All Forum Posts by: Darin Groom

Thank you for the response.  We had agreed on 10% but I didn't have anything to back that up at the time.  I knew for me it had to be a better deal than going to the bank and for them it would need to be a better deal than where their money was currently sitting.  I have done other deals agreeing to a much higher return on their investment but those were based the need for fast cash in order to land a particular deal that I wouldn't have been able to get otherwise.  Some times making some money is better than making no money.  I think the 10% mark is very reasonable for both parties though.  Thanks again. 

My wife and I have been flipping houses going on two years now.  We now have private parties wanting to invest in our business.  We are doing multiple properties where we are needing additional funds in order to flip one property while another is being sold.  What is a fair way to compensate an investor for their silent contribution to the investment? For example, if we purchase a property for $150K and need an additional $40K for rehab, what is a reasonable way compensate a private party for their portion of the investment?