Paying Out Investors On A Flip

[Account Closed]

I know there is no universal way of structuring flips, but how do you normally pay out your investors for a flip? Duration 6-12 months. Raising $365,000. Am putting in $75,000 of my own money. Do you pay out an annual percentage return (8-12%)? Do you just split proceeds? Pay out origination points? Any of your inputs based on experience would be awesome!

[J Scott]

Since it's a loan, you will want to negotiate:

- The interest rate

- The duration of the loan

- Any upfront points or fees

- Whether payments are paid monthly or at the end of the project

Once you've negotiated those terms, just pay based on the agreed upon terms.