CoC return on hard money loans
If I had money to lend say $100k for 6 months for a return of 10k appropriate
If it’s your personal money then you would be a private lender. If you prorate the percentage out on an annual basis that’s a 20% return for 6 months. A great return for you, but probably not to many people will take that deal. If you were around 12% and maybe charge a point or two, I think you’ll get some takers.
You may get some takers, because your advantage as a private lender is flexibility.
For example, if you can close in a few days because you don't require an appraisal or something of that nature, then you may be able to snag some deals.
As @Kenneth Garrett mentioned above though, that is a high APR for prospective borrowers to pay, which is likely to turn many away.
@Clint Rasberry, I'd also be careful, as an APR that high might be usury in Alabama. Especially if you're not lending to an LLC.
