I have access to Private money in MI, dont understand the payback

Rental Property Investor · Brighton, MI · Member since 2018 · 4 posts · 0 votes

I live in Southeast Michigan and I am interested in the BRR method. Buy 3-4 rentals and refi strategy. I have 70K of my own money and I have access to 100K of private money. I will be attending my 1st REI meeting in 2 weeks in the local area. I have been listening to Podcast nearly 24/7 and reading non-stop. I have also been looking at properties in the downriver area the past 2 weeks to Brr. My question is how do I pay back the Private money? It's still unclear to me. Is this done on a monthly period and then when I refinance I pay back the borrowed money? This is what I don't fully understand. Also if a deal presents itself at a REI how are agreements documented? I've never met any of the memebrs yet are these deals done on good faith? I would think not

0 Reply

9 views

Most Popular Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

first and foremost make sure you have your refi's all approved..

second just have the family give you a loan like any other lender secured by the property. at an interest rate you negotiate..

refinance and payoff lump sum.. if you have 6 month seasoning you can either accrue the interest or pay monthly payments.. its all up to what you folks agree to between the parties.. I like accrual as the operator myself makes paper work easy and helps with your cash flow.

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

1 Reply

See this reply in the discussion

6 Replies

Jump to latestLatest

Sort by

Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
8y
Usually, when you have access to private money, the lender sets the terms for payback. How are you getting this money? Is it someone that says, "I have money to loan you, but don't know how to?", or, are they letting you set the terms (unusual)?
This is very interesting. I focus on PM all the time....greatly prefer it. It's more useful, and I can tern the worst terms into free money.
0 Reply
Mike Lewandowski
OP
Rental Property Investor · Brighton, MI · Member since 2018 · 4 posts · 0 votes
8y
A family member has a money just sitting in the bank making min. Interest that I can leverage. I just don’t know how to approach them on the terms.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
first and foremost make sure you have your refi's all approved..
second just have the family give you a loan like any other lender secured by the property. at an interest rate you negotiate..
refinance and payoff lump sum.. if you have 6 month seasoning you can either accrue the interest or pay monthly payments.. its all up to what you folks agree to between the parties.. I like accrual as the operator myself makes paper work easy and helps with your cash flow.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
8y
0 Reply
Mike Lewandowski
OP
Rental Property Investor · Brighton, MI · Member since 2018 · 4 posts · 0 votes
8y
Ok, I think I understand better now. Any chance someone would be able to walk me thru what I'm thinking I have a potential Property and have the ARV numbers : Rehab cost in front of me. The loan from Private Lender in mind. I just need some confidence on the loan agreement before I approach them
0 Reply
Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
8y
PM me
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.