BiggerPockets

Jc,
Is there an end buiyer in place?

10% lol no one in their right mind would risk their credit and money on a 10% split especially if they are to cosign.

You would have better luck finding a private investor who would loan you the money for the loan at 12-18% interest.

On a flip, 10% of the sales price isn't TOO far off a reasonable offer for a money partner. 50% of profit would be typical. Hard money's going to run you about 10% of the loan amount on a flip. If that's 70% of the sales price that means the lender's getting 7% of the sales price. So, 10% is better. If there is no money cost, a good flip should net 20%, maybe 25%, of the sales price in profit. So, 10% of the sales price is probably pretty close to 50% of the profit.

That said, I'd never lend anyone my credit. I'd rather lend you the money, either for a fixed rate or a split of the profit. The worst that can happen in that situation is you run off with whatever cash you get, and I repossess the house. If I lend you my credit, you can mess me up much worse.

The piece that leaves me wondering here is the "1-2 years". A flip MUST be a few months in and out. If it was worth $92K in 2004, it's ARV isn't likely to be more than about $70K now, and could be much less. In one or two years, its almost guaranteed to be even less.

Yeah, the look I took at Phoenix recently was eye-opening. Houses listed at 30% of what they sold for in 2005 and 2006. REOs, no doubt, but it sure seems like the numbers you see in articles, like 20-30% declines are way optimistic.