Exhausted-need some career direction advise!

Exhausted-need some career direction advise!

St. Louis, MO · Member since 2013 · 50 posts · 5 votes

I work for a couple investors. They brought be on to dig up deals for them. For every deal I bring to the table, I make 20% of the profits. Most of the time they will close on the deal and then sell it to someone else, occasionally they will rehab and sell it.

The trick is, I can't really do advertising or direct mail. I can send a limited number of letters, tops around 500-600 on month.

This means that I either drive for dollars (which is really expensive since I have an SUV) and call the owners of houses I find or pull lists from the tax records, look up each person's phone number individually, and call down the list. They really prefer calling people rather than sending letters.

I've been doing this for 6 months and have brought in 4 deals. They are telling me I should be doing at least a few a month.

At this point I'm getting pretty exhausted from it. The days I make calls I get told to "f*ck off" AT LEAST once. There are only so many days you can wake up and not hate your life as you willingly and continuously call people just to get b*tched at.

Driving for dollars is way more fun but I end up contacting only around 20 people a day tops and spend a ton of money doing it so it doesn't really pay out.

Am I doing the right thing working with these guys? I've learned a ton from them. They have shown me how to talk to sellers, how to analyze deals, etc. Should I just go off on my own now and do things my way and make more than 20% per deal? At this point I have no savings so I would have to get a job while I do this on the side and then leave once I have done enough deals.

*another note: they put me on a commission draw and I owe them around $3000 now. I have a deal closing at the end of the month though. Hopefully that could even it out a little :-/

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  • Dev HornPro Member
    Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
    13y

    Is your relationship with them exclusive? I'm guessing not. You might want to EXPAND the number of investors you work with so that you'd have some more options (create a little competition for your deals).

    Could you get a part-time / evening job that would take some of the pressure off you financially to give you a bit more breathing room? I'd hate to just be starting as you are and not have some consistent income. So I'd lean toward having a job while you are, in essence, building your REI business.

    Look for inexpensive ways to market your business - such as flyers and business cards which can be produced for pennies per piece. Let EVERYONE know what you do. Visit places where you can meet a lot of people and hand out a lot of flyers/cards, etc.

    If you have produced ANY deals - and it sounds like you have - you are now officially BETTER at this business than all the people who just TALK about doing it. You've got what it takes. Hang in there and go for it!

    "It is easier to go down a hill than up, but the view is best from the top." ~ Arnold Bennett

  • Salt Lake City, UT · Member since 2013 · 10 posts · 0 votes
    13y

    Hi Brian Porter, man I feel your pain. For about a year I partnered up with a guy and got into a similar situation. The money *could* have been great, and in retrospect it wasn't anyone's fault that we just couldn't pull in enough income to support me. The other guy had plenty of passive income to do whatever he wanted.

    Long story short, I realized that I had learned a TON, but that knowledge would not pay my bills. I had to move on, so I did. As I look back, I probably should have exited sooner, but I got kind of hesitant to make a change.

    Anyway, do what's right for you. You're the only one looking out for yourself, and there's no shame in making a change.

  • Accountant · Kansas City, MO · Member since 2013 · 68 posts · 2 votes
    13y

    Hi Brian,
    Do you have your real estate license? Just curious if you had access to the MLS as well and were also doing other real estate projects/work on the side? It sounds like you spend a lot f your time working on finding their deals. Could it be possible to work out a different arrangement?? For example, maybe if you had found an amazing deal, you would actually do the work of flipping and or finding a buyer- your investor just pays for the cash needed, and then you both split the profits 50/50. Just a thought....this might give you more personal encouragement and consideration in the deal. Good luck!

  • Rental Property Investor · Holley, NY · Member since 2011 · 507 posts · 347 votes
    13y

    Brian Porter - I don't know exactly how to advise here other than to say that if what you are doing isn't working for you, do something else.

    When I started out, I did a LOT of what you are doing for a would be partner. I drove a lot, spent a lot, and we finally did a property together. He financed it, I did all of the work. The rehab turned out terrific, but we had a difference of opinions on listing price. His was go for top dollar, mine was price it to sell. Since it was his money, he won. In the end, holding costs ate up all of the profits and we split a LOSS instead of a GAIN.

    In hindsight, however, the experience and insight that I gained from working with him proved to be very valuable. We don't work together since that deal, BUT he is somebody that I still enjoy talking real estate with. I now look back and consider this part of my education. Having the opportunity to have done that first deal with somebody with so much experience helped me gain confidence in both my own abilities as well as the experience to see that you really can make money in real estate.

    Maybe it is time to start looking at what the next step is going to be for you. Take a piece of scrap paper and a pencil and scratch out some goals. Where do you want to be this time next year, 5 years from now, and further down the road? After doing that, take a look at what you are doing that contributes to your goals as well as what is holding you back from achieving your goals. That will help you figure out what the right next move will be.

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