Updated over 7 years ago on . Most recent reply
Investment profit question
Ok, I am about to make my first investment. I’m a contractor who is teaming up with an investor. I’m am going to be included on the investment side and also do the rehab on the flip. I don’t know that much about the investing numbers so would like to know a little more about the numbers. I hope I provide enough information to get educated responses. The purchase price is 255k the deposit required is 40k, the investor is proposing for me to provide 20k and will give me a 12% return on top of my 20k deposit. Is this a normal percentage after all costs.
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@Roger Evans a 12 % return on your money is a reasonable amount if you understand the risk. Look at the investors projections. Is the after repair vales (ARV or expected sales price) realistic? Are the cost for the repairs realistic? That should be easy for you. Then are the cost to buy, cost to hold, cost to finance and cost of sale accounted for and reasonable?