I’m a newbie here- actually writing on behalf of my husband who’s been studying REI materials for 2 years now and still has never come close to getting an investment deal done. But, he’s been approached by this guy who has his own real estate investing llc and this guy has offered to mentor and teach my husband how to do the investing as long as my husband signs two legal contracts that state in pretty sophisticated language that my husband is required to make certain deadlines of performing certain tasks (like networking with agents, finding property hotspots, etc.), also committing to spending a certain amount of my husband’s own money for marketing efforts each month, that my husband not engage in any other real estate deals on the side without the partner knowing about it, etc. etc. And if my husband was to not meet any of these agreements, then their contract would be terminated. Also, it states that my husband won’t be able to make any profit from the sale of properties until he nets them at least $125K and then my husband would be entitled to keeping half the net profits…
Is this normal? I think my husband (and I!) are just frustrated that it’s taken him over 2 years of studying, attending seminars, etc. and still no deals and so he’s feeling a bit desperate and wonders if partnering with this guy may be the only way to get his business going.
Should he sign these legal documents? Does it sound like my husband’s potentially going to be taken advantage of? This guy seems very savvy and confident, and used emotional, motivational language in the “accountability” section of one of the contracts, too. Reminded me of what a cult leader might sound like. Am I just being paranoid, or should I be concerned?
Would love to hear any feedback you may have- thanks!!!