How do you structure a payback to a private lender who takes a 10% position on your deals!!
I am a newbie to everything, learning as I go and trying to learn about purchasing using none of my own money! I am looking at offering on my first deal or two and have found a private lender to work with but they want me to have a min. Of 10% in the game. I would need to find someone to work with for this 10% as well as I do not have the capital right now. My question is, if/when I find someone for this 10% how do I structure the payback to them? I know there are a few options and they may have a plan themselves but what is most common? If I offer them say 10% or more on their money and make a five year payback plan, how would the payback work to get them their principal back plus the 10%+??? I am trying to wrap my head around this!!
Thanks guys!!