Should I get reimbursed for the interest on the loan for my real estate investment?
Ok, a friend and I are “flipping a house”. She had the money to buy the house. I borrowed the money for the renovations. Every month until it sells I am paying a $325 payment on the $15000 loan I have out. 99% of it is interest. So, when the house sells, she will get back her investment, which is the puchase price of the house, the utilities, taxes, and insurance. I will get back all of my expenses for all the renovations. Should that include the interest I am paying every month or not? I believe it should. I HAD to borrow the money for the renovations or the house would have never got “flipped”. It was a NECESSARY thing. I believe the interest should be an included expense. What do you think?
What I would have insisted on was that all profits be equally shared.
She could not have made a profit without your part of the renovations. You could not have made a profit without the property.
Now that you are talking about past tense, work something out between the two of you. My personal idea is that expenses are expenses, and your interest payments are expenses.
This is my help from Washington, DC, United States of America.
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