In general most are charging from 9 to 10.9% to reduce the discount required.

I understand the need for accepting risk as an investor, but you can reduce it significantly when you follow the right strategies.Do you have written agreements with all of these friends?

That way each subsequent loan with have it's own time-to-repayment clock ticking on it.I would work on my REI with a 'five year or less' exit strategy - even if only to finance out as a way to pay back the 401K loan (they typically have a five year maximum term) although I would aim for producing liquid cash rather that equity initially so that the REI can begin to fund itself sooner and reduce the dependence on 401K borrowing.

The other three core crews are now interior crews, doing kitchens, bath, flooring etc to reduce their time on jobs to three weeks avg, instead of 8.

It reduces your risk and creates a much healthier relationship.

We're in the process of jumping in with 2 properties close to closing, and know we need to learn LOTS more to reduce risk, increase returns, and meet our goals.

On the other hand, for 7.3 MM he is getting one or two multi family units and a flood/tornado/earthquake/hurricane reduces his investment to whatever he gets from his insurance.

I would consider giving them early access to move in their belongings for a reduce prorated fee.  

I may try some direct mailings next year but would like to have a system in place to reduce the workload on my end and be more efficient.  

so just after about a week after purchasing #13 (Click Here), we closed on #14. this one was a little different.it's a house in great shape, all brick, 2 bath, huge basement and huge garage, but in an area with houses that are mostly vinyl with crawl spaces. we might have trouble getting people past the few streets that lead up to the house. but once they are there, it will be a great showing.the house was listed for around 100k a few months ago. then they reduced it a few times and finally it came down to 80. i made an offer with my agent (something i try not to do normally) at 70k, no inspection, closing in 45 days. she thought i was crazy and would never get it for 70k. they accepted, but the problem was that this house would have never gotten approved for financing since it needed shower work, terrible deck, caving in porch, and lower bath is missing most of the drywall.so, i could have either paid someone 2k to do it half a$$ and hope to get it financed, or get it with all cash. but i didn't have 70k cash.told the agent to go back to them and see how much they would reduce it if i paid cash for it. they said they will give it to me for 68k. so, i pulled the max loan out of my 401K, which is 50k, had 20k and combined it to get this house for 68k.the interest on the 401k loan is 3.25%, payable to ME for 5 yrs. so, they will be taking $904 out of my paycheck every 2 weeks.this house has around 8k-10 worth of work.