Some more questions about the process.1. What amount are you looking for ? 2. Do you also invest some money in the house that is being bought ?3. Will you pay 12% intrest irrespective of the fixxer upper's selling price ?4. When is the intrest paid, every month or one lump sum at the end of 6 months ?Also, do you have any properties in the pipeline that you are intrsted in buying ?
This was my reply to investor. Let me know what you think.The amount will depend On the fixer that is purchased. Also depends on how much you have to invest. I want to build long lasting relationships with private lenders like yourself to make money for you and me. When I structure an offer on a property, I make sure that it is below market value enough to cover profit, loan, interest, fix-up cost, and seller fee's when it is sold. Sometimes I will find home's that are in move in condition to sell for an even quicker profit. I am working on one of these right now. Homes in this area are selling within in days of listing. I need to research further. Seller is moving to Arizona. Could stand to make a nice profit if the deal is negotiated right. Yes, you will get 12% of the selling price. I would prefer to pay in one lump sum when the home sells. When you are ready to start making money; I will start purchasing home's.
So basically I should of told him regardless of the selling price he will still make his 12%.Also should of told him a dollar figure range on what I wanted to purchase.Let him know I was not going to use any of my own money, but how would you suggest answering this good question.Is this about right?