Investor Negotiations

[Pace Jordan]

Im planning on getting into rehabbing/flipping. Im ready to approach a few friends/family members about investing in me. I would greatly appreciate some advice as to how much I should offer to these potential investors.

I know that things are never the same for anyone so let me give you some info, so that you can understand where Im going…

1. Im looking to raise $75,000.
2. I plan on buying homes between $150,000 and $200,000
3. I plan on using hard money for 80% of this deal. This will cost me 18% per annum.

I understand that paying a private investor AND a hard money lender puts me in a situation where I may not make much money myself.

Im thinking that I could offer a percentage of the profits, or a yearly percentage to hold their money. Id much rather land a deal that is based on what is earned and not how long the money is held.

Is my thinking off?

Please help!

Thank you in advance.