Providence, RI · Member since 2013 · 17 posts · 1 vote
Hello everyone,
I just wanted to get your thoughts on a deal that I'm about to go forward with with a private lender if you want to call it that way.
Basically I was aproofed for 250k max with them covering 80 of the purchase price as well as 80% of the repair cost.
The terms on the loan are a 12 months with anew 11% interest and a 2% origination fee.
I have 2 deals lined up that should cover pretty much 250k and or at least 200k... and hopefully provide a 110k profit between the two deals.
Wanted to get your valuable input on this approach of using private lending and if 80% for both the purchase and repair cost for a first timer sounds ok....
Interest seems a little high to me... it should get better once the dirt deal is out of the way..
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
9y
@Isaac Dominguez Yes, these seem like pretty standard terms. You can also try reaching to local banks in your area. If you're able to put down 20% and cover 20% of the rehab, you may be able to get more standard bank rates in the 5-6% range.