How to structure a private money deal
Hi all,
I'm hoping to make an offer on a deal very soon for a property that just came on the market. I've run the numbers and it looks like it could be a solid BRRRR opportunity. I've convinced my parents to be my private money lenders in the deal at 10% interest, but as this is my first BRRRR, I'm not sure how to "structure" the deal. Here are my questions:
1. I know I need proof of funds to make an offer - what do I need from my parents to do this? All the cash transferred to a single bank account? What are seller's agents expecting here
2. How do I calculate what I'll owe them in interest? The biggerpockets BRRRR calculator doesn't break out what I owe my private/refi lenders.
Any insight to the above, or any other gotchas or tips would be really helpful!