Structuring Private Lending

The REI MInute - Episode 5 - How to Structure Private Money Deals

With the collapse of the mortgage market it is imperative that you look for outside sources to fund your deals. Today show asked a very important question when bringing other people in to finance your deals...

"How would you structure paying back someone or a couple people who are investing around a total of 50% of total cost so each of your investors were putting in 25% each? Say if your plan was to find a property to hold less than 6 months subject to, reo, or shortsale. Then you invested the other 50%. Lets say you found a property that your total profit was around 20,000 dollars after paying back everyones initial investment. How would you distribute that?"

Get the answer on the show and more detailed information from Don Derosa our resident private money expert here

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