Unlike HUD, there is no set amount of earnest money (though at least $500-1000 is standard), and there is no set percentage under list price that the asset manager will accept -- though for recently listed properties, I rarely see accepted offers under 90% of list price.One thing to keep in mind if you're considering wholesaling Homepath properties -- they will impose a 90 day hold period after purchase during which you can't sell the property for more than 20% above what you purchased it for.

Your operating agreement can also be amended to update who the members/managers are, and their ownership percentage.

We typically assign small ownership percentages to family members in different amounts and for different people for each companies.

We don't allocate a specific percentage to repairs and CAPEX - just make sure that we have an adequate amount of liquidity at all times.In the future, when there are more properties, we will break things out more, but at this stage of the game (2 properties, 3 units total) it seems like overkill.

However, it is possible to have a rent for the master lease based of a percentage of what you actually collect.

The ARV of the property was $539,000 and the real rehab costs were $40,000 placing my buyer at an all-in percentage of 74%, which in CA is very good.

I allow for a percentage of error on every deal.

In my area (Las Vegas), his system of percentage discounts does not work unless the property is a condo that hasn't sold for many months or a property so far out of town that no one wants.

So high returns (percentage wise) on little money invested, but with lots of risk - legally.

Do I need a contract or need to negotiate a certain percentage or what?