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Updated about 8 years ago on . Most recent reply

How do you use investor money
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

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.