Getting a Taste of the Flip

[Barry H.]

Hey BP Community - I am pretty new to BP but have been investing in rental real estate about 13 years and recently moved into Hard Money Lending (HML). In my HML deals, I am lending for short terms (4-6 months) at higher interest rates (typically Flips) or longer terms (1-2 years) for BRRR type investments. My inquiry has to do with Flips.

Some of the Flip deals presented to me are attractive as an Investor vs just a Lender.  I suspect there are other HMLs out there doing this - but I would like to know more about lending for a specified term (e.g. 6 months) with deferred interest rate payments in exchange for a "Taste of the Flip."   Please let me know how this works and what is a reasonable percentage of the Flip sale profit ??