Updated over 5 years ago on . Most recent reply
Private money - how much cashflow to give away?
I have a solid deal with a private investor supplying the cash for down payment.
The cashflow is around 8.5% Cash on cash.
How much money should I be giving him for his 100,000 promissary note / investment ?
Is it worth giving away all the cashflow for a short period of time just to secure the deal. That leaves about 500$ for myself annually. Property has good reserve and ability to carry itself. In 2 or 3 years I can refinance and pull equity from other properties to pay our the investor and move on ?
Any help would be greatly appreciated ! Thanks guys !