Sure, there are some negative correlations in some areas (home ownership percentages and rental rates, for example), and probably some areas with little correlation, but the underlying asset values are typically what drive the entire sector, and all real estate is based on common underlying asset values -- land prices and improvement values.Just my $.02, of course

Is it a percentage discount of arv?

Once you have that lower commission percentage agreed to, subtract that amount plus the $1500 from your maximum purchase price -- this will be your maximum bid amount at the auction.3.

Then the remaining should be distributed based upon the listed percentage.

When I do this, he and I split the profit.He has a checkbook and credit cards for the company and is authorized to make any rehab decisions and any financial decisions up to a specific $$$ amount (over that, he needs to get approval from me).He is paid a small monthly salary, plus receives a percentage of the profit on each project.

i have a friend who needs to borrow $10k and will give me a percentage of profits($25,000) from sale of piece of property, which should be in 4 months. i will have property as collateral.we want to keep it as a loan, as opposed to buying into his partnership, so as to not bring about any taxable situations, but i am a little worried about usury laws.i would love any ideas on the best way to do this to protect us both.

I would like to estimate financing costs from the mortgage (fees, title seach, etc) but I do no have a lot of practical experience here.For those that do, is it reasonable to estimate financing costs as a percentage of the loan amount?

This speaks to an agency problem in my opinion hence I was suggested capital investors to get top side when it comes to either cash flow splits or revision percentage.

The more cash you can put in and the higher you percentage returns, the more you make.Much of what is held up as real estate investing is, in fact, a real estate related job.

Front and back end might refer to percentage you can afford for the payment of PITI for the 31% and 43% for all your debt payments combined.