Security deposit in savings or trust

[Dave Schimmels]

Question: If I asked a family member for a $25K  down payment on a $100k purchase and offered a 15% on his investment, but were to hold the property for 3-5 years. Would you compound the 15% yoy? I think obviously the value should be definitely higher and refinance if applicable to pay back his 15%. I hope this makes sense for someone to answer. I'm a new investor trying to gage  in another purchase in the future. 

Thanks

[Charles Carillo]

@Dave Schimmels

It would be easiest to pay the interest monthly. 15% is a high rate, it might considerably cut into your profits.

[Alecia Loveless]

@Dave Schimmels IMO 15% is too high. Best rate I’ve seen on a CD is 5.01% I’d think someone should be happy with a generous 10%.

[Ray Hage]

15% rate is really high but if you don't have many options because you're financially constrained, you might just have to take it and try to pay it back as fast as possible.