It has a $16.90 Cash on Cash return and could increase my cash flow $373 on the conservative side.My question is, how do I split the profits with a private lender?

The contract states, "Seller _________ agrees to pay a consultation fee in the amount of 50% of the profit to ___(me I know)_ for the sale of this property."

I would then take my profits from the construction business and put them back into my rental business.I have a lot of plans, plans almost always change, and I’ve yet to do a single deal.

I told him that if any one property can't be profitable, then you could never profit from having multiple unprofitable properties. 

(I'm senior management for a life insurance agency, transitioning to LA).

The majority of areas nearby where I live are that way as appreciation has been going up very quickly and the rent will take some time to catch up.There's 3 ways you profit off a property: cashflow from rent, equity paydown of a mortgage and appreciation.

But I look at lots of commercial stuff like that that is a money suck if you have the capital to keep it floating for several years and may just then be profitable because you can sell it to someone else for a higher price.Now, if you can buy it for $200k on owner financing or better yet pick it up for back taxes then you have something.

My tenants have been in my properties a long time so I have been able to bank that money as extra profit.

@Tom Smith easily attainable if you invest it correctly.In syndication for example, the standard is an 8% preferred return (the limited partners receive 100% of profits until 8% annually is met), 70/30 split thereafter.

How to maximize your profits shown on paper as your “ARV”.