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Updated about 2 years ago on . Most recent reply

Objective feedback on family loan
I would appreciate some objective feedback
I'm looking to take a loan from a close family member...I want to give them a decent return on their investment as you would with any other investor/partner that's fair to both parties. They are offering to front $150k, allowing us to put in a cash offer. I'm confident we can live there (saving us rent elsewhere) and double the value. I was thinking 10-12% compounded monthly..... Realistically I think we could cash out refi in a year. So $15-20k back to them and I'd be out of pocket for repair costs only.
Thoughts??? What's a typical return for silent partners?
Most Popular Reply

You need to provide more solid numbers, it is all negotiable. You can compare to what the market is charging in terms of points & interest rate, but you should be aiming to get the best terms possible.