One is to start with a "risk free rate of return", usually the rate on US treasuries, and add on a "risk premium" to compensate the investor for the risk they are taking.

Max dti for automated approval through GUS is 47% housing ratio and a 57% back end ratio (and this is pretty much everyone, lenders don't manually underwrite unless there is an automated approval issue) - even then 31% and 43% are just placeholders, HUD allows 37% and 47% by meeting residual income requirements and no further compensating factors on R/E loans, and you can exceed 37% and 47% (most lenders will cap back end at 50%, but you can go to 57%) with strong compensating factors, such as assets.  

Did the sponsor receive equity ownership in the property, or did you employ a different method to compensate the sponsor for his/her support in the deal?

And "that" conversation isn't necessarily a bad one to have, depending on your tolerance for risk.VA has the lowest credit/income/asset standards paired with the best rates & no mortgage insurance, they compensate for this with the highest standards for the property of any traditional mortgage loan program.Depending on your risk tolerance, you may want to actually be willing to spend money putting BS band aids on the home post-appraisal and after you've got your conditional loan approval.

My question is how should we structure this so that I'm properly compensated for the risk I'm taking?

My compensation from my initial employer did not change, basically the companies just agreed to allow me to expand my duties and the new responsibilities will be paid for by the partner entity.5 years ago before I started working at this job, my employer entered into a long-term revenue-share agreement with the partner company (which is a separate entity w/ different ownership) to expand our capabilities and capitalize on a new product/offering that had a substantial market opportunity in our industry.

An individual engages in the business of a loan originator if the individual, in a commercial context and habitually or repeatedly, takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain.How often does a seller have to provide seller financing to be subject to licensing?

If you can't get a W9 and they refuse use to give you any info, you must withhold 28% of the IC's compensation.

When using the Pa State Workers Insurance Fund for workers compensation, do they force you to pay workers comp on uninsured sub-contractors. 

If you don't compensate your agent, he's likely to take the next property to an investor that does use his services.