Contract agreement

[Ruben Torres]

Hello investors. I am particularly new in real estate investing but I have gone and connected with local realtors and investors in my city. I was given a proposal of an agreement that I would like some more insight on. I was told by an investor that would like to help me grow but we would go under contract while I go out and cold knock and call and bring him deals. Every deal I find I would get 500$ off the bat and 20% of the profits whether it would be fix & flip or buy & hold. The buy & hold will be put into a living trust, I'm not sure if I want to accept because I feel it will limit me in profits and I eventually want to want to have my own buy and holds to leave something for generations to come in my family. I do know his knowledge will benefit me in many ways but I'm hesitant on signing a contract. May I have some thoughts?

[Craig Bowen]

Hey Ruben!! I would first check him out and make sure he is the real deal. Ask if he has others doing this and try to ask them if he is good to his word. Or at least ask him about deals he has done and check them out through the MLS or the county tax records!

Barring that, know the deals you are brining him and see if he handles them the way you would, and Mathew above makes a good point....have an attorney review it.  

Having said all that, this sounds like an opportunity to learn from someone AND make a few bucks doing it.  Try a deal or two and learn what you can.  Make sure there are no local non-compete clauses in the contract and go for it!  What the heck, you can always go do your own deals once you get your feet wet, and you might just make a life-long resource that will be a valuable part of your investing life!  

Best to you!