I've done lots of deals with lots of different investors over the years.
I've given an REI as much as 30%, where he provided all funds to buy, fixup, etc....and it had an element of risk involved.
But recently I've pretty much fixed on a return to the REI of somewhere between 10-15%, depending on risk and time involved, how much I needed that particular REI at that time, etc.
Even 8% would probably be workable with a lot of conservative REIs, since they've taken such a sorry licking in the mutual fund sectors and at their bank with their CD returns.
I'd start out low (if I were just now starting), as it's almost impossible to go down in return to the REI after you've started too high...but if you were to advertise @ 8% or 10%, you could afford to jack it up a little bit where needed.
Another issue here too, is that if you advertise a high number, that could scare some away..."No way that guy can get me 15%, etc., must be a pretty risky deal ! "
I've done lots of deals with lots of different investors over the years.
I've given an REI as much as 30%, where he provided all funds to buy, fixup, etc....and it had an element of risk involved.
But recently I've pretty much fixed on a return to the REI of somewhere between 10-15%, depending on risk and time involved, how much I needed that particular REI at that time, etc.
Even 8% would probably be workable with a lot of conservative REIs, since they've taken such a sorry licking in the mutual fund sectors and at their bank with their CD returns.
I'd start out low (if I were just now starting), as it's almost impossible to go down in return to the REI after you've started too high...but if you were to advertise @ 8% or 10%, you could afford to jack it up a little bit where needed.
Another issue here too, is that if you advertise a high number, that could scare some away..."No way that guy can get me 15%, etc., must be a pretty risky deal ! "