It depends to a large part what their expectations are. 

@D Kirk If I was presented this offer to partner I would expect a percent of the deal that would compensate me for the risk I'm taking.If it's your first deal, then you would probably have to give up more equity.

@Lavette Reid Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Then look at the expected rent and NOI you are looking at for that 4-plex (or 6- or 3- or whatever) that you could buy for $948,000.

Lastly expect to pay 2-3 points in cost for a hard money loan and rates to be 12-14% for first time investor.

Communication is always key.Even if things aren't going as planned.Granted, I have also witnessed many unrealistic expectations and got blasted for "communicating" every nut and bolt to an investor.So it can be a fine line

Most investors that have tried to purchase an investment property recently have been shocked by how high prices have remained given the higher interest rates and growing negative economic news. What gives?
I am c...

Hi BP Community,
I'm in the process of evaluating a fix-and-flip opportunity for a single-family home (SFH) with the following details:
Purchase Price: $1,000,000Renovation Costs: Approximately $400,000Estimated Tim...

I believe it’s called a home equity agreement:https://www.cnbc.com/2019/04/05/need-cash-now-you-can-sell-t...https://www.nerdwallet.com/article/mortgages/shared-apprecia...