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George' Douvas
  • Prescott Valley, AZ
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Investor Finanancing Spec Homes

George' Douvas
  • Prescott Valley, AZ
Posted Nov 3 2014, 09:17

Can anyone tell me what a fair return is for an investor financing a spec home at roughly 60% LTV. I've heard everything from "you are a hard money lender and should get 12 - 15% annually on the loan amount plus up to 4 points" to "if you are financing all of the construction and land costs your builder should split profits with you". Any and all posts on this question will be much appreciated!!