Approaching private lenders

[Tim Sipowicz]

I'm trying to obtain my second rental investment and I've come to the realization that saving up the 20% everytime, is just not realistic for the goals I have in mind. My biggest goal and aspiration is to successfully complete a BRRRR and continue to scale. I know a few people who have the funds for a cash buy, and I have about 30k available for the rehab portion. My question is, how do you approach and put together an offer or an ask to a private lender? How do you structure the deal for them? Is it monthly interest or a lump % after the cash out refi is complete? I would like to approach the situation as professionally as possible and have all my ducks in a row. Any insight would be greatly appreciate. Thanks In advance.

[Eddy Ogbekhilu]

@Tim Sipowicz.Hello Tim,per your inquiry, its as simple and painless as can be.

I just went through a private lender un September for 200k @10% interest rate 1.5% origination fee balloon 🎈 payment in 5 years or with re extend if need be without penalty.

Your closing attorney will be the one that does all the paperwork with all safety safe guards in the contract. In most cases your lender will ask to include what is referred to as "Rent assignment ",with this contract in place if you default/refuse to pay your lender will automatically be the recipient of your rental income.Depends on your lender,he/she would request first equity position in your mortgage.

Monthly payment for the most part and according to your contract specifications.

Hope this will be helpful to helping you pull the trigger. The lender needs you as much as you need them "Business ".Good luck.