Paying back private money lenders

6 Replies

What process did you personally take to pay back your private money lenders (monthly payments, lump some after selling home, after a few years with interest, etc..)? Thank you for your time

@Gabriel D. Zapata   All of the above.  But for me, most commonly for a shorter term 6 month - 3 year loan, straight interest and monthly payments,  then the full amount due at the end of the term.  So as a real example $25k loan at 7% = $145.83 per month.  At the end of 3 years, $25k due.

Hope that helps,

- Tom

@Tom S. Just wanted to thank you for the simple explanation. New to the site and to the idea of investing in property. Just trying to get an educational foundation of all these concepts. I had just finished reading Chapter 5 of "No and low money down". I was a bit confused at the end of the chapter about when to start initiating payments to the hard money lender, but your post cleared things up.

Thanks again,


I only do shorter term private loans (6-12 months). I pay interest only while I have the money and pay it off at the end of the term with a balloon payment.

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