wholesaling mentor?

Question

ok guys here is the deal....I'm mainly looking for buy and holds, but don't want to miss any wealth building opportunities by having tunnel vision. I have researched wholesaling enough that I feel comfortable saying I get it on paper, but we all know getting out there and doing it is the best way to really grasp the concept and learn. Also, cash from other niches could help build my buy and hold, so I'm game for learning more.

So here is my offer to an experienced wholesaler. In my local area, there is an 8 unit apartment for sale. 4 2/1's and 4 1/1's. Currently rents for 400/300 and stays full most if the time. Asking price is 215k. I would purchase this but have no way to touch it, so I thought it might be a great wholesale/learning experience. So I would like someone that for a 50/50 split, would be willing to walk me through this step by step. You point, I do, you just basically show me the next step, and then make sure I don't trip when I take it. Even if the numbers don't work out on this deal, then stick with me and help find one that does that we can walk through... maybe even for a 60/40 with the extra work involved with having to find a new deal.Just hit me up for more info if anyone is interested. Thanks

J Scott · Answer

You're asking someone to take a publicly listed deal (one they could find themselves), and use it to teach you how to wholesale step-by-step. In the process, they would spend more time and effort than if they were to just do it themselves, and they'd also be creating a potential competitor in their market by teaching you. And in return for them doing extra work and risking future profits, you want them to give you 50-60% of the profits... Does that really sound reasonable to you? Why wouldn't they just do the deal themselves, save some time/effort, not create a competitor and then keep 100% of the profits? If you're going to propose a mentorship arrangement, I would recommend that you propose an arrangement that helps the mentor at least as much as the mentee. Perhaps offer to work for them for free for 6 months (personal assistant, manual labor, making phone calls, etc) in return for them training you? At least they'd be getting something beneficial out of the deal...

Carlton Bryant · Answer

Call all the title companies in the area and talk with one of their Real Estate Attorney's. Tell them you will want to do simultaneous closings and occasional assignment of contract. Tell them exactly what you are doing, an experienced person will know what you're wanting to accomplish. That's what I did after reading a wholesaling e-book. Grabbed some contracts on the internet, emailed them to the Real Estate Attorney at the Title Company and asked him if this would work for them and if it was legal(make sure you have an exit strategy to cover your butt). He emailed me back within a few minutes and I was off the races driving neighborhoods looking for deals. I didn't pay him a dime because he knows when I get a deal I'm going to close at his office. Don't stress yourself out with the thought of making mistakes because there is always someone to ask about a situation on these forums it's a pretty amazing thing. The only time I think you would actually need help is finding a buyer at that point I blast my deals out to anyone and everyone and I will team up with a wholesaler to get the deal done one way or another it's money in my pocket and I wasn't stuck losing a deal and all the time put into it. Contact Hard Money Lenders they have people pre-approved looking for a deal quite often, whether it;s your deal they will want who knows the possibility is always there though, get the word out to anyone that will listen and above all make sure that it's a good deal that they can actually profit off of because you will make them happy and they will keep closing deals with you or find someone that will. Dive in and just do it PS always provide your buyer with all the info they need to make their decision, their paying so work for them.

Daniel Warren · Answer

@Jonathan Mednick hey man, thanks for the input! I do realize that I would need to start collecting my team member, and i certainly could agree with not having access to mentors buyers. was thinking that the mentor could let me know what to look for with my team members, for example: this is what xyz title company said, no way dude that's kinda screwy for what we need to do. tell them this or we need to find another. As far as local goes, i have been monitoring craigslist and the closest place to me (3 hours) that i have been seeing any "we buy houses" ads are in little rock. i have two other target areas about 45 mins from me and i don't see any of those ads for these areas.

Jonathan Mednick · Answer

Best way to entice an experienced wholesaler to teach you the ropes is to find an off market property that is not being advertised (not on the MLS). And if the numbers make sense, then that wholesaler will have buyers that may be interested. He JV's the deal and split the profits. I would structure the arrangement so you do not have contact with my buyer. You would need to trust this person and give up control of the deal so before you do, make sure you have your safeguards in place. You need to find a local mentor. I would never do a deal outside my market where I have no local assets - eg. Title company, appraiser, contractor for estimate of work and most of all, buyers. Although @J Scott makes an excellent point about creating a competitor, I see it differently. I created a relationship and you may want to partner on future transactions. I would hope i would be the first phone call when you had To move your next property. Of course there is the chance of competing on the same property but an experienced wholesaler usually wins in the end.

Daniel Warren · Answer

@J Scott yeah I doubt anyone was offended really, I was just saying. I want to offer someone some incentive to work with me, and I thought that offer did. So in my defence, here is what I thought I was offering: A deal that they didn't have to do any marketing to find. A deal that they get half the profit on by doing less work, because I would be doing everything. All they would do is say ok buddy, the next step is this, so you need to ________. A possible way to tap into a new market, because my mentor doesn't have to be from my area. I don't necessarily see a lot of wholesale/flips in my area anyway, so may be possible they tap into a ready market by helping me. But anyway, if that's not a good offer, it's cool, just remember i'm a noob so what I think is good, might not be good to someone with experience. I'm here to learn, and I have already learned so much its mind boggling. Thanks for your comments J. I look forward to seeing your reply on every post I read on BP and I appreciate your input here.

J Scott · Answer

I'm sure that nobody was offended. I'm just trying to help you see it from the other side -- those of us who would seriously consider helping out someone local that needs a hand...but also wanting to ensure that it's a win/win for both sides. We get TONS of these types of posts here on BP, and many of the experienced investors are going to skip over them if there isn't something that really stands out as an incentive to consider it. My suggestion is to make us an offer we can't refuse! If you can truly make it a win/win, I bet you'll find someone willing to help you...

Daniel Warren · Answer

@J Scott Hey j thanks for the reply. I'm not trying to make an unfair offer. If that's unfair, then it was only my inexperience in the area that makes it unfair. On that note, whatever someone would consider to be a fair deal, then shoot me an offer then, I'm here to learn. As for the publicly offered deal that anyone could find.....well.....its a for sale sign posted in the front yard of the complex so I doubt its been on anyones radar. If my offer offended anyone, my bad, it was an accidental, uneducated offense. Thanks for getting it straight j. I would rather get an offer than everyone look at the post and say "good luck with that". (Just finished your flipping book j.....great info!)