Since this is a very trustworthy friend I do not have a problem with selling the equity but want to make sure I am fairly compensated.

I understand the issues of police powers, on the other hand there is an issue with restricting the ability of earning the fruits of the property and taking the use without compensation.

You will be awarded as compensation a certain percentage from the proceeds of the investment, which is still negotiable.

No real rule of thumb to say a discount will be X%, depends on many factors.I agree with Wayne that you'd be better off with private money, problem is they are usually short term, but there are some little old ladies that would love to get 8/9% for 10 years for the grandkids, but that has other issues too.Now, if you're buying a 100K property for 70K you might do a 90K loan and you may get the 70K, the trick is not to go over the market value of the property and show that you have skin in the game or compensate for the skin like a pledge of other assets.

They will be looking for compensation for doing this either as a flat fee or a percentage of the purchase price.

On conventional loans for investment properties I know they try to stick to around 45%, but will go up to 50% with high compensating factors (credit score 720+, high cash reserves).

I would express these exact sentiments to him and ask him what he thinks would be an equitable compensation based on what he has brought to the table.

I apologized but went silent when she said she wanted to be compensated for the mishap.

Find out too, what compensation the negotiator is charging, as some structure it so the buyer has to pay this fee.

I never agreed to neither fee, but I agree he should be compensated some but not at the level of a property management company because he is not that.