Private Money Lender - Advice Needed

[Shanaya Smith]

Hey BP,

I am trying to find a private money lender to assist with the finances of house flipping. Originally, I was going to obtain a hard money loan. However, after a great deal of research and analyzing the outcome as far as profits, I have decided to not go the HML route. I have been networking and feel that I have a pretty strong team as far as contractors, real estate agents, property managers, etc. So I already have a plan on how the work is going to be accomplished. I have been trying to break into the investment game for quite a while now and I truly feel that it's now or never. I would like to partner with a private money lender and instead of doing a 50/50 split, we would do something more along the lines of 60/40 or 70/30 (depending on profits). I am extremely confident I can pull this off. Especially since Atlanta is such a HOT Market right now. How do you guys think I should go about finding a lender that will agree to these terms? Any and every input is greatly desired.

Shanaya S.

[Will Barnard]

Some private lenders strictly want a set rate if return and Bevin a lender position rather than a profit share position, which, in the event of profit absence, they get nothing.

Private money lenders are people you know or meet whom you have a relationship with or a recently formed one. They are typically family, friends, neighbors, Doctor, attorney, CPA, other parents from your kids school, etc. etc. etc.

My question to you is, why would you want to give up a high % of the profits when you can simply pay 9% or 10% straight interest?