Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Deal Analysis & Advice
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 over 9 years ago on . Most recent reply

User Stats

28
Posts
0
Votes
Max Shepherdson
  • Renovator/Developer
  • Victoria Canada, BC
0
Votes |
28
Posts

Am I being too greedy?

Max Shepherdson
  • Renovator/Developer
  • Victoria Canada, BC
Posted

Hey all!

Im a reasonably new investor and wanted to share this deal with others to get their opinion.

I have a deal sent to me from a friend of mine.. It looks great if I were to do it myself, however he doesn't want to assign it to me as the return is great.. he wants me to fit the bill and he takes 50% returns. (Buy rehab and hold) 

Is a 50/50 split reasonable for a finders fee? One persons provides the capital while the other brings and manages the deal?

Its a 3 unit building ( with a 4th unit being a moldy basement right now, will be rehabbed at a later date)

The numbers look like this;

Purchase: $110k

Rehab: $50k for 3 units

In a decent up and coming area.

We have locked in 3 families for year leases at $1500 per unit per month.

Total rent =$4500pm before expenses

Were looking at $2200 cashflow.

Then split 50/50 is $1100 p/m.

So $1100pm cashflow return on a $160,000 investment.

Thanks in advance for your opinions.

Cheers

Most Popular Reply

User Stats

6,408
Posts
2,655
Votes
Brent Coombs
  • Investor
  • Cleveland, OH
2,655
Votes |
6,408
Posts
Brent Coombs
  • Investor
  • Cleveland, OH
Replied

@Max Shepherdson, "whoever has the gold, makes the rules". So, if he wants half, is he going to pay (nearly) half? If he wants you to "fit the bill" 100%, then he has only "earned" a normal wholesaler fee. If he wants ongoing drip feed (net) income, then his proportion should be much closer to 0% than it is to 50%.

What you could have asked is: is my friend being too greedy? (Answer: Yes)!

Now, read the first sentence again. Cheers... 

Loading replies...