Private Lending - Flat Rate vs Annualized?

[Griffin Fehrs]

Hey all,

For those using private money from personal relationships  - in this case - on rehab projects - what are your opinions on flat rate returns vs annualized?

10% flat rate on $100,000 is quite different than 10% annualized when project durations are 4-6 months.

I understand if the numbers work in either case then it's a good deal.

Im just curious as to what terms are being used more - flat vs annualized.

Thanks