What percent do you give your investors?

[Joe Curry]

I am contemplating bringing in investors to reach another level in my real estate investing. I do not know much about how to structure deals with outside investors. What is an average ROI for them? Does the % fluctuate with amount invested? Is the % on an annual basis so short term loans would only pay for the term used or is it a flat fee? Any info would help!! Thanks

[Account Closed]

I can't speak for all investors but I would not do any REI deals for less than double digit returns. The effort and risk and ill liquidity demands at least that. And that number depends on the risk free interest rate. If we ever get back to more "normal" environments when CD's pay 5%, then the expected return on REI would be higher. Then there is the issue of confidence in the person. No matter what there promised return, unless I had solid confidence in the people asking for the money, I would not invest.