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.
General Real Estate Investing
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 almost 4 years ago on . Most recent reply

User Stats

4
Posts
1
Votes
Ed Sena
  • New to Real Estate
  • Livonia, MI
1
Votes |
4
Posts

Fix and Flip Investor Deal Structure

Ed Sena
  • New to Real Estate
  • Livonia, MI
Posted

Hey Guys,
Looking for advice on how to structure a fix and flip deal to potential investors. We have several good financing options. As we look to scale, bringing on investors is just one option. Below are the numbers from our first 2 deals:

Investment #1:
Purchase Price: $40K
Renovation Budget: $60K
ARV: $$240K

Investment #2:
Purchase Price: $50K
Renovation Budget: $50K
ARV: $170K

As a potential hands-off investor what would you looking for and consider a great return for your investment of….
Scenario 1: You invested 50% 
Scenario 2: You invested 75%
Scenario 3: You invested 100%


Assumptions + Caveats
Investor will be hands off and simply looking for a return
For sake of argument let's assume our budgets and ROI numbers are accurate and we can deliver these outsized returns.
Assume we have the team in place to find more of these gems and are able to execute
We have other financing options and private investors is attractive because we believe it would allow us to scale quicker

Any examples of similar deals you have been part of or have insight into, would be greatly appreciated. And explanation of what made your deal structure attractive would be helpful. 

Thanks in advance for all the great insight and guidance!

Loading replies...