There is no 3rd party as of now, I am an investor and have to look for credit partners if 20% is a must.If I finance only part of the project then do I have to pay the equity on full projects profit?

Here are the numbers:Asking price: 120KUnits are 2/1's, rent for $600 eachBuilt in 1959Tenant pays heat and electricIncome: $600 x 4= 2400/month and 28.8K/ yearlyI used the 50% rule to cover expenses, but some of them would presumably be:Insurance: $115Taxes: $357Vacancy: $240 (10%)The property seems to some sense using the 2% rule (2400 a month rents is 2% of 120k).Financing: I plan to live in one of the units and use FHA financing.FHA down payment of 3.5%: 4200Loan of 115,800 at 3.5% interest= $520 monthly paymentAfter 50% Rule, $1200-$520 = 680/4 = $170 profit per unit/monthlyI have just a couple questions about the property.The owner recently bought it and replaced the windows/doors and claims that the building is in good shape. 1.

Once I free up the equity (and hopefully profit) from the sale, I will be a lot more serious about making offers on investment-oriented properties.For now, I'm familiarizing myself with the types of properties that are available and what they tend to sell for using the MLS.

with 15 it will be paid off faster but higher per month payments.with 30 i will make more profit per month and have more cash flow.

It appreciates and ends up being worth 250k plus you pocketed another 200k in net profits.

Originally posted by Sean Brennan:Also, ever since Costar bought them out there fees have doubled.Time to breach this madness of profiteering.

As always @annbellamy hits nail on head...If a hard money allows you to move forward on a profitable investment after paying the lender, you should strongly consider it, understanding there is risk in the event of nonperformance.

Like they say the profit is in the followup/follow through.Awesome success to you!

I also mentioned a profit sharing strategy and went into a convoluted explanation of my plan.

Obviously, if they find out that you made $5,000 on it - they might be a little miffed, which is why I would always disclose to the buyer what your role is upfront and have them sign something stating they are aware that your goal is to be the middleman and make a profit by helping connect them with a seller.If you find a buyer for your purchase and sale agreement, then you wouldn't have step 4 because you never owned it.