How much to get in return from a investor?

Question

I would like to know if you have a potential investor that is a contractor. That is interested in investing in properties to flip. The contractor does not know how to find houses to invest in but I know how to find the houses and I would do all the research on the investment property and present the investment to the investor. My only thing is I don't know what percentage I should get out the deal?

Kiyon Harley · Answer

100% agree with @Clayton Plank. You should charge the investor a wholesale fee on a deal by deal basis. The key is to make sure that he/she still has room to make money out of the deal, so it's imperative to get the properties under contract below market value.

Shanelle Harris · Answer

Thanks for responding

Clayton Plank · Answer

@Shanelle Harris, then there is not set amount. It just depends on how good the deal is. The deal will tell you how much you can ask for. If you ask for too much then the investor won't be able to make any money or less money and the deal may not be appealing to them.

Shanelle Harris · Answer

Thank you for replying. The investor would fund all. Yes it would be wholesaling.

Clayton Plank · Answer

@Shanelle Harris, there are a lot of things that make up what percentage you should get. Are you just finding the properties and wholesaling them to the investor where he is going to 100% fund the deal and do the work? Are you going to share the deal were you fund part and the investor funds part? There is a lot of missing information here.