All Forum Posts by: Hunter Woolsey

That is far from standard, If you funded the house and him the remodel and the split the profit that might make more sense. It's all about the numbers, if they work for you this way, go with it but seems sketchy to me.

Become a fireman (we are the real heroes anyway), then you will have an extremely flexible schedule giving you time to also work as a full time agent. I had to mess with you a little haha. Good luck in whatever you choose.

I am east of Dallas and got a quote this week to do exterior of 1600 sq ft SFH (mostly brick) for $2200 that included pressure washing, caulking all windows, and rolling the first coat and spraying the second. I thought it was reasonable for the amount of work but I am on a budget with this house and gonna try to tackle it myself.

Mark are you doing buy and hold? Who is writing up the agreement on the private money deals?

Thank You, that all makes sense. I understand they will all be very different depending on what agreement you can come to. My bank loans have been just below or just above 4% 15 year and around 60k with the 8-12k of rehab cost included. What in your opinion would be a good starting point for interest rate with a private investor? 

Hello all,

I am new to Bigger Pockets, I have been reading the forums for about a year as well as listening to the podcasts on my commute to work. I am also a rookie investor from Texas,  I currently have four rental properties that I have obtained all with loans from a local bank at a rate of one property per year. I have heard a lot about private money loans and it got me thinking, how do you structure a private money loan on rental properties? It seems relatively easy to set up private money with a flip deal because the investor gets their money back within a year if everything goes as planned, but with a buy and hold is your investor in it for the long haul with you? and after its paid off are they still a partner, or is just like a bank just a loan with interest? I have a possible private money investor but he is an older gentleman and I don't know if a 10 or 15 year loan would be appealing to him. I listened to Michael Zuber on the BP Summit 2012 Audio, I would be curious to know how his private money loans are structured. I hope all of this makes sense. Thank you in advance for all yall's help.

If he is a good tenant and cares for the property to your liking, I think it would be a reasonably safe move, the rent is already being paid on his income and somewhat taking her financial qualifications out of the picture. It will also help to keep him as a happy long term tenant.