Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 5 years ago on . Most recent reply

User Stats

2
Posts
0
Votes
Alex Matthews
0
Votes |
2
Posts

What return should I ask for?

Alex Matthews
Posted

Hello all!  I hope this is in the right category. Most of my question is in the description. An agent that I have done several listings and purchases through is starting to flip and has come across a pretty nice deal. They are asking me to fund about 90% of the whole deal and are offering me a 25% return on my investment. They are not asking me to do any of the work. I would own the property. The timeline will be lengthy (approx 7-8 months) as there is currently a tenant. The agent/flipper will be doing a lot of the work seeing as how they have some experience flipping their personal residence a few times. I was told this would be the agent/flipper's only focus until completion. This would be considered a large project for either of our real estate experience.

I only have experience doing a few flips on my own and have never been in this position before. I am nervous because I seem to be carrying the majority of the risk. I was hoping the bigger pockets family could give me a few suggestions, instances, warnings, or any general guidance as to how I should approach this or to where I might be able to educate myself some more on this aspect of investing. 

I'm not sure of how much I should be asking for as a return or if I should be asking for a percentage of the profits (as it may be substantial) and how/if I can protect myself of any possible negative outcomes.

Thank you for taking the time to read this and many thanks for any replies.

Loading replies...