My Friend wants a 30% Return How to calculate

[Michael McKenzie]

Hey BP my friend wants to help with a rehab flip that cost 15K he said he is willing to put in 10K but he wants a 30% return back on his 10K. 

The ARV for home is 120k

The price I got for home is 80K 

Repairs 15K

My buddy is putting 10K toward repairs 

I'm putting 5k towards repairs

Closing cost 7K

Agent Fee 4.4% 

What can I return my buddy ( He will only do deal if I can give him 30% of his money back) 

[Jeff Rabinowitz]

I hope your friend or someone else you trust can help you with the math. You are less likely to locate and complete a profitable deal without knowing the basics. If your buddy wants a 30% return he wants 130% of his money back. For a 10K investment that would be paying him back $13K. This deal looks very thin, especially for an inexperienced investor. If everything you state is accurate there is only a $10K margin. That can easily evaporate if costs run a little over (or you fail to account for some costs) or the market softens (or you overestimated the current ARV). Be careful out there.