70/30 in northwest Indiana realistic?

Buying & Selling Real Estate
4dFollow

70/30 in northwest Indiana realistic?

Mike York
Investor · Valparaiso, IN · Member since 2014 · 185 posts · 47 votes

I have been invited to join a mentorship group that potentially funds flips. My hangup is they seem to only do 70/30 deals and I think that’s more of a rarity in NWI than not. Anyone else have any input on that? I don’t want to waste my time (and some fees to join) if I’m correct in my thinking.

2Reply
656 views

Most Popular Reply

John Leland
Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 140 posts · 48 votes
4d
Quote from @Mike York:

@John Leland they would fund the purchase and rehab, I find and manage / get the rehab done so sounds very similar. 70/30 meaning they only fund deals where the rehab and purchase price is no more than 70% of the arv.

I would agree with going at 70% of ARV. There is risk with flips right now and you have to take into account the entire cost, to figure if the project is worth doing.

No one is guaranteed that today's ARV will be the same ARV in 6 months. According to the National Association of Realtors the average flip takes 6 months from buying to closing. Any surprises can blow the budget. Taking longer to sell cuts into profits and any profits are taxed.

1Reply
See this reply in the discussion

19 Replies

Jump to latestLatest
  • John Leland
    Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 140 posts · 48 votes
    4d
    Quote from @Mike York:

    I have been invited to join a mentorship group that potentially funds flips. My hangup is they seem to only do 70/30 deals and I think that’s more of a rarity in NWI than not. Anyone else have any input on that? I don’t want to waste my time (and some fees to join) if I’m correct in my thinking.

    How is the deal arranged. Who pays for the flip, who does the work, who makes the decisions, who decides to sell and for how much. Our Joint Venture are 50% / 50% with one party finding the property and managing the flip while the other provides the capital. There are all kinds of configurations, so I'm not quite clear what 70/30 entails.

    0Reply
  • Nyisha Walton
    Lender · Houston, TX · Member since 2026 · 40 posts · 9 votes
    4d

    Hi Mike, before you pay to join, it's worth knowing a fix and flip loan might get you there without a split. We can fund part of the purchase and most of the rehab with draws, and you keep the profit. Is the 70/30 their buy box or a profit split? And what purchase and ARV numbers are you seeing around Valparaiso?

    0Reply
  • Mike York
    OP
    Investor · Valparaiso, IN · Member since 2014 · 185 posts · 47 votes
    4d

    @John Leland they would fund the purchase and rehab, I find and manage / get the rehab done so sounds very similar. 70/30 meaning they only fund deals where the rehab and purchase price is no more than 70% of the arv.

    0Reply
    • John Leland
      Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 140 posts · 48 votes
      4d
      Quote from @Mike York:

      @John Leland they would fund the purchase and rehab, I find and manage / get the rehab done so sounds very similar. 70/30 meaning they only fund deals where the rehab and purchase price is no more than 70% of the arv.

      I would agree with going at 70% of ARV. There is risk with flips right now and you have to take into account the entire cost, to figure if the project is worth doing.

      No one is guaranteed that today's ARV will be the same ARV in 6 months. According to the National Association of Realtors the average flip takes 6 months from buying to closing. Any surprises can blow the budget. Taking longer to sell cuts into profits and any profits are taxed.

      1Reply
    • Mike York
      OP
      Investor · Valparaiso, IN · Member since 2014 · 185 posts · 47 votes
      4d

      @John Leland I agree and that all makes sense. I just don’t see those margins come by very often in NWI so I’m wondering if others are seeing the same or something different.

      0Reply
  • Mike York
    OP
    Investor · Valparaiso, IN · Member since 2014 · 185 posts · 47 votes
    4d

    @Nyisha Walton 70/30 is the purchase and rehab compared to the arv. I have done 14 flips and have used your style loan on several but looking more for not using my own funds now.

    1Reply
  • Amr Magdy
    Real Estate Consultant · Member since 2026 · 14 posts · 6 votes
    4d

    The 70% rule is a starting dial, not a law. The 30% has to cover holding, selling, financing and profit, and those costs don't shrink with the price, so lower-ARV markets usually need a tighter number and higher-ARV areas can work at 75–80%.

    Before paying any fees, I'd ask the group for their last 10 funded deals in your area: ARV, purchase price, rehab and what each actually sold for. If most closed near 70%, the model is real there. If they can't show it, it's a filter, not a strategy.

    You can also run your last few comps through ARV × % − repairs − fee and count how many deals you'd have to look at to find one that fits.

    1Reply
  • Hossein Sharifi
    Investor · Member since 2023 · 115 posts · 56 votes
    3d

    @Mike York with 14 flips behind you, I'd price the group against a straight lender before paying any fees. At 70% all-in, a $250K ARV means $175K in. After about 8% to sell and six months of interest on $175K at 11% (around $9.6K), profit lands near $45K. If the group takes half of that for their money, you're paying about $22K a deal for capital.

    At your experience level, some lenders will do 90% of purchase and 100% of rehab, capped around 70 to 75% of ARV. Points and interest on that usually cost less than a profit split. The group makes more sense if it brings deal flow you can't find yourself.

    1Reply
  • Adam Summerer
    Lender · Franklin, TN · Member since 2026 · 110 posts · 26 votes
    3d

    With 14 flips under your belt I'm not sure you need to pay to join anything. There are lenders that will do up to 90% of purchase and 100% of rehab for experienced flippers, usually capped somewhere around 75% of ARV, which is a looser box than the group's 70% all-in. You'd still bring closing costs and a little skin in the game, but on NWI price points that's usually a lot less than giving up half the profit.

    1Reply
  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 71 posts · 18 votes
    2d

    Mike, with 14 flips behind you, I'd treat this like any other vendor decision: get it in writing before any fee changes hands. What exactly does "funded" mean — do they close in their name with you managing, or is it a JV agreement? Who decides the list price and when to take a price cut? What happens if a deal runs long? And the big one: ask for their last 10 funded deals in NWI with purchase, rehab, ARV, and actual sale price. If most landed near 70% all-in, the model is real in your market; if they can't produce it, the 70/30 is a filter, not a strategy. An experienced flipper at your volume can usually get 90% of purchase and 100% of rehab from a straight lender for less than a profit split costs — worth pricing that first.

    0Reply
  • Mike York
    OP
    Investor · Valparaiso, IN · Member since 2014 · 185 posts · 47 votes
    2d

    @Amr Magdy @Hossein Sharifi @Adam Summerer @Ametria Chaney Appreciate all your insights. I'll ask them for the last 10, good idea. They said they are only taking the APR accumulated unless I specifically request a JV with them. Then the fund 100% of both and I manage but they take 70/30 cut of the profits then.

    0Reply
  • Adam Summerer
    Lender · Franklin, TN · Member since 2026 · 110 posts · 26 votes
    2d

    @Mike York Makes sense. With 14 flips under your belt you'd probaly qualify for a straight fix and flip loan at around 90% of purchase and 100% of rehab, so you keep the whole profit minus interest and points instead of giving up 30%. Worth running your next deal both ways before you commit to the JV. Happy to price one out if you want, just send me a DM.

    0Reply
  • Aaron Zucker
    Realtor · New York, NY · Member since 2019 · 53 posts · 15 votes
    2d

    Mike, one part of this hasn't been said plainly yet: run what the JV split means in dollars on one of your typical deals.

    Say a flip clears $40K in profit. At 70/30 their way, you keep $12K — and you're the one who found the deal and managed the entire rehab. Your 14 flips are the asset here. Groups like this don't have a deal-flow problem, they have an operator problem, and experienced operators are the scarce side of that table.

    Compare that to their other route: if the accumulated APR on 100% funding comes to, say, $10–15K on a normal timeline, you keep the other $25–30K of that same profit. Interest is a fixed, known cost. A 70% profit share is the most expensive money on the table on any deal that actually works — it only looks cheap on the deals that don't.

    Two questions I'd get answered in writing before deal one:

    1. The downside. On a JV that loses money or runs long, what do you owe? Are you signing anything personally, are you on title or the loan, and who eats the loss? "They fund 100%" needs to also mean "they carry 100% of the downside," or the split makes even less sense.

    2. Is the split negotiable at your level? A promote structure — they get their capital back plus a preferred return, then 50/50 above that — is pretty standard for operators with a track record. If it's 70/30 take-it-or-leave-it for a guy with 14 flips, that tells you what they think the mentorship is really selling.

    If you test it at all, test it on exactly one deal with your own attorney reading the JV agreement first — not theirs.

    0Reply
  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 226 posts · 87 votes
    2d

    I'd be cautious about paying mentorship fees before seeing actual deals they've funded in your market. A 70/30 structure can work, but it really depends on purchase price, rehab costs, holding expenses, and the expected resale value.

    I'd also compare their funding terms with traditional fix-and-flip financing to see whether the partnership is worth giving up that much equity.

    Have they shown you any completed deals in northwest Indiana that met their criteria?

    0Reply
  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 712 posts · 254 votes
    1d
    Quote from @Mike York:

    I have been invited to join a mentorship group that potentially funds flips. My hangup is they seem to only do 70/30 deals and I think that’s more of a rarity in NWI than not. Anyone else have any input on that? I don’t want to waste my time (and some fees to join) if I’m correct in my thinking.

    That’s a valid concern. Every market is different, and the numbers need to make sense before committing to a deal.

    We offer Fix & Flip loans designed to help real estate investors acquire and renovate properties without giving up equity or splitting profits with a partner.

    Our program offers:

    ✅ Up to 90% of purchase costs
    ✅ Up to 100% of rehab costs
    ✅ Up to 70% of the After-Repair Value (ARV)
    ✅ No tax returns or income verification required
    ✅ Fast closings with minimal documentation

    Our loan amounts start at $75,000, and financing is subject to program guidelines and underwriting.

    Instead of giving away 30% of your profits, explore financing that allows you to maintain ownership and control of your investment. Feel free to DM me, and let's see how we can help fund your next flip!

    JCREIG Capital Funding
    WebsiteView Page
    0Reply
  • Mike York
    OP
    Investor · Valparaiso, IN · Member since 2014 · 185 posts · 47 votes
    1d

    @Adam Summerer @Aaron Zucker @Gregory Acs @J Castro Thank you for your feedback. I'll ask for some deals in my area and see how those look. I do want to shy away from the 70/30 JV and a 90% loan would go a long way compared to the other.

    0Reply
    • Adam Summerer
      Lender · Franklin, TN · Member since 2026 · 110 posts · 26 votes
      1d

      @Mike York Glad it helped. When you find one that pencils out send me a DM with the purchase price, rehab budget and ARV and I'll run it both ways so you can see the diffrence side by side.

      0Reply
  • Hossein Sharifi
    Investor · Member since 2023 · 115 posts · 56 votes
    1d

    @Mike York That makes the choice clearer. If you can cover the cash a straight loan needs, it's usually cheaper on a good flip. Say a deal nets $40K before financing. At something like 12% on $200K for 6 months, interest is about $12K, so you keep $28K. If their side of the JV is 70%, you keep $12K. The JV earns its cost when you'd otherwise be putting your own cash at risk, since they share the downside. I'd use it for the first one or two and switch to the loan once you have a track record with them.

    0Reply
  • Deborah Wodell
    Lender · Sanford, NC · Member since 2024 · 358 posts · 120 votes
    14h

    I’d look closely at the numbers before paying any fees. A 70/30 split only makes sense if the deal still leaves enough profit after rehab, holding costs, and unexpected expenses. I’d ask for examples of completed deals in your market and clarify exactly how profits and losses are split before committing.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free