Private Lending Rate

[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.

[Guifre Mora]

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%.