Seeking advice when paying back private investors

3 Replies

Hey BP,

I just completed a very successful flip using private investors to fund the purchase price and some of the rehab. This is the first time using private money (friends and family) so I wanted to reach out to see what others do when paying back their investors. I am planning to do a short write up to summarize the investment (forecast vs actuals) and provide some before and after photos. I want to do more than just cut a check and thank them. 

Any thoughtful/creative ideas are welcomed. Thanks in advance. 

Michael, a total project / investment summary would be helpful as they know exactly what happened and how their money was used. Including before and after photos also a good idea. Give them a bottom line return number, so they know exactly they made "x"% on their money. When they talk to other people they can say, oh yeah I made a "x"% return working with blah blah.... 

Originally posted by @Eric Johnson :

Michael, a total project / investment summary would be helpful as they know exactly what happened and how their money was used. Including before and after photos also a good idea. Give them a bottom line return number, so they know exactly they made "x"% on their money. When they talk to other people they can say, oh yeah I made a "x"% return working with blah blah.... 

 Thanks, Eric! I forgot to mention that my investors were all fixed rates loans so everyone understands their return. I do like the idea of an project/investment summary either way. 

If it were a fixed rate loan and you did really well on the project, consider giving them an extra 1%.  By overdelivering on your promise, you'll have money to recycle for years to come.