If I have a opportunity to invest 10 K in a home and get on Title as well a % of equity. (I will not be on the LOAN, and it is in good standing)
How do I find out how much I should ask for that 10 K investment. What would be a realistic return in 3-5 years. This is in the Las Vegas Market.
For such a short term if the plan is to sell after that 6-8% per year if they are good risk? an average house in Las Vegas is $250k give or take so you’re helping with a 4% down Payment?
If you tried for a percent of equity gain instead, say it went up 8% per year. After 3 years it’s up 24% and it costs you 8-10% in sales costs? You have a net gain of 14-16% over 3 years if you get well above US average appreciation. But a return of less than 5% per year.
Remember, Unless they are putting down $20k or more you’re $10k is entirely at risk and would get wiped out in a sale. (sales costs of $20k in the above $250k example)
@Alen Babayan ....it really depends on what the nature of what your relationship is with your partner and what you agree to. To give more solid considerations to help you; I would need more context of the deal. I'm happy to discuss with you over the phone if you like. Just text me at the number below and we can set up a time.
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