private money percetage rate

[Chris Brall]

hello everyone my name is chris I have a property I need to get private financing on. I have 25k to put in deal. The purchase price is 145k arv is 290k the rehab budget is 40k . I am talking to a private individual about putting up 160k total. using 145k for purchase and the remaining 15k towards rehab. then refinance in 3 months and pay private back full amount plus interest. wondering what would be a good percentage rate for roi? I was thinking 10%. which would be 176k owed to private money at refinance . any help would be appreciated.

Thanks Chris Brall

[Kyle J.]

Originally posted by @Chris Brall:

what are the points based on the arv or the loan amount?  example arv is 250k loan amount is 160k also is 1 point equal to  1% of total ?

Points are based on the loan amount, not the ARV. One point costs 1 percent (so $1,000 for every $100,000 borrowed).