All Forum Posts by: Janet Beaver

Thanks guys 

This is helpful .I will take your advice into consideration . I'm having problems finding deal structure examples with numbers here  on BiggerPockets. It would be helpful for newbies if we could see how others have done different deals scenarios with real figures and outcomes . If anyone has come across such please respond with a link 

Thank you 

Hi, @Gary Harris

Here is the deal in the best scenario:

Duration of construction and selling - 6 months

ARV - $500,000

Construction + closing costs - $380,000

Realtor fees + selling cost - $35,000

Worst case scenario the ARV - $420,000

Duration 8-12 months

And if I use this scenario our construction cost will have to be lower .

On your deals, when you paid 30%, was a fixed rate with no profit split , Or did you also split profits?

On your deals is the 30% everything you pay the investor back? Or do you also split the profit?

Thanks guys!

The investor feels like he is risking a lot more than us since we are getting  paid for the GC work. He also thinks could be making more on the stock market . He doesn't want to use his own money so he plans to borrow . He is able to borrow whatever amount we need at  4.5 -4.8% .

The investor was asking for something like this : No collateral 

Principal +30-40% return on capital + 20% split on Net profit 

1. Is this reasonable ?  He doesn't want 50:50 after profits because our company will be employed as GC 

2. What  happens if we are unable to sell the house for what we thought it would sell for due to market conditions 

3. What markup do we put on the GC side of things if he is asking for this structure?

Thanks guys!

The investor feels like he is risking a lot more than us since we are getting  paid for the GC work. He also thinks could be making more on the stock market . He doesn't want to use his own money so he plans to borrow . He is able to borrow whatever amount we need at  4.5 -4.8% .

The investor was asking for something like this : No collateral 

Principal +30-40% return on capital + 20% split on Net profit 

1. Is this reasonable ?  He doesn't want 50:50 after profits because our company will be employed as GC 

2. What  happens if we are unable to sell the house for what we thought it would sell for due to market conditions 

3. What markup do we put on the GC side of things if he is asking for this structure?

HE

Hi, guys 

I'm new to biggerpockets and I need help structuring a deal

My husband and I own a GC/CM company . We have a Passive Investor who is interested in loaning us 100% cash for some of our deals. He is not interested in getting anything in his name :Partnership, a mortgage or lien on the properties . He wants to just put in money and get a return .The deals will either be buying land and we build new or renovating houses and selling them . We will be the GC to build or renovate and would be getting paid for our work . We have a separate LLC setup from our GC company that would get a loan from the investor and employ our GC company to do the work. We have an opportunity for him to keep investing in our deals if we can get the first one structured fairly for us and him. Does anyone know how best to structure deals win such situations?

Thank you for reading this and your help will be greatly appreciated

Janet