AskBP

#AskBP 090: What Interest Rate Should I Pay For Private Money?

Expertise: Landlording & Rental Properties, Personal Development, Real Estate News & Commentary, Real Estate Investing Basics, Business Management, Flipping Houses, Mortgages & Creative Financing, Real Estate Deal Analysis & Advice, Real Estate Wholesaling, Personal Finance, Real Estate Marketing, AskBP
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What Interest Rate Should I Pay For Private Money?

Private money can be a fantastic source of funding for real estate deals, but how much should an investor pay for this luxury? 5%? 10%? 15%? That’s the topic Brandon dives into on today’s episode of the #AskBP Podcast! If you ever plan to use private money, you don’t want to miss this episode!

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Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He began buying rental properties and flipping houses at age 21, discovering he didn’t need to work 40 years at a corporate job to have “the good life.” Today, with nearly 100 rental units and dozens of rehabs under his belt, he continues to invest in real estate while also showing others the power, and impact, of financial freedom. His writings have been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media. He is the author of The Book on Investing in Real Estate with No (and Low) Money Down, The Book on Rental Property Investing, and co-author of The Book on Managing Rental Properties, which he wrote alongside his wife, Heather, and How to Invest in Real Estate, which he wrote alongside Joshua Dorkin. A life-long adventurer, Brandon (along with Heather and daughter Rosie) splits his time between his home in Washington State and various destinations around the globe.

    Wilson Churchill from Madison Heights, Michigan
    Replied over 4 years ago
    Interesting. I just happen to be doing my first private money deal. I’m borrowing 15k to buy a rental. The terms are 10% interest only payments. I will probably refinance with a home equity loan after a year unless I can find a mortgage with low closing costs.
    Darren Sager Realtor from Summit, NJ
    Replied about 4 years ago
    You’re right Brandon. It really depends upon the type of deal you’re working on as to what rates can work for both you and the potential lender. Another great BP video!
    Jenny Lloyd
    Replied over 2 years ago
    Can I barrow money living in uk
    Robert Bierma from Medford, Oregon
    Replied over 2 years ago
    Is there any data out there about what averages or ranges in terms on private money lending? Even better if it could be data specifically about real estate private money lending.