How much should I charge for raising investment capital?

How much should I charge for raising investment capital?

Modiin, Israel · Member since 2017 · 35 posts · 4 votes

A real estate investor who invests in “flips” and “buy and holds” is seeking investment partners in his projects. I’m considering raising capital/bringing in investors for him. What would be considered a fair commission on the money I raise? 3%? 5%? Something else?

Also, if I bring an investor who invests in a project today, and continues to invest in the future, should I be getting a commission on every property he invests in in the future or only my first commission?

Would appreciate your thoughts? Thanks!

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  • Kansas City, MO · Member since 2018 · 91 posts · 30 votes
    7y

    Are you talking like a pyramid scheme kind of? That may not be the proper term for it. 

  • Modiin, Israel · Member since 2017 · 35 posts · 4 votes
    7y

    Pyramid scheme? Not sure what you're talking about. He's buying and fixing up a house for $100K. He's investing $33K of his own money or taking a loan for his 3rd and I'm helping to bring in a partner to put in the other $67K. So if I brought him an investor to invest $67K into his flip, what percentage comission should I get for that $67K? 

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