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Rehabbing & House Flipping

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Jon Ful
  • Investor
  • San Diego
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19
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Fix & Flip - Investor Splits & Fees

Jon Ful
  • Investor
  • San Diego
Posted Apr 20 2023, 12:19

Hi Friends, Would love to hear your thoughts on industry-standard investor splits for single family fix & flips (less than 1 yr holds)? 

Curious what you're seeing in the market lately.

What FEES are normally charged?

Acquisition Fee: %?

Disposition Fee:  %

Property Management: 8% of Total Income?

Construction Management: 5% of Hard Costs?

Loan Guaranty Fee: 2% of Loan Amount?

What INVESTOR SPLITS are normally offered?

Investor: Provides 95% of equity?

Sponsor: Provides 5% of equity?

8% Preferred Return (Pari Passu)?

Over 8% Pref -> 80% to Investor, 20% Sponsor?