Need Advice Quick! Investor Terms

[Andrew Taylor]

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!)