I have the possibility for a loan from a private investor for my next investment home purchase. I haven't accepted private money before, nor has my potential investor loaned money for such an investment before. I need help in understanding what is a reasonable or "standard" return the investor can expect and how the loan should be structured. My intention for the property is to buy, rehab, rent and refinance. I would pay the investor back in full plus their "return" when I refinance. So if things work as planned the loan would be fairly short term. Any advise or info would be appreciated.
Lamont, thank you for your response. I was thinking along those same lines and your answers reinforces my initial thoughts.
@Joseph ODonovan Thanks for the heads up on the equity. I should be fine after remodel.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.