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Rehabbing & House Flipping

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Andrea Gibson
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How Much to Pay Friends/Family Investors?

Andrea Gibson
Posted Sep 21 2023, 11:42

Hi Everyone,

I'm working on some gap funding for a potential flip, and have quite a few interested friends/family members. 

What is a fair return on their investment I should offer? The property is in pretty good shape, so the rehab shouldn't take too long. 

I need to fund btwn 28-40k and it looks like I have 2 or 3 interested parties. 

Advice/experience appreciated! Thanks!

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Andy Sabisch
Pro Member
  • Investor
  • Wilkes-Barre, PA
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Andy Sabisch
Pro Member
  • Investor
  • Wilkes-Barre, PA
Replied Sep 21 2023, 16:34
As interest rates remain high, those that want to invest are looking for higher returns.  CDs are offering in the 5%+ range.  I would offer something in the range of 8% to 12% compounded annually and paid monthly.  Do not under estimate the timeline as you do not want to burn those investing in your project

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Andrea Gibson
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Andrea Gibson
Replied Sep 21 2023, 17:59

Thank you!!

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