Private lenders

[Sheldon Cyrlin]

What is the annual percentage rate of return on cash invested that makes secured property investers happy ?

[Will Barnard]

Originally posted by Jason T.:

Family, friends, and fools might give it to you for 5% but most private lenders will want more like 12-14% with points.

You are quoting hard mkoney loan terms here, not private money. Just to be clear, private lenders are usually unlicensed individuals looking for something better through real estate. They are restricted from lending above state usury laws (every state is different so check your state laws).

Most of my private investors loan to me at 10%-12% no points. At 12%, they are 2% over usury, however, I protect them from this using several different methods. They are happy to get such high returns with minimal risk. In fact, their risk factor is actually negative due to the way I structure my deals. very low LTV's, I ALWAYS have lots of cash in the deal, and ALWAYS personally guarantee my loans putting all of my company and personal assets on the line. If anyone thinks I would risk all that to not pay back a loan, think again!