Paying an Investor - Posted by Tom Murphy

import · August 19, 2002, 11:37am

Posted by brad on August 19, 2002 at 11:57:42:

tying yourself to one investor has advantages and disadvantages. look at your investor for what he is. he is renting you money and for that wants a return. you are doing the work so you have to decide what your work is worth to you. if all you have invested is time then your risk is lower so will your profit. sit down with your investor and find out what his/her goals are. you may be pleasntly surprised that your willing to offer more than they want. if you make the first offer you will never know. of course this is a golden rule in this biz " Never make the First Offer, always try to negotiate a better deal" if you are tring to get a deal done to get the investor confident in your abilities then let him choose the terms on this one but be carefull. unless you are on the deed you are potentally selling real estate without a license and will get burned as realitors get hungry.

import · August 19, 2002, 11:37am

Posted by Tom Murphy on August 19, 2002 at 11:37:07:

I have found a investor who wants to buy houses with cash. I told the investor I would feed him properties for a % of each deal. The problem is, I dont know what percent I should ask for. Is 50% to much or should it be lower. I will be doing all the work, etc: Finding properties, CMA’s, showing the property to potentional buyers. And I dont need to be paid until the investor sells the property. Are there any contracts that I can use, so I do not get left out when the closings happen. Most properties will have 10 to 20 thousand dollars equity in the homes, and little if any rehab needed. Thanks for the help.