Hello BP community,
What kind of cash-on-cash return do you expect on a flip in LA? I'm following Brandon's advice to analyze 3 deals a day but I find myself not being very clear on what kind of profit I should expect. I'm structuring my deal so that the investor who brings in the GAP fund will receive 40% of the profit. I was hoping to give them something like 20% cash on cash for a 6 month flip so 40% annualized. Two questions:
1) Is that reasonable for them?
2) Is that reasonable for me? Can you find deals like that in Los Angeles?
Looking forward to hearing your answers,