I am seeking in to removing genuine estate for poor as well as afterwards regulating it up as well as offered it. Lets contend I have an financier compensate for it though I am the a single who found the genuine estate as well as bound it up. What commission should the financier get of the profit. The prospects of this investment have been flattering good…
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Short Answer: 30% for the industrial partner which appears to be you (from your question) and 70% for the investor. Some deals go on 50/50 but I do not believe in equal sharing. When a push comes to a shove, and in business deals chances are it most likely will, decision making could become a stalemate. One of you must have more say.
Professional investors believe proponents must have more share to encourage proponents to perform their best.
Technical Answer: Breakdown all cost and price a mutually agreeable salary for yourself. Convert a portion or all of your salary into sweat equity. If there are suppliers’ credit that would be payable post resale of the property, you could claim that as part of your effort.
Assign percentages (vs. total cost) for all cost items including actual cash that will be plowed into the venture by your investor. That is the bottom percentage for him. However, this all depends on capital supply and demand situation in your area and attractiveness of your offer to investor/s.
Turnaround time or when you would actually be able to resell the property adds up to your side if you will also market it yourself.