Hi Wayne, if your ‘Angel’ is putting up the money and you are only supplying labor, I would suggest you split the profit 50/50. Let’s say you use $50k of your friends money to buy and fix up a property, then sell it for $70k more than you paid for it. I would immediately pay him back his $50k + $10k (1/2 of the remaining profit $20k) when the property sells. He is not giving you a loan, this is a business and the rate of return should be appropriate. You might not make anything on a particular property, but he is the only one who could potentially lose big. Hope that helps.
Hello there are some very smart people it seems out there. I am a realtor so I get to research things pretty good as far as value. I pass on a lot of deals because I don’t have the money, or credit needed for a income property (I own my home, no Equity avaiable) I am a single dad of two, loyal, honest and hard working. I have worked with a client and sold all his investment properties. He likes me and if I asked to use 100,000 of his money to buy and fix and flip he would with the right scenerio. what is the best way to make him a good deal and me started in making my own cash to eventually pay him and by on my own income properties? Give him 10% on borrowed money, deferred for two monthsuntil sale? Percentage of net income from flip? What finacial plan if you were to lend the money to me and not really looking to make much but help me get started?