Partner wants 32% ROI. Am I crazy to consider?

[Christopher Villa]

I am considering bringing in a partner (that I've known and consider a business colleague for over 14 years). He has a ton of integrity, but he is requesting 32% ROI on a $60K investment ($79K total). This is a flip property I am hoping to purchase at auction for $320K and ARV $575K with a 4-6 month timeline purchase to close. I am also using hard money for the cash purchase and rehab. My total exposure on the property is under $5K. Iv'e crunched the numbers and right now, if we win the bid at the $320K, we should net $79K easily on the property, $19K going to him and $60K going to me. It's in a hot real estate area that I'm very familiar with. Net-net, this is the first time, I've considered a partner. I do need one on this property as I'm leveraged in 2 other properties right now. Am I crazy?

[Jay Hinrichs]

smokin deal for you.. why even ask.. if you don't have the money to do the deal 100% of nothing is NOTHING.

here you make 60k the investor makes 19k which for this situation is about right or on the low side given their risk

I see so many on BP worry about what their investors make then never do any deals.. because the peanut galler hopes on here and says your crazy.. but you can be crazy to the tune of 60k all the way to the bank.