Approaching a private lender for the first time.

[Dustin Oien]

Hello fellow BP friends! 

This evening I just came across a buy-and-hold opportunity that would yield a 10% cash on cash ROI. I used the BP calculator and my knowledge of the local area to decipher the details of the deal. Now i want to approach a friend of mine who has expressed interest in funding a deal.

I'm completely new to the game and know very little about approaching a private lender, and what specifics they are going to be interested in (besides an attractive ROI).

What are typical lending terms of this nature? How soon do private lenders expect to be paid in full (plus their appropriated ROI %), or is that something that is completely negotiable? I tried searching this topic in the forums/blogs but couldn't locate this specific topic so i decided to start a new discussion.

Thanks very much in advance for your insight you can offer here.

PS: here's a link to my analysis, in case anyone is interested in checking out what i've found/drawn up...

https://www.biggerpockets.com/calculators/shared/847416/8399fbce-70c6-40f3-a719-f287d76f1cd8