Investor Split for Flip

[Emily Reynolds]

We have Investors from out of state that are funding our flip 100%; home purchase & rehab costs. We are managing the project 100% since they are out of state. What is the typical % of profit split in this type of scenario?

Lastly what would the typical % of profit split be in a 50/50 investor equity split on a flip?

[James Masotti]

If they have an equity position in the property than 50/50 is what I've heard thrown around as being the norm. But it will depend on the specifics of the partnership and your relationship with the investor. If they are an experienced investor who is also coaching and mentoring you through the process and not just providing capital than I would say a 30/70 split isn't crazy either.