It is a set price that you are going to get for it and if the deal makes sense with an 8% profit vs ARV (80% for purchase, 7% for realtor and closing costs, and 5% holding costs), it will be a good deal for you.Account Closed You are 100% right.

For comparison purposes, I hold ownership units in a LLC that owns a retail/service center where there is a mortgage loan that initially represented 50% of value, now about 35%.  

New agents use that to ensure they can hold on to a client. 

As noted I drank the cool aid on the high return higher risk and for me was not what I wanted .. now all we have is a few top shelf and I like that no calls values hold exit is real etc etc..

I question if they get kick backs or actually hold ownership in this company.

using this form of financing is a great way to acquire/fix a property but if you are looking to hold long term you would want to find long term financing. 

I'm a digital nomad who purchased a 4plex in Carson City, NV a couple of years ago as a buy & hold.

As you look to scale, just make sure to hold/build reserves for when repairs come up and take your time screening tenants as you will find a vacant unit is much less stressful than dealing with a bad tenant.

Our bank will let us use equity that exceeds 25% across multiple properties that are either owned free and clear or where they hold the first so long as the deal still cash flows with however much cash is brought to the table.

*Renovation Costs – Includes labor, materials, permits, and unexpected repairs*Holding Costs — Utilities, property taxes, and financing costs during the renovation time.