Posted by JohnBoy on March 11, 2001 at 11:14:11:
Before you offer him a percentage…ask him what percentage he would be happy with. What kind of a rate would he expect to get on his money?
Remember one thing…the first one to mention price…LOSES!
“What would be a reasonable percentage?” - Posted by Glenn Chavis
Posted by Glenn Chavis on March 11, 2001 at 11:07:07:
I’ll start by stating that I am new to this business. So new that I haven’t even bought my first property yet. I’m interested in buying and flipping properties. I have an individual who is willing to put up the money that will allow me to purchase these properties but he is not at all interested in doing any of the legwork. He is only looking for a reasonable return on his money. Keep in mind that this individual will serve strictly as a lender and not a partner. I do beleive that his percentage rates on the money that I borrow would be similar to those of a lending institution. Should I also give a percentage of the earnings for each property that is bought and sold? Could someone please give me advice on what would be a reasonable percentage to offer him in this situation.