Returns to investors

3 Replies

Hey BP need a little help. I'm making a list of investors that are willing to help with my fix and flips. What is the right approach when talking returns on their investments? I've talked to some people and get different answers. I've heard a certain percentage return, 50/50 splits etc. Can I actually tell the investors the % return for them to expect? Hope my question makes sense??

Why not offer a high fixed rates to lenders and low offers on houses?  That works for us. 

Originally posted by @Jason Dillard :

Why not offer a high fixed rates to lenders and low offers on houses?  That works for us. 

 Hey Jason thanks for the reply.

So how do you structure your deals if you don't mind  measking. If I have investors willing to put money in on a flip do I give them a certain % they should expect to get back?

I've heard 8% annualized is common but I guess it all depends.

I also can acquire hard money loans but want to limit that if I can and just use private money and personal capital.

Any advice is appreciated?

We do one investor per deal and they get a 1st mortgage.  The rate is anywhere from 6 to 10.