House Flip Split

2 Replies

Hi All,

I have a Realtor friend that has found a flip deal. I would put up about 60% of the money needed for the project and he would put up 40%.  He has people that will do the GC work that he trusts.  If he doesn't get my money the deal will mostly likely fall out of escrow.  What would be a fair percentage of the profits I could expect?  I have read several of the other posts related to this topic but they do not seem to fit this scenario exactly.

Thank you for your help!

Exactly, every scenario is different. What would you do with your money if you didn't invest in this house? What's the difference between returns and risk exposure? How experienced are you, how well do you know the realtor, how well does he know the GC? What kind of protection will you have, is your name going to be on title? Wl,ho's managing the crews?

If everything is kosher split the deal, everyone makes money and life is great.

I know the realtor well, he knows the GC well.  My name will not be on title but we will have a contract.  Realtor will be managing the crews.  It looked to me like the rest of the scenarios had the investor coming up with all the cash and they would split the profits.  I am wondering if it is reasonable for me to ask for 50% of the profit when I am putting up 60% of the money and I am not doing much else.  Thank you for your response.

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