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Updated about 5 years ago on . Most recent reply

Marcus B Hsu's profile image
Marcus B Hsu's profile image
Marcus B Hsu
  • Rental Property Investor
  • from San Diego CA
  • Member since Mar 25, 2019
  • Posts 67
  • Votes 49
  • Experience 6 Yrs
  • Investments 1
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Marcus B Hsu's profile image
Marcus B Hsu's profile image
Marcus B Hsu
  • Rental Property Investor
  • from San Diego CA
  • Member since Mar 25, 2019
  • Posts 67
  • Votes 49
  • Experience 6 Yrs
  • Investments 1
Connect
Marcus B Hsu
  • Rental Property Investor
  • San Diego CA
49
Votes |
67
Posts
Starting Out

Private Lending Rate

Marcus B Hsu
  • Rental Property Investor
  • San Diego CA
Posted

What is considered a fair rate of return for private lending? i'm planning to do a BRRRR and friends of mine are interested to invest with me, but trying to decide what is considered a reasonable rate of return.

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Guifre Mora's profile image
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Guifre Mora
  • Lender
  • from San Diego, CA
  • Member since Jul 13, 2019
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Guifre Mora
  • Lender
  • from San Diego, CA
  • Member since Jul 13, 2019
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Guifre Mora
  • Lender
  • San Diego, CA
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Guifre Mora
  • Lender
  • San Diego, CA
Replied
Originally posted by @Marcus B Hsu:

What is considered a fair rate of return for private lending? i'm planning to do a BRRRR and friends of mine are interested to invest with me, but trying to decide what is considered a reasonable rate of return.

 It depends on the Investor. On the terms length and appetite for risk. Rates vary widely. 

On the HM spectrum, 7.5-12%  witch is short term 3-24 months. If you are financing longer I'll say 6-8%. 

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