Private Money Terms
Hi Everyone! I am working on raising some capital from family and friends for a multifamily. I was wondering what are typical rate of returns for private lenders. I've seen anywhere between 7-15% but was curious what would be a good ROI in the current economy. TIA!
Part of it will depend on how long you are holding the property. If it is a multifamily, are you talking about giving a preferred return on a long term hold or something else? For fix and flips, private rates will likely be lower than hard money. There are a couple of local hard money guys that do low double digit rates plus points.
Real Estate Agent
@Mason Hickman I plan on holding it for the longterm but doing a cash out refi after 6 months and giving each person their cash back + interest rate.
#2 All Forums Contributor
- Investor
- Northern Virginia
@Cindy West
8-12% is a decent range to be in
