Investor return on investment

[Keith W.]

What is a normal investor return on a property? Ex: if I found someone to invest 30k, what should their return be? Is their a normal timeframe on return?

[Shiloh Lundahl]

@Keith W. I usually pay 8-10% on private money.

Keith, from your post, I’m not sure your experience level, so I may be speaking out of turn, and if that is the case, you are welcome to set me straight. But if this is one of your first deals I would caution you against using private money on the deal unless you have more personal capital than you are borrowing to where you can quickly and easily pay the private money lender back. The reason I am saying this is because if you don’t have actual experience, and you are using other people’s money, that is recipe for a disaster. It is very common for people without experience to lose money on their first deal or two if they do it on their own. But in this situation you may not be losing your own money but you may be losing someone else’s.  I would suggest partnering up with an experienced investor on a few deals at the beginning until you are more experienced before you start to use private money.