I have private money to lend. Terms?
Hi. I've been investing for about ten years (rehabs and wholesaling). Now I am getting into private lending/joint venturing. Want some feedback on these terms.
- I fund 100% of project including purchase and rehab costs.
- Total loan amount not to exceed 70% of After Repair Value
- Rehab Draws: 50% at half and 50% upon completion
- Title held in my LLC. (Negotiable based on borrower experience)
- Execute Joint Venture Agreement
- Profit will be split based on deal and level of experience of borrower
- Agreement term is for 6 months, after which, borrower profit split is reduced to 50% and I assume management of the project.
Does this sound reasonable?