Private loan for down payment deal structure.

Private loan for down payment deal structure.

Rental Property Investor · Member since 2019 · 10 posts · 12 votes

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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