Format For New Investors

[Dan Deckelbaum]

Im a Realtor and have a few rentals.  I am in the final stages of planning before I scale my business by investing in appreciating areas in Philly.

What should I offer friends that have money for private lending?  I wrote up a business plan with either a 5% interest and 10% profit share OR a 7.5% interest with no profit share.  10% down from me.  I think I add at least 1 point up front to this to give the lender more incentive.  I want to work with private lenders I know which there are quite a few interested.  I don't want to push people away with a low ball offer. Thanks for the advice!   

I have offers from hard lenders with a few points and fees for 65% of ARV value. Here's an example which I likely will not take:

100% of construction and acquisition up to 65% of the ARV. We can approve the same day and close in 24hrs. Normally we are about 1.09 - 1.167% per month for a 12 month note. The money is 3- 4 points at the table.