Traditional banks would not feel comfortable that in order to enforce their debt, they could only foreclose on 90%-95% of a house & then have to sue for the other percentage ownership.

However once you figure what your percentage is, it makes a quick and dirty screening tool for deals.Is there any sort of indices or characteristics that are used to be able to tell if a market is like yoursSo if the 2% rule applies it is a pretty good area.

So, you would split the 50% portion of the rehabber, and you would each get 25% for that.For the money partner, you will both be contributing, and in different percentages.

Some will buy at higher %, some don't use a percentage at all (like J Scott, who says he just decides how much he'd like to make on the deal) and buy-and-hold investors may just be happy with getting some equity and cash flow that makes sense to them.I hope that helps some.

What is this as a percentage of cost?

I boycott ATM's for this reason; I walk by one and I go on a 5 minute tirade about the percentage they are taking, people laugh and shake their head....

You send out a lot of marketing and a certain percentage will respond and be a deal.

I heard there might be a percentage calc that is used when factoring in the amount that will qualify for reserves (maybe 60% figure of the total appraisal).

If I were him at that age (only 2 years ago ;)), I would evaluate my debts and think about what my compound losses would be vs my student loan pay off expenses and figure out an acceptable percentage to pay it.If he were under 18, I would suggest a self directed CESA account for this to help future school expenses.I think he should definitely open a self directed Roth IRA, start playing with tax lien certificates in his investment accounts.

That will give you a percentage return for your money. 2) Calculate your total return on investment (ROI).