Private Capital Interest Allocation

[Francisco Solano]

Hi BP Community! 

I am actively working on sourcing and locking up fix and flip deals. These deals would have adequate equity in them. I am looking at 1-4 unit properties. The properties would be in a distressed state and I would lock them up at a minimum of 65% of ARV. In this effort I have sources that can provide private capital. My question then is, what would be a fair ROI on the private capital? I know this depends on the deal itself, but are there any general guides as to how to pay the investor(s) via points or equity? I'll articulate a deal for better specifics.

So let's say I have the following deal:

SFH - 4 Beds 2 Baths - Purchase Price: 170K - ARV: 350K - Repair Cost: 55K

So I source private capital. I obtain 80K in liquid cash. This is to cover the repair cost and part of the purchase. I would obtain a hard money loan for the rest of the cost.

In this scenario what would be best way to leverage the deal? How many points or how much equity in the deal would you give to pay the investor?

Thanks!