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Updated about 6 years ago, 10/24/2018

User Stats

17
Posts
2
Votes
Jeremy R. Henley
  • Carlsbad, CA
2
Votes |
17
Posts

Is this a fair deal?

Jeremy R. Henley
  • Carlsbad, CA
Posted

I have a potential 100% financed deal including the rehab and I am curious what a fair profit split would be to compensate the investor. The quick deal summary is a SFR flip that should take about 2 months to renovate and then about 30 days to sell here in the San Diego area plus closing time of 30ish days. We are contemplating doing a limited partnership where the investor will supply the funds for purchase and rehab and I am bring everything else, my crews, my knowledge, the deal, my management, etc. The investor has a LARGE line of credit so we are considering the interest on the line part of the expenses as well and would potentially split the profit 50/50. Generally speaking am I being to generous, on par for industry or getting lucky with the deal. I am not a rookie but also would not say I am veteran with 100s or more flips under my belt. Thanks for any input.

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