Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Investor Mindset
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 9 years ago on . Most recent reply

Account Closed
  • Flipper/Rehabber
  • Chicago, IL
51
Votes |
108
Posts

The Psychological Challenges that Come with Checks with Commas

Account Closed
  • Flipper/Rehabber
  • Chicago, IL
Posted

I've Done a Ton of "First Deals" with Newbies and I've Observed a HUGE Enemy of Future Success.  Greed.

A lot of these "First Deals" are brought to my company by new wholesalers just getting started.  Here's how it works:

For newbie wholesalers in one of my markets (Philadelphia, Chicago, & Tampa Bay), we offer assistance with getting started,  The newbie is responsible to generate seller leads.  One of my partners will guide the newbie through the process of visiting the house, preparing rehab estimates & creating the offer, and negotiating the deal.  We then get the deal sold, title cleared, and the check from closing-which we split 50/50 with the newbie.

This works well except for one challenge.  The newbie immediately believes that the business is SO EASY and they DON'T NEED ANYONE'S help.  They decide that on future deals they want the whole assignment and keep the details of the next leads to themselves.

I know this feeling because I started my career the same way.  I closed a bunch of deals, got greedy, and decided I wanted to close all the deals myself.  It didn't work out well for me.  

I'd close a few deals, but by far I am always more productive when I have partners.  It helps me with accountability..

The other challenge comes when you're consistently splitting deals in the $5K-$10K range and then a $30K-$50K profit deal (or more) comes up.  I've watched people's minds become very unreasonable when this situation arises and there occurs "a money grab".

I've watched partners flat out steal the whole deal.  I've watched other partners attempt to re-negotiate splits.  The larger the dollar amount on the table, the greater the temptation to attempt shady business.

I'm aware of this phenomenon now and am able to warn new partners who have not experienced profits this large.  If you have big deals in the works, be aware of this challenge and get everything in writing.

Most Popular Reply

User Stats

241
Posts
57
Votes
Richard Fields
  • HVAC mechanic
  • Philadelphia, PA
57
Votes |
241
Posts
Richard Fields
  • HVAC mechanic
  • Philadelphia, PA
Replied

Are you still offering assistance to newbies getting started in Philadelphia? I've never been greedy, just hungry. I've been devouring everything I can read in the last few months

Loading replies...