possibly being added to my buyers list and I ran into some road blocks. They were very skeptical since they have never heard of wholesaling and asked me questions about who I'm working with, am I licensed, and yada, yada...

After running into that, I thought I would safeguard myself by starting my own buisness, Higher Heights Real Estate Services LLC. I am continuing to educate myself, I have a website, and am just trying to network as much as I can. I have been looking for properties using a realtor and am on my way. I do have a couple of questions though.

1.) I got an e-mail from an investor who says he wants to invest in my business. He wants to see my business plan and I asked him what he wants in return and he said an equity position. Now, I have an idea of what that means, but can someone with more experience explain?

2.) My buisness plan- Should I assume that he wants to help with the whole business venture or just wholesaling? He wasn't very specific. My company offers a variety of services, should I just put all of the services in the plan? I guess I just need help deciphering how much to ask for. What I really need is a partner to join me...should I just say that I would prefer that?

Any and all responses will be helpful :D

Yvonne Griffin · Answer

Thank you gentlemen for your responses. I did feel just a little skeptical when I asked for a phone number and I dodn't get one.

Charles Whitaker · Answer

I would be skeptical myself; partnerships come in many different forms but only use one that is structured the way YOU want. I would partner with someone that had the money but no experience or someone with construction experience and no money. I would partner with someone that can find deals but can't move them, etc. The use of the word partner here refers to either a one time partnership on a house or a limited partnership of some sort.

I would not share my business plan to someone like that without knowing them or what their interests are. Check into it, could be an opportunity in disguise but be wary of man's greedy ways.

Best of luck

Account Closed · Answer

Hello,
Why would he want to invest in your business? I would be skeptical and ask more questions. You have started an LLC, and have a business plan as to what you are planning to do in investing. That in itself does not consitutue an investment opportunity for a real estate investor. So my guess is that someone is trying to get you to partner in some way that will require you to pay, or pitching you for their services. Maybe not, but I would be careful. By the way, how has your investing gone so far? What areas are you interested in?