Private money deal structure

[Brian Donahue]

Hey BP I was looking for some opinions on how you guys and and girls structure deals with private money lenders. I have a 6 unit apartment building on my radar and I’m looking for advice on how to structure a deal with a lender.

I’m looking to raise $50,000 for a down payment and I’m wondering exactly how you would convince someone to give you cash. I plan on offering atleast a 10 percent return on their investment, by shelling out 10 percent of my monthly rental income. Is that fair? Should i offer them more? Do you typically pay them out a yearly percentage on rental income?

Thanks in advance,

Brian