All Forum Posts by: Jay Lancaster
Jay Lancaster has started 2 posts and replied 12 times.
Post: What are considered to be fair percentages to be paid on private money?
- Posts 20
- Votes 1
Quote from @Chris Seveney:
@Jay Lancaster
It can be one loan but in draws meaning you get funds for acquisition and then rehab as it progresses
This depends on your experience and how much money in the deal.
If you have no experience and no money I would do a Dutch loan at 15% and 5 points.
If you had experience and money it could go down to around 12% and 2 points.
Really depends on a lot of factors that were not listed or info included
So say it was 25k on the acquisition and 75k on the rehab where I put no in and this is my first deal. What exactly would the 15% and 5 points look like in repayment terms where we did a cash-out Refi upon project completion? In Detroit would I have to wait longer than they 3 months it would ideally take to complete the rehab?
Post: What are considered to be fair percentages to be paid on private money?
- Posts 20
- Votes 1
I'm working with a partner in an effort to acquire 8 properties to buy, fix and hold. When the same private lender is providing the funds for property acquisition and the estimated 3 to 4 months rehab costs what are the "customary" (If there is such a thing) percentages that would or should a person try to negotiate on repayment from an immediate cash out Refi? Should the Acquisition loan repayment be separate from the rehab loan?