BRRRR, how much return to my capital investors?

[Jackie F.]

I am getting ready to launch into my first BRRRR. I am going to use hard money lenders and will be collecting capital funds from 2 family members. What type of returns should I be giving them? They are not partners, I am simply using their capital to help seed my hard money loan and/or for repairs.

I would like to hear what returns other investors are giving their family members on these types of deals.  Thanks.

[Brian Garrett]

Every situation will differ based on the investors expectations and value of their capital.

I would say somewhere in the 7-10% range would be fair for both sides.

A little more expensive than traditional funding and a little less expensive than HML.