Updated over 6 years ago on .
Bringing in a Partner that wants 32% ROI. Am I crazy?
I am considering bringing in a partner (that I've known and consider a business colleague for over 14 years). He has a ton of integrity, but he is requesting 32% ROI on a $60K investment ($79K total). This is a flip property I am hoping to purchase at auction for $320K and ARV $575K with a 4-6 month timeline purchase to close. I am also using hard money for the cash purchase and rehab. My total exposure on the property is under $5K. Iv'e crunched the numbers and right now, if we win the bid at the $320K, we should net $79K easily on the property, $19K going to him and $60K going to me. It's in a hot real estate area that I'm very familiar with. Net-net, this is the first time, I've considered a partner. I do need one on this property as I'm leveraged in 2 other properties right now. Am I crazy?