Reasonable rate to pay on short-term private financing?

[Samuel Fowler]

Hello, 

just wanted some feedback from those that have been involved on using private financing to fund previous deals. I am not soliciting for an investor just for feedback. 

I am requesting $15,000 amount on a 6 month term in a relatively low risk investment. The full amount plus interest would be repaid when the construction/rehab note was paid off through a refinance to a conventional mortgage. 

The private investor is a friend of mine that has asked about working together with me on a deal. What is a reasonable interest rate to pay him for his note of $15,000 for a 6 month term. 

Thanks for your input and reasoning behind the numbers you provide

[Jeff Rabinowitz]

@Samuel Fowler, 15% on $15,000 for 6 months is $1,125. Is that enough for your friend to bother with? The problem with very small loans is that they don't amount to much money. Banks won't lend small amounts because it won't cover their expenses. For some people an extra grand would be a nice bonus, for many, it isn't all that much. Remember, they are also risking $15K. The fact that he has approached you is a big plus--he is interested. Most people who can afford to lend $15K can afford to lend considerably more. They also often know others who would be happy to lend when they hear of your friend's great deal. Don't be too concerned about the interest rate. Be generous and you may find this was among the best investments YOU ever made.