What interest rates should I offer private lenders for rehab work?

What interest rates should I offer private lenders for rehab work?

Real Estate Investor · Los Angeles, CA · Member since 2013 · 98 posts · 48 votes

We purchased a duplex and need private money to fund the remodel of this property.  What interest rates would you suggest I offer private individuals I know?  We are looking for 2 to 3 investors willing to put in 25k to 50k.  We want to make it enough that we get lenders but not as much as hard money folks etc.

If you have done deals like this I would really appreciate your input.  

Thanks!

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  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    12y

    I pay 10%-12%

  • Investor · Atlanta GA | Marietta GA | Greenville SC | Spartanburg SC · Member since 2014 · 202 posts · 60 votes
    12y

    I pay a friend who I've owned property with before 2% points and 12%. The hard money lenders here want 5%/15%. I've seen 3/13 in my market as well. 

  • Real Estate Investor · Monrovia, MD · Member since 2014 · 3 posts · 0 votes
    12y

    Seen many at 2/12 over the years

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