Private Money Lending Terms
Hey there,
I'm interested in utilizing private money lending for financing while I save up to use my own capital along with Hard Money Lending. Im curious about how the successful private money lenders have established terms that have been win-win for you and your lenders. I'd like to put together professional proposals but don't know enough here. I've heard of:
1) Flat % returns for each month
2) Equity in the deal in case investor can't cover monthly payments to investor
3) Lump sum return after project completion based on agreed % of money lent
Anyone have some thoughts here? Specific term structures would be great. If it helps, I live in Philly and am thinking about B Class areas- SFH & MF properties.