Updated over 9 years ago on . Most recent reply
Help with private money loan structuring
Hi all,
I've found an individual interested in doing some private money loans to allow me to buy for cash. However, this is an area I have no experience in yet. I've spent a few hrs on BP but I haven't understood enough specifics to be clear on what I want to do. This would generally be short term (6-18 months) loans that would allow me to buy, rehab, rent and then refinance conventionally. Are these loans typically interest only, until the repayment? What kind of interest structure is used? Do I need to get my attorney to write this up for me? I want to be fair and have a win-win for both of us.
I'm looking at a first go of $75K purchase, $8K rehab, ARV of $125. If some of the collective wisdom here would care to outline some baby steps on this for me, it'd be much appreciated! Thank you!