Updated almost 5 years ago on . Most recent reply
Paying back a Down Payment Loan
Hey BP! Happy Friday!
I am curious on ways investors have chosen to structure deals with private money in order to pay them back. I am currently looking at private investors that are looking to make a return on their money without equity in the deal. In my small number of experiences, they are typically looking for their money back plus the interest in just a few years.
For simple math, if you take $50,000 in private money and give them 7% on their money, on a property that cash flows $400 a month to be paid back in 2 years, you are in the hole monthly obviously.
What techniques have you all used to be able to still pay that money back? Dip into your own pockets? Use cashflow from other properties? Something different?
Looking forward to having a great conversation!
Thanks,
Sam
I am curious on ways investors have chosen to structure deals with private money in order to pay them back. I am currently looking at private investors that are looking to make a return on their money without equity in the deal. In my small number of experiences, they are typically looking for their money back plus the interest in just a few years.
For simple math, if you take $50,000 in private money and give them 7% on their money, on a property that cash flows $400 a month to be paid back in 2 years, you are in the hole monthly obviously.
What techniques have you all used to be able to still pay that money back? Dip into your own pockets? Use cashflow from other properties? Something different?
Looking forward to having a great conversation!
Thanks,
Sam