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Updated about 8 years ago on . Most recent reply

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35
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John Johnson
  • Paris , TX
10
Votes |
35
Posts

How do you use investor money

John Johnson
  • Paris , TX
Posted

 Hello all I am new to real estate investing and I have a question .  It's probably better to give a scenario first.  Let's say I compile  $500,000 of investor capital  to begin flipping and wholesaling.  I buy one house  for $100,000  flip it and make a $50,000 profit. How would I split up the Profit among  investors and myself?  Would you only give a return to investors who's money you had to use  or is the money split up evenly according to percentage invested ?  Or is this not how it works ? 

Most Popular Reply

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4
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2
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Dexter Williams
  • Contractor
  • Douglasville, GA
2
Votes |
4
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Dexter Williams
  • Contractor
  • Douglasville, GA
Replied

You usually pay around 7% on hard money lending.  It doesn't matter how much they loan you.  Using money from another investor is another story.  That will depend on how you structure the deal and how much they (or you) bring to the table. 

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