The Contract Between The "agent" And The Investor
I will be trained by my friend the Investor
who took a shortselling course
He will supply the info on places in foreclosure from his service. He will also provide the literature I leave behind etc.
He provides the business address etc.
I approach the deed holders explain my purpose leave my card and literature. Do the followup etc I am the man on the street.
Initially he does the shortselling.
I will recieve 50% of profits realized
In our agreement he can open new territories and give me first "right of refusal" That would apply if he took on another "agent" or not
What he wants is I cannot partner with any other Investor for 24 months after we sign. Is this standard?
Niceguy,
Check your other message thread on this topic. In general, most of us recommended that you not sign. In our opinion it is not standard.
Niceguy,
I would be curious to know, if your investor partner walked away from this business tomorrow, would you still pursue REI?
Yes I would continue to pursure it I think it would be harder not having a friend who knew what he was doing. You gotta have somebody you can trust
Well, lets say at some point you and your partner have a disagreement, it happens, and he decides not to do REI anymore. But out of spite, he would not let you out of the contract, what would you do then.
That is just one example...
Niceguy, there really isn't a common contract for that relationship, except for a confidentiality agreement. You would have to have an attorney draw one up for you.
Also, you said it would be harder not working with a friend who knew what he is doing. I would argue that if he just took a shortselling course, that he in fact does not know what he is doing yet. To know what you are doing, you really have to have done one at lease once, and preferably more.
True he has little experience in "chasing foreclosures" but I meant he has more experience in Investing than I do.
Niceguy,
Look. Fear is something we all have to overcome. I can guarantee you will make mistakes with or without your slightly more experienced investor. The fact is, in most cases you can recover from those mistakes. All you have to do is make sure the numbers work. If they do, it is a good deal. If they don't it isn't. When you make a mistake, you recover from that mistake, hopefully make some money in to process, and end up with a wealth of knowledge. I made a huge mistake on my first deal. I under estimated the rehab cost by $60K. I figured the rehab would take $80K, and the lowest bid was $140K. But, I learned from my mistake, and made $3K in the process. Go to REIA meetings and network with other investors, contractors, mortgage brokers, bankers, and all the other people you will find there. Stay active on the boards here. Even work with your investor who has taken the SS course. You can even sign a non-disclosure agreement with him if that would make him feel more comfortable. But, don't let him control your paycheck for the next two years. I would imagine you already have a relationship like that. It is called a JOB. Most of us get into this business so we can control our own paycheck. This is your business. Take control. Take ownership. Have the confidence that even though you are indeed a Niceguy, that you are intelligent enough to do this. We already know you are intelligent enough to know you need and want education.
My suggestion - go find someone who needs help. Find out what their problem is, and what they want to do. If you don't know how to help them, go to the people you network with at your local REIA, or here, and ask. Then help that person.
Thanks bnorton
I think it is an excellent opportunity. So you do not partner with another investor, you can still work RE yourself.
The single individual I know who does the most REI is a guy who started out as the door knocker for a group of investors doing short sells. He learned it inside and out and now he is doing it and he is hiring people.
There are people who belong to RE groups for years, and attend seminars for years, who never get started. You have a opportunity, resources, and accountability with this opportunity to really get started.
Brenda
You are welcome
Although I sure see where you're coming from, being ferociously independent too, I have a little different take on this.
If this deal would make you money, and you're going to be learning on the other guy's dime, I don't see any great drawbacks to a 2 year commitment.
At the end of the 2 years, if you want to go your own way, and have a little $$$$ war chest built up, I'd say you'd got a good deal.
BTW, these days, in most states, a non-compete covenant signed by a salesman (like you'd be) really aren't terrifically enforceable, and salesmen pretty much come & go at will, no matter what they've signed.
Just throwing in some general law here, not a recommendation that you go into the deal with the thought of taking from the guy then walking and cheating him by illegally abrogating (breaching) your contract.
He is a good guy (my buddy) and wants to be flexible So he is the one who started me in this so I have a loyalty to him. But I also need to learn this stuff well so if I can learn from others who are doing it I can only benefit both of us in the process. Completely isolating myself would not help his business or mine
Quote:
On 2004-09-09 20:48, Niceguy1 wrote:
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I will recieve 50% of profits realized
<snip>
There are literally millions of ways to reduce the profit in any business. As you seem to be the novice in this relationship, you should be prepared to be taken advantage of by a most likely older and wiser mentor. My recommendation is not to put yourself in this position.