Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated almost 9 years ago on . Most recent reply

Need Advice Quick! Investor Terms
I have a lead on what seems to be a good candidate for a fix-and-flip deal, and I've got tentative approval from a lender. However, the lender is requiring 20% down, which is going to be somewhere in the neighborhood of $75k. I'm currently looking for an investor (or investors) to fund that portion of the deal.
My question is, what kind of terms are typical? Is it a percentage return (i.e., you put in $75k, and when the project sells, you get your $75k back plus x%)? Or is it a percentage of the profit (i.e., when the project sells, you get x% of the profits)? Or something else?
I really have no idea what's a typical arrangement, and I don't want to A) get screwed or 2) look stupid. Thanks in advance for your input. (And if you want to invest, PM me!)
Most Popular Reply

I appreciate the input, @Corey Woodruff. Any advice on what those terms ought to look like?