I am in need of 50k to close the deal and I need to use them approximately 3-4 months tops. I am thinking of reaching out to my family member to loan this amount. What would be reasonable interest I could give on top of the principal amount at the end.
I am thinking of returning the whole amount along with interest as soon as I refinance the house.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
6y
@Jenna Walker I usually offer my private lenders a choice:
6% if you want monthly payments
8% if you are ok with me paying you all the money at the end
So often times, I have a loan with no payments. Kind of helps a little bit. But offering a choice allows them to feel a little more involved too. Something along those lines would be fine. Thanks!
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
6y
@Jenna Walker I usually offer my private lenders a choice:
6% if you want monthly payments
8% if you are ok with me paying you all the money at the end
So often times, I have a loan with no payments. Kind of helps a little bit. But offering a choice allows them to feel a little more involved too. Something along those lines would be fine. Thanks!
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
6y
@Jenna Walker I do make my loans for 12 months but I am certainly looking to refinance out ASAP....now I am buying and holding, so my properties are lower valued in general. If you are flipping, maybe 24 months might be a good term to use. Hope all of that makes sense.
@Andrew Postell yes it does and I really appreciate your advise. Its buy and hold this time, I hope I get to fund this and win the bidding this time. 🙏🙏🙏Thanks again Andrew!