Let's say I want to BRRRR a single family home using private lender cash for the initial purchase. What is a typical or fair deal to offer a private money lender for his cash (assume I'm using none of my own money)? Second, would you ask for rehab cash from this investor or find alternative financing for rehab?

Appreciate the advice! I’m looking to purchase my first deal soon!

I would think you would have to pay more than 2 points/9.5% in a "no money down/no prior experience deal" if you could even find one.  

Hi Tyler, it really depends on many factors, how many investors you have in your network willing to invest in your deal, your experience, the area you're in, etc. My first deal, because I only had one or two investors (private lenders) and no track record, after negotiations I ended up paying 10% on the loan (this was '06 when interests were higher) and splitting the profits 50% with the investor. This was very costly for me, but I had no track record and most investors I approached did not want to invest with me due to my lack of track record. However, the second deal I only paid 10% to the investor, but none of the profit. These were investors and not hard money lenders.  The longer you do this, the better the terms you can usually negotiate with an investor, especially if they already invested with you and the deal was successful. In both cases I borrowed enough to purchase the property and to rehab. However, if you use an alternative source like hard money for the rehab, be ready to pay for points up front, and possibly interests during the reno.  I see other rehabbers currently pay their private money lenders 8%, but they have a track record and a large pool of investors. I hope this helps.

My question is where is the private money coming from? Is it from friends or family or other professional acquaintances. I'm also in this process of growing my private funding for flipping. For me personal I'm at any where from 6 to 12% and deferred interest until time of sell. Dont be afraid to ask for terms that help your return. If you're a solid bet and providing value dont waste your time trying to convince someone your worth it. It will come over time and you can adjust your terms. 

Hi everyone, sorry for the newbie question but what is the usual and customary time horizon an investor can expect to receive on hard or private money loans?