I think that is where you could carve out more of an opportunity for yourself and that could be palatable for your partner because you could state this is what I benchmarked.  

I don't know why he picked 12% specifically, just his benchmark I reckon. 

Please read this book.(2) As Tony Robbins points out in his book Money - Master the Game, "Over any sustained period of time, 96% of actively managed mutual funds are under-performing the market (or their benchmarks)" (Chapter 2.4).  

Taking title and accepting risks needs to be a benchmark.

@andrew @Andrew Syrios I guess it depends on your strategy - I too don't buy according to the 2% rule as my places are usually around the 1.4% - 1.7% mark but I'm glad the rule is there because it helps me benchmark. 

It's a bit of a virtual number, since some of that "gain" is in the deal itself, but I thought investors use it as a benchmark.

I always use past bills as a benchmark to what I will up-charge for rents.

Some points to guide you along the way: -identify partners doing deals already and who have a successful track record-get an idea of how much you would make on a past deal of theirs if you raised XYZ amount of money – this gives you some benchmarks for how much you’ll make on future deals when you bring in the money -make sure the partner has money in the deal – otherwise, what do they have to lose if you bring in your money and your investor money and the deal flops?

Too many investors go without the inspection-- short term money for long term liability. an inspection gives you an objective third-party benchmark about the condition of the property from which you can re-negotiate your purchase price. 

Too bad you don't have $200,000 cash in your account to start with.That might make the decision easier.It looks like it's about $68k out of the gate at MSU (that's $46,000 in 2006 dollars, which many people might find more bench-markable).And that was last years figures, this year 10% inflation has already eaten about $7,000 off of that (in reality).Too bad you don't have $200,000 cash to start with.https://engineering.missouri.edu/student-services/career-services/employers/Learn about yourself: https://www.youtube.com/watch?