Updated over 4 years ago on . Most recent reply
Minimum Profit for Partnership Flip
Hi all! We are looking at our first deal and currently have one thing stopping us. Enough capital! We have a well reviewed local HML that wants to work with us, but being that we are new they want more down than we currently have. We might consider looking for a partner, but we are curious about how much profit would be enough for someone to want to partner with us?
We have $20,000 to put down and will handle all of the financing and rehab. We would simply need someone to put another $20,000 in. The estimated profit in this particular deal is $30,000.
Is this a deal worth partnering for? What would you suggest in regards to the split of the profit? I know every partnership is unique and it really just depends on the two parties involved, but having the general opinions of other investors will help us to understand more about what we should or should not expect.
Thanking you for taking the time to read my post!