How to present a beneficial offer to a private loaner

Question

Hello BP,

I have money saved up at the issue I have is that it is tied up in stocks. Before I think about liquidating some money I have some people in mind that I have a good feeling would help me with a loan if I presented the right numbers and did my due diligence on the right deal of course. They know I am a hard worker so I believe the trust is there and I would love to make this into a reoccurring thing to create more future deals for not only I, but the people who help me as well.

With that said, What type of offers and returns would be intriguing for a private lender that I can pitch to them if I am looking for some help on a downpayment of a home? I am looking for advice for:

how much of a % on their money back is good?

what would be a good time frame to offer it paid back in?

Does is matter how much I am asking for (I'm thinking anywhere from 10-30k possibly more if offered, I am thinking FHA-ing)

How do we make it legally legit?

Do we need a third party or an escrow account?

Is there anything else I am not thinking about and I should?

Thankyou all I love this site.

Chris Tarpey · Answer

We usually offer 10-12% by the deal (30-90 days) or for a specific duration (6 months, 12/18 months).

We will usually draft a promissory note with out position and will even go as far as to make it a secured position so they can have a lien on the property. This usually gives them the warm and fuzzy!

We have had them hold funds in an escrow account with the attorney before, however once you have a relationship you can usually just get it wired to you, or wired to attorney and collect the lump sum for your project.

How to present a beneficial offer to a private loaner

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