What sort of arrangement do you have with your lenders?

[Jerry Cima]

Just wanted to see what sort of agreements were typical between an investor & their private lender? I know each situation is different, but i want to be able to present different options to investors. I'm looking to buy duplexes in most conditions (needing a full rehab to needing minor cosmetic work). I plan to hold them & collect rent, but I'm not opposed to selling it as a flip.

Right now i plan to offer an investor a 9% interest on his loan plus an origination fee of 1%. Another investor wants to be more "involved", i was considering offering them a lower interest ~5%, longer duration & a split in any profit from rent & profit gained by selling.

1) What loan duration's are typical for a private lender?

2) Do you refi with a conventional mortgage after the place is rented or after repairs are done? & are issues refinancing usually an issue?

3) In a lower interest & split profit sort of deal, what % split is normal? I'll be doing all the work.

4) Has anyone ever used a syndication structure with 3 people?  Acquisition fee for me, Investors get preferred return, then we split the profit.