Here’s The situation: I am looking at buying a portfolio of single family homes for around $1m. I’ll need 200k down. I have investors lined up but I’m not sure how to structure the loan. The loan would be about 150-175k and I would like to give them a certain percentage interest over a period of time. What is normal/average for those numbers? Interest rate and loan duration. Are there other ways to structure such a loan? Do they get part of the profits until the loan is paid off or is that optional? The investor is simply looking for a safe place for his money with a good return (aren’t we all). They may want to be paid off in 10 years or so. I want to be able to make the terms clear to them when I bring the deal. Right now I am all over the place.
Any help would be greatly appreciated. Thank you.
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