Flips in Philadelphia

[ILan B.]

Hello to all the great professionals here in BiggerPockets, I wanted to ask you but a deal I’ve got from a builder I’m working with ,

We were talking about making a flip of a house worth 55K

Doing 100 k remodeling, and after we sell it split the profit 50/50 , the issue came up when I’ve asked to make the investment only from my side , being a passive investor, I bring the money he bring the work and the we spilt , this is my first time investing, any suggestions on how to negotiate on it , or to talk about what kind of issue can happened?

[Jason Levin]

Originally posted by @ILan B.:

@Jason Levin

I’m a newbie what the 70% rule

( After Repair Value (ARV) x .7 ) - Repair Costs = Maximum Purchase Price

ARV = $100,000 and Repair Costs $25,000

($100,000 x .7 ) - $25,000 = $45,000