Whats Reasonable?
I could use some input..
Here the situation I am talking to an investor,and he believes im asking for too ****Must Reach Senior Investor status before posting URL's*** found a total fixer it is tied up in an Estate mess with a Medi-Cal lien.Here are the numbers
The house is on 2.5 acres can't be split.
House 19,500
due heir 2000.00
atty approx 1500.00
closing approx750.00
sub_____ $24,500
I have been over the house thouroughly and can rehab the house and get it on the market for about $38,000 So about $62,500 total
I ahve talked to 2 agents and looked at the market for that area and low price would be around 112,500 with a high around 125,000
The investor I have talked to is offering a split of 30% to me after the sale.
I would be working on the house 8-10 hrs a day until completion of the ****Must Reach Senior Investor status before posting URL's*** offered 50/50 of profits with me taking a weekly salary of ****Must Reach Senior Investor status before posting URL's*** I would handling all the day to day issues and wokring as a carpenter as well.
Any input would be greatly appreciated.
Mike
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What are all these ****Must Reach Senior Investor status before posting URL's***? I know he wasn't posting URLs in all those spots.
Andrew,
Those come up because it is reading those parts of the post as a URL. This usually happens because of the way something was typed. Change the typing, and it'll likely print correclty.
Mike,
In REI, all things are negotiable, especially fees and %'s. As long as it is satisfactory to both parties, it'll work.
That said, if the investor is supplying the funds only and you're doing all the work (buying, rehabbing, selling, etc.), then I personally wouldn't do less than a 50/50 split.
Roger
Quote:
On 2003-10-08 14:30, rajwarrior wrote:
That said, if the investor is supplying the funds only and you're doing all the work (buying, rehabbing, selling, etc.), then I personally wouldn't do less than a 50/50 split.
I agree completely...all he has is money in the deal, your the one doing the work.
I'm new to this site, what is the world is an URL?
I will be doing all the work with a few laborers from time to ****Must Reach Senior Investor status before posting URL's***hat is why a draw or salary seems fair to me,as this will be full time and only subs for certs on the plumbing and elec.He feels my time should be part of the what i bring to the table.
Is a 30,000 return on 62,500 to unfair?
Mike,
If you're trying to put your draw into the costs of the rehab and NOT part of your profit, then I would have to side with the money investor here.
He is correct, your time and effort are what you are bringing into the deal and should not be considered part of rehab costs. He is supplying the money for purchase and rehab. A 50/50 split would be fair.
Roger
Mike,
Private message me again with what you were trying to post, I will see if I can firgure out what is causing the posting url problem.
John $Cash$ Locke
Consider getting a hard money loan if there is enough LTV. Maybe get a 6 month loan and pay about $5000 in interest plus carrying costs until you sell then payoff the loan. Seems a better deal for you rather than giving a private money partner about $20,000... Another option would be to use the investors money as a loan and pay him a handsome return like you would the hard money lender. If he sees you as "needy" for his money, he could play hardball and want a 50% return (partner in the deal) instead of say 20% for just loaning the money. If he is partner, he is risking more since the result of the rehab may not yield as expected.
Have you already looked into hard money lenders? I have seen a site called rehab****Must Reach Senior Investor status before posting URL's*** you may want to see.
hope this helps, let us know what happens.