borrowing money from private lender for a flip
I am going to borrow money from a friend who is interesting in making some money with me on my second flip. I wont be borrowing much from him but im not sure how much he should make when the house sell. should i do a percentage of what he lends or a set amount on it. I have never borrowed money from a private lender before.
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A set note interest rate at or below your state usury rate would be best. As for the labor he may do, keep that separate, pay him for his labor and for the money investment, pay him the agreed interest. North Carolina has some very vague usury laws so I suggest you speak with an attorney or loan broker to stay within the legal limits without gray areas.