Just closed on a private investor

6 Replies

So yesterday was a great day!! We had a lunch meeting with potential cash investors. They said yes and want to give us 200k for 6-8 month loan 9% interest for our next flip.

My first thought was I could use 200k for a down payment on 2-4 SFH at one time and combine it

using hard money. Is this a good idea ?

Or use the 200k and buy 1 property cash and flip?

What would you do with 200k cash?

Your private lender, I’m sure, has no intention of taking a second position lien for you to use it as a down payment, he would be a fool to do so.....and how would you pay it back in 6 months?

@Randy Galliani , so you got a private lender to invest in a deal, and you have no idea what deal you're doing?  Were any specifics discussed?  Seems a little fishy.  Where did you meet these investors?  Most people aren't throwing $200K to someone with no plan.

@Wayne Brooks well I have a person that brings me potential investors that are willing to invest in a simple promissory note with 8-9% within 6-8month.

I pay them back once the house sells.

I show them projected numbers and potential profits to be made on flips in my area. I don’t understand why they would be a fool to invest?

Game plan is I find the deals they put up down payments and I pay them when the house sell.

My average flip turn around is 4-6months

@Randy Galliani , it did not seem clear in your initial post. Congrats on finding the investors! I would say you still need to run by them what their money is being used for. As for a HML, I assume most would be ok with scenario as long as they get first lien position.

Originally posted by @Randy Galliani :

@Wayne Brooks well I have a person that brings me potential investors that are willing to invest in a simple promissory note with 8-9% within 6-8month.

I pay them back once the house sells.


I show them projected numbers and potential profits to be made on flips in my area. I don’t understand why they would be a fool to invest?

Game plan is I find the deals they put up down payments and I pay them when the house sell.

My average flip turn around is 4-6months

I was referencing your thought of using the money as a down payment on a multi, I assumed as a long term hold, not for a flip....two totally different scenarios  

 

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