Is this a smart dumb idea or dumb smart idea?

[Phu Le]

Hi guys,

So to get it out of the way - I have zero experience in real estate and have no money. To circumvent this I have an idea. It comprises of a few steps.

Step 1: I will have you sign an Exclusivity Agreement with me which states that any potential deals or leads I bring you, you promise to work with me on the deal.

Step 2: I go out and find deals via MLS/DfD/Craigslist/Coldcall/etc.

Step 3: I talk to potential sellers and verbally give them a price. Once the seller verbally agrees on the price(this could take months and multiple contacts), I will then bring the deal to you to review.

Step 4: If you like the deal, we sign a JV contract in which we'll split the profits 80/20. You take 80, I take 20. However, you will provide the funding, contracting, rehabbing, and flipping/rental expertise.

Step 5: Then as a JV, we sign the P&S contract with the seller.

Step 6: Close, rehab, and profit.

Doing it this way, I won't be able to capitalize on deals where time is of the essence but I can avoid getting into a contract with a seller when I do not have enough funds to perform on the contract. This is great because wholesaling is fine but wholesaling without the actual ability to perform is frowned upon and slightly illegal. I don't want to give sellers false hope by tying them up with a contract while I shop for buyers.

This is also a bit different than wholesaling or bird-dogging because I will have skin in the game. If you don't profit, I don't profit. I'm not simply passing on deals/leads to you and collecting a check. I will be very much involved in the process if needed. I will follow-up with the seller, contractors, agents, etc, and work with you to make the deal successful.

Can anybody tell me if this has been done before or if it'll even work? I'd appreciate if you could point out any flaws or could help me make the process better.