My Partnership % BreakDown - Feedback Wanted!

[Taylor Jennings]

I had to put this together for the sake of future or existing JVs.

I'd love to chat about the structures I put together.

Please give open feedback on how you feel about any section, the percentages, the responsibilities, and even about the way I phrased the descriptions!

Thanks!

Find the Structures Here in My Evernote: http://bit.ly/JHPpartnership

[Dev Horn]

I actually thought you did a good job of identifying what you were bringing to the table - you have a pretty complete list of "responsibilities" for your business. Now, you could certainly be WAY over-complicating this, but maybe that's just your style to think through things like this and that's fine. At least when people ask "how can we work together", you have several answers/options and you've thought thru the rev splits, etc. Nothing wrong with that - we do this all the time, but it's more "on the fly" and related to a specific partner (opportunity) and specific property.

A team is hugely important and having clear roles and rewards identified in advance is a good thing. The only thing I saw that was kind of a red flag to me was the use of "virtual assistants". I know people use them all the time, but I'm not a big fan of them because you assume that the call is just INFORMATION that must be collected. That's the wrong way to look at it. The incoming call is the beginning of a RELATIONSHIP and I think the people answering the phone need to be the people who DO this business, not some proxy for them. Sure you collect some data on the call, but you also build rapport and we think that is more important that the data. I lost count on how many deals we made AT THE HOUSE that did not sound like deals ON THE PHONE. So, if you must use VAs, make sure they have your calendar and can SCHEDULE APPOINTMENTS on that call. If they are just collecting data and if you - like SO MANY wholesalers we see - are qualifying or discarding leads based upon that data (in many cases NEVER talking to the homeowner) then I would encourage you to rethink your process. (Watch this FREE REI VIDEO on "The Psychology of the Seller Relationship".)

In most markets right now, there are way too many "investors" and simply not enough deals (inventory of distressed properties) to make a living wholesaling. You or your partners need to be doing $10,000 per MONTH in marketing before you'll have enough calls to require a VA, IMHO. Answering the phone and hearing the seller's needs IS THE JOB of wholesaling. Don't assume you can outsource everything and just collect checks. It does not work that way. This is a roll up the sleeves and get out there and DO IT profession. Scale comes from a HUGE amount of activity. Perhaps you can get that via these partners, but be sure you yourself have the time to do this or your partnerships won't last.

Rather than "wholesaling", we think the opportunity is to be a REAL ESTATE SOLUTION PROVIDER. If you talk to every caller, meet them at their place, and offer several options to them (quick cash deal, listing, lease option, owner financing, etc.), we think you will have the basis for a real, sustainable business that can scale over time. Good luck!