Flipping Fee - Posted by John

Real Estate Investing Real Estate Financing
1

Posted by Zack W [PA] on March 08, 2003 at 19:27:06:

John,

The fee you charge per deal has to be done on a per deal basis. Why? Each deal is different and will have a diffrent numbers, therefor different profits.

Step One: Set a standard for yourself. exp. 5K min profit I will accept.

Step Two: Find deals that fit that parameter

Step Three: Run your numbers. If you put in a 10k profit, is it still a GOOD deal for your investor? If so, then 10k is your answer, if your answer were no, this deal is a little skinny for my investors, then back off your profit by a couple grand. You get the idea.

What do your investors want? What is thier min profit they want? What areas do they like? Etc, Etc, THEN, you get paid when you find them deals that fit that criteria. Hope this helps.

Zack Wiest [PA]

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Flipping Fee - Posted by John

Posted by John on March 08, 2003 at 10:03:58:

Hi,

I’m not sure if this is the correct board to posts this but I hope someone can help me!

I recuited 4 new investors to flip to yesterday. However, the subject of my percentage/fee etc. never came up in any of the conversations. Eventually, I will have to discuss this with each one. How do I go about this in a professional manner? And what is the formula used or the standard fee for a flip. Have read so much conflicting information about this and I’m confused.

I don’t want to get duped but I also want to be fair. I hope to keep these investors for the long haul and I want it to be mutually beneficial.

thanks,
John